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Market Warriors

Mar 01, 2018

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    TitleMarket Warriors

    Coordinator

    Diana Qin

    Cover

    Ainoa Carceller

    All rights reserved

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    JIM ROGERS JOS ANTNIO MADRIGALTOM DORSEY YASUJI YAMANAKA PAULO PINTO

    STEEN JAKOBSEN JASON WANGKE HLIO OLIVEIRA

    MARKETWARRIORS

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    O N T E N T S

    ACKNOWLEDGEMENTS

    PROLOGUE

    JIM ROGERS

    JOS ANTNIO MADRIGAL

    TOM DORSEY

    YASUJI YAMANAKA

    PAULO PINTO

    STEEN JAKOBSEN

    JASON WANGKE

    HLIO OLIVEIRA

    GLOSSARY

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    ACKNOWLEDGEMENTS

    any thanks to the traders and investors who graciously agreed to be interviewedwhilst donating their share of the book rights to AMI (Assistncia MdicaInternacional).

    Despite demanding schedules, everyone was forthcoming and generouslyaccommodating.

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    PROLOGUE

    I write the introduction of this book, the price of gold, silver, oil and the stock markets continue to dly. The volatility of the XXI century is the new norm in the markets, movements of 1 or 2% are no

    nsidered volatile.

    ver have we had so much market information, thanks to the internet and TV channels; neverhad so many experts commenting on these swings. Today, the market is up because of an ECFed) statement and the experts claim the future is bright, yet tomorrow the market may be

    d different experts will claim the economy is going nowhere because of political risk. I do notople have the patience anymore to listen to these experts explain the markets day after day.

    is is the reason we decided to interview great traders and investors, so they could explain wh

    ht plan, if any, is, and to help the rest of us to navigate confidently during the uncertain ead.

    s their plan that you can see here. It is their ideas of how the market evolved and what you hto follow the markets. We interviewed people in Europe, USA, South America, China and J interviewed day traders, cycle traders, long-term investors and frontier investors. From divonly looked for one thing: honesty. They all recognize that they do not fight against market

    ainst themselves. They are market warr iors.

    todays world, everyone wants easy money, quick money, but honest people know that market so cooperative.

    m Dorsey and Jos Antnio are drawn toward stocks that have already gone up; one folloative strength, the other looking for new highs. This type of strategy can perform strongly dnstant market environments, but can become unstuck at major inflection points, when tecgimes change.

    m Rogers does not try to time the market. He makes a choice and sticks with it. He also pref

    k where no one is looking. Because of this, he says he is too often too early on his trades, bue to hold stocks indefinitely.

    lio Oliveira is a fantastic day trader, a man with the IQ of a genius, able to transform two mthe markets into an eternity. We had the most fantastic time with him, learning about hiories. According to Hlio, prices are not random. There is an underlying order to all markece action. According to him, great trading can be learned, but one must understand and act als for trading. We were present at one of his rare one-day real time seminars where he tradeney and a real account. Hlio takes his chances in the prevailing market, trading his own cpressure of the moment, but for those lucky enough to be able to be there at the seminar, w

    e opportunity it is to see a professional trader at work. Hlios approach to trading is the sa

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    approach to life. He likes things at full speed, he is a city animal, he likes the stress the stylhnology available. When asked if he would like to trade from the beach the answer was, He finds the slower pace a problem.

    ulo Pinto is the opposite. He has progressed to the point where he wants simplicity. Fewer an fewer decisions, less stress, and at the same time, allow him to concentrate on factors, su

    erage profit per trade, win/loss ratio, and trade efficiency.

    riously, both Paulo Pinto and Steen Jakobsen think these are worrying times for the pornagers competing to win and maintain the worlds richest customers. As stock exchanges aworld enjoy a sustained rise after a bear market crisis, wealthy individuals are recoveringshock of seeing paper fortunes destroyed and are reassessing the performance of their fina

    oviders. Clients will forgive bad judgement mistakes, but they will never forgive bad faithficulty, according to them, is how likely is it that the optimism, prevailing at this moment ind supported by many reports, while cheering that the crisis is over or at least getting that wayn this be correct when the recovery in employment is non-existent?

