Marcus's collected quotes

marcus · #11 18th August 2007, 02:01 AM

Today's quote is from Mr. Richard Dennis , who was at one point of time the worlds most successful commodities speculator and the creator of the turtle trading system, although not much of a public figure in the trading industry it is regrettable that the only book he ever authored was called "Toward moral drug policy" nevertheless his partner the mathematician William Eckhardt has spoken of Richards methods at length in several interviews. A superficial discussion of his methods can be found in Michael Covel's book titled "Trend Following" (which I'm yet to read)

Oops forgot to say ..... Turned $400 into $200 million trading futures.

Quote:

When things go bad, traders shouldn't stick their head in the sand and just hope it gets better. You should always have a worst-case point. The only choice should be to get out quicker. The worst mistake a trader can make is to miss a major profit opportunity. 95 percent of profits come from only 5 percent of the trades.

Quote:

I don't think trading strategies are as vulnerable to not working if people know about them,
as most traders believe. If what you are doing is right, it will work
even if people have a general idea about it.
I always say you could publish rules in a newspaper and no one would follow them.
The key is consistency and discipline.

brief biography http://en.wikipedia.org/wiki/Richard...ublished_works

picture with excerpts from an interview
http://www.flatrock.org.nz/topics/mo...n_of_words.htm

marcus · #12 19th August 2007, 08:09 AM

today's quotes are from Bernard Baruch temporary of Jesse LIvermore and speculator extrordinaire

Quote:

Show me the charts, and I'll tell you the news. Have an opinion on what the market should do but don't decide what the market will do. Be happy with a percentage of the move.

Quote:

"No speculator can be right all the time. In fact, if a speculator is correct half of the time he is hitting a good average. Even being right three or four times out of ten should yield a person a fortune if he has the sense to cut his losses quickly on ventures where he has been wrong." - Bernard Baruch from "My Story"

marcus · #13 22nd August 2007, 01:34 AM

today's quote is from Paul tudor Jones the man who turned $1.5 million into $300 million in five years

Quote:

That cotton trade was almost the deal breaker for me. It was at that point that I said, "Mr. Stupid, why risk everything on one trade? Why not make your life a pursuit of happiness rather than pain?" I had to learn discipline and money management. I decided that I was going to become very disciplined and businesslike about my trading. I spend my day trying to make myself as happy and relaxed as I can be. If I have positions going against me, I get right out; if they are going for me, I keep them. I am always thinking about losing money as opposed to making money. Risk control is the most important thing in trading. I keep cutting my position size down as I have losing trades. When I am trading poorly, I keep reducing my position size. That way, I will be trading my smallest position size when my trading is worst. 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. There is nothing better than a fresh start. The most important rule of trading is to play great defense, not great offense. Every day I assume every position I have is wrong. I know where my stop risk points are going to be. I do that so I can define my maximum possible draw down. Hopefully, I spend the rest of the day enjoying positions that are going in my direction. If they are going against me, then I have a game plan for getting out. Don't be a hero. Don't have an ego. Always question yourself and your ability. Don't ever feel that you are very good. The second you do, you are dead. I know that to be successful, I have to be frightened. Don't focus on making money; focus on protecting what you have.

Saint · #14 23rd August 2007, 08:21 PM

Quote:

That cotton trade was almost the deal breaker for me. It was at that point that I said, "Mr. Stupid, why risk everything on one trade? Why not make your life a pursuit of happiness rather than pain?" I had to learn discipline and money management. I decided that I was going to become very disciplined and businesslike about my trading. I spend my day trying to make myself as happy and relaxed as I can be. If I have positions going against me, I get right out; if they are going for me, I keep them. I am always thinking about losing money as opposed to making money. Risk control is the most important thing in trading. I keep cutting my position size down as I have losing trades. When I am trading poorly, I keep reducing my position size. That way, I will be trading my smallest position size when my trading is worst. 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. There is nothing better than a fresh start. The most important rule of trading is to play great defense, not great offense. Every day I assume every position I have is wrong. I know where my stop risk points are going to be. I do that so I can define my maximum possible draw down. Hopefully, I spend the rest of the day enjoying positions that are going in my direction. If they are going against me, then I have a game plan for getting out. Don't be a hero. Don't have an ego. Always question yourself and your ability. Don't ever feel that you are very good. The second you do, you are dead. I know that to be successful, I have to be frightened. Don't focus on making money; focus on protecting what you have.

Great stuff from Paul Tudor Jones,Marcus........keep em coming!!

Saint

marcus · #15 24th August 2007, 06:52 AM

Today's quote is from Ed Seykota who really doesn't need any introduction, he's just basically all over the place apart from being the guru of many of todays well known traders like michael marcus.

