Many people seek to understand how the stock market works and what it takes to generate money as a successful stock trader. In this article, we will take a look at some of the most successful stock traders of all time and how they invariably became household names in the business of stocks and trading. In no particular order, let’s begin starting at number seven.
7. GEORGE SOROS
Born in Hungary in 1930 to Jewish parents, George Soros, famously known as the man who ‘broke the Bank of England,’ is accredited as one of the greatest stock traders ever. Soros earned $1billion in profit 24 hours after placing a bet against the British pound. He borrowed pounds and then sold them, helping to push down the currency’s price on forex markets and ultimately forcing the U.K to crash out of the European Exchange Rate Mechanism. George Soros is believed to be have earned a total of about $44 billion through speculation. A theory based on the relationship between cause and effect is believed to have helped Soros get a clear picture of asset bubbles and value discrepancies. His fortune has been used to finance many philanthropic works and has made tremendous contributions to sectors such as health and education.
6. PAUL TUDOR JAMES
Tudor Investment Corporation is one of the world’s leading hedge funds and was founded by the Black Monday hero, Paul Tudor James. Born in 1954, James kicked off his journey by trading cotton. After four years, he made profits from his trade and later hired people to trade for him. He was shot to fame on Black Monday 1987 when he made an estimated $100 million during the 1987 market crash even as the Dow Jones Industrial Average plunged 22%. Five years after the famous trade, James was appointed Chairman of the New York Stock Exchange (NYSE). Paul Tudor James founded Tudor Investment Corp in 1980, with around $21 billion in assets. With an estimated net worth of $5.8 billion, James is undoubtedly one of the most successful stock traders of all time.
5. NICHOLAS DARVAS
If you expected to see only business and financial moguls on this list then, Nicholas Darvas just came to prove you wrong. The dancer was born in 1920 and is best known for his book ‘How I Made $2,000,000 In The Stock Market.’ After failed investments, Darvas looked for dues in the stock volume, waited for a substantial increase, and then narrowed his choices down to stock trading and waited for a breakout. Darvas did all these back when the only way to contact his broker was via telegrams. The self-taught investor preferred to pay attention to public sentiments, a philosophy that thrived in volatile markets. After successfully making $2 million on the stock market, we can say that Nicholas Darvas has earned his keep on this list.
4. JESSE LIVERMORE
Jesse Livermore was so good at placing bets that he was banned from Bucket Shops, where he placed his bets. After leaving home and settling in Boston, Jesse Livermore began posting quotes for a stockbroker as a 15-year old. In Boston, he bought his first shares and earned a profit of $3.12 with a capital of just $5. He got his big break at 24 when he converted $10,000 into $500,000. Livermore encountered financial challenges along the way, which resulted in huge losses. Still, he had a remarkable ability to bounce back, and by age 30, he was making a million a day.
3. PETER SCHIFF
Dubbed ‘Dr. Doom’, the American trader and investor, became famous after predicting the stock market crash of 2007-2010. In 2006, Schiff warned of an economic collapse, urging people to take action based on his prediction. He is an American stockbroker, financial commentator, radio personality, and the CEO and Chief global strategist of Euro Pacific Capital Inc. Peter Schiff started Euro Pacific over twenty years ago and has amassed a fortune with an estimated fortune worth of $150 million. Critics write him off as a conspiracy theorist, but he does something right to succeed in stock trading.
2. RICHARD DENNIS
‘The Prince of the Pit’ borrowed $1600 when he was around 23 years old and turned it into $200 million in ten years trading commodities. Interestingly he only traded $400 of the $1600. Using mini contracts, Richard Dennis started to trade his account at the Mid America Commodity Exchange. His trading technique was to trade seasonal spreads. He would hold bets to profit as the market increased and bets to profit as the market decreased, as well as positions in futures contracts simultaneously in related futures markets. He founded the famous ‘Turtle Traders Group.’
1. WARREN BUFFET
Born in 1930 in Omaha, Nebraska, Warren Buffet not only knows how to enjoy the good things of life and to start his day with his favorite Coca-Cola can, but he also knows how to trade and trade big. He has a guiding principle of buying stocks at bargain-basement prices and holding them patiently. Having a penchant for long-term investments, the business magnate built his capital up to $140,000 from $9800 between 1950 and 1956. In five years, his partnerships saw a 251% gain cementing his place in the stock market. By 1962, Buffet had a capital of over $7.2 billion and had more than 90 limited partners across the U.S ten years later. His assets were more than 115% compared to Dow’s 122%. The Chairman and CEO of the conglomerate Berkshire Hathaway are a few successful stock traders who defeated capitalism.
We have come to the end of yet again another segment. We hope to come your way another time, but in the meanwhile, remember to share this content if you like it. And also, don’t forget to let us know in the comment section any successful stock trader you didn’t see on the list