Quotes from Jack D. Schwager

So you like seeing a high EPS with a low P/E. Yes. That's the best combination. I am sure there is a way of combining the two on a computer and coming up with a very good system.

Place your stops at a point that, if reached, will reasonably indicate that the trade is wrong, not at a point determined primarily by the maximum dollar amount you are willing to lose per contract.

Unlike some other gurus, he doesn't believe he is predicting the future; he is simply observing what is happening and making rational bets.

I would say that risk management is the most important thing to be well understood.

Undertrade, undertrade, undertrade is my second piece of advice. Whatever you think your position ought to be, cut it at least in half. My experience with novice traders is that they trade three to five times too big.

Place your stops at a point that, if reached, will reasonably indicate that the trade is wrong, not at a point determined primarily by the maximum dollar amount you are willing to lose per contract. If the meaningful stop point implies an uncomfortably large loss per contract, trade a smaller number of contracts.

there is probably no class of trades with a higher failure rate than impulsive (not to be confused with intuitive) trades.

One of the reasons I was so bullish on the Deutsche mark was a radical currency theory proposed by George Soros in his book, The Alchemy of Finance. His theory was that if a huge deficit were accompanied by an expansionary fiscal policy and tight monetary policy, the country's currency would actually rise.