The highlights and important points in the video:
He loves mistakes. Same thing in trading. You take some small losses and you learn from them. You don’t time the trade the right way, and you find the better timing order flow methods.
Ray Dalio knows the market is a zero sum game. He tells you, that you need independent thinking. You can’t be with the consensus and add value. Because the consensus is reflecting in the price. He says you need to be an independent thinker.
Ray says with trading and markets you are free to do whatever you want. “Your environment is not your determinant.” You can go long or short, you have that freedom.
He says there is no reason for anyone to have lost money last year… because you can go short or long, or take spreads!
He says you need to take uncorrelated positions, he stresses.
Ray Dalio then proceeds to trash trend following and moving averages. Even Ray Dalio knows they are junk. He trashes the 5 day crossing the 20 day moving average crossover.
He says 2008 happened because people got complacent and the correlated strategies just kept on building up. He stressed that you need to think about all the different kinds of environments.
Ray Dalio is also rumoured to use transcendental meditation.
Dalio also has published his firms set of principles that are at the core of Bridgewater Associates.