The Greatest Traders In The World And Their Deals IV

Jesse Livermore

This is the man who inspired "the trader's bible" - Jesse Lauriston Livermore. He is one of the greatest traders that few people know about. A remarkable trader, one of the pioneers of the financial markets. The reason to become a legend is that he has predicted perfectly not just a financial crisis, but also the fact that he traded at a time when the information and the set of financial instruments and tools were nothing compared to today's.
Livermore first became famous after the  Panic of 1907 when he sold the market short as it crashed. He noticed conditions where a lack of capital existed to buy stock. Accordingly, he predicted that there would be a sharp drop in prices when many speculators were simultaneously forced to sell by margin calls and a lack of credit. With the lack of capital, there would be no buyers in sight to absorb the sold stock, further driving down prices. After the crash the result is more than impressive - $ 3 million in one day, equivalent to about 70 million today's money.
Jesse Livermore was not just another lucky man because he has not just retained his wealth but has repeatedly increased it after the next major collapse in 1929. While much of the American population is losing their jobs and living in poverty, trading in the financial markets during the Wall Street crash makes Livermore one of the few people in the world at that time to own over 100 million dollars after short-selling profits.
Jesse Livermore is often called "the first real trader in the world" or “the original wolf of Wall Street”.
He was highly successful, but also lost his fortune several times. He was always the first to admit when he made a mistake, and when he lost money it came down to two potential culprits:
1. The rules for trading were not fully formulated (not the case for most of his losses).
2. The rules were not followed.
To this day Jesse Livermore remains the most successful stock and commodities trader in the history of the stock market.

The Greatest Traders In The World And Their Deals III

George Soros

 

It’s  time to mention the legend of our times - George Soros. Remarkable person with great influence, whose numerous foundations will continue to pursue his mission for many years.
George Soros' most notable deal is with the start of his carrier. In 1992 he made a stroke in a way that the whole world could understand.
In the early 1990s, the Central Bank of England was part of the European Exchange Rate Mechanism. Its task is to prevent excessive fluctuations in the price of the British pound compared to other currencies in the mechanism. Although the bank pledges a 15% interest rate on its currency, the plummet  of the British pound is inevitable. By September 16, 1992, Black Wednesday, Soros's fund had sold short more than $10 billion in pounds, profiting from the UK government's reluctance to either raise its interest rates to levels comparable to those of other European Exchange Rate Mechanism countries or float its currency. In addition to his direct pressure on foreign exchange with his positions, Soros also exerts and public pressure. In each of his more significant media engagements, he predicted with great confidence a fall in the value of the pound attracting more large investors to this idea. An idea that brings him a profit of $ 1.1 billion for one night. Finally, the UK withdrew from the European Exchange Rate Mechanism, devaluating the pound.
However, George Soros is unlikely to be remembered just as "the man who broke the Bank of England." It is hard to list all charity initiatives through which he and his foundations are trying to make the world better.
George Soros has made his mark as an enormously successful speculator, wise enough to largely withdraw when still way ahead of the game. The bulk of his enormous winnings is now devoted to encouraging transitional and emerging nations to become "open societies," open not only in the sense of freedom of commerce but—more important—tolerant of new ideas and different modes of thinking and behavior.

The Greatest Traders In The World And Their Deals II

Andrew Hall

Andrew Hall, a trader nicknamed the "God" of the oil and energy markets. He made one of the most accurate oil forecasts - both in terms of price and time. Hall becomes known for his extremely daring decisions, making use of his ideas to speculate on the financial markets.
The burst of the Internet bubble in the late 1990s led to a significant drop in US markets over the period 2000-2003. The question is not only what will happen to the US economy but also to the raw material that moves it - the oil. In 2003 oil trades at around $ 30. Andrew Hall makes an extremely bold prognosis that up to five years a barrel will be traded for over $ 100. What's more - Hall is so confident in his estimate that investing in it chooses financial products structured so that if it does not reach $ 100 in just five years, he will lose everything. After all, oil is at $ 100 a barrel almost five years later at the beginning of 2008. Andrew Hall receives a $ 100 million bonus from Citigroup's employer for a successful idea. We can only guess what amount the bank has earned from Hall's idea and courage.
A year later, Hall bets on expensive oil. This time, the raw material has declined significantly as a result of the global financial crisis. Hall once again surprises his colleagues with the decision to buy oil futures, like most investors, but to buy real oil. He buys and holds 1 million barrels of real oil in stock, arguing that this will be a more profitable option.
Andrew Hall is a brilliant speculator and quite deservedly takes second place in my ranking of the best traders of all time.

The Greatest Traders In The World And Their Deals I

The history of financial markets remembers phenomenal deals and speculations. In this article and the next few I will share with you my top 5 ranking of the best traders in the world and their deals. Get inspired!

Sir John Templeton

The first place in my ranking takes Sir John Templeton (1913 - 2008) - a great person with remarkable success in the financial markets.
During the Depression of the 1930s, Templeton bought 100 shares of each NYSE listed company which was then selling for less than $1 a share (104 companies, 34 in bankruptcy, in 1939). This particular approach brings profitability of its investment fund of over 400% for four years, and turning him a wealthy man. Templeton's reason for making this pledge is exactly his expectation that during this period the downturns in the financial markets as a result of the Second World War will be largely compensated.
Perhaps his most successful deal comes 20 years later with the investment in Japanese stocks and other assets in 1960. This is the start of an exceptional growth in the Japanese economy that has lasted for 30 years. Allegedly Templeton has invested more than 60% of his funds, namely with the idea of growth of the Japanese economy.
In addition to these brilliant predictions, I set Sir John Templeton at the beginning of my personal ranking and because he is among the most prominent philanthropists in the world. For example, the biggest cash prize is the Templeton Prize, which is given to an individual who has made an exceptional contribution to affirming life's spiritual dimension, whether through insight, discovery, or practical works.
Templeton attributed much of his success to his ability to maintain an elevated mood, avoid anxiety and stay disciplined. He was not interested in consumerism, drove his own car and never flew first class.Templeton became known for his "avoiding the herd" and "buy when there's blood in the streets" philosophy. He also was known for taking profits when values and expectations were high.