Self-evident truths are often communicated in witty quotes that can apply to virtually every aspect of life and business. We polled the futures trading veterans at GFF Brokers and took their favorite quotes from some of the top books written on trading (and one used by many traders). Here are their 6 favorite quotes:
1) “ If I have positions going against me, I get right out; if they are going for me, I keep them… Risk control is the most important thing in trading. If you have a losing position that is making you uncomfortable, the solution is very simple: Get out, because you can always get back in.” Paul Tudor Jones, in Market Wizards: Interviews With Top Traders, by Jack D. Schwager
2) “I did precisely the wrong thing. The cotton showed me a loss and I kept it. The wheat showed me a profit and I sold it out. Of all the speculative blunders there are few greater than trying to average a losing game. Always sell what shows you a loss and keep what shows you a profit.” Reminisces of a Stock Operator, by Edwin Lefevre
3) “Learning about options is a bit like learning how to use a saw. You can make a beautiful piece of furniture, or you can cut off your hand.” Options and Volatility Strategies by Sheldon Natenberg,
4) “If there was a single lesson I took away from Salomon Brothers, it is that rarely do all parties win. The nature of the game is zero sum. A dollar out of my customer’s pocket was a dollar in ours, and vice versa.” Michael Lewis, Liar’s Poker
5) “If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.” The Art of War, by Sun Tzu
6) “Losing money is the least of my troubles. A loss never troubles me after I take it. I forget it overnight. But being wrong – not taking the loss – that is what does the damage to the pocket book and to the soul.” Reminisces of a Stock Operator, by Edwin Lefevre
Have any questions about these truisms or the qualities and characteristics of futures trading success? Talk to one of the team members at GFF Brokers to learn how to apply your skills to better navigate the futures and forex markets.
There is a substantial risk of loss in trading futures, options and forex. Past performance is not necessarily indicative of future results.