Warren Buffett: Invest in a business that can be run with ‘your idiot nephew’

REUTERS - #WarrenBuffet - Shannon Stapleton

Brilliant and well-educated CEOs and managers sometimes become synonymous with their company.

Whether it’s Steve Jobs, Mark Zuckerberg, or Jeff Bezos, it’s hard to separate the man from the operation.

However, investing in a company simply based on its leadership might not be the best strategy.

Rather, as Warren Buffett noted in an interview with the Financial Crisis Inquiry Commission (FCIC) in May 2010, one should instead in invest in a business that any fool can run.

The interview comes from a document dump from the National Archives, which released transcripts, meeting agendas, and confidentiality agreements from the FCIC. The group was set up in the aftermath of the crisis by Congress to look into the causes of the event.

When asked by the FCIC what attracted him to the management of Moody’s – the credit ratings agency that was at the center of the mortgage-backed securities debacle – when he made his initial investment, Buffett responded:

I knew nothing about the management of Moody’s. The – I’ve also said many times in reports and elsewhere that when a management with reputation for brilliance gets hooked up with a business with a reputation for bad economics, it’s the reputation of the business that remains intact.

If you’ve got a good enough business, if you have a monopoly newspaper, if you have a network television station – I’m talking of the past – you know, your idiot nephew could run it. And if you’ve got a really good business, it doesn’t make any difference.

Of course, there are some differences when it comes to management. However, the way Buffett is thinking about it here, as he says in the interview, is if ten years ago someone owned the only newspaper in town, then they’re the person with the pricing power – and that’s a good business.

Buffett stated something more or less the same in the case of Moody’s, noting that very few businesses had the competitive position that rating agencies like Moody’s and Standard and Poor’s had.

He even went as far as calling them a “natural duopoly to some extent,” especially since both basically became the standard for regulators.

So, you see how it’s a “good business” in Buffett’s eyes, regardless whether or not some brilliant person is running the show.

And tellingly, when asked whether he had ever pressed for the election of any board member, Buffett simply responded: “If I thought they needed me, I wouldn’t have bought the stock.”

In short, it might be smart to invest in the businesses that are going to do well regardless of who’s running the show.

Or, as noted investor Peter Lynch once put it, “invest in businesses any idiot could run because someday one will.”

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Most Important Thing To Be A Successful Trader or Investor

Ray Dalio reveals the ‘most important thing you need to do’ to be a successful investor

ray dalio, hedge fund If you are going to take investing advice from anybody, Ray Dalio is a good bet. Dalio founded investment firm Bridgewater Associates out of his two-bedroom apartment in New York City in 1975. Currently, Bridgewater Associates has $160 billion in assets under management, making it the largest hedge fund in the world. According to Dalio, “diversifying well is the most important thing you need to do in order to invest well,” he wrote on LinkedIn on Monday. By diversifying, Dalio means spreading out your money into different kinds of investments, such as stocks, bonds, commodities, real estate, etc.
You will be surprised after seeing what he said in this video
Soo dont judge your trader, for now climate fundamental politic is dominan, find credibel & trust hedgefund trader
Dalio said in the 2016 book “Money Master the Game: 7 Simple Steps to Financial Freedom” by Tony Robbins that a well-diversified portfolio might include 30 percent allocated to stocks, 40 percent to long-term U.S. bonds, 15 percent to intermediate U.S. bonds, 7.5 percent to gold and 7.5 percent to other commodities. A typical portfolio split of half stocks and half bonds is not really diversified, according to Dalio. Diversification is important because there is so much you don’t know when you are putting your money in an investment, Dalio said in his LinkedIn post. “It’s very hard to make money in the markets for the same reason that it’s hard to make winning bets at the racetrack: because the unknowns are so large in relation to what is ‘discounted’ or ‘priced in,’” Dalio wrote. So “while you can’t know which of the items you are betting on will provide better results,” Dalio said, if you diversify properly, “you do know that they will behave differently, and by mixing them appropriately you can reduce risk. Diversifying well is a matter of knowing how to reduce your expected risk by more than you reduce your expected return (i.e., improving your return-risk ratio),” Dalio wrote. Legendary investor Warren Buffett gives similar advice. The so-called “Oracle of Omaha” recommends investing in different companies and buying stocks at different times. “The best thing with stocks, actually, is to buy them consistently over time,” Buffett told “Squawk Box” in February 2017. “You want to spread the risk as far as the specific companies you’re in by owning a diversified group, and you diversify over time by buying this month, next month, the year after, the year after, the year after.” Buffett also recommends holding on to stocks. “I know what markets are going to do over a long period of time: They’re going to go up. But in terms of what’s going to happen in a day or a week or a month or a year even, I’ve never felt that I knew it and I’ve never felt that was important,” Buffett told Becky Quick on “Squawk Box” in February 2016. “I will say that in 10 or 20 or 30 years, I think stocks will be a lot higher than they are now.”  
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ASIC Regulate Update Rule Now

