The stock market in 2020 is going through a recession due to COVID-19.  Many traders and investors often give up stock markets in such situations and end their stock market journey. To motivate the investors and traders in the stock market, we list and decode the meaning of the top 30 trading and investing quotes that will help you in becoming successful in the market.

Top 30 Stock Market Quotes

“Rule #1: Don’t lose money. Rule #2: Don’t forget Rule #1.”

– Warren Buffett

Here the famous stock market investor Warren Buffet is trying to say that when you enter the market, the main aim of trading or investing before making the profits is not to lose money. He believes that the stock market is meant to make money but before that, you must ensure that you do not end losing it.

“Buy not on optimism, but on arithmetic.”

– Benjamin Graham

The fundamental rule of the stock market is buying stocks on the basis of balance sheet and not around the positive news surrounding it. Stock bough on good fundamentals will give good returns in the long run.

“Minimizing downside risk while maximizing the upside is a powerful concept.”

–Mohnish Pabrai

While trading or investing in the stock market, the main aim should be to minimize the losses and maximize profits. The losses can be minimised with a stop loss while the upside can be maximised by holding the stocks for the long term.

“Spend each day trying to be a little wiser than you were when you woke up.”

– Charlie Munger

In the stock market, you will learn new things every day. You must make sure that every next day in the market you come up learning new concepts and things about the stock market to be a successful trader.

“The desire to perform all the time is usually a barrier to performing over time.”

– Robert Olstein

Most of the trades or investments fail in the market due to high expectations. When you keep high expectations in the market, you would be let down. Therefore, keeping a realistic approach in the market would help you in becoming a successful trader.

“Risk comes from not knowing what you’re doing.”

– Warren Buffett

Whatever you do in the stock market, you must know it. Any decision taken without prudent knowledge will lead to losses most of the time.

“If we buy the business as a business and not as a stock speculation, then it becomes personal. I want it to be personal.

– Phil Town

Whenever you invest in the stock market for the long term you must ensure that you are investing in the business of the company rather than just the stock. This approach will give better returns in the stock market.

“We don’t have an analytical advantage, we just look in the right place.”

– Seth Klarman

When you do not have any analytical or technical knowledge in the stock market, it is better to look for stocks that can grow and give good returns in the future.

“No wise pilot, no matter how great his talent and experience, fails to use his checklist.”

– Charlie Munger

There are some rules of investing and trading in the stock market. Always ensure that stocks meet those parameters and if they do not, avoid them. By entering into stocks without making sure they fulfil the respective criteria will lead to losses.

“I love quotes… but in the end, knowledge has to be converted to action or it’s worthless.”

– Tony Robbins

When you know about investing or trading, you must put it to the right use. Having knowledge but not using it in the stock market is worthless.

“It is impossible to produce superior performance unless you do something different from the majority.”

– John Templeton

If you want to make extraordinary returns in the stock market, you must do something different from what most people are doing.

“The secret to investing is to figure out the value of something – and then pay a lot less.”

Joel Greenblatt

To become a successful investor or trader you must have the ability to find the true value of a company and it is available at cheaper valuations. Such stocks can give huge returns.

“It is remarkable how much long term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.”

– Charlie Munger

The basic rule to become successful in the stock market is to have a consistent approach and not to be stupid. If you follow these two things, you do not have to be very intelligent to become a successful investor or trader in the market.

“Behind every stock is a company. Find out what it’s doing.”

– Peter Lynch

Before investing in a stock, find out what business the company is doing. Invest in business, not stocks.

“Wide diversification is only required when investors do not understand what they are doing.”

– Warren Buffett

Diversification is often required by those investors who are not much aware of what they are doing in the market. If you have the right set of knowledge and skill, diversification of the portfolio is not important in the stock market.

“Based on my own personal experience – both as an investor in recent years and an expert witness in years past – rarely do more than three or four variables really count. Everything else is noise.”

– Martin Whitman

Before investing in any stock most people look at various aspects. In reality, only three or four things deserve analysis, the rest of the things does not affect the stock price.

“Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.”

