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Ninety percent of success can be boiled down to consistently doing the obvious thing for an uncommonly long period of time without convincing yourself that you're smarter than you are.View quoted post on X
Nick Turchyn
@CoachTurch
TE Coach - Bowdoin College. Recruiting: NJ, NY, CT (West), CO. Nothing happens to you everything happens for you
9.1K Following 9.2K Followers 15K Posts
Latest posts 5
Balyasny's founder Dmitry Balyasny on the young PM who bought a Ferrari with his first bonus:
"The right psychology and mindset is probably the most important."
"I remember interviewing a young PM years ago. He'd only been trading for a short period of time, and it randomly came up that he used his first bonus check to buy a Ferrari. Not a good sign."
"You want people that are fairly humble, that are always trying to get better, always trying to learn, a real craftsman mentality, as opposed to a real hubris type of mentality where they think they have it all figured out, because the market will definitely humble you."
"One of the things that helped me when I was starting off was just going around to different offices and sitting next to different top traders, and just asking questions and learning about what they did."View quoted post on X
Confirmed across multiple industries/professions
Always remember, nobody really knows anything……. Once you embrace that, your life as a trader becomes much simpler.View quoted post on X
As long as the PM is willing to admit the weaknesses/lack of resources highlighted in the final section internally to the team and - this is good to go.
Citadel, Millennium, Point72 and BAM are richer, smarter, and faster than you. Here's how small hedge funds can win regardless:
Alix Pasquet (@alixpasquet), managing partner of hedge fund Prime Macaya Capital Management, explains:
"A lot of game theory is very technical and mathematical, but it really reduces to one thing: play weaker players. Don't get into the ring with Mike Tyson. That's not what you want to do."
"We don't try to compete with the pods. They are richer than we are, smarter than we are, move faster than we are, have more resources, and in many cases are better looking. That's bad for our self-esteem, for our ego, and also our wallet."
"We don't compete with them on who they hire. They're interviewing sophomores and juniors in college now. I can't afford to pay an analyst $300,000 plus a bonus including half a million dollars. But the analytical turnover inside these shops is high enough that you get to hire these kids afterwards."
"Whereas pods have been lengthening their trades to weekly, monthly, we like dynamics that are six to 18 months and above. There's names we've owned forever, and there's names we'll own expecting 18 months where the upside happens in weeks."
"Some of these hedge funds pay the Wall Street banks more to get the first one-on-one meeting with management, so they can trade on it. We don't do that."
"I'm rewriting my business plan for the age of AI, and one of the sections is: we have no requirement in our process that says you have to meet management teams. No requirement that says you need alt data. No requirement for Wall Street research. No requirement to hire from certain schools. Strategy is about trade-offs. Let them have that. We'll be right here. There's a lot more advantage here than you would think."View quoted post on X
Body language screams
Bill Belichick says Giants linebacker Carl Banks, uncovered an unbelievable film tell against the Philadelphia Eagles that coaches completely missed
He said, “When the coach puts his arm a certain way, it’s a run. When he wiggles his fingers, it’s a pass.' Now, I was skeptical at first, but I went back and checked the film. And sure enough, the key was entirely accurate."
"It was unbelievable. This key held true whether it was fourth-and-inches or third-and-20. As a player, when you have an advantage like that, it creates an exceptional level of excitement."
(via @thepivot )View quoted post on X