this is only information to all trader retail, event we dont trade again with ASIC regulate broker from 2014, dominan now we trade with brokerage Regulate from NFA US, FCA UK. ASIC’S Strategic Outlook IC Markets, Vantagefx and other broker  under ASIC now to Move Non-Australian Clients to Offshore Subsidiary. IC Markets’ Australian subsidiary recently announced that it intends to stop providing service to clients who reside outside of Australia at the end of the month. The retail broker informed clients of this development by way of an email which stated that it could no longer guarantee the provision of trading service to individuals who do not reside within Australia. This makes IC Markets the third broker regulated by the Australian Securities and Investments Commission (ASIC) to halt the acceptance of clients outside of Australia in the last month. Recently, Vantage FX and IFGM each sent an email out to clients, informing them that their account would soon be closed or migrated over to non-regulated subsidiaries. The email sent to clients by IC Markets served as notice about the upcoming changes, with the the broker announcing that it would automatically migrate all non-Australian clients over to their subsidiary, True ECN Trading Ltd., which is the business name of IC Markets Seychelles. Clients were given the option to opt-out of the migration, but were told that if they did not, they would not be allowed to actively trade after the 30th of June. True ECN Trading Ltd. is regulated by the Financial Services Authority of Seychelles. As such, it will still be able to provide the same high leverage available to clients trading with IC Markets. Clients quickly took to social media to voice their concerns over the change, with many remaining undecided as to whether or not to accept the migration and continue trading with the Seychelles-based subsidiary. Many did exhibit relief at the fact that there would be no change to the maximum leverage ratio. In the email shown below, IC Markets makes it clear that the migration would be seamless for clients and that their account balances, open positions and existing orders would not be impacted. The brokerage went on to add that clients would still be able to access their trade history and that all clients would be able to continue trading as usual once the migration is completed. What was the reasoning behind this change? For months now, the Australian Securities and Investments Commission (ASIC) has been pressuring retail Forex trading firms to halt their business dealings outside of Australia. Specifically, ASIC has voiced concerns over brokerages accepting clients residing within China. As of this past April, ASIC was given intervention powers by Australian parliament. This very well may mean that leverage caps and marketing restrictions similar to those seen in the European market may soon make their way into the Australian market. The implementation of such changes, along with the impact of this current move on the part of IC Markets remains to be seen. asic watch300_0We do not know what the reality really is, why do they change this rule, because offshore regulate for us is not credible, we cannot fully believe it, of course, after ASIC changed rules like this, the question for us is, like what and how long in the future for ASIC, still consist their work  service ??? Its your choice now, you want to still use this broker listing from ASIC or not, for us. we need to change to another regulate for better, we dont want under offshore regulate. Read this :
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support and resisten strategy

