When you are right on something , you can’t own enough

I got your attention, right? :). Well I am going to have to disappoint you. The quote below is about trading again but the one, I truly believe in and it has connection to the picture. It comes from the great George Soros himself:

As an example, shortly after I had started working for Soros, I was very bearish on the dollar and put in a large short position against the Deutsche mark. The position had started going in my favour, and I felt rather proud of myself. Soros came into my office, and we talked about the trade.

SOROS: How big a position do you have?
STANLEY: One billion dollars.
SOROS: You call that a position? he said dismissingly. He ecnouraged me to double my position. I did, and the trade went dramatically further in our favour

Soros has taught me that when you have tremendous conviction on a trade, you have to go for the jugular.It takes courage to be a pig. It takes courage to ride a profit with huge leverage. As far as Soros is concerned, when you are right on something, you can’t own enough.

To me, it is all about A plays (high probability setup/strategy). If you have an A play in front of your eyes and it is doing all the things from your A play checklist, you should go big and be a pig as Soros says. Not heavy that much it would ruin your entire account (thats stupid) but heavy that if it would work, it would made a trade of the month from the position. And if the position becomes a loss, it would take you a few days or a week to get that money back. It takes balls to do so, but this is what separates good from great. Knowing when to press.

Happy Saturday 😉

lechiffre