Who loves good trading or investing quotes ? I know I do. Especially one that is thought provoking and really hits home.
Here is a list of 25 of the best trading quotes I could find. I don't know about you but I find it sort of therapeutic especially when I'm going through a tough time in the markets. For some reason, it helps me to know that others were once where I was or am.
Enjoy the read and hopefully these quotes will inspire you to keep on track in your journey as a trader or investor and offer some inspiration for anyone who may be struggling.
1. Warren Buffet
" The market is a device for transferring money from the impatient to the patient."
"Someone is sitting in the shade today because someone planted a three a long time ago."
If you've been living under a rock or just don't know much about Buffet, he is famous for compounding a relatively small amount of money into billions to become one of the richest men on the planet.
Mind you, if you looked at his website, it's more like something from the stone age. However, his annual shareholder letters are brilliant for learning.
2. Jesse Livermore
"As long as a stock is acting right and the market is right, do not be in a hurry to take profits... Let it ride and ride along with it. It may grow into a very large profit."
“A trader has to reverse what you might call his natural impulses. Instead of hoping he must fear; instead of fearing he must hope. He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a big profit.”
Arguably the best trader of all time, lots of us can learn loads from Jesse Livermore. Amassing a fortune of $100 million in the 1930s, one can only admire the man and his achievements. Unfortunately, there is a tragic ending to his story which you can read here. If you want to dig into more detail on his life, Reminiscence of a Stock Operator is a great read.
3. Paul Tudor Jones
"Losers average losers"
"At the end of the day, the most important thing is how good you are at risk control"
2 great quotes here. The first is the famous quote that was printed above his computer screen in this 1987 documentary
A billionaire many times over, you can learn lots from him. You can read about him in Jack Schwagers Market Wizards book
4. William O Neill
"What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower'
Famous for his strategy Canslim, he has made millions and trained others to make millions over the years. My strategy is part of this traders teachers. You can read more about him in this interview. He also developed some amazing books going into details of his strategy. How to Make money in Stocks was the foundation I built upon in my own trading.
5. George Soros
"Markets are always in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected"
A billionaire investor famous for breaking the bank of England, Soros has some great information to learn from. Here he is speaking in a lecture series for his charity. You may also enjoy Soros On Soros.
6. Ed Seykota
"Win or lose, everyone gets what they want out of the market".
A great little quote by this famous trader, he is know for turning $5,000 into $15 million. Not bad eh ? You can learn more about him in this interview
7. Bruce Kovner
"I know where I'm getting out before I get in."
Simply quote yet a very powerful reminder of how important it is to always have a plan when we enter a trade. You can learn more in the Market Wizards Book where he is interviewed.
8. Jack Schwager
"Being wrong is acceptable, but staying wrong is totally unacceptable."
A very good quote by author of market wizard books on the importance of risk management in trading and investing. You can learn more about Jack in this podcast interview.
9. Alexander Elder
"The mental baggage from childhood can prevent you from succeeding in the markets. You have to identify your weaknesses and work to change. Keep a trading diary—write down your reasons for entering and exiting every trade. Look for repetitive patterns of success and failure."
Amazing quote for stressing the importance of journalling and psychology in trading. You can learn more from this trader in his book He was interviewed in this article which some may find useful to gain insight into his world.
10. Van Tharp
“When you understand what’s involved in winning, as do professional gamblers, you’ll tend to bet more during a winning streak and less during a losing streak. However, the average person does exactly the opposite: he or she bets more after a series of losses and less after a series of wins.”
A high performance coaching psychologist, he has helped some of the greatest traders of all time. You can learn more about him in this presentation. He also has this cool trader test where you can see what type of trader you are.
11. John Maynard Keynes
"Markets can remain irrational for longer than you can remain solvent."
British economist John Maynard Keynes wonderful quote on the markets. It is so true and something I remind myself regularly.
12. Albert Einstein
"Compound interest. Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.Compound interest is the most powerful force in the universe."
No introduction needed here. What an awesome quote to reflect on.
13. Martin Schwartz
"Trading is a psychological game. Most people think they are playing against the market, but the market doesn't care. You’re really playing against yourself."
