How Steve Cohen Traded The Bursting Of The Dot Com Bubble_老虎社区_美港股上老虎

How Steve Cohen Traded The Bursting Of The Dot Com Bubble

zerohedge2021-06-21

This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000: Just after the peak of the dot com bubble in March, ...

网页链接

免责声明：本文观点仅代表作者个人观点，不构成本平台的投资建议，本平台不对文章信息准确性、完整性和及时性做出任何保证，亦不对因使用或信赖文章信息引发的任何损失承担责任。

nAonkA
·2021-06-21
Ohhh
回复
点赞
举报
Shalommmm
·2021-06-21
Wa
回复
1
举报
TBanger
·2021-06-21
Good tips in there.
回复
点赞
举报
收起
- jjjjjjjjjq:
  ok
  2021-06-21
  回复
  举报
- TBanger:
  Well for me there were.
  2021-06-21
  回复
  举报
7bdce276
·2021-06-21
Wow
回复
点赞
举报
semsem
·2021-06-21
👍
回复
点赞
举报
investabc
·2021-06-21
Latest
回复
点赞
举报
sk27
·2021-06-21
Thanks for the info
回复
1
举报
at135
·2021-06-21
$Coinbase Global, Inc.(COIN)$ i will publish
回复
1
举报
at135
·2021-06-21
[得意]
回复
1
举报
Gaggoo
·2021-06-21
wow amazing
回复
1
举报
cl1689
·2021-06-21
Pls like n comment
回复
3
举报
收起
- tct294:
  ok
  2021-06-21
  回复
  举报
- Farmerchui:
  Ok
  2021-06-21
  回复
  举报