A Powerful Way To Draw Support And Resistance Zones

Support and resistance zones are a key when it comes to determining the level at which the price of a currency’s exchange rate is likely to reverse. It is something I incorporated in my trading almost since the start. The problem is, those zones can be very subjective. In most cases, a trader can usually only approximate those supports or resistances. I remember having a hard time identifying the proper zones on my chart. I’d also get discouraged when I saw that other more professional Forex traders identified better or different zones on their chart. I couldn’t seem to get it… Then, I began researching “how to draw support and resistance”. I came across a few articles, and even bought a Forex trading course on the topic. I personally find the widely-available advice on drawing the right zones to be very subjective. It doesn’t lead anywhere. I first read about using a line chart to draw  the proper zones. That helped a little: Support and resistance zones But still, try it yourself and see if it works… I still found this way to be slightly difficult to implement. It is hard to distinguish the strong from the weak support and resistance zones. Slowly, I came up with a different way to identify the zones. I realized that this new way reduced confusion a lot. As an added bonus, it also gives a much clearer picture of how the market behaves.

A Powerful Way To Draw Support And Resistance Zones

The background story being given, let me outline the process I use to powerfully draw support and resistance areas.

1. Pick your favourite chart type

This first step is really simple and should be complicated. The only thing you need to do is to open any chart an pick the type you prefer. I use candlesticks but it’s up to you to use whatever you want.

2. Identify all swing highs and lows

Then, you want to identify all the highs and lows you see on your chart. You might need to scroll in the past a little bit. I want you to put a line at every top and low you see. It should look like this: Support and resistance zones The lines do not necessarily have to be at the complete low. The important thing here is to draw a simple line at all lows and highs. It shouldn’t be very subjective. The powerful aspect of this step is that you will be able to easily determine whether the market is in a trend or not since you will see the highs and lows. As you can see on the chart above, the market isn’t currently in a trend.

3. Add lines to connect the highs/lows

The last step in drawing support and resistance zones consists of linking the highs and lows you identified with horizontal lines. Those will become your main support and resistance zones. Here’s what it looks like: Final result support and resistance zones There is almost no way that the lines you draw will lie exactly on the highs and lows you identified. That is totally normal, be okay with it. Whenever you feel you can connect 2 highs/lows, add an horizontal line. Once you have completed this process, you can be confident that the lines represent clear support and resistance zones. You can always adjust your lines, but it shouldn’t be necessary.

Rule, Open Position


Some Important Notes

It is important to understand that this method works great on any time frame. The logic remains the same. Make sure that the zones you identify are connecting 2+ highs or lows. The more, the better.

Let’s Recap

You may say that this process gives the same result as identifying support and resistance zones through a line chart. I agree. However, I find this process to be simpler and it helps identify the trend. In the end, whatever the process you use to identify the support and zones on your chart, make sure you are comfortable with it!

Tips Choosing Best VPS | Tips Memilih VPS Terbaik

There are several advantages of using a Forex VPS with MetaTrader Expert Advisors (EAs). The biggest benefit is that a VPS enables traders to execute orders at high speeds, which is essential for the best performance of EAs. In addition, a high quality VPS offers ultralow latency to the fx brokers. Another advantage is that a VPS allows traders to always maintain an uninterrupted connection to the markets. A number of VPS providers are out there in the market and the systems offered by all of them may not be the same. Here are some tips to help trader to identify best forex VPS providers.