Famous day trader Martin Schwartz emphasizing the importance of psychology in trading. You can watch him talk or read his great book Pit Bull, Lessons from Wall Street's Champion Day Trader
14. Richard Dennis
"How much of a role does luck play in trading ? In the long run, zero. Absolutely zero. I don't think anybody winds up making money in this business because they started out lucky."
Famous for his experiment that traders could actually be taught how to trade, he went on to train 12 traders to become massively successful. His trainees became know as the turtle traders. You can also learn more about the man, the myth, the legend in this interview.
15. Michael Marcus
“Every trader has strengths and weakness. Some are good holders of winners, but may hold their losers a little too long. Others may cut their winners a little short, but are quick to take their losses. As long as you stick to your own style, you get the good and bad in your own approach."
16. Zig Ziglar
" Success occurs when opportunity meets preparation."
Very applicable to us traders and any industry really. Prepare your plan and wait for the opportunity to come.
17. Jim Rogers
“Never act upon wishful thinking. Act without checking the facts, and chances are that you will be swept away along with the mob.”
“Do not worry about failure, I would tell them. Do not worry about making mistakes in life. It is good to lose money, to go broke at least once, and preferably twice. But if you are going to do it, do it early in your career. It is better to go bust when you are talking about $20,000 than when you are talking about $20 million. Do it early, and it is not the end of the world.”
Jim Rogers, a famous investor, has some very very important quotes here. The first again emphasizing the important of a plan and the second is absolutely crucial too.
We are all hard wired to believe failure is a bad thing and we most avoid it. Just look at my trading story. I'm still young but I've failed a lot to get to consistency in my own journey.
Ask yourself though, of the most successful people in the world, how many of them have overcome failure ? It's probably a lot. Don't be discouraged. You can learn more about Jim Rogers on his website.
18. Peter Lynch
" Never invest in an idea you can't illustrate with a crayon."
A great reminder to keep things simple. Most of the best traders and investors in the world have simple strategies. There are many useful lessons in his book One Up On Wall Street. You can also find more information on Peter in this article.
19. Winston Churchill
" Success is going from failure to failure without loss of enthusiasm"
Okay, obviously not a trader but something that can definitely be applied to trading. We'll all go through tough times on this journey but getting through it is what separates the failed traders from the successful ones. JUst look at my story.
20. Larry Hite
" Frankly, I don't see markets. I see risk, reward and money."
Another great trader profiled in market wizards, this quote really hits home about how to properly view the markets. You can listen to Larry speak here.
21.Sir John Templeton
"If you want to have a better performance than the crowd, you must do things differently from the crowd."
"The four most dangerous words in investing are 'This time it's different"
Billionaire investors really do have some great quotes don't they ? The first quote is so simple yet so powerful. We'd all be lying if we said we didn't have a trade go against us that we truly believed it was different this time. I know I have said it in the past. You can learn more about him here.
22. Benjamin Franklin
"An investment in knowledge pays the best interest."
Another one of my favorites, this rings true to me and many others. The importance of getting the right knowledge in this job is crucial. Never stop learning, it will serve you well in your lifetime especially when you least expect it too.
23. Earl Nightingale
"All you need is the plan, the roadmap and the courage to press on to your destination."
Okay, not a trader but still very relevant to us. Follow your plan with discipline and you will achieve things beyond your wildest dreams.
24. Jack Bogle
"Time is your friend, impulse is your enemy"
How many times have you bought a stock because of FOMO (fear of missing out) ? I know I have and the impulse buys almost always punish me for being stupid. He has written many great books but this is my favorite of his.
25. Charlie Munger
" it never ceases to amaze me to see how much territory can be grasped if one merely masters and consistently uses all the obvious and easily learned principles."
A billionaire co founder working side by side with Buffett, this is a great quote emphasizing the importance of simplicity. You can learn more about Charles over at forbes.
So there you have it, a list of my favorite quotes for trading/investing. There are many great ones out there for all to learn. I love learning from people much more successful than me and hopefully you too can take some lessons away from them. The common theme amongst these people is simplicity is key, a strong foundation of discipline is crucial and to utilize hard work with a definitive purpose.
You'd be surprised even when re reading some of these quotes what you can learn. I know I have. Keep learning and enjoy the journey. What are some of your favorite quotes ? I would love to hear some of them.