Jul 15 2020 0
Before you start trading anything, you may wonder that "How much money can I make?" Before you know it, there's actually an answer for that. Just look at the richest traders in the world. They are at the peak of how much you can make in this market. Need a little motivation to carry on? Well, look at them. If you work hard and follow your principles, you may one day become the richest stock traders in the world. Dream big!
The idea of the richest stock traders of all time
In the world, short-term investors (or surfers) are called traders. They are stock traders with very short cycles. However, traders are different from movement investors.
The traders have good financial knowledge, know how to manage capital, know how to analyze, process information and make buying and selling decisions actively, unlike those who follow movements, behave passively, and follow the instigation or other people's behavior. Psychologically, traders have a firm mentality, while investors who follow the movement easily fluctuate, making much hope but also many disappointments.
The nature of the job of traders is to seek profit based on the fluctuations (even the smallest) of stock prices. Meanwhile, movement investors often buy stocks in the hope that the price will increase by 5-10% / day to make a big difference in a short time.
Because of seeking profits from small fluctuations of the market, traders are willing to sell when they are profitable, helping to stabilize stock prices and large capital flows of the market. And those who follow the movement, hoping that prices will rise sharply and bring big profits, when prices rise sharply but not to the expected level, they do not sell and "wait" to continue. This is one of the reasons why when the market goes up, paintings are bought and sold at low prices.
How to become the richest stock traders
From amateur to professional, it is a difficult journey. But in the early stages, this is an opportunity to understand the challenges and skills you need to become more serious with trading. Serious traders will specialize in research, study, practice and discipline. Because at the end of the day, it is the richest stock traders vs. the richest stock brokers.
This is the most exciting stage of the process but it can also be the most terrifying stage. At this stage, traders will have the experience you've never had before, the vast trading skills and knowledge you have. As long as you understand that things may not go smoothly, that should be something that you need to think from the beginning when you first start trading.
Backtest is an important stage of the trading process. And new traders should use the demo account to do this. The backtest skill is also an important skill for you to shorten the time to understand how to operate the trading method.
A method you should backtest it for as long as possible clearly reflects the performance of the trading method. Past results are often very positive for giving you the confidence to start backtest them in the real market. But one important thing traders often don't understand is that the performance of the past doesn't reflect reality. So many signals traders think it worked well in the past and so they trade twice as much as usual. And so they make a big loss on actual trading that does not reflect the performance of the method.
The world’s richest stock traders
Jesse Lauriston Livermore was a famous stock trader in America. However, he is not only known for his crazy amount of profit but his gigantic loss as well. In 1929, the market unexpectedly crashed and he had seen it coming. He successfully shorted and made a fortune of around 100 million dollars. That was one of the biggest win in the history of stock trading. Yet, in 1934, a series of bad deals cost him a huge amount of his fortune and he sadly committed suicide 6 years later.
William Delbert Gann
William Delbert Gann (called WD by his friends) was an American stock trader famous for applying various methods such as geometry, astrology, and ancient mathematics into his tradings. He developed for himself unique forex trading strategies such as the Gann angles and the Square of 9, which earned him a lot of money. Later in life, he made a fortune selling his books and guides.
Stock investor and trader George Soros is well-known as one of the best forex traders of all time. He founded the Soros Fund Management and led it to become one of the most profitable funds in the history of the forex market. People have given him the nickname “The Man Who Broke the Bank of England” since his amazing trade in 1992. Back then, he made up to $10 billion worth of pounds, yielding a neat $1 billion profit, with a bet against the Bank of England.
Those 3 are the richest stock traders in the history of the forex market. You can research more about them to learn from their success.