Michael Marcus trader is a trading legend and one of the best traders of all time. He started his career as a commodity research analyst and then moved to a trader at Commodities Corporation. He was trading the currencies in the firm, and after several years his earnings exceeded the combined revenues of all other traders. Over ten years, he managed to multiply his account with the company by 2,500 times.
When he started out in trading, Michael suffered a very long series of losses. He also lost his fortune many times after that. All these losses were due to mistakes that taught him a lot and made him progress.
Tips from Michael Marcus trader
- Let your gains run and cut your losses as quickly as possible.
- Beware of the dangers of over-trading too many positions (“overtrading” in English). Michael has burnt his wings several times with corn and the lumber market.
- Never risk more than 5% of the total capital on a single trade.
- Always specify an exit point with a stop loss.
- Liquidate your positions after several losses or if decisions no longer become obvious to clear your mind.
- Make up your own mind and don’t listen too much to the advice of others even if they are very good traders to avoid combining the bad aspects over the good ones.
- Be patient and selective, and wait until all the conditions are met before taking a position in a trade to considerably increase the probability of success of each trade.
Friends on the Stock Exchange
Being a graduate in psychology, it did not take him long to realize that what most attracted him was the stock market, and he could not help but start to test himself in it.
He acquired the “services” of a friend he hired to be his account supervisor in his first trading attempts.
This friend was a supposed expert, but he later showed that such expertise was from his mouth only.
In Michael Marcus trader’s first foray into the markets, he lost absolutely everything and logically dispensed with the services of his friend.
Later, after several unsuccessful attempts, he became one of the most legendary traders of all time, turning $30,000 into 80 million over the years and mentoring Bruce Kovner along the way.
Although he was highly qualified, it seemed like he couldn’t get any job. He couldn’t get any of those jobs because he really didn’t want them.
In reality, his desire to dedicate himself to trading was too noticeable in his personality when looking for other types of more “normal” jobs, and that employers somehow “intuited” that Marcus had other intentions.
After the big loss, he realized that he had to forget about trading and get to work.
His job search as a psychologist was unsuccessful. However, he found a job with a broker.
In one interview, he said: I borrowed from my mother, brother, and girlfriend and opened an account at another firm. I worked out an intricate way to operate without my company noticing because I would be breaking the rules.
What an impressive statement. This part is well worth writing a whole new article.
Trading on the Stock Market and the Michael Marcus Family
In itself, it seems impressive how he could get his mother, brother and girlfriend to lend him money to start operating, especially the mother, after his previous experience.
But the best of all is that he had to operate “secretly” because even though he worked as a broker, he did it as an analyst. And as an analyst, he was prohibited from operating during working hours.
The issue is that Michael Marcus trader had the trading board insight, and then that plan was devised to be able to call his broker and, through that kind of tricks, to be able to give him orders.
Trading strategy
Another part from one of his interviews: I think the secret is to lower the number of operations you do. The best trades are those in which you have three things going for you: the fundamentals, the technical, and the market sentiment.
With this, he shared in the interview that whenever these conditions were met, it was when one could take risks and that when they were not, he used to operate more timidly.
In this way, Michael Marcus’ trader only operated in a big way when he saw the optimal conditions to do so.
Selective trading strategy
Michael Marcus has become selective with his operations and that it is better to operate effectively a little than a lot and ineffectively.
More money is wasted listening to brokers than in any other way. Trading requires great personal dedication. You have to do your own homework.
As Michael Marcus trader says, if you were Tudor Jones’ barber, it might be interesting to take note of the advice he gives. But it is almost better to make your own with most people who give advice.
That is to say, in general, do not strictly follow anyone’s advice
Take notes here and there, yes, but always with a cool head and awareness that everyone is wrong.
A stupid belief that there is a conspiracy in the markets.
This was his answer to what things that he believed were misconceptions about people trading. And in this, he is absolutely right.
Most people think that speculators are the ones who bring oil to $150 or magically move the market and make gold with it. Or that a trader can manipulate a market at their will. All this, despite what we believe, is a fallacy.
Hungary’s hyperinflation of the 20th century did not need any speculators.
Large movements in the markets are not the result of speculators or “traders,” but of more fundamental issues.
It does not matter if the governments set maximum prices, tobin rates, or whatever they want.
If the country’s politics are destructive enough, the financial system will collapse with or without speculators.
