Ray Dalio: How to have a strong mindset for trading

Credit: Finance Jane

Raymond Thomas Dalio (born August 8, 1949) is an American billionaire investor and hedge fund manager, who has served as co-chief investment officer of the world’s largest hedge fund, Bridgewater Associates, since 1985.

Dalio deploys multiple strategies within Bridgewater Associates. Dalio deploys capital to each of these strategies in proportions that he sees fit.

According to Dalio, Bridgewater Associates is a “global macro firm”, investing around economic trends, such as changes in exchange rates, inflation, and G.D.P. growth.

The New Yorker called Dalio “a big-picture thinker connected to a street-smart trader”.

Dalio divides his holdings into two different areas: beta investments and alpha investments. Beta investments produce returns through passive management and normal market risk.

Alpha investments are actively managed and aim to generate better returns than beta investments. Alpha investments are not related to the general market.

In this video, Dalio talks about his mindset for trading. He gives advice about how to build a strong mindset for common investors.

Warning: This video is to show you Ray Dalio’s view about mindset for trading. Please do your research before doing any investment. A good balance between return and risk is the key to investment success.

Source: Finance Jane