Tips to Choosing Best VPS Provider for Forex Trading

#1: Virtualization Technology The virtualization technology employed by the VPS provider is the first aspect to be checked by the traders when shortlisting a few best forex VPS providers. Several different technologies such as Hyper-V, Xen, Virtuozzo and Open VZ, among others, are available now. More information about these technologies is included later on in the article. #2: Unlimited Platform Instances It is a known fact that some VPS providers place limits on the number of platform instances that can be run. It is important that traders choose a VPS provider that permits them to run unlimited instances of MT4 as well as other platforms. Put in simple terms, the VPS chosen by traders should not be limited to one particular broker or institution. The VPS should allow a trader to run multiple accounts as well as EAs. #3: Latency The speed of execution of orders is referred to as latency. Speed is the crux of forex trading and a high latency VPS has the potential to change a profitable trade into one that loses a lot of money. Genuine VPS providers often allow clients to choose a VPS from several locations around the world. Best Forex VPS for EA Robot Trading Traders should choose the location of their VPS based on the location of the forex broker they are working with. Ideally, the forex VPS should be located in the same country. If this is not possible, then it should at least be located in the same continent. #4: Security It goes without saying that security offered by the VPS is one of the key features that traders should check. It should come as a standard feature with the account. It is always a good idea to look for VPS providers who also offer DDoS protection. #5: Guaranteed Uptime Traders won’t be able to make money if the VPS goes offline frequently. Therefore, they should choose a VPS that offers at least 99.99 percent Service-Level Agreement (SLA) based up-time. Further, the SLA should have a clause for paying compensation if the VPS provider does not meet the uptime commitment. #6: Support The VPS provider that traders want to work with should make available customer support services throughout the trading hours. This is because it is difficult to predict when traders would need customer support. #7: Speed and Bandwidth Companies that offer high quality VPS services generally ensure a speed of 1 Gbps and sufficient bandwidth so that the traders EAs continue to run 24/7. Popular Virtualization Technologies Virtuozzo Virtuozzo, a proprietary operating system-level virtualization product, was created by Parallels, Inc. for both Linux and Windows. Parallels’ Virtuozzo Containers create multiple isolated containers, which are also referred to as Virtual Private Servers (VPSs) or Virtual Environments (VEs), on one physical server. Parallels’ Virtuozzo applies the virtualization technology at the operating system level and not at the hardware level as is the case with other Virtual Machine (VM) products. This enables the hardware, systems management effort and software licenses (at times) among different workloads. Each container behaves as though it is a stand-alone server. However, this may not be the optimal virtualization technology for forex trading purposes. This is because the traders may not get optimal performance if the provider oversells the VPS. OpenVZ This container-based virtualization technology is commonly used for Linux. It creates multiple isolated containers on one server to enable better utilization and prevent conflict between applications. Each container operates as a stand-alone server, has root access and can be independently rebooted. OpenVZ is better suited when it comes to forex trading. Xen This is a free virtual machine software for architectures such as IA-32, IA-64, x86-64 and PowerPC 970. Xen makes use of a type of virtualization referred to as paravirtualization on most CPUs. This means that the guest operating system should be modified for use as a special hypercall ABI rather than just changing certain architectural features. Further, modifications have been contributed by Intel to Xen in order to provide support for the company’s VT-x (formerly known as Vanderpool) architecture extensions. Similarly, AMD has also contributed modifications to Xen in order to support their AMD-V extensions. As Xen requires Kernel modifications in order to run it, this virtualization technology is not recommended for forex trading purposes. Microsoft Hyper-V The Hyper-V VPS virtualization technology from Microsoft, a hypervisor-based technology, does not only ensure true hardware Virtualization, but also very high levels of isolation from other virtual machines on the same physical server. Users can forget about or stop worrying about interruptions to their services being while running other services that are resource intensive on the same box if they choose to use this latest virtualization technology forex trading purposes. This is to say that this is the best forex VPS choice because of the highest level of isolation offered by the technology. These are some of the key factors that traders should consider when choosing the best forex VPS for MetaTrader 4 Expert Advisors to work with. A VPS provider should never be chosen on the basis of price alone. Traders may be able to save a little bit of money by deciding to work with a cheap VPS provider, but it can cost them a great deal lot of money if the downtime is higher. This is because the EAs deployed by them may not be able to execute any orders. Finally, it is worth investing some time and effort in identifying the right forex VPS provider as traders stand to gain in the longer term.
Note : spesification of VPS important and latency speed of broker from VPS is important to make maximum your result trading. Your VPS, Latency server & Broker (Best & Trust) Like your "Ferrari Car & Ducati Motor", its make how your result trading maximum or not.
After you chooise your VPS, [ms_button style="line" link="memberforex.com/statistic" size="medium" shape="" shadow="no" block="no" target="_blank" gradient="no" color="" text_color="#1e73be" icon="fa-hand-o-right" icon_animation_type="flash" border_width="" class="" id=""]See this our result trading[/ms_button] , [ms_button style="line" link="memberforex.com/arbitrase" size="medium" shape="" shadow="no" block="no" target="_blank" gradient="no" color="" text_color="#1e73be" icon="fa-hand-o-right" icon_animation_type="flash" border_width="" class="" id=""]See this our result trading[/ms_button]

