Legendary Traders Every Newcomer Should Learn From

FinanceFeeds Editorial Team

Have a look at the top and legendary forex traders to learn from when trading. Implement their trading vision into your trading strategy and be ready to benefit more.

Trading Online

To invest in Forex and become one of the most successful MT5 brokers, you need capital. The level of profits and losses varies according to the value of the capital invested. The novice trader must determine the amount that can be invested in the foreign exchange market in the short and medium-term. He must also adopt a methodology and know how to manage risks. By reading books, the beginner trader can assimilate the fundamental principles.

Setting up a trading plan is a fundamental rule for success in Forex. The trader must determine his strategy for buying or selling currencies according to the market trend.

To succeed in operations, it is not necessary to act by intuition but by planning taking into account the context. Prices on the foreign exchange market can be in a bullish or bearish phase. In all situations, you have to know how to adapt to the plans. You may also try to trade on a demo account first before you start a serious trade.

Jesse Livermore 

Jesse Livermore is recognized to be one of the pioneers of technical analysis. Jesse Livermore has gained and lost several fortunes by actively investing in the stock market. Because Livermore studied the market meticulously, wrote down his observations, and defined them in the form of clear rules, his reading remains essential even today.

Jesse Livermore views the daily reversal pattern as a strong signal.

This pattern is used on the daily charts. A daily reversal pattern occurs when the low of the candle is lower than the low of the previous candle, but the close of the candle is higher than the close of the previous candle. A short daily reversal pattern occurs when the high of the candle is higher than the high of the previous candle, but the close of the candle is lower than the close of the previous candle.

Jesse Livermore often used the volume indicator as confirmation. When a daily reversal occurs, the order volume corresponding to the signal candle must be greater than the order volume of the previous day.

Paul Tudor Jones

Paul Tudor Jones is referred to as one of the famous market wizards. He is known for predicting and profiting from Black Monday. Black Monday refers to Monday, October 19, 1987, when all of the world’s markets experienced a huge correction. That day the Dow Jones lost nearly 23%.

The causes that led to this disaster are diverse: the strong fluctuations of the dollar since 1985, the moral hazard due to a system of insurance on the risk of portfolios as well as the beginnings of the automation of trading operations which would have an effect of amplifying variations in values.

Shortly before the crash, through technical analysis and analysis of historical data from the S&P, Paul Tudor Jones came to the conclusion that the market was going straight into the wall. In order to take advantage of this, he began to massively short US equities. With a drop of more than 22% in a single day for the Dow Jones, Paul Tudor Jones earned in a single day more than 100 million dollars.

John Paulson

John Paulson has shown the greatest short-sells in history. John Paulson has made quite specific choices during his career, in particular by devoting himself only to agriculture and industry. He considers that services are too fragile compared to the two former sectors. But he did not stand out before the 2000s, contenting himself with being a money manager without distinction.

Richard Dennis

Another legendary trader, Richard Dennis, proved that beginners can learn to trade successfully. The internet is full of positive, negative, success, and disappointment stories relating to the Forex market these days. You can find dozens of stories that suit all tastes. However, you certainly haven’t heard of the incredible story of Richard Dennis, an astonishingly wealthy man, genius, and pioneer in commodity trading.

Dennis’ story could still inspire many traders today. At around 23 years old, this legendary trader would have borrowed $1,600 and he would have converted part of this sum ($400) into more than 200 million dollars over a period of approximately 10 years. When he turned 26, he had already been a millionaire!

Famous and Successful Traders’ Quotes on Trading Rules

  • “In investing what is comfortable is rarely profitable.” — Robert Arnott.
  • “Never, ever argue with your trading system.” — Michael Covel.
  • “Amateurs think about how much money they can make. Professionals think about how much money they could lose.” — Jack Schwager.
  • “The price of a commodity will never go to zero. When you invest in commodities futures, you are not buying a piece of paper that says you own an intangible of the company that can go bankrupt.” — Jim Rogers.
  • It’s not always easy to do what’s not popular, but that’s where you make your money. Buy stocks that look bad to less careful investors and hang on until their real value is recognized.” — John Neff.
  • “99%+ of traders don’t care about Ferraris and yachts. They just want to pay their bills, save a little extra money, and sleep well at night. The only way to do that is to bat 70% or more. Anything less, and these goals are nothing more than fantasy.” — Mark Melnick.
  • “Are you willing to lose money on a trade? If not, then don’t take it. You can only win if you’re not afraid to lose. And you can only do that if you truly accept the risks in front of you.” — Sami Abusad.

Conclusion

Now you can really figure out which famous traders’ strategies you’d better adapt to your online forex trading. Using these methods would surely let you trade with utter success. Utilize all of the perks of these legendary traders to obtain the best outcomes of the trading sessions.

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