Why ‘overnight success’ is bad for new investors.
“I try to say if you’re going to trade if you’re going to invest, but don’t start trading and then having a losing position and then say you’re going to be an investor because you don’t want to take your losses it’s two different things for me.”
“I have a different time frame where my young adult children who are in the early stages of the career they have a far longer time frame and in which case a market pullback decline bear Market, however, may be a tremendous opportunity if you’re older in three years from retirement which fortunately I’m not uh then your risk preferences have to change so you’ve got to take all those different variables into account when you’re looking at it but one of the worst things anyone can have is a quick and easy success because what that does is make you lose your discipline if you lose your discipline in the marketplace.”
“You’re in huge trouble because that’s when your loss is magnified you have to participate if you’re going to trade you have to trade on your terms not the Market’s terms and that gets very hard because mentally and then we can go back to ctas if you want why they’re disciplined and systematic or other great firms because mentally the market is always making you try to lose your discipline well I’m not going to get out today because it’s from Friday it’s near the close there’s a lack of liquidity I’m not going to do the trade today because the CPI is coming out.”
“I’m not going to do the trade because it’s options expiration in two days I’m not going to do the trade today because I didn’t sleep well last night so I’m not in a good mood whatever excuse you want to come up with you can self-justify making little losses much larger losses but that becomes much more difficult to get back and make money.”