Billionaire Trader Confesses He Never Uses Stops!
Larry Connors' Trading Lesson of The Day | September 9, 2024
Stan Druckenmiller is a legend in the hedge fund and the trading industry.
A self-made billionaire, Druckenmiller’s performance for both his publicly traded hedge fund and his family office ranks amongst the best in history.
According to numerous sources, Druckenmiller has achieved 30% annualized returns (after fees) without ever having a down year.
Even though I’ve never personally met Druckenmiller, based on his many appearances on television, along with speaking at a number of high-profile conferences, he maintains an extreme humbleness about him. He’s also very candid about his macroeconomic outlook along with many of the positions he holds.
What especially stands out the most about his trading is the number of times he’s mentioned he never uses stops.
In fact, in one interview he stated: “I’ve been in business since 1976 as a money manager, I’ve never used a stop loss. Dumbest concept I’ve ever heard”.
Learning From A Legend
Debating endlessly about whether or not to use stops is no different than debating about politics, or the Red Sox-Yankees, Michigan-Ohio football, and a long list of other things where each side is dug in.
Instead, let’s take today’s insight from one of the world’s greatest traders and ask ourselves how he became so successful, especially by never using stops. What did he do on the risk management side that made him so successful and how can this be applied to your own trading?
Answering these questions will lead you to greater trading mastery.
We’ll dive deeper in tomorrow’s Trading Lesson Of The Day…
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