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You don't even need to beat the market to make a billion

  
Analysis, Education
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Forbes on 2016 hedge fund performance


The average hedge fund returned 5.6% last year compared to 12% for the S&P 500 but that doesn’t mean the managers of the SPY ETF earned the most.
Forbes put together a list of the hedge fund managers who earned the most in 2016 and the results probably won’t surprise you. The familiar names are there and the paychecks are out-of-sight.

  1. James Simons – Renaissance Technologies $1.5 billion
  2. Michael Platt – BlueCrest $1.5 billion
  3. Ray Dalio – Bridgewater $1.4 billion
  4. David Tepper – Appaloosa $750 million
  5. Ken Griffith – Citadel $500 million
  6. Dan Loeb – Third Point $400 million
  7. Paul Singer – Elliott $400 million
  8. David Shaw – DE Shaw $400 million
  9. John Overdeck – Two Sigman $375 million
  10. David Sieger – Two Sigman $375 million
  11. Michael Hintze CQS $325 million
  12. San Druckenmillier – Duquesne $300 million
  13. Brett Ichan – Ichan Capital $280 million

(more…)

5 Trading Pitfalls and how to Solve Them

  
  Education
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 I have observed that Losing money doing the right thing does not destroy a traders’ mental focus. It is when they lose money doing the wrong thing…That is what truly eats at their soul and messes with their head.

With that said, the following are 5 common pitfalls I have seen traders experience and I have listed 5 practical solutions you can quickly implement to overcome these assassins to your performance.

Pitfalls
1. Focusing on the P & L

2. Losing objectivity while in a trade

3. Becoming emotional about a trade

4. Lacking confidence: exiting early, failing to put a trade on, not sizing up

5. Difficulty adapting to a changing market

Solutions
1. Quantify success base on the caliber of the trade (i.e. high quality entries/exits).

2. Continuously ask yourself, “is my original reason WHY I entered this trade still there?”

3. While you are in a trade, ask yourself, if I had no position on right now, what would I do? Buy? Sell Short? Do nothing? Then re-evaluate your trade size and direction.

4. Confidence should always come from within. Step#1: Write bullet list of data points proving WHY you are a skilled trader. Step #2: Prime yourself each morning by reading it over to yourself. Could be the most valuable 30 seconds you spend each day.

5. Flip your perspective by keeping track of what is not working (by default this tells you what IS working).

5 Trading Pitfalls And How To Solve Them

  
  Education
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pitfall-The following are 5 common pitfalls I have seen traders experience and I have listed 5 practical solutions you can quickly implement to overcome these assassins to your performance.
Pitfalls

  1. Focusing on the P & L
  2. Losing objectivity while in a trade
  3. Becoming emotional about a trade
  4. Lacking confidence: exiting early, failing to put a trade on, not sizing up
  5. Difficulty adapting to a changing market

Solutions

  1. 1.Quantify success base on the caliber of the trade (i.e. high quality entries/exits).
  2. Continuously ask yourself, “is my original reason WHY I entered this trade still there?” (more…)
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