HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
NordFX information and reviews
NordFX
86%

The most famous stock traders and their trading tips


Who is the most successful day trader in the world? Who are the most famous stock traders on the planet? They come from different backgrounds with different career paths. But one is for sure. Their lives were colored with success and tragedy, like Jesse Livermore, a famous trader who took his own life in 1940. Each had a different trading style, be it fundamental to technical analysis. Some have made fortunes through financial crises like the 1987 stock market crash. 

This article outlines investors and traders with almost mythological status in the financial industry. Let’s get started with the most prominent names.

Warren Buffet: The Oracle of Omaha

He was born in Omaha to a stock trader father. He was exposed to finance at a young age and became interested in it, leading him to attend Columbia University. The portfolios made out of funds from family and friends performed exceptionally for the period (+30%). Warren Buffet persuaded other investors to give him money to invest in the stock market. By 1960, he was already running 7 investment funds out of his house. After its securities were highly valued in 1962, it consolidated its 7 funds into Buffet Partnership Limited. He took over the management of Berkshire Hathaway in 1965.

Here is his simple strategy. He invests in companies he estimates are undervalued and with great potential over the long run only. He specifically invests in companies he fully understands (so he stays away from high-tech companies).

Warren Buffet only invested long-term, so he suffered big losses in the 1974 and 1987 stock market crashes. However, these reasonable investments bring him a lot in the long run since he has four more than 50 years outperformed indexes such as the S&P 500 or Dow Jones. Many consider Warren Buffet, the greatest trader of all time. His Berkshire Hathaway investment fund is $427 billion, and his fortune is estimated at $53.5 billion. 

Trading tip: Never lose money. He believes that it is more vital to protect capital than to try to make a quick profit.

James Simons, a financial mathematician

One of the pioneers of financial mathematics is James Simons, who established a financial investment fund in 1980 using mathematical investing models. He even predicted the subprime mortgage crisis in 2007 and short-sold in anticipation of a decline in price. James Simon, who has a deep love for mathematics, nonetheless donates a portion of his earnings to academic mathematics departments. He has $11.7 billion in wealth. His “renaissance technologies” hedge fund is no longer under his management since he is currently retired.

Jim Simons uses a quantitative trading strategy. To capitalize on available trading and investing opportunities, quantitative trading (also called quant trading) uses computers and programs based on simple or complex mathematical models.

John Paulson: the man who predicted the subprime crisis

The New York weekly news ranking has dubbed John Paulson “the sultan of subprime” as well. Paulson and Co., a hedge fund, was founded by him. This astute trader anticipated the subprime crisis in 2007 and engaged in extensive short-selling with the majority of his hedge funds. It increased the capital of some of these funds by 2500%! Paulson made $3 billion in 2007 as a result of this strategy, and he now enjoys the luxury of hiring Alan Greenspan as a consultant in one of his funds.

John Paulson is renowned for foreseeing and betting on the decline of subprime mortgages, but he also put money into industry and farming (with 3.7 billion dollars in profits in 2007).

His net worth is estimated to be 11.2 billion dollars, and his funds manage a total of 35 billion dollars in assets. In order to have success in a particular investment, it is important to have knowledge of the assets and instruments being used. Knowing more than others about certain instruments and markets will provide an advantage and is a more reliable way to succeed in the long-term.

Robert F. Smith

One of the most famous and successful black investors is Robert F. Smith.He is the founder of Vista Equity Partners, a company that invests in technology aiming to improve economic justice. His investing approach is a mix of strict risk management and high social conscience. Vista Equity Partners is now managing more than 94 billion USD in assets.

Steven Cohen: the hedge fund king

Steve Cohen, of Jewish descent and hailing from a humble upbringing on Long Island, rose to fame as a stock trader. After joining the first American Jewish fraternity, Zeta Beta Tau, he went on to become a broker for Gruntal & Co, and eventually created a $100 million investment fund. Due to his massive success, he was nicknamed “Mr. $100,000 a Day”, referring to his average daily earnings at Gruntal & Co. His fund’s VAD shares were a great success, and his fund now manages over 14 billion dollars in assets. His fortune is estimated at 9.3 billion dollars.

Trading tip: Everyone should do their own research and develop their own way of trading. It is important not to follow other trading styles.

Paul Tudor Jones: New York’s “Robin Hood”

Paul Tudor began his career at E.F. Hutton, but he decided to gain practical experience in the financial markets instead of attending Harvard. He specialized in cotton futures, and went on to establish the Tudor Investment Corporation in 1980. He made his fortune in 1987 when he correctly predicted Black Monday and shorted the markets heavily. Reports say he tripled his capital that week. Now his investment fund manages almost 20 billion dollars, and his net worth is approximately 3.6 billion dollars. His advice to traders is to exit when the market allows, not when they want, and not to overestimate their abilities or trade too much.

