Trying to succeed in a particular type of activity, people often resort to history. History opens its eyes to how the greats of this world achieved financial goals, what rake they attacked, what happened in the end.
Trading is one of the most difficult professions. It is especially important to turn to the history of trading, given that in Russia, as in other countries of the near abroad, there are no worthy trading schools. It is difficult to become a professional without qualified professional training on this topic. And what remains for us? – To study the experience of those who have already achieved significant and outstanding results in this matter, and to learn from them: according to words, actions, from books and video seminars.
In this article, we will plunge into the world of amazing stories of the world’s top traders.
The most successful traders in the world
This list of traders was compiled by me personally, based on well-known facts of the life of public people who traded on world stock and forex platforms. I tried to take into account not only their income on the exchange but also the contribution to the development of modern trading. In other words, the intangible heritage is also important to us, and success, measured in monetary terms, is just evidence.
Are you ready? Let’s get acquainted.
Of course, the genius of the trading world. Larry was born in October 1942 in a town called Miles City, Montana, USA. He is a journalist by profession.
After graduating from the University of Oregon, he went to the metropolis to conquer journalistic peaks and develop in this direction. Williams did not work in New York, and he returned to his hometown, where he organized his own company called The Oregon Report.
Why did the journalist become a trader?
The idea of trading on the stock exchange arose with Williams when he worked in his own newspaper. He published economic data on large US companies and noted that on the rise and fall of stocks, you can increase your income quite well. Initially, everything was planned for additional earnings on securities.
Larry began his trading path by going around the local libraries of Oregon – then there was no Internet. But this information was clearly not enough, and he makes a decision, taking advantage of his official position, to interview employees of brokerage houses.
The first time he got on the stock exchange in the second half of the 60s. He passed the qualification exam for the year and then received the right to engage in financial advice. At first, he gave advice to beginners, then he began to trade himself. However, Larry’s technical analysis and fundamental factors analysis, which existed at that time, didn’t work for Larry: he traded in the short term, and all the trading strategies that were popular at that time were based on a medium and long-term approach.
It was then that the trader thought about his own developments. But … trading life is not a fairy tale, and until the beginning of the 70s, Williams had no positive results. Probably, he would not have achieved anything in this field, if not for the advice of a friend – to try trading in derivatives.
Derivatives allowed trading with low costs for the trading commission, and leverage and volatility allowed the trader to more efficiently manage capital. Larry began to work on improving existing strategies and developing his own forecasting methods.
His most famous achievement is his victory in the Robbins World Cup. Larry was able to make 1 million 100 thousand units of American currency out of 10 thousand dollars per year. This is a result of 11,000% per annum! At the moment, this is an absolute world record in this contest. After that, he repeatedly proved his skills, increasing capital from year to year.
Now the trader is 77 years old, and he is retired. Until now, Larry has provided educational and consulting services, wrote many books on trading, conducted seminars and gave invaluable advice to beginners.
- He wrote several useful books on trading. Reviewed and explained in detail the seasonality of the markets.
- He described a trading methodology based on the analysis of reports on the positions of large traders (COT reports).
- Created his own indicators: Willams R%, Ultimate Oscillator, COT Indices.
Stephen Cohen was born in 1957. Graduated from the University of Pennsylvania, Department of Economics. In his youth, he was fond of playing poker and spent all the money won on the purchase of shares. After 6 years of trading, he received $ 75 million from investors from management. From this began his rise as a trader.
Having achieved financial independence, setting aside money for the future, Stephen opens his own company, SAC Capital Partners, and receives only $ 13 million in management. At that time, hedge funds took 20% of investor profits as compensation. At Cohen’s company, managerial remuneration was greater. But then people did not know what profitability in the financial markets his fund would show.
For over 20 years, SAC has shown an average annual return of 29%. As a reward, the company took 50% of the investors ’profit. Then a scandal broke out with accusations of insider trading. Because of this, Cohen was removed from fund management. The company was closed.
Steve now has a personal capital of $ 9.2 billion according to the Bloomberg Billionaires Index. He is 62 years old. His money is managed by a separate hedge fund, Point 72 Asset Management.
- Set new profitability standards for hedge funds.
- He founded the unique and one-of-a-kind “Point 72 Academy” to train hedge fund managers.
- Predicted the crisis of 2008, only made a mistake with the scale. Despite its knowledge of this, the fund still lost 19%.
Paul Tudor Jones
Full name Paul Tudor Jones II. Born September 28, 1954, in the USA, the city of Memphis, Tennessee. He graduated from the University of Memphis and then received a bachelor’s degree from the University of Virginia with a degree in economics.
Paul began his career as a clerk in the exchange room, then became a broker of the large and well-known company EF Hutton. As an independent trader, Jones worked for 2.5 years, then enrolled at Harvard Business School. However, the knowledge that was given there, Paul considered useless, and he decided to finish training at an early stage.
Jones wanted to develop further. He valued practical knowledge above theoretical, so he turned to his uncle, a cotton trader, for help. An uncle introduced him to his colleague, Eli Tallis. He agreed to take him under his wing and teach exchange art. For some time he was a personal broker in Tallis and traded on the New York Cotton Exchange. Their collaboration did not last long, but it was fruitful. Experience with Eli Paul calls invaluable.
In 1980, Paul Tudor Jones founded his own investment fund and named it the Tudor Futures Fund. The fund received $ 1.5 million in management.
During the first five years of operation, the fund showed a return of over 100% per annum.
During the 1987 crisis, when the Dow Jones index collapsed by more than 20%, the Jones fund not only resisted, but also showed a yield of 62% in October, and by the end of the year, profits exceeded 200%. From here, the founder of the fund was nicknamed Wall Prophet Black Monday, Wall Street.
How did he manage to earn? He analyzed the situation that preceded the collapse of financial markets in 1929, compared it with the current one and set it to decline.
What methods did the active trader follow? Until recently, Paul relied exclusively on manual trading and his own market flair. Only recently, in view of the fact that the fund began to show too low, and sometimes even negative profitability, he decided to reduce staff and then hire programmers and IT specialists to write software that will help traders, and not replace them.
Now the best trader takes 131 places in the ranking Forbes 400 with assets of $ 5 billion. He is 65 years old. Married, four children.
- In 1987, according to the New York Times, the Tudor Investment Corporation earned $ 100 million.
In 1990, the corporation’s assets reached a value of $ 385 million.
In 1992, the fund began to manage funds already at $ 650 million.
And in 1993 – $ 1 billion
- Created a reputation as a trader who works with money management as a reference.
- He predicted Black Monday in 1987 and made money on it.