Sentiment Report: Traders Are Extra Bullish for the Holidays

Traders are squarely focused on the progress of the GOP tax bill. And judging by the market action on Friday, it certainly looks like they’re feeling that it’s going to pass soon: The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all hit fresh all-time highs The Russell 2000 is outperforming by a big margin The US dollar is rallying Bank stocks are rocking hard Gold slipped into the red. But with two weeks to go in 2017, just how bullish are traders on equities after a year of nonstop opportunities to buy the dip? Let’s take a look at our 4 primary sentiment indicators to see if traders are going gaga for stocks. (click here for a primer on the sentiment indicators below) 1) VIX Spread – Bullish Late Friday morning, the VIX was as low as 9.51, which is very low based on historical norms. This gives us a 3-month spread at 4.18 indicating that traders are very bullish, and expect almost no volatility heading into year-end. (click here for a primer on the VIX spread) 2) CNN Fear & Greed Index – Bullish The Fear & Greed Index is at 68. This index operates on a 0-100 scale, and a reading of 68 is basically moderately bullish. 3) AAII Sentiment – Bullish The latest AAII Sentiment Survey shows that 45.0% of individual investors are bullish. This is the fourth highest reading of 2017, and a huge jump from last week’s 36.9% reading. It’s also well above the year-to-date average of 34.5% and the 38.5% long-term average. The long-term average is 38.5%, so a reading of 45.0% is basically fairly positive. 4) CBOE Equity Put-Call – Bullish The CBOE Equity-Put Call ratio’s latest reading is 0.560. This is below the 0.655 long-term average. The 10-day moving average is 0.592, which is very low on a historical basis. And the 3-day moving average, which I use to measure very short-term bullishness, is 0.560 — again very low. These numbers point to serious bullishness among options investors, who seem to expect more all-time highs into the new year. Conclusion Out of 4 sentiment indicators, we have: 4 neutral (up from 3 last week) 0 neutral  (down from 1 last week) 0 bearish (flat from last we) On October 6, I made the following melodramatic declaration: Let’s not mince words: the bulls are clearly insane. They think they’re destined to ride into the sunset on a magic carpet made of cold hard cash. I can see both sides of the coin here. The bulls may be insane… but they may also be right. Timing market turns based on sentiment indicators is awfully tricky. And remember, the trend can go on a lot longer than may seem reasonable. We’re seeing similar conditions right now. Stock market sentiment is about as bullish as it gets. So I’ll repeat what I just said: the trend can go on a lot longer than may seem reasonable. The market’s higher than it was on October 6, when many permabears were calling tops because sentiment was out of control. Could the market fall from here? Or course! But timing trades off sentiment is near-impossible. We very well could see a melt-up into year-end, so look both ways before crossing this bull!

Finding the Easy Money Trades | Black Room Lessons

Two new training videos from The T3 Live Black Room Featuring Sami Abusaad & Ifan WeiJoin Sami and Ifan in the Black Room​​​​​​ Just $7 for Your First 30 Days Watch today’s lessons then join the Black Room for 30 daysSami Abusaad Black Room

