According to Buffett, long-term investors are needed for the overall health of financial markets, looking for long-term prospects and making appropriate investments.
“The Warren Buffett Way”, Robert G. Hagstrom Jr.
All professional players (alone – before, other – later, and still others – regularly) are experiencing total bankruptcy. The reason is – their ability to voluntarily put every last penny on the line, even if the odds of winning are dubious.
“Stock speculator universities”, Victor Niederhoffer
The professional investment game is unbearably boring and overly demanding for everyone., who is completely devoid of player instinct. Same, who is endowed with this instinct, forced to pay the appropriate price for their addiction.
“Exchange – game for money”, Adam Smith
Little by little, I realized the most important difference between, to bet on price fluctuations, and topics, to anticipate regular ups and downs of rates, and this is the difference between stock gambling and stock speculation.
“Memories of a stock speculator”, Edwin Lefevr
The standard deviation of most stocks is usually greater than the market, but their variability mainly reflects individual risk, which can be eliminated through diversification. However, diversification fails to eliminate market risk. Diversified portfolios are subject to general changes, inherent in the market.
“Principles of corporate finance”, Richard Braley, Stuart Myers
If you analyze the price changes on the holidays in the USA, then on most days there will be significant deviations from the average in the direction of growth.
“Technical Analysis Course”, Vladimir Meladze
Players fail, when they act without a plan or shy away from fulfilling their plans. Plans are created by individuals through reasoning. Impulsive deals are made by excited crowd members.
“How to play and win on the stock exchange”, Alexander Elder
… my principle is, to primarily strive to survive, and only then make money.
“Soros about Soros”, George Soros
It took me about five years, to learn to play intelligently enough, to make big money in cases, when i was right.
“Memories of a stock speculator”, Edwin Lefevr
… financial markets themselves function as an imperfect predictor of events in the real world. There is always a discrepancy between prevailing expectations and the actual course of events. Financial success depends on the ability to anticipate prevailing expectations, not from the ability to predict changes in the real world.
“The Alchemy of Finance”, George Soros
The experience of incomplete victories is no less instructive, than the experience of defeat.
“Memories of a stock speculator”, Edwin Lefevr
The strongest emotions on the market – жадность и страх. When the stock goes up, the tidal wave of greed is almost physically felt.
“Exchange – game for money”, Adam Smith
As Graham notes, uncontrolled optimism can turn into mania, and one of the main signs of mania is forgetting the lessons of history.
“The Warren Buffett Way”, Robert G. Hagstrem
Edgar Astaire, his London companion, easily points to the roots of Soros's success: “The main key to success – knowledge of psychology. He knows the power of herd instinct. He knows, when the crowds rush in search, and offers them the right product”.
“Soros”, Роберт Слейтер
Sports betting and equity investment offer interesting parallels. For example, both processes assume an initial cash cost and both are characterized by income uncertainty. Besides, publicly available information is immediately reflected in the distribution of bets, and on the value of securities.
“Investments”, William F. Sharp et al.
…the statement of classical economic theory that, that the market mechanism guarantees the optimal allocation of resources, is false; his real merit – only in providing a criterion, with which participants can recognize mistakes in their own concepts.
“The Alchemy of Finance”, George Soros
Obviously, that life itself can be seen as a series of speculations. And to carry out these speculations successfully, you must balance at least six variables: initial capital, bet size, Commission, variability of the game itself, exit point and its duration.
“Stock speculator universities”, Victor Niederhoffer
With part “hope for the best” coping is pretty easy. It's psychologically difficult to prepare for the worst., and most traders just prefer not to think about such a development of events.
“Money Management Mathematics”, Ralph Vince
He didn't count on the greedy madness of an entire nation; he didn't understand, what trust, as well as distrust, can be almost endless and that hope – a thing just as reckless, сколь и опасная.
“The most common misconceptions and madness of the crowd”, Charles McKay
Sometimes it is very amusing to watch that, how quite intelligent people hunt for advice. А тому, who gives advice, you don't have to worry about their quality, because the thirsty need any advice, not necessarily reliable and reasonable. If they bring good luck, прекрасно! If not, may be, the next tip will be more successful.
“Memories of a stock speculator”, Edwin Lefevr
– How would you describe your investing style?
– My feature is, that I have no special investment style, or, rather, I am trying to adapt my style to the prevailing circumstances. Looking at the history of the fund, then you can see, that he repeatedly changed his character. During the first 10 the fund has practically not used macro-approaches for years. Later, macro investment began to dominate, but recently we have started investing in industrial assets. I would formulate it as follows: I do not play within this set of rules, I strive to change the rules of the game.
“Soros about Soros. Ahead of change”, George Soros
I highly recommend using stop orders to protect funds from unwanted price movements. However, defining levels of protective suspension, on which to place stop orders, is a real art.
“Technical analysis фьючерсных рынков”, John J.. Murphy
… stock, which attracted the attention of the largest number of analysts, had the lowest average return. In the same time, stocks that have attracted the attention of the least number of analysts, had the highest profitability, which indicates the existence of the effect “unnoticed firm”.
…
What is the meaning of the effect “unnoticed firm”? Firstly, possibly higher stock returns “unnoticed firm” is a kind of reward for investing in securities, information on which is less available. Secondly, эффект “unnoticed firm” exists for firms of all sizes, therefore large institutional investors, who are prohibited from investing in small firms, can take advantage of this effect in the case of medium and large firms (although in relation to the latter, this effect is manifested to a lesser extent).
“Investments”, William F. Sharpe, Gordon J. Александер, Jeffrey W. Bailey
You can only succeed in trading on the stock exchange, when you will treat it like a serious intellectual work. Emotional play is deadly.
“How to play and win on the stock exchange”, Alexander Elder
When the casino roulette starts spinning, all those present involuntarily freeze and wait intently, what will fate bring to the player. Approximately the same feeling arises when you see the flashing numbers on the exchange screen.
“Stock speculator universities”, Victor Niederhoffer
Mother felt dissatisfied because, that she didn't have a career of her own. In a way, she was her worst enemy.. Since I perceived her as a part of myself, I had to fight in myself with properties “неудачника”. Sometimes I feel, that I was able to achieve such significant success because, that I managed to overcome this in myself “неудачника”.
“Soros about Soros. Ahead of change”, George Soros
… and all subsequent years Soros could not get rid of depressing memories. “The past has given me fear, and that's bad. Those who are successful are most afraid of being at the bottom.. Once is enough for me.
“Soros”, Роберт Слейтер
They act wiser, who, contrary to the usual logic, increase the bet in the game immediately after a loss. This increases the likelihood that, that more significant positions will fall on recessions, not at the peaks of the equity curve.
“Technical analysis of futures markets”, John J.. Murphy
Модель, which is used today, based on misconceptions about, that markets can only anticipate events, but cannot shape them. My approach recognizes, what financial markets can, Besides, or speed up, or stop possible future events.
“The Alchemy of Finance”, George Soros
I'm not in the habit of criticizing anyone at all, if this person has not received a written assignment or some other accessible explanation of their responsibilities. When I have to criticize someone for a job they do, I first of all find out, did he know, what is required of him.
“How to Succeed in Small Business”, Louis Allen
… a firm written order of any idea – this is the first step towards its implementation. In a conversation, you can – often without even realizing it – express all kinds of vague and ridiculous ideas. When you put your thoughts on paper, something like that happens, what prompts you to delve into specific details. This makes it much more difficult to mislead yourself or anyone else..
“Manager career”, Lee Iacocca