    en is gentle and sharply dressed, he is suave and slender, and his style is refined almost effortoomed. Steen is one of the 10 most cited economists, so fundamentals are very much his breater. However, his views always seem different to those of the establishment. As he wrote onomist, So how can it be that stock markets are hitting multi-year highs while employmting historic lows? In a real bull market, everyone partakes in the upside - but those who have acentral bank funding drive this market and the economy. In short, they are detached from r

    ke a David Copperfield stage act, it is a grand illusion.

    cause we are in a grand illusion and because we are in unusual times, it is interesting to sese very experienced traders and investors see the evolution of the markets, what ki

    thodology or system they use, how good is their understanding of the markets and how theyir trades.

    ost investors go from one method of trading to another, from one popular advisory servother, and from one kind of charting software to another, searching for the perfect way to genning trades. I hope that this book will help you put everything together. One of the conclusio

    from these interviews is that professionals stay with their systems long enough to let them mselves. The second conclusion is that they never make it too complex.

    suji Yamanaka realized that he was an outstanding trader when he developed mechanical trtems. Chinese Jason Wangke found that having a solid understanding of the fundamentals ave him a much better hedge. Warren Buffet is the guru of his investing religion.

    other important conclusion is that every investor should learn from his trading experiences, some you can learn the exact style that suits you.

    s important to realize that even great traders like those in this book do not always win on de. What they do is to maximize their particular strengths. None of them are ins

    disciplined, unstable anxious or fearful, but all of them have a great respect for what losses ca

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    ave also asked what they consider to be the most important tool for trading and realized tham, the answer would have changed over the years, which means that the reality of the marke

    anged.

    lio Oliveira was adamant when asked how we go about determining whether a system or metlistic. Unlike in the 90s where it was important to have access to the latest computer modtems, today access to those are impossible not because the best trading models are complicate

    cause access to light speed technology is expensive and only accessible to few banks and nds.

    r Hlio, misconceptions about trading are plentiful because it is a foreign profession toople. According to him trading can be as demanding as practising surgery because of otional demands. Trading seriously requires serious effort, and it is not an occupation to beas a retirement activity. Many people have the silly idea that, because they bought and sold cks and made money, they can go into trading. Trading with this idea in mind could be astly mistake. What separates Hlio from the pack in this cutthroat industry is his obsessiorfection.

    r Paulo Pinto trading is a lonely occupation even when people surround you. Trading faroverts. It takes a special person to do it on a daily basis. Yasuji Yamanaka confirms thatople are not that psychologically independent. Again, Hlio Oliveira gave a very clear examat it means to be psychologically independent: You cannot trade well if your spouse thinkgambling or if she is afraid of you losing money when you are going through a losing stre

    der needs to force himself intellectually to override counterproductive emotions.

    hen asked what he likes most about trading, Tom Dorsey said that he enjoys every aspect of tracause trading is his passion.

    m Rogers is a legend, but he does not consider himself a trader. He is a long-term investor wry critical view about politicians and central bankers. When asked why, he says that central

    giving their friends and favourite banks access to almost unlimited amounts of money at no rates of interest to buy assets like bonds and stocks and expensive real estate, while ord

    mericans are not getting the money. Under the excuse that they print money to stimulaonomy, the reality is that they are not stimulating the real economy and because the debtggeringly high, he is worried about the near future and believes the economy will have a recepart of a cyclical trend.

    vertheless, trading is still one of the last frontiers of opportunity in our economy. It is one w places where someone with a relatively small investment can still become a millionaire.

    is is the other reason we interviewed these great traders and investors - to learn the secret ofccess. From the interviews, we can learn