Trader’s Digest: The 10 Stories We’re Reading Right Now

Wonder what traders are talking about today?We’re here with the top 10 stories we’re sharing with colleagues today, covering topics like:What exactly changed with the Fed todayHow to avoid giving back large trading gainsHow you can use the 8 & 21 day moving averages to judge the market trendAnd more!So check out these links right now and get up to speed: ​1) Fed Raises Rates While Keeping Three-Hike Outlook for 2018 (Bloomberg)Federal Reserve officials followed through on an expected interest-rate increase and raised their forecast for economic growth in 2018, even as they stuck with a projection for three hikes in the coming year. Read the Article -> ​2) How to NEVER Give Back Large Gains (T3 Live)In this video, you’ll learn how to avoid a tragic mistake — giving back big gains. Sami Abusaad will give you all the details: Read the Article -> 3) Uncle Sam’s Surprise: Tax Reform to Impact Crypto Investors (CoinDesk)The U.S. tax code is on the brink of its largest overhaul in three decades.Several rule changes could potentially catch bitcoin holders who realized eye-popping gains in 2017 by surprise. Read the Article -> 4) Republicans have a final deal on their tax bill — here’s what’s in it (Business Insider)Republican leaders on Wednesday reached an agreement on their final tax bill, paving the way for an overhaul of the federal tax code by Christmas.Republicans are moving with full speed to pass the tax bill, a process that gained urgency after the Democrat Doug Jones’ unexpected victory Tuesday in Alabama’s special election for a US Senate seat. Read the Article -> ​5) Finding Fast Movers with the Quant Edge Strategy (T3 Live)Learn how Rob Smith’s unique Quant Edge Trading Strategy can help you find fast-moving stocks that can deliver fast profits. Read the Article -> ​6) What analysts are looking for in Thursday’s Bank of England meeting (MarketWatch)There is a reason why those calling for a crash, or even a market correction in the past decade, have been carted out feet first: central banks, and noweher was this more obvious than the shocking aftermath of Brexit. The UK’s Brexit vote (Jun-16) marked the point when the buy-the-dip trade became a self-fulfilling put, according to a new analysis by Bank of America. Read the Article -> ​7) Secrets of Trend Analysis: The Power of the 8 & 21 Day Moving Averages (T3 Live)In this lesson, you’re going to see the power of judging stocks and the market using the 8 & 21 day moving averages. Read the Article -> 8) Pepsi one-ups Budweiser brewer by ordering 100 Tesla electric semi trucks (TechCrunch)PepsiCo is the latest company to reveal that it’s placed orders for Tesla’s forthcoming electric semi-truck – and also the company with the largest order so far. The beverage company has ordered 100 of the trucks per Reuters, meaning it’s placed at least a $20,000 deposit for each of those since Tesla rose the down payment amount for its original $5,000 starting point. Read the Article -> 9) ‘Star Wars: The Last Jedi’ will be a force but likely not enough to lift box office sales over last year (L.A. Times)The North American box office is projected to be down at least 2% from the record set in 2016, despite the surely astronomical performance of the Walt Disney Co.’s “Star Wars: The Last Jedi.” Read the Article -> 10) Interview with Jack Schwager, Author of Market Wizards  (Chat With Traders)Get to know Jack Schwager, author of the incredible popular Market Wizards series of trading books.

How to NEVER Give Back Large Gains | Black Room Lessons

Why Is Bitcoin Moving? T3 Live Readers Sound Off!

Yesterday, we held a Bitcoin survey to get our readers’ thoughts on the raging cryptocurrency. Bitcoin mania truly is running wild. As of the time of this writing, the app for digital currency market place Coinbase is at #2 in the Apple App Store: (screenshot taken at 7:20 a.m. ET Friday) Yes, Coinbase is pulling more downloads than Instagram, Snapchat, and Facebook. So what’s moving Bitcoin? Let’s take a look at our survey results question by question. Before we get started, please understand this: This survey is very informal, and should not be considered scientific. Take the answers with a grain of salt, and certainly don’t use them to make buy/sell decisions in Bitcoin or other cryptocurrencies. Question #1: Have you ever traded Bitcoin or another cryptocurrency? 35.7% of survey respondents said they have traded Bitcoin or another cryptocurrency. Just 26.2% responded “no, but i want to get started.” So it seems that many traders are still fairly skeptical. Question #2: Is it too late to get into Bitcoin? 42.1% said ‘I don’t know.’ Meanwhile, just 26.3% of respondents said yes, that it is too late to get into Bitcoin. Question #3: What asset do you think will perform best in the next 5 years? Just 22% of respondents believe “Bitcoin and/or other cryptocurrencies” will perform best in the next 5 years. Interstingtly that’s exactly the same number that believe ‘Gold or other precious metals’ will perform best. 51.2% respondents believe equities will perform best. Question #4 What do you think of Bitcoin and other cryptocurrencies overall? This was an open-ended question that allowed readers to type in their own responses. These are some of the comments we received. All are completely unedited: Backed only by virtual numbers 0 and 1 in the computersystems it’s even more worthless than all the out of thin air printed money from the centralbanks of the world I am very skeptical of the whole crypto currency marketplace. It’s unclear to me if it is just a fad or a legitimate trading opportunity. Who is regulating this? It’s clear people are buying. Do we know if anybody is selling and cashing in on it? I have heard it is difficult to get your order executed quickly when buying. My gut feeling is that this will end in tears for many.” The Value of the underlying “Distributed Digital Ledgers” or “Blockchains” actually exceeds the value of Cryptocurrencies as mediums of exchange. Not useful yet, only a speculation vehicle at this point for people who dont trust traditional investments Good money laundering instrument, most of them are fraudulent, the danger of having the exchanges or your wallet hacked are enormous Clearly highly speculative. Very similar to internet Bubble of 2000… but ultimately the 2000 spawned off big winners and many losers. This will probably be the same. Also many losers like Mindspring were temporarily BIG winners for a short term. I still think people should get in for at least the short term. But monitor closely and also should only put in a small amount toward speculative assets. revolutionary, I prefer etherium and litecoin, because fortune 500 companies are building infrastructure around them. We also received a number of single-word answers like ‘scam’ and ‘bubble.’ One commenter said “Bitcoin to 120K,” and that may have been sarcastic. To my surprise, there were no blatant “I love Bitcoin”type responses. Question #5: What do you think is driving the price of Bitcoin? Our final question was also open-ended, and we’re presenting some of the comments we received, completely unedited: FOMO (2) Limited Supply and a lot of demand Speculation Social media (tulip-mania) Tulip power. Drug dealers, hackers mafia, terror groups Speculation and anticipation of trading on CME lack of brain combined with a lack of history knowledge idea of replacing fiat currencies Law of attraction. Think about all of the media hype and energy being put into this thing. Whether you are for it or against it… you are still thinking about it…. That is the #1 reason the price is going up and will continue to go up a lot in the very short term. Lots of Chinese buying 1/10 shares thinking when the last coin is mined, supply and demand will be their friend! Interestingly, a number of survey respondents used variants of the word Tulip in reference to Dutch Tulip mania in 1636 – 1637. When creating this survey, I assumed we’d attract more Bitcoin bulls, but we got the opposite.