热议股票

7x24

全部

关于我们·老虎社区守则·老虎社区账号管理规范·老虎社区服务协议·老虎社区隐私政策

公司名称：北京至简风宜信息技术有限公司

违法和不良信息投诉：010-5681-3562（工作时间9:30-18:30）

邮箱：service@laohu8.com

营业执照：91110105MA01A4U55R

ICP备：京ICP备18016422号

网安备：京公网安备11010502036490

关注我们

{"i18n":{"language":"zh_CN"},"data":{"share":"https://www.laohu8.com/m/news/1105691189?lang=zh_CN&edition=full","thumbnail":"","is_english":true,"pubTime":"2021-06-21 17:02","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"1105691189","market":"us","top_or_hot":-1,"title":"How Steve Cohen Traded The Bursting Of The Dot Com Bubble","media":"zerohedge","content":"<div>\nThis week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, ...\n\n<a href=\"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29\">网页链接</a>\n\n</div>\n","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How Steve Cohen Traded The Bursting Of The Dot Com Bubble</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow Steve Cohen Traded The Bursting Of The Dot Com Bubble\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-21 17:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29>zerohedge</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nThis week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, ...\n\n<a href=\"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29\">网页链接</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":".IXIC","symbol_name":"NASDAQ Composite","start_time":0,"source_url":"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29","article_id":"1105691189","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1105691189","pubTimestamp":1624266134,"columns":[],"sourceInfo":null,"weMediaInfo":null,"summary":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief ane","collect":0,"end_time":0,"defaultTopTitle":"zerohedge.com","property":[],"viewcount":null,"language":"en","relate_stocks":{".IXIC":"NASDAQ Composite",".DJI":"道琼斯","SPY":"标普500ETF",".SPX":"S&P 500 Index"},"translate_title":"史蒂夫·科恩如何交易网络泡沫的破灭","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".DJI":0.9,".IXIC":0.9,".SPX":0.9,"SPY":0.9},"content_text":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&P just kept going up. The only sound in the room was Steve’s assistant calling out S&P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\nI’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n\nDon’t buy new lows.\nDon’t short new highs.\nAlways scale in and out of positions.\nSet stop losses where you re-evaluate your point of view.\nAlways look for new ideas.\nAdmit when you’re wrong and move on.\n\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","kind":"news","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":167597400,"gmtCreate":1624275686900,"gmtModify":1634008569844,"author":{"id":"3567471451546980","authorId":"3567471451546980","name":"nAonkA","avatar":"https://static.tigerbbs.com/2c5905f2cf61636f82bdd3d58203997c","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3567471451546980","authorIdStr":"3567471451546980"},"htmlText":"Ohhh","listText":"Ohhh","text":"Ohhh","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/167597400","repostId":1105691189,"repostType":4,"repost":{"id":"1105691189","kind":"news","pubTimestamp":1624266134,"share":"https://www.laohu8.com/m/news/1105691189?lang=&edition=full","pubTime":"2021-06-21 17:02","market":"us","language":"en","title":"How Steve Cohen Traded The Bursting Of The Dot Com Bubble","url":"https://stock-news.laohu8.com/highlight/detail?id=1105691189","media":"zerohedge","summary":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief ane","content":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&amp;P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&amp;P just kept going up. The only sound in the room was Steve’s assistant calling out S&amp;P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&amp;P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&amp;L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\n<img src=\"https://static.tigerbbs.com/5dc81a4bd27d4c16642589177ca9ad3e\" tg-width=\"500\" tg-height=\"289\">I’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n<ul>\n <li>Don’t buy new lows.</li>\n <li>Don’t short new highs.</li>\n <li>Always scale in and out of positions.</li>\n <li>Set stop losses where you re-evaluate your point of view.</li>\n <li>Always look for new ideas.</li>\n <li>Admit when you’re wrong and move on.</li>\n</ul>\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How Steve Cohen Traded The Bursting Of The Dot Com Bubble</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow Steve Cohen Traded The Bursting Of The Dot Com Bubble\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-21 17:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29>zerohedge</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nThis week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, ...\n\n<a href=\"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite","SPY":"标普500ETF"},"source_url":"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1105691189","content_text":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&P just kept going up. The only sound in the room was Steve’s assistant calling out S&P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\nI’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n\nDon’t buy new lows.\nDon’t short new highs.\nAlways scale in and out of positions.\nSet stop losses where you re-evaluate your point of view.\nAlways look for new ideas.\nAdmit when you’re wrong and move on.