Trading and Investing Quotes from The Most Successful Traders in the World
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Inspiration can come from anywhere, but it seems that it often hides in the words uttered by great minds. Forex knowledge is no different. For beginner traders is sometimes essential to refer to the wisdom and experience of prominent traders in order to receive that extra boost and motivation needed to keep their head in the game.
Trading Education collected some thought-provoking forex trading quotes that can give us a little bit more insight into what it truly means to be a forex trader. Let’s explore them together:
“He who lives by the crystal ball will eat shattered glass.” – Ray Dalio
Illusions and crystal balls have one thing in common – they both shatter under stress. Dalio’s success in investment didn’t come out of hoping for the best. Few good things happen for no reason and you shouldn’t expect them to. Instead, you should predict what’s going to happen in the future and prepare accordingly. The crystal ball will not save you.
“I’m only rich because I know when I’m wrong...I basically have survived by recognising my mistakes.” – George Soros
While Soros is a very controversial figure in world politics, everyone will agree that he has a great understanding of currency markets and business. And at the base of it all is a good philosophy of personal learning and development. Soros wasn’t born a billionaire, he had to develop his skills and learn how the world works.
All of that happened, as he puts it, by knowing when he’s wrong and by recognising his mistakes. Many beginner traders fail to do that. They blame everything on external factors rather than working on fixing their own problems.
See also: How to Make Your Net Worth $ 8 Billion
“If you’re early on in your career and they give you a choice between a great mentor or higher pay, take the mentor every time. It’s not even close. And don’t even think about leaving that mentor until your learning curve peaks.” - Stanley Druckenmiller
Information is the most valuable commodity in the world. That’s why places that provide it, like schools or universities, usually charge a hefty fee. But information isn’t always paid for with money. As Druckenmiller says, being close to a good mentor or a teacher can be much better than making money in the here and now. knowledge a mentor can give you has a lot more monetary potential than most salaries you’re going to get at the start.
Check this article out: Stanley Druckenmiller - The Iconic Forex Trader
“The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge.” - Paul Tudor Jones II
This way of thinking extends far beyond the realm of trading, but it’s especially applicable in forex. Many traders lose a huge amount of money on their first attempts simply because they lacked the proper drive for knowledge. Don’t make that mistake and gain as much information you can prior to taking your first steps in the trading world.
“Price is what you pay. Value is what you get.” – Warren Buffet
With this statement, Buffet is trying to convey the difference between price and value, which is a very important concept in the forex world. You may have thousands of dollars but inflation may make them less valuable as time goes on. This quote illustrates that quite well. In fact, the entirety of forex depends on this concept – the shifting values of money.
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“I buy when all other people are selling.” J. Paul Getty
Many quotes rely on eloquent, flowery language and catchy phrasing. This one has neither and yet conveys a simple truth - it’s often not good to go along with the crowd. Try to predict market movements and never follow the crowd blindly. A rapid decline in prices may be the best moment to buy instead of panic.
“Individual and institutional investors alike frequently demonstrate an inability to make long-term investment decisions based on business fundamentals.” - Seth Klarman
You can see many huge mistakes big businesses and even countries make in their policy. Individuals are even more flawed. Understanding that and knowing how to avoid it are the two biggest steps towards establishing a personal wealth. You need a lot of self-reflection and a great deal of education to avoid these traps. The most profitable investments are made in the long term. The human psyche, however, isn’t suited for such far-reaching consequences. That’s something you have to overcome – use your brain and think about the payoff in the future rather than the gratification of the present.
Don't miss: Seth Klarman: The Legend of Value Investing
“Price is the least interesting thing about Bitcoin.” – Roger Ver
As you probably know by now, Bitcoin’s price has shifted rapidly and violently since the inception of currency in 2009. A pizza bought with BTC at the start of its life will now be worth millions of dollars. But the potential of a crypto platform is much more fascinating than its price.
Ver is trying to make people look beyond the mere current value and focus on the fundamental potential of commodities, in this case Bitcoin. But the concept is applicable to all other forms of trading. You’d do well to remember that.
“Most people fail in life because they major in minor things.” – Tony Robbins
While Mr Robbins is more of a motivational guru rather than a figure in the financial world, he’s right about this – your education matters and it matters a lot. Wasting your life on learning skills that won’t be particularly applicable in the current market economy won’t just waste your money, it’ll waste your time, which is far worse.
Focus on education that’s going to have a return. Learn about the financial world, about how to generate and preserve wealth, and how to grow your skills in that field. The ground beneath us is always moving, always spinning. It pays to know what sort of education will be important in the future and what’s just a hobby course that takes you 4 years and thousands of pounds.
“You have to figure out how to make money being right only 20 to 30 percent of the time.” - Bill Lipschutz
Risk management is an incredibly important part of life. Trading large sums can lead to great risks. Lipschutz is conveying that reality. You shouldn’t rely on big wins. Fortunes aren’t made by wide strokes but with small brushes. You shouldn’t just be prepared for being wrong, you should expect it. Take the margin of error into account and work with it. Accept the realities – you’ll fail. It’s a part of nature. Children fall on the floor until they learn how to walk. Were those falls worth it? Of course, and your failures will be worthwhile in the end.
Check this article out: Bill Lipschutz: The Forex Market Wizard
“I don’t implement momentum, I notice it and align my trading with it.” – Ed Seykota
Even the biggest traders are mere specks in the wind of the market. Everyone has to look at the trends and adjust accordingly instead of trying to swim against the current. That’s how Seykota and countless other successful traders managed to make their fortune on the unforgiving markets. Try to align yourself in such a way as to ride the wave of a trend. Seykota has always been focused on analysing how a trader’s emotions affect their trading. The financial world is about logic and cold systematic movement, but the personal feelings of traders can always throw that out the window.
You should get in touch with your own emotions and learn how to position your trading with that knowledge. Know that many people let their feelings get the better of them and sell when they should be buying. Avoid doing that and take advantage of it when others make this mistake.
Trading wisdom is everywhere You just have to look in the right places. We, at Trading Education, aspire to be one of those go-to places where traders can not only learn everything about trading but also find the much needed encouragement and motivation to achieve their trading goals.
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