Trend Following Sözleri ve Alıntıları
Trend Following sözleri ve alıntılarını, Trend Following kitap alıntılarını, Trend Following en etkileyici cümleleri ve paragragları 1000Kitap'ta bulabilirsiniz.
Key Points
• Seykota: “Gigerenzer’s ‘fast and frugal heuristics’ is another name for ‘rules of thumb.’ One pretty good one is: Trade with the Trend.”
• Do not equate simplicity with unsophisticated thinking.
• As science looks closer, it is beginning to acknowledge that intuition is not a gift, but a skill. Like any skill, it is something you can learn.
• Occam’s razor: If you have two equal solutions to a problem, pick the simplest.
• Fearless decision makers have a plan and execute it. They don’t look back. Along the way if something changes, their plan has flexibility built into it so they can adjust.
• Murray N. Rothbard, of Mises.org, states: “…if a formerly good entrepreneur should suddenly make a bad mistake, he will suffer losses proportionately; if a formerly poor entrepreneur makes a good forecast, he will make proportionate gains. The market is no respecter of past laurels, however large. Capital does not ‘beget’ profit. Only wise entrepreneurial decisions do that.”
• Mark Cuban: “With every effort, I learned a lot. With every mistake and failure, not only mine, but of those around me, I learned what not to do. I also got to study the success of those I did business with as well. I had more than a healthy dose of fear, and an unlimited amount of hope, and more importantly, no limit on time and effort…The point of all this is that it doesn’t matter how many times you fail. It doesn’t matter how many times you almost get it right. No one is going to know or care about your failures, and neither should you. All you have to do is learn from them and those around you because… All that matters in business is that you get it right once. Then everyone can tell you how lucky you are.”
He also determined that people dislike losses so much that they make irrational decisions in vain attempts to avoid them. This helps explain why some investors sell their winning stocks too early, but hold on to losers for too long. It is human nature to take the profit from a winner quickly on the assumption that it won’t last for long, but stick with a loser in the futile hope it will bounce back.
However, trend followers know if you don’t cut your losses short, that if you don’t exit with a small loss, there’s a good chance losses will get much larger. The more you struggle with your small loss, the larger it might become and the harder it will be to deal with it later. The problem with accepting a loss is that it forces us to admit we were wrong. Human beings don’t like to be wrong.
Trend followers are not lucky. They are prepared for the unexpected. Trend followers take what the market offers in the moment. They don’t predict the future. Making money requires that you be able to live with and accept volatility.
Key Points
• John W. Henry: “Life is too dynamic to remain static.”
• If you have realistic confidence in your method and yourself, then temporary setbacks don’t matter. Going for the home run can allow you to come out ahead in the long run.
• Thinking in terms of odds is a common denominator of baseball and trend following.
Parker: “A key to successful traders is their ability to leverage investments…many [traders] are too conservative in their willingness to leverage.”
Parker: “A lot of traders as well as clients don’t like trend following. It’s not intuitive, not natural, too long term, not exciting enough.”
Parker: “The market is never wrong.”