Prediction Market

Lihat bagaimana trader melakukan transaksi. Mereka biasanya sangat yakin dengan posisi mereka, Sehingga mereka bertaruh untuk mempertahankan keyakinan mereka. Ketika kondisi market memburuk akibat pasar terus bertentangan dengan posisi yang mereka bangun, mereka sepertinya tidak peduli dan terus membangun posisi yang lebih besar.
Percaya pada prediksi adalah langkah yang paling fatal yang membuat kita rugi di market.  Prediksi adalah gambaran rencana arah pasar. Kunci utama agar kita tetap berada di market adalah dengan tidak mempercayai prediksi. Sehebat apapun prediksi kita harus melepaskan saat kondisi sudah tidak relevan.
Kata bijak dari beberapa senior trader :
" Jangan berpikir tentang apa yang market lakukan, Anda sama sekali tidak mempunyai kontrol terhadapnya. Berpikirlah tentang apa yang akan anda lakukan jika anda berada di sana" William eckhardt.
"Pasar terus menerus dalam keadaan tidak pasti dan fluktuatif. Dan uang dihasilkan dengan memperitungkan yang terlihat dan bertaruh pada yang tak terduga" George soros
Kebanyakan orang mengalami kerugian karena terlalu sibuk memikirkan apa yang pasar ingin lakukan. dengan kata lain mereka sibuk memprediksi kemana arah pasar akan bergerak. Seorang trader atau investor ahli bukanlah prediktor atau peramal yang hebat. Tidak ada yang tahu masa depan dengan pasti.
Bedanya antara trader profesional dengan pemula adalah trader profesional mau melepaskan ego mereka ketika mereka salah dalam memprediksi dan bersedia mengikuti keinginan pasar. 
Kutipan : Why you lose in financial market

Contoh Prediksi
#Technical_Analisy AUDUSD 18 Juli 2018, Sebelum
#Technical_Analisy AUDUSD 18 Juli 2018, Sesudah
#Technical_Analisy EURUSD 19 Juli 2018, Sebelum sourse : https://charts.mql5.com/18/755/eurusd-lmx-m30-lmax-broker-limited-6.png
#Technical_Analisy EURUSD 19 Juli 2018, Sesudah sourse : https://charts.mql5.com/18/763/eurusd-m30-lmax-broker-limited-2.png

10 The World’s Best Traders

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Today’s lesson is a virtual treasure trove of wisdom and insight from some of the best trading minds of all time. We are going to go on a journey of discovery and learn a little about some of the best traders ever and dissect some of their famous quotes to see what we can learn and how it applies to our own trading. The way to learn anything is to learn from the greats, have mentors, teachers, study and read; you must make a concerted effort to absorb as much knowledge from the best in your field as possible, for that is truly the fastest way to success, be it in trading or any other field. Below, you will find a brief introduction to 10 of the best traders of all time, followed by an inspiring quote from them and how I view that quote and apply it to my own trading principles. Hopefully, after reading today’s lesson you will be able to apply this wisdom to your own trading and start improving your market performance as a result…

