The top trading quotes of all time are not enough to make you money in trading. However, the best trading quotes can give you a glimpse into the mindset of the most successful traders and hedge fund managers. Undoubtedly, the best way one can learn a new skill is to copy-paste those who are already successful at it. In this regard, trading the financial markets is no different than learning a new skill.
Guru traders and legendary hedge fund managers such as George Soros, Jesse Livermore, Marty Schwartz, and PT Jones have all left a treasure of trading insights for us to follow. Our duty is simply to put into practice and incorporate their trading concepts to our trading.
People say talk is cheap and in trading... this is definitely true to some extent. Words mean nothing. Actions mean everything. Using words in a clever way is futile if you don’t know the true meaning behind those words.
Luckily for you, our team at Trading Strategy Guides has put together a list of the top trading quotes of all time. But we took it one step forward and have “translated” this pure wisdom into actionable trading concepts.
Let’s get started!
Best Trading Quotes on Trading Psychology
To make it easier for you, we have decided to place each trading quote into a relevant category. First, we’re going to start with some mini-lessons on trading psychology. The following quotes on trading psychology are gathered from a number of famous traders.
These inspirational quotes on trading psychology are designed to help those traders who struggle with the psychological and emotional side of trading.
Trading Psychology Quote #1: "Why do you think unsuccessful traders are obsessed with market analysis? They crave the sense of certainty that analysis appears to give them. Although few would admit it, the truth is that the typical trader wants to be right on every single trade. He is desperately trying to create certainty where it just doesn’t exist.” – Mark Douglas
Mark Douglas an active educator in the field of trading psychology is making a fair point here.
In plain words, he states that perfection is your worst enemy. Secondly, seeking to be right on your trades, more than to make money it seems a paradox. The moral of the story is that the sooner you accept that you can’t win every single trade, the closer you’ll be to find success. Most hedge fund managers only win a handful of trades, and they are good with that thought as they know that they will be making money in the long run.
Trading Psychology Quote #2: “If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money.” – Bill Lipschutz
Bill Lipschutz a very successful G10 Forex trader speaks about the power of being selective with your trades. The second lesson is that in order to make money you need to develop patience. Being a patient trader is a trait that it needs to be acquired by everyone who wants to be a successful trader.
Trading Psychology Quote #3: “If you can learn to create a state of mind that is not affected by the market’s behaviour, the struggle will cease to exist.” – Mark Douglas
If your mood is constantly shaped by the swings in the market, you’ll struggle as a trader. Mark Douglas is pointing a simple truth. Our own state of mind can be taught to behave in our best interest. However, in order to not be affected by the market’s up and down swings, you need to have a top-down trading strategy.
This is a simple remedy for your emotions, which tends to resemble more of a roller coaster.
Top Trading Quotes of All Time on Money Management
Money Management Quote #1: “It’s not whether you’re right or wrong that’s important, it’s how much money you make when you’re right and how much you lose when you’re wrong.” – George Soros
Legendary hedge fund manager George Soros is probably one of the most successful money managers of our own times. In other words, Soros is saying that your win rate (how much you’re right, how much you’re wrong) is irrelevant, but what really counts is your risk to reward ratio.
Stanley Druckenmiller, a Soros protégé was the real trader who brought the BOE to its knees and crashed the British Pound. The success behind the $1 billion profit was credited to Soros’s teachings of always going for the “jugular” when you’re right.
Money Management Quote #2: “Throughout my financial career, I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don’t take a hard look at risk, it will take you.” – Larry Hite
Larry Hite a prominent hedge fund manager is taking a hard look at the importance of risk management. The lesson you’ve got to learn is to begin respecting risk; otherwise, the market will not give you any chance of success.
At one point, Larry’s net worth was estimated as being as high as $32 billion. When a billionaire of this magnitude is speaking, you better be listening.
Money Management Quote #3: “Losers average losers” – Paul Tudor Jones
PT Jones is probably one of the most respected traders and hedge fund managers in our trading community. There is a well-known picture of PT Jones office that shows a paper tacked on the wall that shows the above quote.
The main lesson to learn is to never add to a losing trade.
Only scale up, never scale down. If you’re in the red, the market is already telling you something and trying to add more money behind this idea will be a losing proposition for you and your account balance.
Best Trading Quotes on Technical Analysis
Technical analysis Quote #1: “Do not anticipate and move without market confirmation—being a little late in your trade is your insurance that you are right or wrong.” -Jesse Livermore
Jesse Livermore was one of the greatest stock market traders of our time making some of the biggest trade wins in history. Livermore is trying to point out that the price should always confirm your trading ideas. It’s best to even enter a little bit later rather than to try to anticipate where the market will go.
Technical analysis Quote #2: “Short term volatility is greatest at turning points and diminishes as a trend becomes established.” – George Soros
Soros is saying that certain price behaviors in the market can help us gauge market reversals. Soros is right here because we have reached the same conclusion. Trend reversals often come out after a period of high volatility. Our favorite reversal pattern is the “V” shaped bottom (top) which is caused by big volatility.
Technical analysis Quote #3: “I always laugh at people who say, “I’ve never met a rich technician.” I love that! It’s such an arrogant, nonsensical response. I used fundamentals for nine years and got rich as a technician.” – Marty Schwartz
Marty Schwartz is a Wall Street trader an author of the famous book Pit Bull. In the above quote, Marty clearly mocks those people who are bashing technical analysis. Mart Schwartz is a living legend who testifies that technical analysis works and it will work in the future as well.
Day Trading Quotes
Day Trading Quotes #1: “I know where I’m getting out before I get in.” – Bruce Kovner
The point Kovner, a billion dollar hedge fund manager, is trying to highlight is that you need to establish your stop loss before entering into the market. This trading rule applies even more if you’re a day trader because you need to act swiftly and a stop loss can help you.
Day Trading Quotes #2: “Do more of what works and less of what doesn’t.” – Steve Clark
Hedge Fund Market Wizards Steve Clark is saying an obvious truth. However, what Steve is really trying to say is to study your wins and losses. That’s the only way to learn what works and what doesn’t.
By tracking winning trades and losing trades, you can identify the sorts of patterns that are leading to profitable trades. This is valuable information because only then you can really “do more of what works.”
Day Trading Quotes #3: “There is no single market secret to discover, no single correct way to trade the markets. Those seeking the one true answer to the markets haven’t even gotten as far as asking the right question, let alone getting the right answer.” – Jack Schwager
Schwager is a well-known author of the Market Wizard series.
By the way, we highly recommend you to read the Market Wizard book. Many of the trading quotes outlined through this article are actually from this book.
Jack is simply saying that you need to find a trading style that fits your personality. There is no single best way to trade. Day trading is not for everyone, you just need to discover the best approach that suits your traits.
Conclusion – Top Trading Quotes of all Time
The best trading quotes in the world won’t do you any good if you don’t have a step-by-step trading strategy. Having the opportunity to sit and learn from some of the best traders in the game is an incredible opportunity. We are fortunate to have the possibility to learn from these experienced traders and build our own success.
Remember, that you can fill a book full of trading quotes about trading risks, the methods, and psychology, but if you don’t put in the time to really understand their meaning, you will never hit the ground running.
We all have our own rocky road stories, and we can all share from the mistakes we’ve made. If you’re still struggling and if you’re still a novice trader by incorporating the top trading quotes of all time in your own trading, will help you transform your trading performance.
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