Author: admin

What is the biggest public fallacy about market behavior?

Richard Dennis

That markets are supposed to make sense.

Richard Dennis

Absolutely. I learned to avoid trying to catch up or double up to recoup losses. I also learned that a certain amount of loss will affect your judgment, so you have to put some time between that loss and the next trade.

Bruce Kovner

Whenever a trader says, “I wish,” or “I hope,” he is engaging in a destructive way of thinking because it takes attention away from the diagnostic process.

Bruce Kovner

First, I would say that risk management is the most important thing to be understood. Undertrade, undertrade, undertrade is my second piece of advice. Whatever you think your position ought to be, cut it at least in half.

Bruce Kovner

Yes, because there are a lot fewer people paying attention to the cross rates. The general rule is: The less observed, the better the trade.

Bruce Kovner

The Heisenberg principle in physics provides an analogy for markets. If something is closely observed, the odds are it is going to be altered in the process.

Bruce Kovner

Technical analysis reflects the vote of the entire marketplace and, therefore, does pick up unusual behavior. By definition, anything that creates a new chart pattern is something unusual.

Bruce Kovner

They are strong, independent, and contrary in the extreme. They are able to take positions others are unwilling to take. They are disciplined enough to take the right size positions. A greedy trader always blows out.

Michael Marcus

As long as you stick to your own style, you get the good and bad in your own approach. When you try and incorporate someone else’s style, you often wind up with the worst of both styles.

Michael Marcus

That situation illustrates one of the principles we believed in–namely, that the big players, including governments, would always tip their hand. If we saw a surprise price move against us that we didn’t understand, we often got out and looked for the reason later.