A good trader has to have three things: a chronic inability to accept things at face value, to feel continuously unsettled, and to have humility.

In the 1950s and 1960s, the heroes were the long-term investors; today the heroes are the wise guys.

Time and again, in every market cycle I have witnessed, the extremes of emotion always appear, even among experienced investors. When the world wants to buy only [bonds], you can almost close your eyes and [buy] stocks.

You have to be intellectually honest with yourself and others. In my judgment, all great investors are seekers of truth.

A good trader has to have three things: a chronic inability to accept things at face value, to feel continuously unsettled, and to have humility.

One of the most important analytic tools when assessing an investment is an intellectually advantaged disparate view. This includes knowing more and perceiving the situation better than others do. It is also critical to have a keen understanding of what the market expectations for any investment truly are. Thus, the process by which a disparate perception, when correct, becomes consensus should lead to meaningful profit. Understanding market expectation is at least as important as, and often different from fundamental knowledge.

The markets are always changing, and the successful trader needs to adapt to these changes.