Over the lunch, my colleague mentioned about conspiracy stories in China stocks market. “The sell down of china market was caused by American!” …LOL..

Anyway, Michael Marcus discussed something on this topic in Market Wizards: Interviews with Top Traders.

 The foolish belief that there is conspiracy in the markets. I have known many of the great traders in the world, and I can say that 99 percent of the time, the market is bigger than anybody and, sooner or later, it goes where it wants to go. There are exceptions, but they don’t last too long.

Michael Marcus mentioned some wisdoms about life of a trader in Market Wizards: Interviews with Top Traders.

If trading is your life , it is a torturous kind of excitement. But if you are keeping your life in balance, then it is fun. All the successful traders I’ve seen that lasted in the business sooner or later got to that point. They have a balanced life; they have fun outside of trading. You can’t sustain it if you don’t have some other focus. Eventually, you wind up over trading or getting excessively disturbed about temporary failures.

Michael Marcus discussed causes of financial disablement in Market Wizards: Interviews with Top Traders.

I think the leading cause of financial disablement is the belief that you can rely on the experts to help you. It might, if you know the right expert….Typically, however, these so-called “experts” are not traders. Your average broker couldn’t be a trader in a million years. More money is lost listening to brokers than any other way. Trading requires an intense personal involvement. You have to do your own homework, and that is what I advise people to do.

Michael Marcus mentioned some important rules in Market Wizards: Interviews with Top Traders.

Perhaps the most important rule is to hold on to your winners and cut your losers. Both are equally important. If you don’t stay with your winners, you are not going to be able to pay the losers.
You also have to follow your own light. Because I have so many friends who are talented traders, I often have to remind myself that if I try to trade their way, or on their ideas, I am going to lose. Every trader has strengths and weakness. Some are good holders of winners, but may hold their losers a little too long. Others may cut their winners a little short, but are quick to take their losses. As long as you stick to your own style, you get the good and bad in your own approach. When you try to incorporate someine else’s style, you often wind up with the worst of both styles. I’ve done that a lot.