\n\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":167235952,"gmtCreate":1624269536076,"gmtModify":1631892145697,"author":{"id":"3569930228726403","authorId":"3569930228726403","name":"Shalommmm","avatar":"https://static.tigerbbs.com/c97801931fe73b190c1dbecfb7934480","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3569930228726403","authorIdStr":"3569930228726403"},"htmlText":"Wa&nbsp;","listText":"Wa&nbsp;","text":"Wa","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/167235952","repostId":1105691189,"repostType":4,"repost":{"id":"1105691189","kind":"news","pubTimestamp":1624266134,"share":"https://www.laohu8.com/m/news/1105691189?lang=&edition=full","pubTime":"2021-06-21 17:02","market":"us","language":"en","title":"How Steve Cohen Traded The Bursting Of The Dot Com Bubble","url":"https://stock-news.laohu8.com/highlight/detail?id=1105691189","media":"zerohedge","summary":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief ane","content":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&amp;P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&amp;P just kept going up. The only sound in the room was Steve’s assistant calling out S&amp;P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&amp;P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&amp;L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\n<img src=\"https://static.tigerbbs.com/5dc81a4bd27d4c16642589177ca9ad3e\" tg-width=\"500\" tg-height=\"289\">I’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n<ul>\n <li>Don’t buy new lows.</li>\n <li>Don’t short new highs.</li>\n <li>Always scale in and out of positions.</li>\n <li>Set stop losses where you re-evaluate your point of view.</li>\n <li>Always look for new ideas.</li>\n <li>Admit when you’re wrong and move on.</li>\n</ul>\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How Steve Cohen Traded The Bursting Of The Dot Com Bubble</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow Steve Cohen Traded The Bursting Of The Dot Com Bubble\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-21 17:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29>zerohedge</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nThis week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, ...\n\n<a href=\"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite","SPY":"标普500ETF"},"source_url":"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1105691189","content_text":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&P just kept going up. The only sound in the room was Steve’s assistant calling out S&P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\nI’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n\nDon’t buy new lows.\nDon’t short new highs.\nAlways scale in and out of positions.\nSet stop losses where you re-evaluate your point of view.\nAlways look for new ideas.\nAdmit when you’re wrong and move on.\n\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":167208919,"gmtCreate":1624268245631,"gmtModify":1624268245631,"author":{"id":"3551275186417781","authorId":"3551275186417781","name":"TBanger","avatar":"https://static.tigerbbs.com/e8e895fbd3256856fdf038fc5d1c3bee","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3551275186417781","authorIdStr":"3551275186417781"},"htmlText":"Good tips in there.","listText":"Good tips in there.","text":"Good tips in there.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":2,"repostSize":0,"link":"https://laohu8.com/post/167208919","repostId":1105691189,"repostType":4,"repost":{"id":"1105691189","kind":"news","pubTimestamp":1624266134,"share":"https://www.laohu8.com/m/news/1105691189?lang=&edition=full","pubTime":"2021-06-21 17:02","market":"us","language":"en","title":"How Steve Cohen Traded The Bursting Of The Dot Com Bubble","url":"https://stock-news.laohu8.com/highlight/detail?id=1105691189","media":"zerohedge","summary":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief ane","content":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&amp;P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&amp;P just kept going up. The only sound in the room was Steve’s assistant calling out S&amp;P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&amp;P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&amp;L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\n<img src=\"https://static.tigerbbs.com/5dc81a4bd27d4c16642589177ca9ad3e\" tg-width=\"500\" tg-height=\"289\">I’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n<ul>\n <li>Don’t buy new lows.</li>\n <li>Don’t short new highs.</li>\n <li>Always scale in and out of positions.</li>\n <li>Set stop losses where you re-evaluate your point of view.</li>\n <li>Always look for new ideas.</li>\n <li>Admit when you’re wrong and move on.</li>\n</ul>\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How Steve Cohen Traded The Bursting Of The Dot Com Bubble</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow Steve Cohen Traded The Bursting Of The Dot Com Bubble\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-21 17:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29>zerohedge</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nThis week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, ...\n\n<a href=\"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite","SPY":"标普500ETF"},"source_url":"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1105691189","content_text":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&P just kept going up. The only sound in the room was Steve’s assistant calling out S&P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\nI’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n\nDon’t buy new lows.\nDon’t short new highs.\nAlways scale in and out of positions.\nSet stop losses where you re-evaluate your point of view.\nAlways look for new ideas.\nAdmit when you’re wrong and move on.\n\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4931116,"gmtCreate":1624268766075,"gmtModify":1635304513319,"authorId":3583909709610824,"author":{"id":3583909709610824,"idStr":"3583909709610824","authorId":3583909709610824,"name":"jjjjjjjjjq","avatar":"https://static.tigerbbs.com/fdd1e189c0069a741eba3b663a37f240","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":167208919,"type":1,"supId":0,"prevId":0,"content":"ok","text":"ok","html":"ok"},{"id":4937395,"gmtCreate":1624289800526,"gmtModify":1624325823250,"authorId":3551275186417781,"author":{"id":3551275186417781,"idStr":"3551275186417781","authorId":3551275186417781,"name":"TBanger","avatar":"https://static.tigerbbs.com/e8e895fbd3256856fdf038fc5d1c3bee","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":167208919,"type":1,"supId":4931116,"prevId":0,"content":"Well for me there were.","text":"Well for me there were.","html":"Well for me there were."