The Billionaire Traders
Here are some
quotes from some famous traders and investors:
• "I haven't met a rich technician"
- Jim Rogers.
• "I always laugh at people who say "I've never met a rich
technician" I love that! Its such an arrogant, nonsensical response. I used
fundamentals for 9 years and got rich as a technician" - Marty
• "Diversify your
investments" - John Templeton.
• "Diversification is a hedge for ignorance" - William
on picking bottoms and tops
• "Don't bottom fish" - Peter
• "Don't try to buy at the bottom or sell at the top" -
• "Maybe the trend is your friend for a few minutes in Chicago, but
for the most part it is rarely a way to get rich" - Jim Rogers.
• "I believe the very best money is made at the market turns.
Everyone says you get killed trying to pick tops and bottoms and you make all
your money by playing the trend in the middle. Well for twelve years I have been
missing the meat in the middle but I have made a lot of money at tops and
bottoms." - Paul Tudor Jones.
So here we have a group of
guys who have collectively taken billions of dollars out of the market and they
don't agree on thing regarding how to make money. Not one. So what is a
person to do?
Is there anything they do agree on?
Just one: money management
• "My basic advise is don't lose
money" - Jim Rogers.
• "I'm more concerned about controlling the downside. Learn to take
the losses. The most important thing about making money is not to let your
losses get out of hand." - Marty Schwartz.
• "I'm always thinking about losing money as opposed to making
money. Don't focus on making money, focus on protecting what you have" - Paul
• "Rule number one of investing is never lose money. Rule number
two is never forget rule number 1" - Warren Buffet.
• "If you have an approach that makes
money, then money management can make the difference between success and
failure... ... I try to be conservative in my risk management. I want to make
sure I'll be around to play tomorrow. Risk control is essential." - Monroe
• "If you personalize losses, you can't trade." - Bruce Kovner
• "The best traders have no ego. You have to swallow your pride and get
out of the losses." - Tom Baldwin
• "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." Larry Hite.