Kathy Lien

Among female stock traders, Kathy Lien is one of the most prominent figures. At the age of 18, he began her career on Wall Street. At 21, Lien launched DailyFX.com, where she focused on G20 currencies. She worked for specialized Forex websites as well as for JP Morgan Chase, specializing in the currency market. She’s an expert in developing stock and Forex trading strategies. Here trading strategies and valuable financial insights are featured in media such as Bloomberg, CNBC, and The WSJ. 

Philip Falcone: the hockey player from New York

Phil Falcone, a former star hockey player at Harvard, has been consistently ranked among the top 100 traders globally for the past 10 years. He departed from his post at Barclays to establish his own investment fund with a relatively small sum of 25 million dollars. His risky decision to invest in subprime mortgages earned him a staggering 1.5 to 2 billion dollars in 2007. With his expertise in companies in financial distress, his current net worth is estimated at 1.2 billion dollars.

#source


RELATED

Using leverage safely in Forex trading

The use of leverage is undeniably popular in the forex space. This is largely due to its ability to increase a trader’s potential return on investment...

Who has lost the most money ever on the stock market?

Who has lost the most money on the stock market? Continue reading today's article to learn more! In the world of markets and trading just as profits take place on a daily basis, losses are also recorded on a daily basis...

Top 5 most traded currency pairs

There are 180 currencies in circulation across the globe but not all are actively traded in the forex market. Only those currencies that have liquidity and show economic and political stability are traded...

CFD Trading: Everything a Trader Should Know

CFD trading - where the financial markets buzz with opportunity and the potential for growth is as vast as your ambitions. At its core, CFD, or "Contract for Difference", trading is more than just about speculation on the price movements of various assets...

Navigating the Commodities Market: A Comprehensive Insight into Recent Trends

In the intricate web of global markets where economic fluctuations resonate across borders, the art and science of trading commodities have unfolded into multidimensional realms...

Mastering Risk Management Across Market Phases

Navigating the ever-changing waters of financial markets can be an exhilarating journey. Markets, like tides, ebb and flow, shifting from bullish to bearish, and prices rise and fall...

How Much Money Can You Make Trading Forex? A Comprehensive Guide

Forex trading has witnessed a surge in popularity as individuals seek opportunities to profit from financial markets. However, it's paramount to approach forex trading with realistic expectations...

How to grow from newspaper seller to MT indicator creator

Are you trying to find motivation and change your life? It's a sign for you to start acting! If a boy from a large, almost penniless family managed to live a better life...

Online Trading vs. Offline Trading

Nowadays, any person who wants to engage in trading is not faced with the question of how exactly to do it. Access to relatively free and fast Internet is available in almost every country in the world...

Why traders shouldn’t underestimate an Economic Calendar

Brace yourselves for the ultimate weapon in your trading arsenal - an Economic Calendar, revealing the future of financial markets. So, why should you care?

A Guide to Portfolio Diversification: Don’t Put All Your Eggs in One Basket

Most of us have heard of the saying "Don’t put all your eggs in one basket". In essence, this phrase warns us not to invest all our capital into a single trade, market, or product because we...

Deepening the Understanding of Forex Trading and Its Learning Curve

Forex trading has seen a substantial surge in interest, evolving as an avenue for achieving financial freedom and diversification of investment portfolios. For prospective traders, the journey to mastering forex trading may seem daunting...

Exploring Online Cryptocurrency Trading: Features, Advantages, and Cryptocurrencies

The year 2008 heralded a pivotal moment in financial history, witnessing the birth of the cryptocurrency market. It was in August of that year that the domain bitcoin.org was registered...

Is Bitcoin a Good Investment?

Questions about the value of bitcoins as an investment will likely differ depending on who you ask. Those with a vision of a fully-distributed future...

Pegging in Crypto: Navigating Stability in the Digital Asset World

In the ever-evolving world of Cryptocurrencies, understanding the nuances of terms like “pegging” is crucial. Pegging in the realm of Crypto refers to anchoring the value of a digital asset to another asset or a basket of assets...

Six Key Behaviors for Traders When Selecting Stocks

In a financial landscape riddled with complexity, especially in forex markets influenced by global economic fluctuations, many traders are turning to the more research-focused domain of stock trading...

Navigating the Nuances of Price Providers: An In-depth Analysis

In the intricate world of financial markets, the manner in which major institutions process ever-evolving market conditions is intricate and diverse...

Trading Secrets: Mastering Trends, Breakouts, Pullbacks, and Corrections with Trading Volumes

Embarking on the journey of financial market trading – be it in Forex, stocks, commodities, or the crypto market – requires more than just an understanding of the basics...

Trading Psychology

Trading psychology is a key contributing factor to determining trading outcomes, as it can positively or negatively influence decision making...

How to Trade Gold: A Comprehensive Guide

Gold has long been a highly prised precious metal, known for its lustrous appearance, unique properties, and historical use as a form of currency. While many global currencies...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.