}],"langContent":"EN"},{"id":167679678,"gmtCreate":1624267664294,"gmtModify":1634008666699,"author":{"id":"3581592960153454","authorId":"3581592960153454","name":"7bdce276","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3581592960153454","authorIdStr":"3581592960153454"},"htmlText":"Wow","listText":"Wow","text":"Wow","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/167679678","repostId":1105691189,"repostType":4,"repost":{"id":"1105691189","kind":"news","pubTimestamp":1624266134,"share":"https://www.laohu8.com/m/news/1105691189?lang=&edition=full","pubTime":"2021-06-21 17:02","market":"us","language":"en","title":"How Steve Cohen Traded The Bursting Of The Dot Com Bubble","url":"https://stock-news.laohu8.com/highlight/detail?id=1105691189","media":"zerohedge","summary":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief ane","content":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&amp;P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&amp;P just kept going up. The only sound in the room was Steve’s assistant calling out S&amp;P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&amp;P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&amp;L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\n<img src=\"https://static.tigerbbs.com/5dc81a4bd27d4c16642589177ca9ad3e\" tg-width=\"500\" tg-height=\"289\">I’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n<ul>\n <li>Don’t buy new lows.</li>\n <li>Don’t short new highs.</li>\n <li>Always scale in and out of positions.</li>\n <li>Set stop losses where you re-evaluate your point of view.</li>\n <li>Always look for new ideas.</li>\n <li>Admit when you’re wrong and move on.</li>\n</ul>\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How Steve Cohen Traded The Bursting Of The Dot Com Bubble</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow Steve Cohen Traded The Bursting Of The Dot Com Bubble\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-21 17:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29>zerohedge</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nThis week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, ...\n\n<a href=\"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite","SPY":"标普500ETF"},"source_url":"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1105691189","content_text":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&P just kept going up. The only sound in the room was Steve’s assistant calling out S&P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\nI’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n\nDon’t buy new lows.\nDon’t short new highs.\nAlways scale in and out of positions.\nSet stop losses where you re-evaluate your point of view.\nAlways look for new ideas.\nAdmit when you’re wrong and move on.\n\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":167647773,"gmtCreate":1624267587792,"gmtModify":1631889774518,"author":{"id":"3582710052830337","authorId":"3582710052830337","name":"semsem","avatar":"https://static.tigerbbs.com/5b9f05e7dbe5d400cc4455ee79b32617","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3582710052830337","authorIdStr":"3582710052830337"},"htmlText":"👍","listText":"👍","text":"👍","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/167647773","repostId":1105691189,"repostType":4,"repost":{"id":"1105691189","kind":"news","pubTimestamp":1624266134,"share":"https://www.laohu8.com/m/news/1105691189?lang=&edition=full","pubTime":"2021-06-21 17:02","market":"us","language":"en","title":"How Steve Cohen Traded The Bursting Of The Dot Com Bubble","url":"https://stock-news.laohu8.com/highlight/detail?id=1105691189","media":"zerohedge","summary":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief ane","content":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&amp;P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&amp;P just kept going up. The only sound in the room was Steve’s assistant calling out S&amp;P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&amp;P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&amp;L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\n<img src=\"https://static.tigerbbs.com/5dc81a4bd27d4c16642589177ca9ad3e\" tg-width=\"500\" tg-height=\"289\">I’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n<ul>\n <li>Don’t buy new lows.</li>\n <li>Don’t short new highs.</li>\n <li>Always scale in and out of positions.</li>\n <li>Set stop losses where you re-evaluate your point of view.</li>\n <li>Always look for new ideas.</li>\n <li>Admit when you’re wrong and move on.</li>\n</ul>\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How Steve Cohen Traded The Bursting Of The Dot Com Bubble</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow Steve Cohen Traded The Bursting Of The Dot Com Bubble\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-21 17:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29>zerohedge</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nThis week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, ...\n\n<a href=\"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite","SPY":"标普500ETF"},"source_url":"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1105691189","content_text":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&P just kept going up. The only sound in the room was Steve’s assistant calling out S&P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\nI’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n\nDon’t buy new lows.\nDon’t short new highs.\nAlways scale in and out of positions.