Wise people usually do not shout about their money to the whole world, which is why it is very difficult to find valuable advice on the public access.
However, thanks to the book of one guy who was still lucky to talk to influential people in the world of Forex and cryptocurrency trading, so today we can briefly tell you about what the most famous traders advise to beginners.
Jim Rogers is one of those investors who prefer to hold their positions for several years. He focuses on stocks that have a chance to become more valuable as the market develops. An example is German stocks, which he bought in 1982 and sold in 1985 and 1986.
Jim Rogers believes that the most important thing in investing correctly is to do nothing (nothing at all!), if there is no reliable opportunity to take the right position. You always have to wait for the market to show in which direction it is moving. All trades made by this great investor are based on fundamental analysis.
Rogers’ strategies can be difficult to follow, but you can keep a few tips for yourself that you will probably find useful:
- look for undervalued companies that you can profit from, even if you didn’t take a position at the perfect time;
- trade hysteria – this method is, of course, not easy to use. Typically, there is a state of hysteria in the market when they go too far. After verifying that the move has no fundamental basis, you should take the opposite position. However, not everyone has the brilliant analytical skills of Jim Rogers, who is considered one of the smartest investors of our time;
- be picky. This means that you must be able to wait for the right moment to open the right position.
- don’t follow common beliefs. The statistics on people who make money in the markets are not encouraging. The majority, unfortunately, lose, their number is about 80%. This means that most traders are usually wrong. When everyone decides to buy, sell! And vice versa.
Paul Tudor Jones
Paul Tudor Jones is well known in the world of stock market speculation. His assets are currently valued at $ 4.6 billion, according to Forbes magazine.
Jones is an aggressive speculator in the futures market. On the other hand, Jones’ trading strategy is very flexible, which underlies his great success.
Although, as he himself admits, he did not avoid mistakes. In 1979, he took up a high position at the Cotton Exchange. After falling to new lows, the market recovered several dozen points. Jones then decided the market had a chance to rebound, and the previous declines were the result of triggering stop-loss orders. He closed positions a few days later, and the loss on this trade was about 60-70 percent of capital.
This experience practically forced Paul to retire from the trade. However, he drew conclusions from this lesson and realized that money and risk management is a key part of trading.
Ed Seykota is the forerunner of computerized trading.
He holds a Ph.D. in Electrical Engineering from the renowned Massachusetts Institute of Technology.
However, he became a successful trader not only because of his IT capabilities.
He is considered a person with considerable discernment in assessing human behavior. Psychology plays a huge role in trading, and an effective trader must be a good psychologist.
Here are some tips from Ed Seykota:
- reduce losses;
- let your profits run;
- trade small positions (don’t go too far);
- follow your rules;
- be flexible – this means that sometimes you have to admit that the market has changed and your system is no longer working.
There is another interesting opinion expressed by Ed Seykota.
“Everyone gets what they want from the market.”
This means that everyone who fails in the market actually wants to lose their money. He is afraid of success, and his subconscious mind tells him that nothing will work.
Of course, we won’t tell you the whole book. However, now you understand how different the strategies of each trader are.
Below we will give you the most interesting facts about what you need to do to be a successful trader:
- a successful trader never puts off until tomorrow what he can do today;
- a successful trader trains on a demo account and uses the best cryptocurrency wallet;
- a successful trader constantly trains his skills even if you trade with the best free Forex signals Telegram group;
- a successful trader develops his own trading strategy;
- a successful trader switches to real trading only when he is ready for it;
- a successful trader is always aware of the risks.
Finally, it’s important to remember that traders who give up never win, and those who win never give up.