Gold in Focus Ahead of Jobs Report

Last week, traders were squarely focused on the progress of the GOP tax bill. But this week, it feels like everyone’s watching Bitcoin so much that the world’s forgotten about the stock market! In fact, look at what’s #2 in the Apple App Store: It’s Coinbase — the app for the popular digital currency market place! Yes, a Bitcoin app is pulling more downloads than Instagram and Facebook! With the November jobs report on the way this morning, let’s dig in and see how how bullish traders are feeling about the forgotten stock market ahead of the weekend. (click here for a primer on the sentiment indicators below) 1) VIX Spread – Bullish On Friday morning ahead of the November nonfarm payrolls report, the VIX was at 9.97, the first sub-10 reading since November 29. This gives us a 3-month spread at 4.36, indicating that traders are very bullish. (click here for a primer on the VIX spread) 2) CNN Fear & Greed Index – Neutral The Fear & Greed Index is 60, dowm from 73 last week. This index operates on a 0-100 scale, so a reading of 60 is basically neutral. 3) AAII Sentiment – Neutral The latest AAII Sentiment Survey shows that 36.9% of individual investors are bullish. This is basically flat from last week’s 35.9+% reading, but it’s still way off the 45.1% level from 4 weeks ago, which itself was the highest since  since January 5, 2017. The long-term average is 38.5%, so a reading of 36.9% is basically neutral. 4) CBOE Equity Put-Call – Bullish The CBOE Equity-Put Call ratio’s latest reading is 0.58. This is below the 0.655 long-term average. The 10-day moving average is 0.581, which is very low on a historical basis. And the 3-day moving average, which I use to measure very short-term bullishness, is 0.607. These numbers point to bullishness among options investors, who seem to expect a snap back to all-time highs in the SPX. ConclusionOut of 4 sentiment indicators, we have: 2 neutral (down from 3 last week) 1 neutral  (up from 1 last week) 0 bearish (flat from last we) Here’s what I said last week: The permabears are still saying that everone’s all-in bullish and 100% complacent… and they’re right. If the bulls rush to the exits, they may face some trouble — there’s an awful lot of them, and only so many can fit through the door at once… Sentiment was very bullish last week, but it’s clearly cooled down this week. Judging by the VIX and the CBOE equity put-call, options traders see almost no volatility ahead — and a lot of upside potential. But when we mix in our data from the CNN Fear & Greed Index and the AAII sentiment survey, we a more nuanced picture. Market momentum has slowed, and individual investors are definitely in neutral territory. So clearly, traders are back in the “moderately bullish” camp. That’s not exciting to say, but it’s the truth. The big question now is what impact the jobs report will have on equities. I’m mostly interested in gold. Gold’s taken a big spanking, at least partially because Bitcoin has suddenly attracted a mountain of investor dollars. If we get a weak jobs report, gold could skyrocket, so keep an eye on it

