Game changers in the stock world might not be as famous as sports figures or musicians to the average person, but in the world of investing, they’re like Bill Gates. These names may not ring a bell, but they’re the driving force behind the market, and every investor from veterans to newbies can learn a lot from them. Consider this a cheat sheet to getting serious about the new era of trading. Follow the paths of these five people changing the trading game to learn how to manipulate trading and stack the odds favorably.
1. William O’Neil
O’Neil’s been in the game for a long time – since 1958 to be precise – and he’s currently the CEO of his own consulting firm in southern California. In just three years after he started as a broker in the ’50s, he turned a $5,000 investment into $200,000, and that packed a much bigger punch back then. As a famed performance manager in the ’60s, he seemed to have a natural talent for investing.
Investors can get a peek into O’Neil’s thought process by subscribing to Investor’s Daily, which uses innovative data tables akin to his own approach. His advice is founded on keeping an eye on promising up-and-comers and snatching them up immediately. There’s no room for hemming and hawing. Want proof? He averages a 40 percent return annually.
2. Steve A. Cohen
This billionaire keeps a low profile, yet he regularly earns over $100 million in his stock investments every year. His heyday was 2001 when he brought in $428 million. It’s estimated that his firm makes up three percent of the NYSE’s trading on any given day and he’s considered perhaps the savviest investor in history. In his portfolio is $4 billion in hedge funds, and that’s largely where he’s seen success.
Cohen is known for selling early – or at just the right point – and he has a knack for knowing when to sell. While he’s focused on long-short equity tactics for years, his firm is now starting to diversify.
3. Paul Tudor Jones
Tudor has been in the game since the ’70s when he moved from floor clerk to stock broker. His company, Tudor Investment Corporation, is well known in the industry. It’s estimated that Jones is worth about $3.2 billion and he’s a regular on Forbes lists, though nowhere near the top. Jones also keeps a low profile and prefers the slow and steady approach.
Today, his company specializes in active trading, investing, commodity markets and debts. Jones was a natural stockbroker who used his skills to climb to the top. Since he did it the old-fashioned way, he’s well-respected amongst his peers.
4. David Ryan
Ryan learned under the best and worked with O’Neil years ago. However, a common anecdote about Ryan is that his career actually began as a child when he invested $1 in a candy company. While that didn’t make him rich, it set the platform for his investing strategy: Invest in what you know and believe in. While Ryan attributes much of his success to his tutelage under O’Neil, he admits that O’Neil’s CAN SLIM system isn’t easy to learn. He made mistakes, and values what he learned from them.
5. George Soros
Perhaps the most famous trader, Soros is known for creating the Quantum Fund back in 1970. His nickname as the “man who broke the Bank of England” is still popular over 20 years later. He earned $1 billion in 1992 by short-selling the British pound to shove the currency out of the ERM. His strategy has always been short-sighted, and it works for him.
Each of these investors has unique strategies and approaches, which shows that every investor has to figure out his or her own system. What works for Soros probably wouldn’t work for Jones. However, looking closely at the success of these game changers can help every investor diversify and find the right stride.