\nSet stop losses where you re-evaluate your point of view.\nAlways look for new ideas.\nAdmit when you’re wrong and move on.\n\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":167645001,"gmtCreate":1624267467003,"gmtModify":1634008669690,"author":{"id":"3577518721457137","authorId":"3577518721457137","name":"investabc","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3577518721457137","authorIdStr":"3577518721457137"},"htmlText":"Latest","listText":"Latest","text":"Latest","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/167645001","repostId":1105691189,"repostType":4,"repost":{"id":"1105691189","kind":"news","pubTimestamp":1624266134,"share":"https://www.laohu8.com/m/news/1105691189?lang=&edition=full","pubTime":"2021-06-21 17:02","market":"us","language":"en","title":"How Steve Cohen Traded The Bursting Of The Dot Com Bubble","url":"https://stock-news.laohu8.com/highlight/detail?id=1105691189","media":"zerohedge","summary":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief ane","content":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&amp;P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&amp;P just kept going up. The only sound in the room was Steve’s assistant calling out S&amp;P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&amp;P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&amp;L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\n<img src=\"https://static.tigerbbs.com/5dc81a4bd27d4c16642589177ca9ad3e\" tg-width=\"500\" tg-height=\"289\">I’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n<ul>\n <li>Don’t buy new lows.</li>\n <li>Don’t short new highs.</li>\n <li>Always scale in and out of positions.</li>\n <li>Set stop losses where you re-evaluate your point of view.</li>\n <li>Always look for new ideas.</li>\n <li>Admit when you’re wrong and move on.</li>\n</ul>\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How Steve Cohen Traded The Bursting Of The Dot Com Bubble</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow Steve Cohen Traded The Bursting Of The Dot Com Bubble\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-21 17:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29>zerohedge</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nThis week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, ...\n\n<a href=\"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite","SPY":"标普500ETF"},"source_url":"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1105691189","content_text":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&P just kept going up. The only sound in the room was Steve’s assistant calling out S&P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\nI’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n\nDon’t buy new lows.\nDon’t short new highs.\nAlways scale in and out of positions.\nSet stop losses where you re-evaluate your point of view.\nAlways look for new ideas.\nAdmit when you’re wrong and move on.\n\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":167646612,"gmtCreate":1624267418336,"gmtModify":1634008671094,"author":{"id":"3582018187984085","authorId":"3582018187984085","name":"sk27","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"3582018187984085","authorIdStr":"3582018187984085"},"htmlText":"Thanks for the info","listText":"Thanks for the info","text":"Thanks for the info","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/167646612","repostId":1105691189,"repostType":4,"repost":{"id":"1105691189","kind":"news","pubTimestamp":1624266134,"share":"https://www.laohu8.com/m/news/1105691189?lang=&edition=full","pubTime":"2021-06-21 17:02","market":"us","language":"en","title":"How Steve Cohen Traded The Bursting Of The Dot Com Bubble","url":"https://stock-news.laohu8.com/highlight/detail?id=1105691189","media":"zerohedge","summary":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief ane","content":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&amp;P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&amp;P just kept going up. The only sound in the room was Steve’s assistant calling out S&amp;P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&amp;P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&amp;L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\n<img src=\"https://static.tigerbbs.com/5dc81a4bd27d4c16642589177ca9ad3e\" tg-width=\"500\" tg-height=\"289\">I’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n<ul>\n <li>Don’t buy new lows.</li>\n <li>Don’t short new highs.</li>\n <li>Always scale in and out of positions.</li>\n <li>Set stop losses where you re-evaluate your point of view.</li>\n <li>Always look for new ideas.</li>\n <li>Admit when you’re wrong and move on.</li>\n</ul>\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How Steve Cohen Traded The Bursting Of The Dot Com Bubble</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow Steve Cohen Traded The Bursting Of The Dot Com Bubble\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-21 17:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29>zerohedge</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nThis week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, ...\n\n<a href=\"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite","SPY":"标普500ETF"},"source_url":"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1105691189","content_text":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&P just kept going up. The only sound in the room was Steve’s assistant calling out S&P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\nI’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n\nDon’t buy new lows.\nDon’t short new highs.\nAlways scale in and out of positions.\nSet stop losses where you re-evaluate your point of view.\nAlways look for new ideas.\nAdmit when you’re wrong and move on.