How To Invest: Learn From Wise Market Sayings
Wisdom from Investing & Business Quotes
Rules, rules, rules, rules, rules.
A disciplined investor has the potential to beat the pros. But following rules is hard.
Emotions can rule the mind. So can the urge to blaze one's own path, trying to come up with a system that's even slightly better than one that has been built upon decades of objective, numbers-based study and research.
But if you desire to become ever more convinced why a trading system works, consider the following quotes by successful professionals in the investing business. These words of wisdom jive with our philosophy of how to participate in one of the most dynamic, puzzling and complex arenas of human interaction and can improve your trading.
A few big scores in the market - and a few nasty falls - are perhaps the best way to fully appreciate and understand key rules such as the golden rule (cut losers short) or the basic buy rule (buy momentum trending stocks on big volume).
Nevertheless, great investors learn from other great investors.
"No one can outsmart the market; you treat the market like you're dancing with a gorilla. If it wants to lead, let it."
- Bill Berger
This quote came from "Horse Sense. Street Smarts," by Don Hodges, a veteran investing professional who's compiled quotes on business and life for 40 years. Berger's point: Know what the market is doing right now, then act smartly.
The next several quotes also came from "Horse Sense." You can also go to a library or the Internet to find additional quotes on the art of investing.
"When you hear that a stock is going to be 'the next,' just block it out. The next Toys R Us didn't work, the next Home Depot didn't work, and the next Xerox didn't work. Anytime you hear 'the next anything,' just forget it."
- Peter Lynch
Lynch, former manager of Fidelity's Magellan fund, was a master of finding the great companies and holding them.
"Marketing research tells you what happened yesterday. Sensitivity tells you where the world is going."
- Ronald Shaich
Although the founder and co-CEO of Panera Bread (PNRA) may have been talking about business in general, his words ring clear in the world of growth investing.
"I don't read, much less follow, the valuations or predictions. I study the numbers."
- John Neff
The astute reader focuses on the numbers too.
"If you have a total intolerance for not making mistakes, you'll be unhappy in this business."
- Warren Buffett
Cut your mistakes - that is, your losses - short, to improve your trading.
Courtesy of David Saito-Chung, Investor's Business Daily