Take T3 Live’s Bitcoin Survey

We’re taking a brief survey to get our readers’ thoughts on Bitcoin. It is completely anonymous, so feel free to give us your complete thoughts.  P.S. Don’t forget to hit the submit button at the bottom! Loading…

Trader’s Digest: The 10 Stories We’re Reading Right Now

Wonder what traders are talking about today?We’re here with the top 10 stories we’re sharing with colleagues today, covering topics like:How you can use the 8 & 21 day moving averages to judge the market trendBitcoin’s latest adventure above $12,000+What the suddenly-shaky Nasdaq is signaling to youAnd more!So check out these links right now and get up to speed: 1) Scott Redler’s Moving Average Breakdown (T3 Live)Learn how Scott Redler uses the 8 & 21 day moving averages to understand the market trend, and guide his trading approach. Read the Article -> 2) Bitcoin breaks above $12,000 for the first time (CNBC)Bitcoin broke above the $12,000 mark Wednesday morning Asia-time, as the cryptocurrency continued its march higher.The digital currency quickly leaped further. Read the Article -> 3) A $60 Billion Scramble Awaits ETFs in Google, Facebook Reshuffle (Bloomberg)A planned overhaul of how industries are defined by two of the world’s biggest index providers may prompt money flows in and out of 26 exchange-traded funds with assets exceeding $60 billion. Read the Article -> 4) This VIX Signal Has Happened Just One Other Time (Schaeffer’s Research)Something strange happened last week as the S&P 500 Index (SPX) gained over 1.5%. The CBOE Volatility Index (VIX) spiked 18%. It’s strange because those two indexes typically move in opposite directions. Read the Article -> ​5) Jeff Cooper: The Nasdaq Got Punched in the Face. So What’s the Plan Now? (T3 Live)Stocks gapped higher on Monday’s open on what felt like the 40th rally on the tax deal.The gap was accompanied by strong breadth which waned quickly. Read the Article -> ​6) BofA: “In Every Market Shock Since 2013 Central Banks Have Stepped In To Protect Markets” (Zero Hedge)There is a reason why those calling for a crash, or even a market correction in the past decade, have been carted out feet first: central banks, and noweher was this more obvious than the shocking aftermath of Brexit. The UK’s Brexit vote (Jun-16) marked the point when the buy-the-dip trade became a self-fulfilling put, according to a new analysis by Bank of America. Read the Article -> ​7) Here’s how Uncle Sam could snuff out a Santa rally in stocks (MarketWatch)From the Captain Obvious camp comes this observation: There are two things likely to happen by year’s end — the market heads for a big shakeout, or the traditional final flurry of buying pushes stocks to new highs. Read the Article -> 8) China’s phone market is now dominated by five companies, none of which is SamsungChina is the most unique smartphone market in the world: a phone maker can be a global sales leader without ever treading beyond Chinese borders, and small upstart challengers can suddenly explode in popularity from out of nowhere. Read the Article -> 9) ‘Swiss-made’ label lacks precision for watch industry (Reuters)If you buy a “Swiss-made” watch thinking it’s almost entirely produced in Switzerland, you might be mistaken. Read the Article -> 10) Interview with James Bianco, President of Bianco Research (Technical Analysis Radio)In this interview, you’ll learn about James’ approach to interest rate and intermarket analysis, as well as Bitcoin, sentiment, and market indicators. Read the Article ->