\n\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":167646940,"gmtCreate":1624267405280,"gmtModify":1631884617410,"author":{"id":"3585052080143194","authorId":"3585052080143194","name":"at135","avatar":"https://static.tigerbbs.com/ea45d79a9d6d7c04e491b769a6ce1d0d","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3585052080143194","authorIdStr":"3585052080143194"},"htmlText":"<a href=\"https://laohu8.com/S/COIN\">$Coinbase Global, Inc.(COIN)$</a>&nbsp;i will publish","listText":"<a href=\"https://laohu8.com/S/COIN\">$Coinbase Global, Inc.(COIN)$</a>&nbsp;i will publish","text":"$Coinbase Global, Inc.(COIN)$ i will publish","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/167646940","repostId":1105691189,"repostType":4,"repost":{"id":"1105691189","kind":"news","pubTimestamp":1624266134,"share":"https://www.laohu8.com/m/news/1105691189?lang=&edition=full","pubTime":"2021-06-21 17:02","market":"us","language":"en","title":"How Steve Cohen Traded The Bursting Of The Dot Com Bubble","url":"https://stock-news.laohu8.com/highlight/detail?id=1105691189","media":"zerohedge","summary":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief ane","content":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&amp;P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&amp;P just kept going up. The only sound in the room was Steve’s assistant calling out S&amp;P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&amp;P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&amp;L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\n<img src=\"https://static.tigerbbs.com/5dc81a4bd27d4c16642589177ca9ad3e\" tg-width=\"500\" tg-height=\"289\">I’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n<ul>\n <li>Don’t buy new lows.</li>\n <li>Don’t short new highs.</li>\n <li>Always scale in and out of positions.</li>\n <li>Set stop losses where you re-evaluate your point of view.</li>\n <li>Always look for new ideas.</li>\n <li>Admit when you’re wrong and move on.</li>\n</ul>\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How Steve Cohen Traded The Bursting Of The Dot Com Bubble</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow Steve Cohen Traded The Bursting Of The Dot Com Bubble\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-21 17:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29>zerohedge</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nThis week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, ...\n\n<a href=\"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite","SPY":"标普500ETF"},"source_url":"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1105691189","content_text":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&P just kept going up. The only sound in the room was Steve’s assistant calling out S&P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\nI’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n\nDon’t buy new lows.\nDon’t short new highs.\nAlways scale in and out of positions.\nSet stop losses where you re-evaluate your point of view.\nAlways look for new ideas.\nAdmit when you’re wrong and move on.\n\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":167641326,"gmtCreate":1624267320865,"gmtModify":1634008672895,"author":{"id":"3585052080143194","authorId":"3585052080143194","name":"at135","avatar":"https://static.tigerbbs.com/ea45d79a9d6d7c04e491b769a6ce1d0d","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3585052080143194","authorIdStr":"3585052080143194"},"htmlText":"[得意]&nbsp;","listText":"[得意]&nbsp;","text":"[得意]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/167641326","repostId":1105691189,"repostType":4,"repost":{"id":"1105691189","kind":"news","pubTimestamp":1624266134,"share":"https://www.laohu8.com/m/news/1105691189?lang=&edition=full","pubTime":"2021-06-21 17:02","market":"us","language":"en","title":"How Steve Cohen Traded The Bursting Of The Dot Com Bubble","url":"https://stock-news.laohu8.com/highlight/detail?id=1105691189","media":"zerohedge","summary":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief ane","content":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&amp;P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&amp;P just kept going up. The only sound in the room was Steve’s assistant calling out S&amp;P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&amp;P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&amp;L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\n<img src=\"https://static.tigerbbs.com/5dc81a4bd27d4c16642589177ca9ad3e\" tg-width=\"500\" tg-height=\"289\">I’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n<ul>\n <li>Don’t buy new lows.</li>\n <li>Don’t short new highs.</li>\n <li>Always scale in and out of positions.</li>\n <li>Set stop losses where you re-evaluate your point of view.</li>\n <li>Always look for new ideas.</li>\n <li>Admit when you’re wrong and move on.</li>\n</ul>\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How Steve Cohen Traded The Bursting Of The Dot Com Bubble</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow Steve Cohen Traded The Bursting Of The Dot Com Bubble\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-21 17:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29>zerohedge</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nThis week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, ...\n\n<a href=\"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite","SPY":"标普500ETF"},"source_url":"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1105691189","content_text":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&P just kept going up. The only sound in the room was Steve’s assistant calling out S&P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\nI’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n\nDon’t buy new lows.\nDon’t short new highs.\nAlways scale in and out of positions.\nSet stop losses where you re-evaluate your point of view.\nAlways look for new ideas.\nAdmit when you’re wrong and move on.