Category: Theory And Training
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Lessons From A Trading Great: George Soros
Remember the scene from the 90’s classic, The Sandlot, where “Smalls” loses his father’s Babe Ruth autographed baseball to “The Beast” and the other kids question him in disbelief, saying: Smalls: I was gonna put the ball back. Squints: But it was signed by Babe Ruth! Smalls: Yeah, you keep telling me that! Who is…
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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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Beware The Top Performers
“And, at any point in time, the richest traders are often the worst traders. This, I will call the cross-sectional problem: At a given time in the market, the most successful traders are likely to be those that are best fit to the last cycle. This does not happen too often with dentists or pianists—because…
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The 5 Best Books On Economic History For Global Macro Trading & Investing
If your goal is to become a master global macro trader or investor, then you need to become a devout student of economic history. The books below cover various episodes of credit driven speculation throughout history. Studying these instances will show you that humans tend to repeat similar periods of economic delusion time and time…
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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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Bridgewater’s Five Stages of a Sovereign’s Life Cycle
According to Ray Dalio (and we believe this as well) there are four drivers of economic growth: culture, indebtedness, competitiveness, and luck.And the two most positive influences on these growth drivers are [1] the psychological framework that creates people’s desire to work, borrow and consume and [2] war.It’s these different socioeconomic experiences that form long-term…
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Lessons on Trading and Markets from “Adam Smith” And The Money Game
If you’re wondering why “Adam Smith” is in quotations, it’s because the name is the pseudonym adopted by the author who wrote The Money Game, a 1967 market classic. In the author’s own words, the book is about “image and reality and identity and anxiety and money” — everything that makes up markets…Here’s some of…