Secrets of Trend Analysis: The Power of the 8 & 21 Day Moving Averages

Moving averages are one of my most important trading tools. They help me figure out:1) Whether I want to be in a Portfolio Approach or Tactical Approach2) Which stocks I want to be long or short3) The strength of the current market trend In fact, if I was a beginning trader looking to build my net worth, moving averages would be my #1 focus. In this lesson, you’re going to see the power of judging stocks and the market using the 8 & 21 day moving averages. First, let’s run through the basics so we’re on the same page.What Is a Moving Average?A moving average is a stock’s average price over a certain time period. We’re going to focus on the daily time frame this article.  A daily moving average is the average of a stock’s daily closing price. For example, the 50 day moving average is a stock’s average closing price for the last 50 days. Every day, the newest closing price in the moving averages replaces the oldest, which is why we call it ‘moving’ — it’s changing every day. Here’s a simple chart of Apple (AAPL) with its 50 day moving average. Simple vs. Exponential Moving AveragesThere are 2 types of moving averages — simple and exponential. A simple moving average is a straight average of the stock price. An exponential moving average gives recent prices a bigger weight, so it does a better job of measuring recent momentum. Going forward in this article, we will only use exponential moving averages.The 8 day moving average will be shown in magenta.And the 21 day moving average will be in red.The Power of the 8 & 21 Day Moving AveragesTraders often ask me why I talk about the 8 & 21 day moving averages so much. Whether you see me on CNBC, Twitter, or the Virtual Trading Floor®, odds are you’ll see me talking about them. It’s because these moving averages are the most accurate short-term road map I’ve found. The 8 & 21 day moving averages are the most accurate short-term road map you can find – @reddogt3 Click to Tweet This Tip from Scott Redler! A Chart’s Worth a Thousand WordsLet’s rewind the clock back to the Brexit in June 2016. The day before the Brexit vote, the SPY hit $210.87. And the day after the ‘shocking’ vote, it hit $188.65.If you were focused on the headlines, you were feeling pretty scared:A Statement of StrengthBut let’s extend the chart to see what actually happened. As you can see, SPY started bouncing, and on June 30, 2016, it reclaimed the 8 & 21 day moving averages:That’s a statement of strength. Why? Because it meant momentum was shifting back to the upside. And in this case, SPY briefly retested the 8 & 21 day moving averages before rallying above $219:Price Action vs. OpinionsEveryone had an opinion over what the Brexit would mean. But as you just saw in the charts, our opinions didn’t matter as much as the market’s. When SPY reclaimed the 8 & 21 day moving averages with authority, it screamed that the bulls were retaking control. And that’s an important lesson for you: when a stock/index/ETF reclaims the 8 & 21 day moving averages with authority, PAY ATTENTION! When a stock reclaims the 8 & 21 day MA’s with authority, PAY ATTENTION!  – @reddogt3 Click to Tweet This Tip from Scott Redler! How I Use the 8 & 21 Day Moving Averages to Manage Market ExposureYou just saw how a big break above the 8 & 21 day moving averages can mean a big move higher. Now let me show you how I use the 8 & 21 day moving averages to get less aggressive, or even bearish. I have two primary approaches to the market: a Portfolio Approach and a Tactical Approach When the SPY is trending above the 8 & 21 day moving averages, I am in a Portfolio Approach. I’ll usually have 4-12 long positions in stocks showing relative strength, and occasionally even more. When the SPY breaks the 8 & 21 day moving averages, I get in a Tactical Approach. I start taking profits, especially with weaker names, and I may even put on SPY or IWM hedges. Portfolio Approach SPY above the 8 & 21 day Long w/ 4-12 positions on No hedge unless we get extendedTactical Approach SPY breaks the 8 & 21 day Start taking profits Hedge with SPY/IWM shortPop Quiz!Here’s a chart of the SPY with its 8 & 21 day moving averages:As you can see, it reclaimed the 8 & 21 day moving averages with force. After that happened, would it be better to be long multiple stocks? Or short the market? Click here for the answer! Long!! It would be better to be long, because the SPY made an aggressive move above the 8 & 21 day. That’s a sign the bulls were retaking control. And as you can see a huge rally ensued! P.S. That was the post-election rally, when the market skyrocketed after some initial volatility.  Like the Brexit, the post-election headlines were scary… but the price action was awfully bullish. A Final Tip on Stock SelectionYou’ve already learned how to use the 8 & 21 day moving averages to detect a change in trend, and how to use them for portfolio adjustments. I’m going to give you a final lesson in handling momentum stocks… specifically, how not to get run over by one! If you take one lesson away from this article, it’s this: NEVER short a stock that shows momentum above the 8 & 21 day moving averages. NEVER short a stock that shows momentum above the 8 & 21 day moving averages – @reddogt3 Click to Tweet This Tip from Scott Redler! This is most true with controversial momentum names. Take Tesla (TSLA). In late 2016, the headlines were pretty rough:But as you know, the price action is more important than the headlines. Tesla reclaimed the 8 & 21 day moving averages, and rode the 8 day up from $190 to $287+.No matter what the headlines and fundamentals are saying, you never want to short stocks like this.  I’ve seen a lot of traders fall in love