\n\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":167649227,"gmtCreate":1624267238169,"gmtModify":1634008673608,"author":{"id":"3582272232021521","authorId":"3582272232021521","name":"Gaggoo","avatar":"https://static.tigerbbs.com/3d1e37505d342fd0d2ea94216065db33","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3582272232021521","authorIdStr":"3582272232021521"},"htmlText":"wow amazing","listText":"wow amazing","text":"wow amazing","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/167649227","repostId":1105691189,"repostType":4,"repost":{"id":"1105691189","kind":"news","pubTimestamp":1624266134,"share":"https://www.laohu8.com/m/news/1105691189?lang=&edition=full","pubTime":"2021-06-21 17:02","market":"us","language":"en","title":"How Steve Cohen Traded The Bursting Of The Dot Com Bubble","url":"https://stock-news.laohu8.com/highlight/detail?id=1105691189","media":"zerohedge","summary":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief ane","content":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&amp;P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&amp;P just kept going up. The only sound in the room was Steve’s assistant calling out S&amp;P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&amp;P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&amp;L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\n<img src=\"https://static.tigerbbs.com/5dc81a4bd27d4c16642589177ca9ad3e\" tg-width=\"500\" tg-height=\"289\">I’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n<ul>\n <li>Don’t buy new lows.</li>\n <li>Don’t short new highs.</li>\n <li>Always scale in and out of positions.</li>\n <li>Set stop losses where you re-evaluate your point of view.</li>\n <li>Always look for new ideas.</li>\n <li>Admit when you’re wrong and move on.</li>\n</ul>\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How Steve Cohen Traded The Bursting Of The Dot Com Bubble</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow Steve Cohen Traded The Bursting Of The Dot Com Bubble\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-21 17:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29>zerohedge</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nThis week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, ...\n\n<a href=\"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite","SPY":"标普500ETF"},"source_url":"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1105691189","content_text":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&P just kept going up. The only sound in the room was Steve’s assistant calling out S&P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\nI’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n\nDon’t buy new lows.\nDon’t short new highs.\nAlways scale in and out of positions.\nSet stop losses where you re-evaluate your point of view.\nAlways look for new ideas.\nAdmit when you’re wrong and move on.\n\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":167653005,"gmtCreate":1624266839407,"gmtModify":1634008679526,"author":{"id":"3586331180219782","authorId":"3586331180219782","name":"cl1689","avatar":"https://static.tigerbbs.com/636fa6ba9943341efa89c9aee3be1a5b","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3586331180219782","authorIdStr":"3586331180219782"},"htmlText":"Pls like n comment","listText":"Pls like n comment","text":"Pls like n comment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":2,"repostSize":0,"link":"https://laohu8.com/post/167653005","repostId":1105691189,"repostType":4,"repost":{"id":"1105691189","kind":"news","pubTimestamp":1624266134,"share":"https://www.laohu8.com/m/news/1105691189?lang=&edition=full","pubTime":"2021-06-21 17:02","market":"us","language":"en","title":"How Steve Cohen Traded The Bursting Of The Dot Com Bubble","url":"https://stock-news.laohu8.com/highlight/detail?id=1105691189","media":"zerohedge","summary":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief ane","content":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&amp;P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&amp;P just kept going up. The only sound in the room was Steve’s assistant calling out S&amp;P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&amp;P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&amp;L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\n<img src=\"https://static.tigerbbs.com/5dc81a4bd27d4c16642589177ca9ad3e\" tg-width=\"500\" tg-height=\"289\">I’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n<ul>\n <li>Don’t buy new lows.</li>\n <li>Don’t short new highs.</li>\n <li>Always scale in and out of positions.</li>\n <li>Set stop losses where you re-evaluate your point of view.</li>\n <li>Always look for new ideas.</li>\n <li>Admit when you’re wrong and move on.</li>\n</ul>\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How Steve Cohen Traded The Bursting Of The Dot Com Bubble</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow Steve Cohen Traded The Bursting Of The Dot Com Bubble\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-21 17:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29>zerohedge</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nThis week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, ...\n\n<a href=\"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite","SPY":"标普500ETF"},"source_url":"https://www.zerohedge.com/markets/how-steve-cohen-traded-bursting-dot-com-bubble?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1105691189","content_text":"This week’s Story Time Thursday is about “Patience”, and I (Nick here …) will start with a brief anecdote from my time at SAC Capital back in 2000:\nJust after the peak of the dot com bubble in March, it was not immediately clear which way the US equity market was headed.\nMany thought the momentum would return soon enough. Others were more cautious, but most bears had been wrong for years. It was therefore hard to take them seriously.\nGoing into a Fed meeting day in mid-2000, Steve had set up his portfolio very short S&P futures.