George Soros

George-Soros-150x150George Soros gained international notoriety when, in September of 1992, he risked $10 billion on a single currency speculation when he shorted the British pound. He turned out to be right, and in a single day the trade generated a profit of $1 billion – ultimately, it was reported that his profit on the transaction almost reached $2 billion. As a result, he is famously known as the “the man who broke the Bank of England.” Soros went off on his own in 1973, founding the hedge fund company of Soros Fund Management, which eventually evolved into the well-known and respected Quantum Fund. For almost two decades, he ran this aggressive and successful hedge fund, reportedly racking up returns in excess of 30% per year and, on two occasions, posting annual returns of more than 100%. Here is a famous quote from Mr. Soros:
“Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.”
The above quote is a big reason why I love George Soros. Indeed, what he is saying describes the way I think about the markets and even some of my price action strategies. My fakey pattern and even a false break strategy in general, are both setups that reflect a way we can use price action to “discount the obvious and bet on the unexpected” as Soros said. Typically, most market players become fixated on one view, one bias of the market, forgetting that markets can switch direction and bias on a dime. You must be ready for everything and be an adaptable trader if you want to be able to make money over the long-run. Certainly, for Soros, betting against the British pound when the whole world was long, paid off; it’s a good example of how not following the herd and not being over-committed to a view can pay off. In the chart below, we actually see that an obvious bearish fakey (sell signal) had formed the day before the GBPUSD crashed in 1992, leading to George Soro’s most famous trade…  

Jesse Livermore

Jesse_LivermoreLivermore, who is the author of “How to Trade in Stocks”(1940), was one of the greatest traders of all time. At his peak in 1929, Jesse Livermore was worth $100 million, which in today’s dollars roughly equates to $1.5-13 billion, depending on the index used. He is most famous, perhaps, for selling short U.S. stocks before they crashed in 1929, swelling his bank account to $100 million. Here is a famous quote from Jesse Livermore:
“Play the market only when all factors are in your favor. No person can play the market all the time and win. There are times when you should be completely out of the market, for emotional as well as economic reasons.”
The above quote by Jesse Livermore is one of my favorites. I am all about keeping a low-frequency trading approach and trading like a sniper not a machine gunner which is also what Livermore is saying here. Playing the market when all factors are you in favor means, as with other quotes in this lesson (seeing a theme here?) trading with confluence. He says you should be out of the market at times for emotional as well as economic reasons. Meaning, for your trading account’s sake and your mindset’s sake, you should not be in the market all the time. In fact, most of the time you should be out of the market, which is a cornerstone of my trading philosophy.

Ed Seykota

ED-seykotaTrading as a trend follower, Ed Seykota turned $5,000 into $15,000,000 over a 12-year time period in his model account – an actual client account. In the early 1970s, Seykota was hired as an analyst by a major brokerage firm. He conceived and developed the first commercial computerized trading system for managing clients’ money in the futures markets Here is quote from Ed Seykota from The Market Wizards by Jack D. Schwager:
“Fundamentals that you read about are typically useless as the market has already discounted the price, and I call them “funny-mentals”. I am primarily a trend trader with touches of hunches based on about twenty years of experience. In order of importance to me are: (1) the long-term trend, (2) the current chart pattern, and (3) picking a good spot to buy or sell. Those are the three primary components of my trading. Way down in a very distant fourth place are my fundamental ideas and, quite likely, on balance, they have cost me money.”
What Ed is saying in the above quote is very important because it really is something I agree with and it reflects some of the concepts I teach in my courses. I am also primarily a trend-follower who uses gut feel as an assistant, and as I’ve written about before, a trader’s gut feel is something they must develop over education and screen time. Ed also talks about chart patterns, which to me means price action patterns, which obviously you know I am a huge proponent of. Picking a good spot to buy or sell is what I describe as trading with confluence. It takes a keen knowledge of price action and staying in tune with the story on the charts to identify good spots to buy or sell. Lastly, what Ed says about fundamental analysis is pretty much spot-on with my trading outlook; I put little stock in fundamentals because the market has typically discounted them in the price. In other words, the price action reflects all market variables, more or less. Certainly, the price action gives you enough to analyze a market and find high-probability entry and exit scenarios, so don’t over-complicate it by trying to analyze every market variable under the sun.