99 of the Best Trading and Investing Quotes Ever Said

A good one-liner will never make you money in trading. But quotes can help you understand the mindsets of traders and investors that are more successful than you. That’s why we’ve put together 99 of the best trading and investing quotes ever said, from 99 different market experts. We kick it off with Warren Buffet… …and we’ll end it with a downright chilling remark from Bernie Madoff at #99. Can you make it all the way down that far?1) The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.-Warren Buffett 2) If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he is wrong.-Bernard Baruch 3) I learned early that there is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again. I’ve never forgotten that.-Jesse Livermore 4) Traders need a daily routine that they love. If you don’t love it, you’re not gonna do it.-Scott Redler, Chief Strategic Officer of T3 Live 5) Our main job is to know when to embrace risk, and when to hold back.-David Prince of T3’s Inner Circle 6) You don’t make money by trading, you make it by sitting. It takes patience to wait for the trade to develop, for the opportunity to present itself. Let the market come to you, instead of chasing the market. Chart patterns are very accurate. They have proven their accuracy and predictability time and time again, but you have to wait for them to develop.-Fred McAllen 7) Are you willing to lose money on a trade? If not, then don’t take it. You can only win if you’re not afraid to lose. And you can only do that if you truly accept the risks in front of you.-Sami Abusaad, Head of Strategic Day Trader and Strategic Swing trader 8) We don’t care about “why.” Real traders only have the time and interest to care about “what” and “when” and “if” and “then.” “Why” is for pretenders.-JC Parets, Founder of All Star Charts and Eagle Bay Capital 9) 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 10) “The biggest risk of all is not taking one.” -Mellody Hobson 11) Trading is not for the dabblers, the dreamers, or the desperate. It requires, above all, one steadfast trait – dedication. So if you are going to trade, trade like you mean it!-Rod Casilli 12) Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.-Albert Einstein, Theoretical Physicist & Nobel Prize Winner 13) The most important 4 words to a trader are “IS IT F*CKING MOVING?”-JR Romero, T3 Live Momentum Express VTF® Leader 14) You learn in this business… if you want a friend, get a dog.-Carl Icahn 15) If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money.-Bill Lipschutz 16) The four most dangerous words in investing are: ‘this time it’s different.’-Sir John Templeton 17) The most important three words in investing is: “I don’t know.” If someone doesn’t say that to you then they are lying.-James Altucher 18) I always define my risk, and I don’t have to worry about it. I walk into the pit every day with a clean slate, so that I can take advantage of what is going on.-Tony Saliba 19) A risk-reward ratio is important, but so is an aggravation-satisfaction ratio.-Muriel Siebert 20) When you genuinely accept the risks, you will be at peace with any outcome.-Mark Douglas, Author of “Trading in the Zone” 21) Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.-George Soros 22) People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences. Calamitous drops do not scare them out of the game.-Peter Lynch 23) The whole secret to winning big in the stock market is not to be right all the time, but to lose the least amount possible when you’re wrong.-William J. O’Neil 24) I think to be in the upper echelon of successful traders requires an innate skill, a gift. It`s just like being a great violinist. But to be a competent trader and make money is a skill you can learn.-Michael Marcus 25) Michael Marcus taught me one other thing that is absolutely critical: You have to be willing to make mistakes regularly; there is nothing wrong with it. Michael taught me about making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money.-Bruce Kovner 26) Price lies all the time. Facebook can be valued at $40 billion and then $20 billion and then $200 billion inside of a four-year period of time. Which of these prices is the truth? None of them. But all of them were momentarily true, until they were rendered a lie, and a new truth was forged in the fires of the marketplace. Sunrise, sunset. Prices change and, with them, the truth itself.-Josh Brown 27) Markets can remain irrational longer than you can remain solvent.-John Maynard Keynes 28) In trading you have to be defensive and aggressive at the same time. If you are not aggressive, you are not going to make money, and if you are not defensive, you are not going to keep money.-Ray Dalio 29) A peak performance trader is totally committed to being the best and doing whatever it takes to be the best. He feels totally responsible for whatever happens and thus can learn from mistakes. These people typically have a working business plan for trading because they treat trading as a business.-Van