\nBecause every trader in the room was allowed to see his pad, we all followed suit. Everyone was max-out short, confident in Steve’s market call even though it wasn’t exactly clear what he saw.\nStocks opened up that morning, and then headed higher still.\nThe room was dead quiet, as every trading desk will be when experiencing sharp, sudden losses.\nThen Steve did something I had never seen him do before: he left the desk and went downstairs to have lunch with his family.At the time, SAC shared space with GE Capital in a Stamford, CT office building. When I went down to the cafeteria to get lunch a little while later, I saw Steve chatting with his kids and wife while munching on some fish sticks. He didn’t really seem to have a care in the world.\nAt 2:00pm, with Steve back on the desk, we all waited for the Fed decision.It was another rate hike. But instead of selling off, the S&P just kept going up. The only sound in the room was Steve’s assistant calling out S&P levels, each one higher than the last, her voice growing more urgent with each number. Had Steve misread the tape?\nAfter about 15 minutes, though, the S&P leveled out and started to drop.\nFirst by just a little, but then it went into free fall. The whole firm’s P&L swung from dangerously in the red to deeply profitable.\nAt 4pm, with all his shorts covered, Steve stood up and addressed the room: “And that’s how you do it … I’m going home now”.We gave him a standing ovation.\nI’ve thought a lot about that day in the last 20 years, and not just because it so neatly encapsulates the experience of equity day trading in its late 1990s – early 2000s heyday.\nIt taught me that:\n#1) Conviction matters.\nWe used to have a debate on the desk at SAC: was Steve so good because he was already worth a billion dollars and could afford to take risk, or did his net worth come from his ability to only scale and stick with bets where he had the highest conviction? Days like the one I just described always made us realize it was the latter.\nThere is more to that point, though. Many years later, I met a data team that had done a deep diagnostic analysis of hundreds of hedge funds. They looked primarily at what separated top decile performing funds from the rest of the pack.\nThey found that much of the slippage in underperforming funds came from a myriad of small portfolio positions that collectively ate away at returns. Some were losers, yes, but many were winners that weren’t sized large enough to make a real difference in the portfolio. Top performing funds owned winners in size; lesser funds were involved as well, but only in a small way.\nNo prizes for guessing why that happened: conviction.Mediocre funds had enough of an investment process to unearth good ideas, but not enough to size them correctly. They weren’t willing to make a larger bet because they knew they would not be able to patiently sit out any volatility that might arise if it were 5 percent of the portfolio rather than 0.5 percent.\nTakeaway: conviction and sizing are what separated Steve, and every other great investor I’ve ever met, from the merely “very good”. It’s not enough to find ideas that work. The real magic is in making them count.\n#2: Use whatever mental hacks you need to foster patience.\nSteve’s was getting off the desk for an hour. Other highly successful investors I’ve met over the years literally turned off their screens or took a symbol off their monitors.\nThis is not to say one can just blindly buy an asset and hold it whatever comes. Productive patience means following many rules. A few of my personal favorites:\n\nDon’t buy new lows.\nDon’t short new highs.\nAlways scale in and out of positions.\nSet stop losses where you re-evaluate your point of view.\nAlways look for new ideas.\nAdmit when you’re wrong and move on.\n\nTakeaway: the story about Steve on Fed Day is not meant to celebrate blind patience, but rather to show how patience fits in the context of a broader, disciplined approach.If Steve had been wrong on that day, he would have still stuck to his process the next day and the day after that. No one has a 100 percent hit rate in this business.\nFinal thought: the ability to be patient is, in the end, always a function of conviction and environment. Since we have little control over environment, especially with capital markets, the only effective way to cultivate patience is to build and follow a process that increases conviction in the context of prevailing circumstances.\nIronically, low volatility markets such as what we have now demand more patience and conviction than when prices are choppier. Even a 1 percent position in a spicy name can meaningfully help portfolio returns when the VIX is at 40. But when the VIX is below 20 (today’s close was 18), it’s an entirely different game. The current environment demands a focused investment approach, not a scattershot one.\nYes, this is hard, but as Steve said, “That’s how you do it”.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4930614,"gmtCreate":1624266935253,"gmtModify":1635304562528,"authorId":3576141071913977,"author":{"id":3576141071913977,"idStr":"3576141071913977","authorId":3576141071913977,"name":"tct294","avatar":"https://static.tigerbbs.com/e4094c304ab7ecbf9698888ea7d82161","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":167653005,"type":1,"supId":0,"prevId":0,"content":"ok","text":"ok","html":"ok"},{"id":4930744,"gmtCreate":1624267400676,"gmtModify":1635304550553,"authorId":3575081140740659,"author":{"id":3575081140740659,"idStr":"3575081140740659","authorId":3575081140740659,"name":"Farmerchui","avatar":"https://static.tigerbbs.com/2b335eb0563fec3c44682130fa698bca","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":167653005,"type":1,"supId":0,"prevId":0,"content":"Ok","text":"Ok","html":"Ok"}],"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":42,"commentSize":11,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}