- 21 Feb, 23
Michael Marcus 101: The Genius Trader Who Rewrote the Rules
Michael Marcus is an American commodity trader who became famous for turning a $30,000 investment into $80 million. As Zatrun.com, let’s take a closer look at this extraordinary trader together.
Table of Contents
Who is Michael Marcus?
Michael Marcus Marcus has been one of the most successful traders. He started his career as a futures trader at the Chicago Mercantile Exchange after completing his university education at Johns Hopkins University in 1969.
A few years after completing his studies, Marcus met a person who claimed he could double his money every two weeks. Marcus trusted him, and at that time, he lost all of his money in commodity trading. This incident sparked Marcus’s interest in the investment world, and he began raising money from his family, friends, and personal sources to invest in wheat trading.
Marcus bought wheat when the price hit its lowest point and sold it at its peak, earning a good profit. During the summer, he divided his initial capital of $30,000 into various commodity purchases. However, due to his lack of knowledge about trading rules, he faced a period where he constantly lost money.
In late 1971, he met trend follower Ed Seykota. By following Seykota’s approach, Marcus managed to earn a small fortune. His success was based on some basic trading rules, such as taking profitable positions and reducing losses.
In 1981, Michael Marcus joined the trading firm Commodities Corporation, where he managed to turn the company into a leading commodity trading centre. He retired from Comodities Corporation in 1995. Michael Marcus is currently estimated to have a net worth of $1.4 billion. He is also known for influencing famous investors like Bruce Kovner and leading them.
His Trading Strategy
Like many successful traders, Michael Marcus also experienced periods of losses. However, at the end of the day, his gains outweighed his losses. Like many investors, Marcus follows certain rules when trading. His biggest advice to traders is to “hold onto the winners and cut the losers. If you don’t stay with your winners, you can’t pay the price for your losers.”
Throughout his trading career, Michael Marcus has been an outspoken advocate of risk management and discipline. He emphasised that traders should never risk more than they can afford to lose and only make trades that have a reasonable chance of making a profit.
He also emphasised that traders should always have an exit strategy and never allow their emotions to dictate their trades. He also insists that patience is the most crucial aspect of trading. He believes that if you are not patient, you will lose money. Today, there are fewer profitable trading opportunities, and therefore, one must be patient. This is not a preference but a necessity.
In conclusion, Michael Marcus is a successful American commodity trader who turned a $30,000 investment into $80 million. He is known for influencing famous investors like Bruce Kovner and leading them. He emphasised the importance of risk management, discipline, and patience in trading. He also highlighted the importance of holding onto the winners and cutting the losers. His advice is invaluable to traders who want to succeed in the investment world.