The Greatest Trades of All Time

How top traders made huge profits during the most momentous market events of the past century Financial and commodity markets are characterized by periodic crashes and upside explosions. In retrospect, the reasons behind these abrupt movements often seem very clear, but generally few people understand what's happening at the time. Top traders and investors like George Soros or Jesse Livermore have stood apart from the crowd and capitalized on their unique insights to capture huge profits. Engaging and informative, The Greatest Trades of All Time chronicles how a select few traders anticipated market eruptions?from the 1929 stock market crash to the 2008 subprime mortgage meltdown?and positioned themselves to excel while a majority of others failed. Along the way, author Vincent Veneziani describes the economic and financial forces that led to each market cataclysm and how these individuals perceived what was happening beforehand and why they decided to place big bets, often at great risk and in opposition to consensus opinion at the time. Traders discussed include George Soros, Jesse Livermore, Paul Tudor Jones, John Templeton, and John Paulson Provide contemporary traders and investors with insights on how great traders make great trades Offers insights on market forecasting, mass psychology, and the importance of personal conviction in trading At a time when many investors are looking to the past for answers to the future, this book brings important historical moments in the financial markets to life.

How top traders made huge profits during the most momentousmarket events of the past centuryFinancial and commodity markets are characterized by periodiccrashes and upside explosions. In retrospect, the reasons behindthese abrupt movements often seem very clear, but generally fewpeople understand what's happening at the time. Top traders andinvestors like George Soros or Jesse Livermore have stood apartfrom the crowd and capitalized on their unique insights to capturehuge profits.Engaging and informative, The Greatest Trades of All Timechronicles how a select few traders anticipated marketeruptions?from the 1929 stock market crash to the 2008 subprimemortgage meltdown?and positioned themselves to excel while amajority of others failed. Along the way, author Vincent Venezianidescribes the economic and financial forces that led to each marketcataclysm and how these individuals perceived what washappening beforehand and why they decided to place big bets, oftenat great risk and in opposition to consensus opinion at thetime.* Traders discussed include George Soros, Jesse Livermore, PaulTudor Jones, John Templeton, and John Paulson* Provide contemporary traders and investors with insights on howgreat traders make great trades* Offers insights on market forecasting, mass psychology, and theimportance of personal conviction in tradingAt a time when many investors are looking to the past foranswers to the future, this book brings important historicalmoments in the financial markets to life.

Acknowledgments xiiiAbout the Author xvIntroduction xviiCHAPTER 1 J. Kyle Bass: Timing Is Everything 1The Back Story 1A Few Definitions 2Bass Asks Why 4Learning from the Past 6Shorting Subprime Loans 7The Best Position 8The Effects of Abuse 11Who Was Watching? 13Re-creating Bass's Trading Strategies 17Bass's Top Traits 17CHAPTER 2 James Chanos: The Real King of Enron 21Enter Enron 21Really Looking at Enron 23The Best Position 26Recreating Chanos's Trading Strategies 28A More Recent Example 28Chanos's Top Traits 30CHAPTER 3 Paul Tudor Jones II: Legendary Global Macro Trader 31Following a Genius 31The Path of Greatness 32Starting Out 33Knowing All the Markets 35Global Macro Trading 36Elliot Wave Theory 38More Keys to Jones's Success 40Success beyond Trading 43Recreating Jones's Trading Strategies 43Jones's Top Traits 44CHAPTER 4 John Templeton: Legendary Mutual Fund Manager 47What Made Templeton Famous 47Templeton's Life before Investing 49Educational Aspirations 50The Married Life 52Templeton's Big Move 53Back to New York 54Looking to the Future, and the Templeton Growth Fund 55Templeton's Second Marriage and Fund 56The Bahamas 57Recreating Templeton's Trading Strategies 58Templeton's Top Traits 59CHAPTER 5 Jesse Livermore: Legendary Speculator 61Livermore's History 61At Home in New York 63Fame and Fortune 63The Panic of 1907 64The Crash of 1929 65Livermore's Tragic End 66An Example of Livermore's Influence Today 68Recreating Livermore's Trading Strategies 69Livermore's Top Traits 69CHAPTER 6 John Paulson: The Greatest Trade of All Time 73Paulson's Early Career 73Paulson & Co. 74The Greatest Trade 74Recreating Paulson's Trading Strategies 79Paulson's Top Traits 81CHAPTER 7 George Soros: From Humble Beginnings to World Trader 83Soros's Famous Trades 84The Hardships of a Trading Genius 87Going to School in London 88Work in New York 90Joining the Big Leagues 91Finding Himself 93Crashing from Success 95A New Prot´eg´e 97Onto the World Stage 98The Backlash 100A Conflicted Mind 101A New Era 101Recreating Soros's Trading Strategies 102Soros's Top Traits 103CHAPTER 8 David Einhorn: A Company's Worst Nightmare 105Allied Is Not an Ally 105Lucky Lehman 108The Great Beyond 110Recreating Einhorn's Trading Strategies 111Einhorn's Top Traits 112CHAPTER 9 Martin Schwartz: From Amateur to Superstar 115Start Small, Go Big 115Trading Like a Rock Star 117Winding Down 118Recreating Schwartz's Trading Strategies 120Schwartz's Top Traits 121CHAPTER 10 John Arnold: Master of Energy 123Success at Enron 123Centaurus Energy 124The Explosion 126Recreating Arnold's Trading Strategies 127Crude Oil 127Natural Gas 128Arnold's Top Traits 130CHAPTER 11 More Great Trades: Phillip Falcone, David Tepper, Andrew Hall, Greg Lippmann 131Phillip Falcone 131Recreating Falcone's Trading Strategies 134David Tepper 135Recreating Tepper's Trading Strategies 136Andrew Hall 138Recreating Hall's Trading Strategies 139Greg Lippmann 141Recreating Lippmann's Trading Strategies 143In Summary 144Notes 147Glossary 149References 151Helpful Web Sites 157Index 161