Trader: Paul Tudor Jones II (1987)

To all traders and aspiring traders out there, I’d like to share with you guys this documentary from 1987 below. It is of Paul Tudor Jones II, one of the most famous traders in the world.

Amazing documentary. Watch it!
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Alan Grayson: Is Anyone Minding the Store at the Federal Reserve?

A shocking video (or perhaps not so?) of Rep. Alan Grayson asking the Federal Reserve Inspector General about who keeps track of the trillions of dollars lent or spent by the Federal Reserve.

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Should I pull out from the stock market now?

Many investors worldwide are experiencing losses right now. Myself included.

So, should we pull out from the market?

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The LT Seminar. Pure B.S.

Wondering what B.S. means? It means, Bull Shit.

I recently received a DVD of an organisation presenting a seminar about trading. Let’s refer to the seminar as the LT Seminar. Not going to name names here.

It was a two-hour presentation and I thought to myself, hmmm, might be able to learn something new here.

Indeed, there were bits and pieces of new things I discovered, but all in all, I thought it was pure crap. It was a classic sales pitch of nothing more than to get new clients on board.

They pitched the idea of trading financial securities (stocks, FOREX, commodities, and etc.) and presented the audience with their so-called “amazing” trading system. To join them, you need to only pay 10 grand. Yup, ten big ones! $10,000…

Looking at the system, I suspect that it’s nothing more than a hyped up moving averages. A knowledge that you can get by spending 30 bucks at your local bookstore.

They claim that trading is easy and simple, and it only takes minutes per day and you’ll make truckloads of money! Get real! If it was that easy, we would have had many people becoming millionaires by becoming traders. Many books that I’ve read refute this belief. A majority of people wanting to become traders have failed.

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Market Wizards by Jack D. Schwager

Title: Market Wizards
Author: Jack D. Schwager
ISBN: 13 978-0-88-730610-5
Number of pages: approximately 500 pages

For those aspiring traders, just-starting-out traders, or professionals, this publication is an absolute must! If you have not read this book yet, then hold the thought of assigning the TRADER credentials by your name. Yup folks, the book is that amazing. Not to mention important.

The book compiles a number of interviews between the author, Jack Schwager with various traders.

Here are a few traders that you’ll be reading about:

  • Michael Marcus, who turned $30,000 into $80 million
  • Paul Tudor Jones, whose funds have registered triple-digit gains five years straight
  • Ed Seykota who realized an amazing 250,000 percent return on his accounts over sixteen years
  • and lots more..

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KLSE falls and trading halted: Bursa KL merudum jatuh dan digantung!

So, the trading halt on Bursa Saham Kuala Lumpur (BSKL) or Kuala Lumpur Stock Exchange (KLSE) has been lifted and we are back trading again. The Composite Index is recorded an increase of 30.29 points or 2.58% as of 10.20 am Malaysian time just now. That’s a minuscule if you compare it with yesterday. Our market plunged a little over 130 points or more than 10% before being put on a trading halt at 2.58 pm.

Well, to be honest, that was to be expected. I’m sure a lot of people can only guess how the stock market was going to react to the Pilihan Raya Umum ke-12 results. It is usually an understood and well-accepted phenomenom that the market will rally up to the election and then cool off a little bit after. However, to be honest, due to the bear market that has unfolded globally and the huge volatility that struck our local market, we actually didn’t see much of a rally at all.

Whatever it is, I’m sure a lot of people were not expecting the market to free fall by that much yesterday!

I did expect the market to fall handsomely on Monday but I also was not expecting 10%.

Why did it happen? There are a lot of theories out there and here’s mine. The big fall was due to the opposition getting their so-called political tsunami and the denial of Barisan Nasional (BN) from their two third majority target.

Logic behind this could be:

Well, investors had felt safe and comfortable investing in our market before the election because they were satisfied with the policies (I’m using this term loosely here) carried out by the BN government. They were confident that BN is invincible. After BN was denied the two third majority and the opposition managed to invade the parliament and BN’s territory, investors started to get nervous, afraid that some of the policies will get questioned and kicked out of the door. Bear in mind that the opposition (or Barisan Rakyat) is a force to be reckoned with now. Putting myself in an investor’s size-10 shoes, I myself would feel nervous. Some investors might think that policies that induces economic growth (and inflation for that matter) will be scrapped and some of the policies (like the Negara Kebajikan policy) of the Barisan Rakyat adopted instead. Please please please, I’m not implying that one is better than the other. I’m just merely talking from an investor’s perspective.

Anyway, what did the investors do? Dump the stocks. When the big guns started dumping the stocks (which pushes the market down), the small fish will follow suit as well. Not to mention the margin calls and triggered stop losses that further drives down the market.

Call it panic selling if you may.

So, that’s my theory.

I’m sure my unit trust investment got hammered yesterday as well. Hard times folks. Hard times indeed.
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