Amount Quote by Bruce Kovner
“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”
About This Quote
Source Book: Market Wizards by Jack D. Schwager, 2000
Set a stop loss based on the trade’s logical failure point, not just the amount you can afford to lose.
In simple terms: Stop when the trade proves wrong, not when money runs out.
Key Takeaway
Define risk by market signals, not just capital limits.
Themes
risk management
trading discipline
loss limits
Mood
cautious
analytical
Type
strategic
practical
When to use this quote
- stock trading
- forex
- options
- commodity futures
Key Concepts
position sizing
risk-reward analysis
Questions to Reflect On
- How do you determine the logical failure point?
- What indicators signal a trade is wrong?
A Different Perspective
If market conditions change, a fixed stop may be too early or too late.
![“Whenever I enter a position, I have a predetermined stop. That is the only way I can sleep. I know where I'm getting out before I get in. The position size on a trade is determined by the stop, and the stop is determined on a technical basis... I never think about [stop vulnerability], because the…” quote by Bruce Kovner](https://sms4smile.com/quotes/img-quotes/06e/bruce-kovner-30819_bases_whenever-i-enter-a-position-i-have-a-pre_2840023.jpg)
![“Michael [Marcus] taught me one thing that was incredibly important... He taught me that you could make a million dollars. He showed me that if you applied yourself, great things could happen. It is very easy to miss the point that you really can do it.” quote by Bruce Kovner](https://sms4smile.com/quotes/img-quotes/9e8/bruce-kovner-30819_can-do_michael-marcus-taught-me-one-thing-that_1708047.jpg)
