You know, “The more you trade, the more you are likely to lose” is one of those truths that stings at first. It’s not about being passive; it’s about understanding the brutal math and psychology that work against the hyper-active investor.
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Meaning
At its core, this quote is a warning that excessive activity in the market doesn’t increase your odds of success—it actively decreases them. It’s the friction of the game.
Explanation
Let me break it down the way I see it after watching markets for years. Every single trade has a cost—the bid-ask spread, the commission, the slippage. It’s tiny, but it adds up fast. It’s like a tax on impatience.
But the real killer is psychology. The more you trade, the more you’re just reacting to noise. You’re not investing; you’re guessing. You start chasing yesterday’s winners, selling in a panic, and making emotional, not rational, decisions. And the math is brutally simple: more decisions = more potential for costly mistakes. It’s a marathon, not a series of sprints.
Quote Summary
| Context | Attributes |
|---|---|
| Original Language | English (3668) |
| Category | Wealth (107) |
| Topics | discipline (252), loss (8) |
| Literary Style | direct (414), minimalist (442) |
| Emotion / Mood | cautious (33) |
| Overall Quote Score | 68 (19) |
Origin & Factcheck
This wisdom comes straight from Benjamin Graham’s 1949 masterpiece, The Intelligent Investor. It’s often misattributed to Warren Buffett, but it’s pure Graham—Buffett’s own professor and the godfather of value investing. The book was first published in the United States and has been the bible for defensive investors ever since.
Attribution Summary
| Context | Attributes |
|---|---|
| Author | Benjamin Graham (48) |
| Source Type | Book (4032) |
| Source/Book Name | The Intelligent Investor (48) |
| Origin Timeperiod | Modern (530) |
| Original Language | English (3668) |
| Authenticity | Verified (4032) |
Author Bio
Benjamin Graham, well known for investing community has brought investing to masses by focussing on analysis and risk control. After graduating from Columbia University, co-founded the Graham Newman Corporation. Benjamin Graham book list covers Security Analysis and The Intelligent Investor which shaped many generations of professionals. He is regarded as a mentor to Warren Buffett as his ideas form the basis of value investing.
Where is this quotation located?
| Quotation | The more you trade, the more you are likely to lose |
| Book Details | Publication Year/Date: 1949; ISBN/Unique Identifier: 978-0060555665; Last edition: Revised Edition by Jason Zweig (2006), 640 pages. |
| Where is it? | Chapter 8, Approximate page 200 from 2006 edition |