John Paulson

John PaulsonPaulson became world-famous in 2007 by shorting the US housing market, as he foresaw the subprime mortgage crisis and bet against mortgage backed securities by investing in credit default swaps. Sometimes referred to as the greatest trade in history, Paulson’s firm made a fortune and he earned over $4 billion personally on this trade alone. Here is a great quote from John Paulson:
Many investors make the mistake of buying high and selling low while the exact opposite is the right strategy.”
What he means here, is that most investors and traders will tend to buy when a market is high, typically because that’s when it looks and feels good to buy. However, when a market has already moved up a lot, it’s typically ready to pullback, which is why I like to trade on market pull backs in most cases. The inverse is true for shorting; when a market has sold-off big time, you usually don’t want to sell, or you’ll end up selling the bottom, so to speak. You want to wait for a bounce in price, back to a resistance or value area, then watch for a price action sell signal there to rejoin the trend after a pull back.

Paul Tudor Jones

Paul Tudor Jones shorting of Black Monday was one of the Jones_Paul_Tudormost famous trades ever. Paul Tudor Jones correctly predicted on his documentary in 1986 based on chart patterns that the market was on the path to a crash of epic proportions. He profited handsomely from the Black Monday crash in the fall of 1987, the largest single-day U.S. stock market decline (by percentage) ever. Jones reportedly tripled his money by shorting futures, making as much as $100 million on that trade as the Dow Jones Industrial Average plunged 22 percent. An amazing trade to walk away from with a fortune when so many others were ruined in the aftermath. He played it to perfection. His funds had great consistent returns for decades. Here is a favorite quote of mine from Paul Tudor Jones featured in the Market Wizards:
“That was when I first decided I had to learn discipline and money management. It was a cathartic experience for me, in the sense that I went to the edge, questioned my very ability as a trader, and decided that I was not going to quit. I was determined to come back and fight. I decided that I was going to become very disciplined and businesslike about my trading.”
What Jones is saying here, is that there will be a time when every trader makes a huge mistake regarding money management, and they must take a cold, hard look at themselves and decide what to do next. Will you continue to bleed money from your account by continuing to make poor money management decisions? Or, will you finally get disciplined and “businesslike” in your trading? In trading, money management is literally what determines your fate, so you need to focus on it early-on if you want to have any chance of success.

Richard Dennis

richard dennisRichard J. Dennis, a commodities speculator once known as the “Prince of the Pit,” was born in Chicago, in January, 1949. In the early 1970s, he borrowed $1,600 and reportedly made $200 million in about ten years. Dennis and his friend William Eckhardt, are most famous for starting the Turtle Traders, which was a group of 21 average people to whom they taught their rules to and proved that anyone, given the right training, could trade successfully. Here is a good quote from Richard Dennis:
“I’ve certainly done it – that is, made counter-trend initiations. However, as a rule of thumb, I don’t think you should do it.”
Richard Dennis was famously a very successful trend trader and in the above quote he is stating his feelings on trading counter trend. Interestingly, this is pretty much how I feel about trading counter-trend; sometimes it’s warranted, but most of the time it’s not, and it takes a skilled trader to be able to trade counter-trend successfully. I teach my students to master trading with the trend first and foremast and to make that the most important piece of their technical analysis.

Stanley Druckenmiller

Stanley-Freeman-DruckenmillerStanley Druckenmiller is an American investor, hedge fund manager and philanthropist. In 1988, he was hired by George Soros to replace Victor Niederhoffer at Quantum Fund. He and Soros famously “broke the Bank of England” when they shorted British pound sterling in 1992, reputedly making more than $1 billion in profits. They calculated that the Bank of England did not have enough foreign currency reserves with which to buy enough sterling to prop up the currency and that raising interest rates would be politically unsustainable.
“I’ve learned many things from him [George Soros], but perhaps the most significant is that it’s not whether you’re 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.”
The above quote is reference to George Soros who mentored Druckenmiller for a while. This quote fits perfectly with an article I wrote recently about how you don’t have to be right to make money trading. Most traders get far too concerned about the number of winners they have compared to losers when really, they should totally forget about that number and instead focus on their overall risk / reward. In other words, how much money are they making for every dollar they have risked.

