Greats

1
Greats Great Reads

• George Soros the Commodities Corp. Gang

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Overview

• George Soros Stanley Druckenmiller
• The Commodities Corp. Gang
• Martin Schwartz The Champion Trader
• Ed Seykota the Trading Tribe
• Michael Marcus
• Bruce Kovner
• Paul Tudor Jones II

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George Soros

• Born Aug. 12, 1930 in Hungary
• Manager of the Quantum Fund
• Open Society Institute
• Macro trader extraordinaire
• British Pound coup in 1992
• It is not whether you are right or wrong that's
  important, but how much money you make when
  you're right and how much you lose when you're
  wrong

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Stanley Druckenmiller

• Former right hand man of George Soros
• 142 on the Forbes list
• It takes courage to be a pig.
• Just keep hitting homeruns preserving capital

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The Alchemy of Finance

• By George Soros
• Macroeconomic analysis bible

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Market Wizards

• Also, the New Market Wizards and Stock Market
  Wizards
• By Jack Schwager
• Interviews with Top Traders

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Commodities Corp.

• Founded in 1969 by Amos Hostetter
• They are free to trade any way they want, and to
  come and go as they please.
• Any theory is good as long as it makes money
• Never bucked a trend in prices
• "Never mind the cheese.let me out of the trap."

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• And these are their stories..

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Marty Schwartz The Champion Trader

• 40, 000 to 20M with never more than 3
  drawdown.
• Not to go against the moving averages, its
  self-destructive
• Know the amount you are willing to lose
• Dont break the rules
• The most important thing is money management,
  money management, money
  management.
• Let your gains run

10
Pit Bull

• Pit Bull Lessons from Wall Streets Champion Day
  Trader
• By Marty Schwartz
• With actual trading tips and lessons!!

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Ed Seykota the Trading Tribe

• 250 000 return in 16 years (70s 80s)
• 79 annualized 60 after fees (90s)
• Everybody gets what they want out of the market
• Trend follower
• Math Psychology
• www.seykota.com

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The Trading Tribe

• www.seykota.com
• To avoid whipsaw losses, stop trading
• It can be very expensive to try to convince the
  markets you are right.
• The Toronto Tribe Jason Russell
  jason_at_hedgehogcapital.com
• But now, to a book, then his best student.

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Trend Following

• Trend Following How Great Traders Make Millions
  in Up or Down Markets
• By Michael Covel
• Endorsed by Ed Seykota

• How to become the owner of the Redsox!!

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Commodities Corp.Michael Marcus

• John Hopkins grad, at the top of his class.
• Student of Ed Seykota
• Formerly the largest futures trader in the US
• Cutting down the number of trades you make
• The best trades are the ones in which you have
  all 3 things going for you
• Fundamentals
• Technicals
• Market Tone

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Bruce Kovner

• 106 on the Forbes list
• Harvard Poli Sci. Prof.
• Place my stop..that is too far or too difficult
  to reach easily
• If you personalize your losses, you cant trade.

• The price for a market on any given day is the
  correct price, then I try to figure out what
  changes are occurring that will alter that
  price.

16
John Murphy

• Former head of research at Merrill Lynch
• Technical Analysis of the Financial Markets
• Intermarket Analysis
• Bond to currency to commodities to stock.

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Paul Tudor Jones

• Dont be a hero. Dont have an ego.
• Dont EVER average losers
• Decrease your trading volume when you are
  trading poorly
• Always thinking about losing money as opposed to
  making money.

• Left Comm. Corp. at 1980
• 5 straight years of 100
• Never had a down year .
• 30 annually

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What the Wizards Read

• Reminiscence of a Stock Operator
• By Edwin Lefvre
• The story of Jesse Livermore
• Frank discussion of his investment methods
• Author followed Livermore around for 3 years
• So who is Livermore
• Greatest investor in the early 20th century
• The Great Bear of Wall Street
• Netted 100 million at the day of the 1929 crash.

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Summary

• Dont predict the future
• But do react quickly
• Cut your losses
• Only make the good trades

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Any Questions ???