Take calculated risks rather than impulsive ones from "summary" of Reminiscences of a Stock Operator by Edwin Lefevre
There is a fine line between taking a calculated risk and acting on impulse. The former involves careful consideration of the potential outcomes, weighing the pros and cons, and making an informed decision based on analysis and research. On the other hand, acting impulsively means making a decision without fully understanding the risks involved, without a clear plan or strategy in place. In the world of trading, it is essential to be able to differentiate between the two. One must be able to resist the urge to act hastily, to take a step back and assess the situation objectively. This requires discipline, patience, and a rational mindset. It is easy to get caught up in the excitement of the moment, to let emotions cloud judgment. But successful traders know that emotions have no place in the market. Instead, they rely on logic and reason to guide their decisions. They do their homework, they analyze...
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