Trade like Ray Dalio

M

marketsurfer

http://tinyurl.com/daliotrade

Ray Dalio's Investment Strategy And Big Wins
Dalio is a macro investor who adheres to a strict sense of ethical ideas that create the bedrock for his investing and the way Bridgewater is operated. He lays out these principles in a treatise titled, appropriately, "Principles," a 123-page manifesto that is required reading for all Bridgewater employees.

Boiled down to its essence, "Principles" teaches readers that they should always think for themselves and that "Truth, more precisely an accurate understanding of reality is the essential foundation for producing good results." In other words, understanding reality for what it is, not what you think or wish it is, is the fundamental core for living a successful life.

Dalio shared specific investment strategy at the Bloomberg Markets 50 Summit in 2011. He emphasized that when building a portfolio, the ideal number of uncorrelated return streams is 15. Dalio believes that at exactly 15 uncorrelated investments, an investor's risk factor is reduced by 80%.

In addition, he likes to balance his portfolio bet,,,,,,,,,,

http://tinyurl.com/daliotrade
 
Quote from marketsurfer:

http://tinyurl.com/daliotrade

Ray Dalio's Investment Strategy And Big Wins
Dalio is a macro investor who adheres to a strict sense of ethical ideas that create the bedrock for his investing and the way Bridgewater is operated. He lays out these principles in a treatise titled, appropriately, "Principles," a 123-page manifesto that is required reading for all Bridgewater employees.

Boiled down to its essence, "Principles" teaches readers that they should always think for themselves and that "Truth, more precisely an accurate understanding of reality is the essential foundation for producing good results." In other words, understanding reality for what it is, not what you think or wish it is, is the fundamental core for living a successful life.

Dalio shared specific investment strategy at the Bloomberg Markets 50 Summit in 2011. He emphasized that when building a portfolio, the ideal number of uncorrelated return streams is 15. Dalio believes that at exactly 15 uncorrelated investments, an investor's risk factor is reduced by 80%.

In addition, he likes to balance his portfolio bet,,,,,,,,,,

http://tinyurl.com/daliotrade
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When I saw that one thread about "favorite market wizards", I think of Dalio. "Principles" is a good read. I love how he challenges and requires his people to think outside the norm. And openly welcomes challenging concepts.

Even his ideas on "correlation" are outside the norm. He touches on that in Market Wizards. Maybe one of my favorite "indicators" he has is the doom or disaster. .whatever it's called. Come to think of it.. it seems to be a form of price driver that points to disaster. You probably know what I'm referring to.
 
Quote from HopelessTrader:

When I saw that one thread about "favorite market wizards", I think of Dalio. "Principles" is a good read. I love how he challenges and requires his people to think outside the norm. And openly welcomes challenging concepts.

Even his ideas on "correlation" are outside the norm. He touches on that in Market Wizards. Maybe one of my favorite "indicators" he has is the doom or disaster. .whatever it's called. Come to think of it.. it seems to be a form of price driver that points to disaster. You probably know what I'm referring to.
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Yes, great ideas--- he is one of the best.
 
Does anyone know what he means by the lines below? especially, "In other words, understanding reality for what it is, not what you think or wish it is, is the fundamental core for living a successful life."

"Boiled down to its essence, "Principles" teaches readers that they should always think for themselves and that "Truth, more precisely an accurate understanding of reality is the essential foundation for producing good results." In other words, understanding reality for what it is, not what you think or wish it is, is the fundamental core for living a successful life.
 
Quote from HeSaidSheSaid:

Does anyone know what he means by the lines below? especially, "In other words, understanding reality for what it is, not what you think or wish it is, is the fundamental core for living a successful life."
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It's from the perspective of wanting to face harsh reality.

It's not wishful thinking.

Facing facts, and dealing with them head on.
 
Quote from jem:

Nice article.
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Thanks Jem. Reading the article gave me flashbacks to Robert Ringer and his books --- looking out for #1, restoring the American dream, and winning thru intimidation. Have you read these? Ringer is real big on the reality thing.

surf
 
Quote from HopelessTrader:

It's from the perspective of wanting to face harsh reality.

It's not wishful thinking.

Facing facts, and dealing with them head on.
More...

Thanks - it sounds like managing one's expectation. always expect the worst if outcome happens to turn out to be better, then one would be happier I guess.


In trading, I think no one in the market would know the true reality of the stock markets. if he could assess and capture it, would he have enough money to steer it into his reality? if he could, then the markets would move onto the new reality. I think stock markets can't be thought of in the absolute terms because it's a product of mass psychology. Each participant has different level of purchase power, ability, and access to information. Back in Jan, BAC analyst thought SP500 fair valuation is at around 1600, but SP500 now is hitting 1700.
 
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