Often when we think about certain quotes in relation to forex and trading, we are thinking of ones that are solely from those that have been successful in trading. Afterall, those are the people that we are looking up to, looking to them for advice and so we should be doing what they’re doing. There are, however, lots of very relevant quotes from people who have nothing to do with trading at all. In fact, the vast majority of the quotes that we are going to mention below are not to do with trading and are involved in all aspects of life, the one thing that they have in common though is that a forex trader could take them and apply them to their craft.
Of course, we have thrown in some trading related quotes too as they are just as important to us as traders and come directly from experts within the field. So here are some of the quotes that we have come across and what others have posted around the internet that are very much applicable to you as a trader.
“Every battle is won or lost before it’s ever fought” – Sun Tzu
Sun Tzu was a Chinese military general who was born in 544BC, so quite a long time ago, yet the words that he spoke are still very much relevant today, and especially relevant to us as traders. While he may have been referring to battles, we can apply it to our trades, each and every trade can be won or lost before it is placed. This comes down to our trading plan and sour risk management, get something wrong and the trade could be lost before we even place it, however, if you do everything right, then it puts us in a much better position to have that trade win instead of losing. It is all in the preparation.
“Luck is a preparation meeting opportunity.” – Oprah
This quote is all about being in the right place at the right time for something good to happen to you. Of course, in order to be in the right place, you need to put in the preparation beforehand. It is very similar in a sense to the Sun Tu quote as it is all about ensuring that you have put in the work before making any trades. If you have done that, once an opportunity pops up you will be in the perfect position to take it and to take advantage of it. Whereas if you were not prepared and the same opportunity came up, you would more than likely miss it and then miss out on the returns too. Just remember, there isn’t actually any luck in trading, just good planning.
“It is not the strongest or the most intelligent who will survive but those who can best manage change.” – Charles Darwin
This is extremely relevant to us as traders, the market is a fluid beast, it does not stay the same for long. In fact, it is often changing by the day. When this happens, only those that are able to adapt are able to keep up with it and to remain profitable. You often see traders doing well, but as soon as the markets change they do not know what to do, their strategy no longer works and so they start to make losses. A good trade will have additional strategies and have an understanding of how they can adapt their current strategy to remain profitable in the new conditions. A good trader needs to adapt, much like many things in life as pointed out by Charles Darwin.
“The biggest risk is not taking a risk. In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks.” – Mark Zuckerberg
Trading is a risk, there is no way around that, many people sign up, deposit, and then hesitate, do they really want to take this risk? The answer should be yes according to Mark Zuckerberg (owner of Facebook). If you want to make money with trading then you will need to take a risk, your money could either be sitting in a bank in order to generate 0.5% interest per year, or you can trade it, there is a chance that you could lose it, but the rewards far outweigh those risks, at least they should if you are using proper risk management. Do not be afraid to take that risk, it could be the risk that changes your life.
“Risk comes from not knowing what you’re doing.” – Warren Buffett
Another one about risk, they seem to like these ones. Warren Buffet is one of the world’s most famous investors so he probably knows a little about this subject. What he is referring to is the fact that you are able to mitigate a lot of the risk involved in trading by simply having an understanding of what it is that you are doing. You can use your knowledge to reduce the risks, you can also use things like your risk management plan to help reduce things also The key is to know what it is that you’re doing, if you go in blind then the risks are tenfold what they would be with a little bit of knowledge and preparation.
“Losers average losers.” – Paul Tudor Jones
A little confusing to begin with, but Paul Tudor Jones is known as one of the greatest traders that has existed, so he probably has a good idea of what he is talking about. This quote is actually quite simple, he simply means that if you have a losing position, you should not add to it. Things like grids and the martingale strategy are prime examples of this is exactly what he is warning you away from. If you have a losing position, close it, and then start again, do not add to it as this will only add to your losses and increase the risk that is currently put on your account.
“Yesterday’s home runs don’t win today’s games” –Babe Ruth
Let’s put this simply, every day is a new day and every trade is a new trade. Do not think about what happened yesterday, concentrate on what you are doing today. Whether yesterday was profitable or you made a loss, it doesn’t matter, what matters is that you forget about that and concentrate on today. The past should not affect the present when it comes to your trading. This is easier said than done as there is a lot going through your mind, but the more you can forget yesterday, the more you can concentrate on today.
“The game taught me the game. And it didn’t spare me the rod while teaching.” – Jesse Livermore
To make this one a little simpler, it simply means that you will learn the most from actually doing it. In our case, it means just simply start trading (on a demo account to begin with of course). You will learn a lot more from taking action and seeing how it works than you will by simply reading. Of course, it will teach you some painful lessons too, but that is all part of the process of becoming a better trader. You can read 1,000 books but someone who has made a single trade whereas you won’t have will still have more experience than you.
“The goal of a successful trader is to make the best trades. Money is secondary.” – Alexander Elder
If you come into trading with the sole purpose to try and make money, then things will not work well for you as you will be throwing a lot of caution out of the window and risking too much, If you come in with the idea of becoming a good trader, to follow the rules and to be good, then you will have a lot more success and the money will naturally come to you, meaning you do not need to think about it. Concentrate on being a good trader and the money will follow is the main take away from this quote.
So those are some of the quotes from various people around the world and from all sorts of times, they are all very relevant to us as traders, these are all people who have been and are successful in what they do, so do not take their advice or meanings lightly. Stick to the ideas that they bring and they should help you to stay on track with your trading and to hopefully one day be a consistent and profitable trader.