Category: Best Of
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Paul Tudor Jones’ Trading Strategy Explained
Let’s dive into Paul Tudor Jones’ trading strategy to learn how he’s maintained consistent success in the stock market over multiple decades. We’ll dissect the key principles and tactics that have made him one of the greatest traders of all time. From Jack Schwager’s Market Wizards: October 1987 was a devastating month for most investors…
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Lessons From A Trading Great: Stanley Druckenmiller
The “greatest money making machine in history”, a man with “Jim Roger’s analytical ability, George Soros’ trading ability, and the stomach of a riverboat gambler” is how fund manager Scott Bessent describes Stanley Druckenmiller. That’s high praise, but if you look at Druckenmiller’s track record, you’ll find it’s well deserved. Druck averaged over 30% returns…
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Jesse Livermore’s Trading Strategy Explained
“Boy Wonder”, “Boy Plunger” and the “Great Bear of Wall St.” are a few of the monikers Jesse Livermore was known by. Livermore was immortalized in the trading classic Reminiscences of a Stock Operator by Edwin Lefevre — a book your author has read countless times over the years and still pulls new wisdom from…
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Lies, Untruths, and False-Trends: George Soros on what really moves markets
George Soros was quoted in a speech he gave to the Committee for Monetary Research and Education back in the early 90’s as follows: Economic history is a never-ending series of episodes based on falsehoods and lies, not truths. It represents the path to big money. The object is to recognize the trend whose premise…
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Michael Marcus’ Trading Strategy Explained
Michael Marcus turned $30,000 into $80 million over a 20 year period — not too shabby.He was profiled in Schwager’s original classic Market Wizards, giving one of the more impressive interviews in a book filled with many. What many don’t know is that Michael Marcus was also part of what has to be the most…
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The Philosopher on Playing the Player
Market sentiment is a fuzzy concept.In its most basic sense, it’s the aggregate beliefs and moods of actors that comprise the total market.It’s tough to measure, gauge and test. And so, it’s often discarded completely or superfluously used to confirm one’s own biases. But learning how to play the player (market sentiment) is vitally important…
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Lessons from a Trading Great: Bruce Kovner
Bruce Kovner retired in 2011 from Caxton Associates, the hedge fund he founded and ran for 28 years. Over that time the fund returned an average of 21 percent a year since its inception. In comparison, the SPX averaged just 11%. Kovner had only one losing year (in 94’). Before Caxton, while trading at the…
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Variant Perception and How the Market Is Always Wrong
““The generally accepted view is that markets are always right — that is, market prices tend to discount future developments accurately even when it is unclear what those developments are. I start with the opposite view. I believe the market prices are always wrong in the sense that they present a biased view of the…
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Understanding George Soros’ Theory of Reflexivity in Markets
My conceptual framework enabled me both to anticipate the crisis and to deal with it when it finally struck. It has also enabled me to explain and predict events better than most others. This has changed my own evaluation and that of many others. My philosophy is no longer a personal matter; it deserves to…
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Ruthless Reductionism and Occam’s Razor
In the classroom we were constantly praised and awarded for complexity. A desire for higher marks meant creating more pages of writing, more conclusions, more assumptions, more models, more complexity, more and more. Yet when we exit the sterile classroom and apply that approach to the real world in search of profits, it often translates into less…