It's easy to overtrade when volatility is high and the market can make even legends look like fools.
Soros entered the the crash of '87 badly positioned: short Japan, long the US.
Japan held firm and the bounce in US markets looked like it was fading. Soros dumped his position.
Soros entered the the crash of '87 badly positioned: short Japan, long the US.
Japan held firm and the bounce in US markets looked like it was fading. Soros dumped his position.
He told the trader: "I'm going to walk out of here, they're not going to carry me out."
Survival was key. He had confidence in making it back - unless he lost his capital.
For a while he looked like a fool. Barron's: "A Bad Two Weeks: A Wall Street Star Loses $840 million"
Survival was key. He had confidence in making it back - unless he lost his capital.
For a while he looked like a fool. Barron's: "A Bad Two Weeks: A Wall Street Star Loses $840 million"
But Soros was still in the game and could go on winning.
Druckenmiller: "He knows all he has to do is stay in the game and his talents will come back. For the threat of looking silly, he's not going to jeopardize the fund."
Druckenmiller: "He knows all he has to do is stay in the game and his talents will come back. For the threat of looking silly, he's not going to jeopardize the fund."
Druckenmiller: "Just about every manager I knew who was caught in the crash became almost comatose afterwards. George took a bigger hit than any of them. Within two weeks, he put on a massive leveraged dollar position."
“He takes a loss better than anyone I have ever met. He may think that the market did not react as it should have, which is to say as he predicted. But once the mistake is made, he understands it and goes on.”
Notes posted in 2020
https://twitter.com/NeckarValue/status/1332696126999453697
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