Inside the House of Money

How quick are you at spotting an opportunity. What was your reaction to recent Israel retaliation in Lebanon. Could you spot a long term opportunity in it.
The reason for the question is I am reading a very fascinating book on global macro Inside the House of Money : Top Hedge Fund Traders on Profiting in the Global Markets by Steven Dronby.

It has Market Wizard style interviews with top global macro traders. Two examples of quick thinking trades from it stand out.

Christian Siva-Jothy:

" On the morning o September 11, I was already long U.S. Fixed income as I had structured view that the U.S. economy was weak. It was a decent-sized position as I had been having a reasonable year. I was on Goldman trading floor in London and I remember hearing someone say "A plane crashed into the side of World Trade Center." The first thing I noticed on the TV was that it was a perfectly clear blue sky day. I'm a helicopter pilot and I've been flying for 14 years. I know that when you've got a plane that's going down, you don't aim for tallest building to fly into; exactly the opposite, you go into the river or you go for a flat piece of land.
I immediately thought "Terrorist act". I figured this was going to whack consumer sentiments, which was the only thing keeping the United States afloat at that point. I bought Eurodollars and calls on Eurodollars after the first plane hit but before the second. Strangely, I think they rallied no more than 13 basis points on the day. Markets can be unbelievably slow to figure out the consequences of big events. "

Here is what happened to Euro after that.

Jim Leitner

Are disaster and tragedy always a buying opportunity?
"Yeah, look at Russia or Botswana or Turkey. For example, when Turkey had a massive earthquake in 1999, we bought shares of glass manufacturers because we knew everybody was going to have to replace their windows. It was a no brainer. Turkish stocks were going down across the board but we bought all the shares of glass manufacturers we could."

The book is very good. One of the best books I have read on trading this year. I highly recommend Inside the House of Money : Top Hedge Fund Traders on Profiting in the Global Markets by Steven Dronby.

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

404

Recent Articles