He Achieved 250,000% return over 16 years of trading

Quote:

If you can't take a small loss, sooner or later you will take the mother of all losses. There are old traders and there are bold traders, but there are very few old, bold traders. Dramatic and emotional trading experiences tend to be negative. Pride is a great banana peel, as are hope, fear, and greed. My biggest slip-ups occurred shortly after I got emotionally involved with positions. I prefer not to dwell on past situations. I tend to cut bad trades as soon as possible, forget them, and then move on to new opportunities. The elements of good trading are: 1. Cutting losses, 2. Cutting losses, and 3. Cutting losses. If you can follow these three rules, you may have a chance. Trying to trade during a losing streak is emotionally devastating. Trying to play "catch up" is lethal. I set protective stops at the same time I enter a trade. I normally move these stops in to lock in a profit as the trend continues. One evening, while having dinner with a fundamentalist, I accidentally knocked a sharp knife off the edge of the table. He watched the knife twirl through the air, as it came to rest with the pointed end sticking into his shoe. "Why didn't you move your foot?" I exclaimed. "I was waiting for it to come back up," he replied. Losing a position is aggravating, whereas losing your nerve is devastating. I intend to risk below 5 percent on a trade, allowing for poor executions. The trading rules I live by are: 1. Cut losses. 2. Ride winners. 3. Keep bets small. 4. Follow the rules without question. 5. Know when to break the rules. Be sensitive to subtle differences between 'intuition' and 'into wishing'. Everybody gets what they want out of the market. "The "aha!" process lies at the heart of price change. For instance, consider the series: OTTFFSSE. What is the next letter? This puzzle creates tension - until you see the first letters of the ordinal numbers - one, two. "Aha!" you say. A lot happens during an "aha." The puzzle dies and the tension dissipates. A societal "aha!" drives price. Read the newspapers and the news magazines during a major move. At first, no one gets why the move is happening. There's a lot of confusion. Part of the move's way up, some people get it. At the end, everybody gets it. The tension is resolved and the move ends."

Quote:

"The biggest secret about success is that there isn't any big secret about it, or if there is, then it's a secret from me, too. The idea of searching for some secret for trading success misses the point. "

biography http://en.wikipedia.org/wiki/Ed_seykota

traders tribe where he discusses his unique method of measuring the strength of a trend
using eulers constant, discuss data verification process, shows us the benefit of diversification, and has a lesson in simple crossover EMA system.

http://www.seykota.com/tribe/TSP/index.htm

I advise ppl to do the ema crossover system most of the TA packages have the system coded in their resources section, but try it on your own first.

marcus · #16 25th August 2007, 08:17 AM

Todays quote comes from Larry Hite who turned a $2 million managed account into $800 million in 8 years.

Quote:

Throughout my financial career, I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don't take a hard look at risk, it will take you. If you argue with the market, you will lose. It is incredible how rich you can get by not being perfect. Never risk more than 1% of your total equity in any one trade. By risking 1%, I am indifferent to any individual trade. Keeping your risk small and constant is absolutely critical. I have two basic rules about winning in trading as well as in life: 1. If you don't bet, you can't win. 2. If you lose all your chips, you can't bet. Frankly, I don't see markets. I see risks, rewards, and money.

Morew info and brief bio about this market wizard found here
http://turtletrader.com/trader-hite.html
http://en.wikipedia.org/wiki/Larry_Hite

raosrinivas · #17 25th August 2007, 08:38 AM

Quote:

Originally Posted by marcus

Todays quote comes from Larry Hite who turned a $2 million managed account into $800 million in 8 years.

Morew info and brief bio about this market wizard found here
http://turtletrader.com/trader-hite.html
http://en.wikipedia.org/wiki/Larry_Hite

marcus,

one of the dilemma, i always faced is, when to take a loss, 7% loss on trade or 1% equity, there are many positions with have gone to -15% then returned to profits, so my observation, if a company is very strong like infosys, wipro , reliance etc and if it is in a primary uptrend, is it not a good idea to hold even if it goes -2% of equity and to let it come back up ? any thoughts ?

uasish · #18 25th August 2007, 10:32 AM

marcus,
Thks for the collections,indeed good to read & learn.

Asish

marcus · #19 26th August 2007, 05:15 AM

Thanks for your appreciation Saint, srinivas and dada.

Srinivas well I'm not as experienced as other traders but I think perhaps following a max 2% SL may be a good idea, all the market wizards seem to concur on this one point and Sain't advise of money missed is better than money lost. There are plenty of opportunities on trades everyday, holding on till a 15% SL may prove risky as nothing is ever certain in the market, just in case it continues to go down further 1 or 2 bad trades may destroy 15% of our equity. This is just my opinion though I hope others put forth their views as well.

uasish · #20 27th August 2007, 01:13 AM

marcus,
Saint's thread provides an idea where to put the SL.

Asish

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The Following User Says Thank You to marcus For This Useful Post:
Saint (28th July 2008)