A Beginner's Guide to the Stock Market Quotes

“I skate to where the puck is going to be, not to where it has been.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“Paul Tudor Jones: "Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead. My biggest hits have always come after I have had a great period and I started to think that I knew something.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“In”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“CNBC. Never buy a stock based on an analyst upgrade, or sell a stock based on an analyst downgrade.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“cash account”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“order to short a stock, you will need to open up a margin account with your broker, as Joe Campbell did. You’ll also need a margin account in order to trade stocks using margin. When you buy a stock on margin, it means that you are borrowing money from your broker, in order to purchase more shares of stock than you would normally be able to buy with just the cash sitting in your brokerage account. Let’s say that I have $10,000 in my margin account. Most brokers in the U.S. will allow me to go on margin to purchase $20,000 worth of stock in that account. What this means is that they are lending me an additional $10,000 (usually at some outrageous annual interest rate like 11%, which is what E*Trade currently charges) to buy more shares of stock. If I buy $10,000 worth of stock and the stock goes up 10%, I’ve just made $1,000. But if I can increase the amount of stock that I’m buying to $20,000 using a margin loan, I will have made $2,000 on the same 10% move. That will mean that my trading account has just gone up by 20% ($2,000/$10,000). Of course, if the stock goes down 10% and I’m on full margin, I will have lost 20% of my account value. Trading on margin is thus a form of leverage: it amplifies the performance of your portfolio both on the upside and the downside. When you buy a stock using margin, the stock and cash in your trading account is held as collateral for the margin loan. If the stock falls enough, you may be required to add more cash to your account immediately (this is called “getting a margin call”), or risk having the broker force you to immediately sell your stock to raise cash. Often this will lead to your selling the stock at the worst possible time.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“trading at $10 when you just shorted it at $2 a few days before? I learned that lesson the hard way. It turned out that I was risking $8 to make $2, which is not a good way to make money over the long term. To add injury to insult, a penny stock might appear to be liquid one day, and the next day, the liquidity dries up and you are confronted by a $2 bid/ask spread. Or the bid might completely disappear. Imagine owning a stock for which there are now no buyers. Stay away from all stocks under $10. Also stay away from trading newsletters that hawk penny stocks. The owners of these newsletters are often paid by the companies themselves to hype their stocks. Or they may take a position in a penny stock, send out an email telling everyone to buy it, and then sell their stock at a much higher price to these amateur buyers. Watch the movie "The Wolf of Wall Street" if you’d like to see a famous example of the decadent lifestyle and fraud that often surround penny stocks. Viewer discretion is advised. 3. Don’t short stocks. If you are an advanced trader, feel free to ignore this rule. If you are not, I would seriously encourage you not to ignore this rule. In order to short a stock, you must first borrow shares of the stock from your broker. You then sell those shares on the open market. If the stock falls in price, you will be able to buy back those shares at a lower price for a profit. If, however, the stock goes up a lot, you may be forced to buy back the shares at a much higher price, and end up losing more money than you ever had in your trading”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“Take profits when you are so excited and happy about your trade that you are losing sleep. Take profits if a stock moves up 100% in 2 weeks or less. Take profits when you are up 300% from your entry price. Take profits when all of your friends and CNBC begin to talk a lot about the stock. At this point, the trade has become crowded, and hence much more dangerous. Take profits if a taxi driver or barber tell you to buy the stock. Exit (with a profit or loss) when the stock closes below its 50-day moving average. Use this method to capture shorter moves. Exit (with a profit or loss) when the stock closes below its 200-day moving average. Use this method to capture longer moves. Exit (with a profit or loss) when the 50-day moving average crosses below the 200-day moving average. Use this method to capture longer moves.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“I also like to look for growth stocks, where the float is less than 20% of the total number of shares outstanding. The “float” is simply the number of shares of a stock that are actually available for trading.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“years ago. Until you become an advanced investor, don't ever buy a stock with”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“you'd like to learn”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“XYZ at”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“A liquid stock is defined as a stock where you can buy or sell a lot of shares without moving the stock too much. Liquid stocks in the U.S. usually have a bid-ask spread of just a penny or two.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“This is because every stock has a bid price and an offer (or "ask") price. The bid is the price at which someone is willing to buy the stock. The offer is the price at which someone is willing to sell the stock. Memorize this phrase right now: “You sell to the bid, and you buy from the”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“By jumping in front of a large institutional player, we can come along for the ride as the mutual fund or hedge fund continues to push the stock up with its buying, or down with its selling.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“The stock market adjusts to new information”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“If you are going to trade before the market opens or in the after-hours market, always use a limit order.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“This is because every stock has a bid price and an offer (or "ask") price. The bid is the price at which someone is willing to buy the stock. The offer is the price at which someone is willing to sell the stock. Memorize this phrase right now:”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“Coke is a special kind of dividend stock. It is a Dividend Aristocrat, one of an elite group of companies that have raised their dividends every year for the past 25 years. Other Dividend Aristocrats include the Colgate-Palmolive Company, Johnson & Johnson, and McDonald's. There's an easy way to own a piece of every Dividend Aristocrat: just buy some shares of NOBL. It is the ProShares S&P 500 Dividend Aristocrats ETF. It trades just like a stock, and you can purchase it using any brokerage account.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“Never buy a growth stock if the stock is trading below its 200-day moving average, or if the 50-day moving average is trading below the 200-day moving average. If either of those two criteria are true, the stock is in a downtrend. There is nothing more dangerous than a growth stock in a downtrend. A growth stock might go up 300% over 3 years, and then fall 80-95% once it enters a downtrend.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“Investing in dividend stocks is one of the best ways to build wealth. The reason it works so well is that you can take the cash from a dividend payment and use it to buy more dividend stocks. Then those dividend stocks will pay you more dividends.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“probably the dumb money.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“Copyright © 2019 by Little Cash Machines LLC All rights reserved. No part of this book may be reproduced in any form without written permission from the author (matt@trader.university). Reviewers may quote brief passages in reviews. For my wife and children”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“Ed Seykota: "The key to long-term survival and prosperity has a lot to do with the money management techniques incorporated into the technical system. There are old traders and there are bold traders, but there are very few old, bold traders.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“Bruce Kovner: "Whenever I enter a position, I have a predetermined stop. That is the only way I can sleep. I know where I'm getting out before I get in. The position size on a trade is determined by the stop, and the stop is determined on a technical basis.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“Jim Rogers: "I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime. Even people who lose money in the market say, 'I just lost my money, now I have to do something to make it back.' No, you don't. You should sit there until you find something.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“Ed Seykota: "Fundamentals that you read about are typically useless as the market has already discounted the price, and I call them 'funny-mentals.' I am primarily a trend trader with touches of hunches based on about twenty years of experience. In order of importance to me are: (1) the long-term trend, (2) the current chart pattern, and (3) picking a good spot to buy or sell. Those are the three primary components of my trading. Way down in very distant fourth place are my fundamental ideas and, quite likely, on balance, they have cost me money.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“William Eckhardt: "Either a trade is good enough to take, in which case it should be implemented at full size, or it's not worth bothering with at all.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“Dennis Gartman: "The markets will return to rationality the moment that you have been rendered insolvent.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market

“John Maynard Keynes: "Markets can remain irrational longer than you can remain solvent.”
― Matthew R. Kratter, A Beginner's Guide to the Stock Market