Jim Rogers

Jim-Rogers-150x150James Beeland “Jim” Rogers, Jr. is a Singapore based business magnate of American origin. Regarded by the business world as a brilliant investor, Rogers is also an author and financial commentator. He co-founded the global investment partnership, Quantum Fund, along with George Soros, another equally brilliant businessman. Here’s one of my all-time favorite trading and investing quotes, courtesy of Mr. Rogers:
“I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime. Even people who lose money in the market say, “I just lost my money, now I have to do something to make it back.” No, you don’t. You should sit there until you find something.”
I really like the part above where Jim Rogers says “I just wait until there is money lying in the corner…” because that really sums up what I try to teach my students as well as my own personal trading style. Rogers is dead-on with the above quotes; most traders do WAY too much…there is nothing wrong with doing nothing if there isn’t anything to do! In other words, don’t force a trade if an obvious one isn’t there, it’s better to save your capital for a solid opportunity that’s just around the corner.

Ray Dalio

Dalio-150x150Raymond Dalio is an American billionaire investor, hedge fund manager, and philanthropist. Dalio is the founder of investment firm Bridgewater Associates, one of the world’s largest hedge funds. As of January 2018, he is one of the world’s 100 wealthiest people, according to Bloomberg. Here is a pretty deep quote by Ray Dalio:
“I believe that the biggest problem that humanity faces is an ego sensitivity to finding out whether one is right or wrong and identifying what one’s strengths and weaknesses are.”
This quote by Mr. Dalio is deep, for a few reasons. One, having a sensitive ego is very bad in trading, because the fact is, you’re going to have losing trades, probably more than you want. So, if you become overly-affected / emotional by every loser, it’s going to catapult you into a huge string of trading mistakes, as I wrote about more in-depth in my article on the top trading mistakes people make. Next, being right or wrong is and should be 100% irrelevant in trading. As the late, great Mark Douglas teaches, you can be wrong on average and still make money, and your trading success or failure doesn’t depend on whether you’re right on your next trade, read my article on the secret to trading success for more on this. Finally, you must determine what your strengths and weaknesses are as a person before you can find trading success. We all drag our personal baggage into the markets and it influences our trading, for better or worse.

Warren Buffet

warrenKnown as the “Oracle of Omaha,” Warren Buffett is one of the most successful investors of all time. He runs Berkshire Hathaway, which owns more than 60 companies, including insurer Geico, battery maker Duracell and restaurant chain Dairy Queen. He has committed to giving more than 99% of his fortune to charity. So far, he has given nearly $32 billion. Here is perhaps a lesser-known quote from Warren but one that I like nonetheless:
“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
To me, this quote is saying that high-probability trade signals happen infrequently, which is something I teach as any of you know who have followed me for any length of time. Thus, when you do get a nice and obvious / confluent trade signal (there’s that confluent word again) you need to maximize your gains, not take a quick / easy profit. This fits nicely in my teachings about the power of risk reward and how to catch big moves in the market. I am all about waiting patiently, with discipline, for days, weeks or even months and then pouncing on that one super-obvious setup that will net me a large 1:3, 1:4, 1:5 or even greater winner. This is the basis behind my approach that proves you don’t need to win a lot to make money trading.


NinjaForex-ico-3Founder memberFOREX.com & jutawan.club . 2007 known trade forex event not much focus, until 2013 first found strategy self and he focus to make and develop self. Event not much show in public, we believe it " THe Lion does't to Proff As The King Of Jungle", much in the public people want to show their power proff, but its difficult, markets is unforgivenes to you as retail.


Personally, if you’re a beginning or struggling trader, I think the most important thing to takeaway from all the wisdom in today’s lesson is to first get YOURSELF straight; get your money straight, get your patience and discipline straight, know what your trading edge is and how to properly trade it BEFORE you start risking real money in the markets. If you do this, you will largely be trading in-line with the insight and advice that the above trading greats have provided you with. What did you think of this lesson? Please share it with  us @NinjaForex !
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