3 top traders you should know

3 top traders you should know

Bill Lipschutz

Photo credit: @EdMatts

Photo credit: @EdMatts

“It’s the intricacies of the game itself that drive me. It’s about getting up every day and trying to figure out how to beat the market. That’s an ongoing fascination that, in its purest form, never changes.”

Most successful deal:

In October 1986 — a time when Bill Lipschutz accounted for eight out of every 10 open forex future contracts on the Exchange, and, needless to say, when he was the centre of competition — the Long-Island born math protege executed a trade for 30,000 put options, expiring in December, on the British pound. It was the largest-listed options trade ever then, with more than US$500 million on the table if the pound declined even slightly. While this standalone deal made headlines in the financial press, Lipschutz’s round-the-clock off-premise trading also got him a personal modem in his apartment linked directly to the company’s mainframe.

Net worth:

Though Lipschutz’s net worth is uncertain, he is known to have made more than $300 million in a single year from trading on the Forex market alone.

 

Stanley Druckenmiller

3trader_stanley

“You need to have a certain amount of intelligence, but it’s wasted over a certain level. After that it’s more about intuition.”

Most successful deal:

Stanley Druckenmiller is well-deserved of his reputation for coining the term, “Breaking the English Bank” with Soros. In August 1992, Druckenmiller had initiated a US$1.5 billion trade with a long position in the German Mark against the UK pound. He foresaw that Germany was to raise interest rates to prevent inflation after reunification, forcing the United Kingdom and other members of the Europe Exchange Rate Mechanism (ERM) to either follow suit — which would make a considerable mark in their already-troubled economies — or devalue their currencies and fall out of the system.

Druckenmiller predicted that the Bank of England neither had enough resources to prop up the currency nor could it afford to raise rates. When his forecast held true, he pocked millions and was credited with pushing the pound out of the ERM.
Net worth: more than US$2.8 billion (according to Forbes Magazine)

 

Sir John Templeton

johntempleton

“People are always asking me where the outlook is good, but that’s the wrong question. The right question is: ‘Where is the outlook most miserable?’ ”

Most successful deal:

Sir John Templeton was heralded for finding gold amidst the impossible: known for a voracious investment appetite, he actively poured shareholders’ money into Japanese and German stock markets right after the Second World War despite the respective markets’ unpopularity then and that memories of the catastrophe still haunted the world. Even until his death in 2008, he still favoured emerging markets, particularly China, for their low price-earnings ratios, low price-to-book ratios and other measures of cheapness.

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