Category: Theory And Training
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Jesse Livermore’s Strategy Had A Major Flaw: Position Sizing
Jesse Livermore is commonly cited as one of the best market speculators of all time. But is this true? On the one hand, he did invent solid trading rules for his strategy that have stood the test of time: Cut Your Losses: Never average down and never hope your losses reverse. Just cut them. Infinite…
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George Soros’ Trading Strategy: How to Find Trades
George Soros is a billionaire investor and philanthropist who is known for his active management style and use of financial derivatives. He is often referred to as “the man who broke the Bank of England” due to his successful bet against the British pound in 1992. Soros’ investment strategy involves identifying and profiting from macroeconomic trends…
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Stanley Druckenmiller On Liquidity, Macro, & Margins
What’s obvious is obviously wrong… The present is already in the price… And it’s margins and capacity that matter… ~ Stanley Druckenmiller The following are some more words of wisdom from Druck pulled from an old Barron’s interview in 88’. There’s a few notes from me as well… Gauging the macro environment through three different…
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What Traders Can Learn From Professional Horse Betting
Thegreek.com, a horse racing blog, discusses the “seven deadly sins” losing horse bettors commit. Repeat these sins in your trading and you’ll suffer the same fate as the losers at the track. Here are the four most important sins to avoid: Deadly Sin No.1: The most important thing is picking winners. Wrong! Professional horse…
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Find Your Trading Edge By Exploiting Errors
Market speculation is a zero-sum game. In order for someone to win, someone else needs to lose.You can think of the market as a collection of players… some weak, some average, and some strong. Your goal is to take action against the weak players and relentlessly separate them from their money. To do this you’ll…
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The Man Behind Quantum: George Soros’ Philosophy & Mindset
The following is straight from Operator Kean, a member of the Macro Ops Hub. To contact Kean, visit his website here.The Quantum Group of Funds is one of the most successful hedge funds in history. Built by uber-investor George Soros, it was only recently overtaken by Bridgewater to become number 2 on the list of…
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Managing Your Losing Trades
Amateurs focus on finding trades. Operators focus on managing trades. Inexperienced traders spend far too much time on trade identification. Their misguided goal is to find the perfect trade with the perfect entry. The truth is… perfect doesn’t exist. You’re not gonna find some magical combination with a 98% win rate. Identifying a trade is…
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What Market Liquidity Is & Why It’s The Most Important Fundamental
I’m sure you’ve heard analysts, financial pundits, and other babbling heads yabber on and on about how these markets don’t reflect the “fundamentals”. They’ve ranted non-stop about how the fundamentals prove that a bear market is around the corner. They’ve raved about valuations being stretched and how stocks will collapse any day now… If you’ve…
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Amos Hostetter Trading Strategy Explained
Amos Hostetter cofounded Commodities Corporation (otherwise known as CC) along with Helmut Weymar back in 1969. CC is the trading shop that produced more legendary trading talent than the Yankees have All-Stars. Alumni include: Bruce Kovner, Michael Marcus, Paul Tudor Jones, Ed Seykota and more…Hostetter was considered the wise sage and mentor of the group.…
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Donald Trump: The Embodiment Of Trading Greatness
Paul Tudor Jones, Bruce Kovner, Jesse Livermore… forget about em. The only name you need to know when it comes to trading greatness is Donald Trump. He’s everything a trader should aspire to be. When it comes to having “strong opinions, weakly held”, Trump has EXTREMELY strong opinions, EXTREMELY weakly held. At the beginning of…