Something just wasn’t quite right…
They say the markets can remain irrational a lot longer than you can remain solvent. Timing is often just as important as being right.
In 2005, John Paulson had some concerns about the US housing market. Not much to go on, at least at first.
But as he dug into it more, he saw what everyone else was purposely missing…
On Wall Street, it’s easy to bet on a bubble. Especially for employees trading with company money.
When the bubble pops, you aren’t personally responsible for your losses. “Nobody else saw it coming either.”
A convenient excuse.
But Paulson did see it coming. And he saw an opportunity to make serious money betting on the collapse.
He wasn’t the only one doing this.
You’ve probably seen or read The Big Short. A few other people saw the same things Paulson did. They knew the bubble couldn’t last.
But most people didn’t want to believe it. And it wasn’t easy to convince them. He had to start off slow…
Paulson bet big against the housing market. But the strategy was risky.
And at first, it wasn’t paying off as well as he’d hoped.
Lesser traders might have been tempted to cut their losses and get out. But not Paulson.
He had the guts to ignore the naysayers, stick to the plan, and see it through to the end..
When the subprime mortgage crisis hit, Paulson personally made a profit of over $4 billion.
Not every strategy is right. Not every hunch works out the way you planned.
But when you see something everyone else is missing, it can pay off big.
Paulson may have hit upon a once in a lifetime event in 2007, but opportunity is everywhere if you know where to look.
And if you have the knowledge and the tools to take advantage when you see it.
That’s why we created Top Shelf Traders. To bring you actionable information, education, and training on how to win in the markets.
Top Shelf Traders is where money making traders teach.
P.S. Got an exciting trading story of your own? Send it to us (just reply to this email), and we may feature it in a future update.