Trading success is not a miracle or magic. Traders around the world rarely depend on luck for their fortunes. Several people rely on the stock market for their daily earnings. Just like any other field, trading in stocks and investment requires mentorship. Finding the right guide can teach you valuable lessons about the market and about making smart investment decisions.
Here, we have compiled a complete list of things you need to learn from the top 10 investors and billionaire masterminds from around the world.
Livermore is the popular author of “How to Trade in Stocks.” In 1929, he was worth more than $100 million, which is almost $1.5 billion to $13 billion, depending on the index you use. He is still famous in the trading chat roomsfor making some of the best stock market trading decisionsin the history of US Stock Market. His fortune swelled to a whopping $100 million after he sold the stocks right before the market crashed in 1929. His mantra was to play the market only when the factors were favorable. He was a low-frequency player, who understood the pulse of the market and other traders.
Seykota converted a meager $5,000 investment into an unbelievable $15,000,000 in his client account. In the early 70s, he was working as an analyst in a popular brokerage firm, where he designed and standardized a commercial programmed trading system. He was the first one to emphasize on the price action patterns and chart patterns in the trade market. Seykota’s trading principles are in line with the modern fundamental analysis of stocks and trade prices.
Dennis was the “Prince of the Pit,” who made $200 million from $1600 in a decade. He founded the Turtle Traders, a 21 member group that went on to redefine the notion about traders. Richard Dennis and William Eckhart appointed 21 average people and taught them the tricks of the trade. This proved to everyone that anyone with the right training could deal in the stock market successfully.
Paul Tudor Jones
In 1986, Jones predicted the cataclysmic crash of the US stock market. As a result, he made as much as $100 million from the 1987 Black Monday crash. It is one of the largest US stock market decline in a single day. While hundreds of people suffered from the crash of their fortunes, Tudor Jones walked away with millions in his pockets. He offers a very realistic piece of advice to all traders – to walk away from an account that is bleeding money. It is very essential to know when an account is costing you money, instead of making profits.
Soros is the Oracle of the stock market. He invested $10 billion on single currency trade in 1992. His profit on the transaction reached an incredible $2 billion. He is still the “man, who broke the Bank of England.” He ran an aggressive hedge fund that churned out profits of at least 30% per year. George Soros is a great example of market iconoclasts, who are not afraid to play against the odds, even when the whole world says otherwise.
Jim Rogers is originally from America, although he is more popular as the Singapore-based business tycoon, who co-founded Quantum Fund with George Soros. He has made his billion-dollar empire with lots of patience and calm decision making. His trading principles are old school. He does not believe it is crucial for traders to pay attention to the bulk they are trading. Sometimes, it is alright to trade less than your competitors and wait for the one opportunity of a lifetime.
George Soros hired Druckenmiller in 1988 to take charge of the Quantum Fund from Victor Niederhoffer. He was one of the other important figures, who made over a billion dollar of profit from shorting British Pound Sterling in 1992. They based their trading decisions on impeccable calculations, instead of gut feelings. He teaches the aspiring traders that it is alright to have a few losers in the portfolio. A true trader always focuses on the overall risk to reward ratio.
John Paulson rose to fame in 2007, when he decided to bet against the mortgage-backed securities. He made a profit of over $4 billion personally, and that convinced the world that he was one of the greatest traders in history! Well, they are not wrong. The simplicity of his trading principle – always buy low and sell high, shows how easy concepts can return billions when people can follow them correctly.
Raymond Ray Dalio is a hedge fund manager, philanthropist, and a billionaire. He has made it to the 2018 top 100 world’s richest people list by making the correct investment decisions from time to time. He is also the founding member of the Bridgewater Associates. According to him, young traders lose money because they have “an ego sensitivity” when things come down to right or wrong. Trading with emotion often leads to losing trades and terrible investment decisions. In trading, right or wrong is entirely irrelevant. Traders can be wrong and still make money by correcting their mistakes in the next step.
There is no top 10 investor billionaire list, where Warren Buffet does not feature. He is the “Oracle of Omaha” since he is one of the most successful traders of all times. He is the CEO of Berkshire Hathaway, a company that owns 60 brands including Duracell, Dairy Queen, and Geico. He has given away $32 billion to charity (99% of his fortune). Buffet’s empire is a premium example of the fortune patience, and smart decision making can build. His trading style is all about waiting patiently for the right moment.
No matter how much experience you are having in trading, you can master the secrets of the stock market with the right training. As you can see from the quotes of the 10 investment virtuosos, not all people have the same trading principle. It is imperative that you know your trading edge and learn the signs of the market before you invest real money.