There was a fascinating piece of news in the month of August – besides the market volatility and sharp drop in the equity markets.
I am here to dissect it for you and give you the crucial trading insights.
The article I am referring to is that of the Chief Investment Officer of Soros Fund Management, Scott Bessent, is leaving at the end of this year to start his own hedge-fund.
The key piece of information I would like you to focus on is this:
“Bessent will continue to advise the family office and remains close to Soros and his family, the memo said.”
What are some of the reasons why Bessent would continue to advise Soros?
The reason is that if Bessent has a trading edge – in interpreting the information flow and global macro conditions, he can then share these ideas with the management and traders working for Soros. Just one trading idea is enough to make billions on. This happened back in 1992, when Stanley Druckenmiller came up with the idea to short the British Pound. That idea, and subsequent trades related to that, led to a profit well over $1 billion dollars.
That shows the power of the information flow, global macro, and proper position sizing.
This goes back to the importance of interpreting the information flow that gets generated during the trading day. There is massive potential, profit, clarity, and peace of mind to those who master this skill. If you are stuck in the beginner or price action trader cycle, and you feel confused, frustrated, then learning about global macro can bring clarity to your trading. It does involve sustained effort to understand how to incorporate it into your trading, but isn’t that how it works with every good idea that can add to your health, wealth and happiness?
These CIO’s of many of the big hedge funds don’t get paid millions and billions to interpret purely charts and technical indicators, etc. The Big Money is in being able to do the right things with the information that they interpret during the trading day.
This is not about interpreting moving averages or chart patterns. That is just a tiny portion of it. As a general rule, they don’t get paid millions for doing that. There is a much larger game being played. The global macro trading game. Wake up to it and get in on the action!
It’s Just Information – That You Can Profit Mightily From
What do you think people who work in office settings? They go in, and they work with a bunch of information and try to create music and profit out of it. That’s all it is. That is what it boils down to. As Walter Russell once said of information:
“What can you do with it? That is what counts.”
“Your ability to put your information together in valuable combinations is what counts.”
That is the key job of the leader of a company. They set the vision, and then interpret all this information to see what should be DONE.
This goes back to the importance of your trading mind. You keep the body in good shape, but then you improve your mind.
As Paul Tudor Jones said:
“Intellectual capital will always trump financial capital.”
And as Michael Milken said:
“The common perception is that capital is scarce, but in fact capital is abundant; it is vision that is scarce.”
This all goes back to MIND POWER. Thinking the greater and accurate thoughts and doing the right things with them.
Sharing of Ideas, Perspective, Insights
Having one hedge fund share information, ideas, perspective with another hedge fund is nothing new. It’s been going on for decades.
Back in the 80’s and 90’s, Paul Tudor Jones and Stanley Druckenmiller were reported to speak on a daily basis.
Do you think they are looking for some stock tips?
They are looking for ideas, perspective, insights. Looking for a different take on the day’s market action.
There IS a difference.
For they are Market Wizards themselves and can generate their own trading ideas, no problem. They can be hunkered down in their trading command center and print money. They don’t have to talk to anyone else. But they still do.
Because they know there is a chance they might miss something. They know that they all have their own biases, so if they are part of some mastermind group, it can help them cover more of the angles.
Also because they can potentially increase their maximum opportunity set by talking to each other and getting a different perspective on the day’s action. Maximum Opportunity Set is something that can make or break your trading system. I talk about this concept extensively in the Order Flow Mastery Course.
That is what they are searching for:
Perspective, not TIPS.
They can do their own analysis. They want perspective and insights Then they can put that information through their own system and philosophy to see if they should do anything with it.
There will be those who say, why am I writing about this stuff? Why is it important? Why not just talk about and show off trades? I will do some of that. In fact, there is a big trade setting up, where if it develops further I will share with you even more.
But that does not diminish the importance of the above information. If you are stuck in the lower levels of the trading cycle, and not convinced if you should go to the Global Macro stage, then the above information helps nudge you in that direction. In fact, my belief is that the faster you master Global Macro Trading, the faster everything else happens in your life.
When I started, there were big gaps in my knowledge, and not just in determining when and what to buy or sell. These gaps in knowledge caused delays and frustrations along my journey.
Therefore, the more of these gaps of knowledge you fill, the greater your “mental colors.” You can do more accurate thinking and scenario analysis for both the markets and your life. As more of the pieces come together, the greater your chance of putting your own trading masterpiece together.
To solve that one piece of the puzzle, then the next one, then the next one, invest in the Order Flow Mastery Course.