George Soros needs no introduction.
He broke the Bank of England.
He generated a 32% CAGR for 30+ years.
He taught Stanley Druckenmiller the trading ropes.
$1,000 invested w/ Soros would have been worth $4M+ by 2000.
Here are five trading lessons from The Palindrome ... 🧵
Lesson 1: Learn To Profit From Fallibility
I love how Soros explains his trading philosophy:
"My approach works not by making valid predictions, but by allowing me to correct false ones."
It's one of the reasons Soros could make tons of money with a 30% win rate.
Be robust.
Lesson 2: Everything is Reflexive
You hear investors say "Price drives narrative." That's Soros's Reflexivity Theory.
What we (I.e., the market) believe about a stock directly affects its outcome.
High stock prices means cheaper financing, better employees, lower opex via SBC.
Lesson 3: Match Thinking with Action
It wasn't enough for Soros to have a thought on an event, trade, or global issue.
He needed to act on it to test his theories.
Too many investors stay in the Ephemeral and forget that the REAL learning comes from the doing. From action.
Lesson 4: Assume The Market Is Always Wrong
Soros believes the market is always wrong because it fails to correctly discount the future.
That's because markets help shape the future they discount.
It's Heisenberg's Principle played out in markets.
Observing changes things.
Lesson 5: Take Pride in Losing
This goes against everything you read on Twitter, a place where you only share their wins.
"To others, being wrong is a source of shame. To me, recognizing my mistakes is a source of pride."
That's how Soros can change his mind & still profit!
Recap: Five Trading Lessons From George Soros
1) Learn To Profit From Fallibility
2) Everything is Reflexive
3) Match Thinking with Action
4) Assume The Market is Alawys Wrong
5) Take Pride in Losing
Learn more here: macro-ops.com/lessons-from-a…
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