Interesting vid: "Winning Methods of the Market Wizard – Jack Schwagger "
39:52: What is the rallying cry of the losing trader? "I’ll get out when I’m even".
40:34: Losing is part of the game, it’s part of the process.
42:34 You have to really wait for the opportunities, you can’t trade all the time. Jim Rogers has a good way of putting it: "I just wait until there’s money lying in the corner of the floor and all I have to do is walk up and pick it up off the floor". In other words, until a trade is so obvious that it’s like taking money off the floor, do nothing. Patience is essential, both in getting into a trade, and staying in a trade.
44:00 Amateurs go broke taking large losses. Professionals go broke taking small profits. You have to allow the good trades to work to their reasonable fruition.
48:05 People are so poorly attuned to trading that they will do worse than random.
48:45 Humans seek comfort. Markets don’t pay off for being comfortable. They pay off for being uncomfortable. That’s why humans do worse than random. Two examples: 1. holding onto a position that goes against you "for a few days" – it gives you a false sense of comfort. 2. buying a stock that is at the lowest point for 6 months – it gives you a false sense of comfort that you’ve bought smarter than everyone else.
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