My financial idols used to be from the world of real estate. My favorite was not the best known, like Donald Trump, or Sam Zell, or Trammel Crow, but a guy named William Sanders (long story).
When I first came into trading, I initially read about the guys I thought were the best, based on the fact they were known by traders and non-traders alike. The three I knew; Warren Buffet (not a trader), Jim Rogers (also not really a trader), and George Soros (a trader).
I have read so many quotes from great traders since I picked up my first book. Many of their comments resonate in me daily, even though I may not exactly remember which guy said what. I remember reading about Soros saying something like (by the way, I have not looked this quote up again before this post. I'll just assume it is close enough),
"When a trader feels he's got the right trade, one can not have big enough position."
It dripped with wisdom. Words from the prophet, or even the messiah himself in the world of trading.
Today I look at that comment differently. I'll break it down;
1) "When a trader..." if we asked George Soros what makes a great trader, what would his definition be? Would I qualify? Would you?
2) "...feels he's got the right trade..." What would give Soros that feeling? Indicators? News? Fundamentals? Experience? Inside information? All of the above? One opportunity per year? Per lifetime?
3) "...one cannot have a big enough position." Well, yes, it is hard to get hurt by size if everything goes in your favor. In theory, prehaps that one statement is the holy grail. You can never have too big of a win.
But, what was the stop size? How much equity did they risk? How did they know that was the right trade? Soros also had some miserably losing trades. Even great traders never really know until the trade proves itself. What if that trade had gone wrong? Would we still know the name as well today?
Soros was absolutely correct; you can never have too big of a position in a winning trade. But, you sure as heck can in a losing one.
Last edited by GaryD; December 18th, 2011 at 11:00 PM.
The following 2 users say Thank You to GaryD for this post:
You keep forgetting ' STOP LOSS". Does not matter 2 cars or 500 cars. I just do not trade with same size every day. For that I will have to assume every day is the same. George Soros quote is not word for word. It's 2 different quotes combined based on what i could remember.
Pivot tracker value of 3 ( Yum) . 12 day cumulative ABCD -5 and 30 days 8. Since Mark Fisher method fits my personality , for me he is a GENIUS. Now, ACD is not a solution to ones problems if a trader is a BAD trader. He/she will stay a BAD trader.
Per his book, he taught ACD method to 4,000 traders, 50% slept through the class and out of rest only 1,000 or so got ACD right ( based off my memory). My take is that book is so SIMPLE that most of the readers ( including myself) do not get it on the first read.
Last edited by mfbreakout; December 19th, 2011 at 07:21 AM.