– Albert Einstein

To be successful in the stock market, you must know the power of compounding. Compounding is possible when you invest in stocks of companies and hold them for a very long time. Huge returns can be made by holding them in the long run.

“I will tell you how to become rich. Close the doors, be fearful when others are greedy. Be greedy when others are fearful.”

– Warren Buffett

The best time for investment in the stock market is when others are fearful and pessimistic about the future of the market. Whereas, the best time to sell a stock in the stock market is when others are greedy and optimist about the future of the market.

“The individual should act consistently as an investor and not as a speculator.”

– Benjamin Graham

When you are an investor in the share market, you must keep changing your strategy or take action instead of just sitting and watching the price movement.

“The entrance strategy is actually more important than the exit strategy.”

– Edward Lampert

The timing of entry i.e. the price at which you are entering the stock is more important than the price at which you will exit the stock.

“In many ways, the stock market is like the weather in that if you don’t like the current conditions all you have to do is wait a while.”

– Low Simpson

Patience is the key to success in the market. If any situation is not looking favourable and the price of the stock is not moving up, all you can do is keep patience and wait for the price to go up in future.

“The ability to focus attention on important things is a defining characteristic of intelligence.”

– Robert J. Shiller

While selecting any stock for investment or trading purpose, you must analyse the aspects of the company that will affect its growth and profitability in future. Focusing on relevant things is a sign of an intelligent investor.

“Invest for the long-term.”

– Lou Simpson

The key to long term success in the stock market is holding it for a longer duration. By holding a stock for a long period, you can make incredible and unimaginable returns in the market.

“Rapidly changing industries are the enemy of the investor.”

– Mohnish Pabrai

When you invest in a company or a sector, hold it. By changing the portfolio on every random news is not a good thing. Those who can hold stocks without fear for the long term, reap real benefits of the market.

“The easiest way to manage your money is to take it one step at a time and not worry about being perfect.”

– Ramit Sethi

The best way in which you can manage your money is by investing at random intervals. This would help you not only to manage your funds but also make you stress-free about putting money into the markets.

“The stock market is filled with individuals who know the price of everything, but the value of nothing.”

– Phillip Fisher

The stock market is known for speculation and many individuals believe that they know the price of every stock correctly but in reality, they do not know the actual worth of the business.

“Although it’s easy to forget sometimes, a share is not a lottery ticket… it’s part ownership of a business.”

– Peter Lynch

When you purchase a share of a company, you become a partial owner of the company. You must always remember this fact, that you have put your money into the business of the company and not on a lottery ticket. If your pick is right, you would make good returns.

“All intelligent investing is value investing. Acquiring more that you are paying for. You must value the business in order to value the stock.”

– Charlie Munger

When you are investing in a company, you must ensure that you are getting more for the money than you are paying. If you can value the business, you would get good value for the stock through trading as well as investing.

“The stock market is a device for transferring money from the impatient to the patient.”

– Warren Buffett

Patience is the key to success in the market. If you do not have the patience you will sell your stock and another person will buy it. That other person if holds the stock for the long term, he has good chances of making good returns. Therefore, a patient person gets his shares from an impatient person.

“When it comes to investing, we want our money to grow with the highest rates of return, and the lowest risk possible. While there are no shortcuts to getting rich, there are smart ways to go about it.”

– Phil Town

When you want to make returns through investing or trading in the market, you have to be a smart investor, there is no shortcut to it.

By adopting the above quotes in your trading or investment journey in the stock market, you can be successful. To learn more about the stock market, you can visit Trading Fuel. We are the leading stock market education provider in the country. Through our articles and blogs, you can remain updated about the latest stock market updates. By using the knowledge available on our page you can even become a successful investor and intraday trader in the stock market. Subscribe to our page and get free stock market knowledge.

Author

Prashant Raut is a successful professional stock market trader. He is an expert in understanding and analyzing technical charts. With his 8 years of experience and expertise, he delivers webinars on stock market concepts. He also bags the ‘Golden Book of World Record’ for having the highest number of people attending his webinar on share trading.