The Little Black Book of Stock Market Secrets Quotes

“Near the end of a momentum stock’s long uptrend, it will frequently be trading at a truly irrational P/E multiple. No amount of business success or growth will ever be able to justify such a multiple.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“Many momentum stocks end up giving back all or most of their entire advance. For example, in the bear market of 2000-2002, many momentum stocks declined 80-90% from their highs.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“fact, every bear market begins with many stocks’ 50-day moving averages crossing below their 200-day moving averages. Major stock indices (SPY, QQQ, DIA, and IWM) will also see their 50-day moving averages cross below their 200-day moving averages.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“A lazy trader always loses lots of money in the long run. You need to treat your trading like a job, and take it seriously. To be successful, you need to learn how to run your trading like a business.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“To succeed in trading, you must completely forget about the money. Focus instead on getting your entry point right, focus on your stop loss, and focus on your profit target. Do these things, and the money will take care of itself.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“If you are trading badly, stop trading immediately.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“Learn to treat your trading like a business: losses are just part of the game.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“If you are just trading for the money, you will lose money. But if you are trading to honestly improve your character, you will make money.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“Always trade like a sniper, not a machine gunner. Wait patiently for your target to come into view, and only then pull the trigger. Don’t take just any trade out of boredom. This is a game in which patience is rewarded.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“The only way to remain emotionally resilient is to sleep at least 8 hours every night, exercise every day, and eat healthy foods.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“Don’t time travel: don’t dwell on past bad trades, or fantasize about future great trades. Allow trading to teach you to live in the present.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“To become a successful trader, you have to be willing to make mistakes on a regular basis, without beating yourself up or becoming discouraged. If you make a mistake, take a quick small loss, and move on to the next trade.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“Only the market tells the truth. If you lose money, you are wrong. If you make money, you are right. It’s that simple.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“If you keep working at it and keep your losses under control, you will eventually become a great trader.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“In trading, it is more important to play great defense than great offense. If you lose your capital, you are out of the game.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“When you are making money, you are allowed to increase your position size. But don’t bet the farm. That usually results in losing the farm.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“When you are losing money, reduce your position size. If you keep losing, continue reducing your position size until you are on the sidelines.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“Review past trades to learn from your mistakes.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“If a stock suddenly becomes much more volatile than usual, just get out, or at least sharply scale back your position in the stock.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“Remember that the market will always move in such a way as to cause the maximum pain to the maximum number of traders.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“If you have a trade on that keeps you awake at night, it is either the wrong trade, or your position size is too large. Either scale back the position size, or get out entirely. Life is too short to lose sleep over a trade.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“If a stock sells off on good earnings, get out immediately.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“The most money is made near the end of a trend when a stock goes parabolic and the public and pundits are in a state of disbelief. Enjoy the ride up, but don’t expect it to last forever. Honor your trailing stop, or slowly sell out your position into the move up.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“the general markets (as measured by the SPY and QQQ) and an individual stock are both in uptrends, it is a good time to increase your position size and trade more aggressively.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“But when there is an opportunity to be had, make sure that you channel all of your time and energy towards your trading.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“If there are no attractive trading set-ups, do nothing. Go for a jog instead.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“Knowing when to sit on your hands is half the battle in trading. Good trading should consist of more watching than trading.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“Trading is all about good risk management, controlling your ego, focus, and dedication. If you don’t love this game, you’ll probably lose money to someone who does.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“90% of your losses will come from 10% of your trades. 90% of your profits will also come from 10% of your trades.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets

“Always honor your stop losses. If you don’t learn to take small losses, you will eventually take a massive loss.”
― Matthew R. Kratter, The Little Black Book of Stock Market Secrets