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For some people, crypto and stock trading are personal hobbies on the side. However, more and more people are pursuing a trading career. These traders put a lot of work into analyzing the market, trading assets and purchasing options. If their strategies work well, they can reap impressive profits. Whether you want to be a full-time trader or not, it pays to learn about what successful traders do. Taking a look at these top traders can help you refine your own strategies and understand what trading techniques work best.
Key Takeaways:
Success takes time. Even the best traders must put considerable time and effort into researching and analyzing trades.
Trading can be very lucrative, but it shouldn't be your only income source. It involves risks and uncertainties, depending upon market sentiment and your trading strategies.
Successful traders plan ahead and never make split-second decisions based on personal emotions tinged with anxiety or overconfidence.
Whether traders are forex trading or working for a high–net worth individual or a hedge fund, they’ll have different backgrounds, education and cultures. Nevertheless, there are a few key characteristics that traders in both cryptocurrency and traditional finance markets share.
Many high-value trades take a lot of time to finalize. A successful trader is willing to wait until the optimal moment, instead of getting bored and selling instantly. Effective traders are also patient enough to keep trading through market downturns, instead of getting discouraged when they don't make an instant profit.
The best traders put a lot of time and effort into their trades. Before making decisions, they analyze past performance, research companies and examine market trends. A good trader also learns about economic and financial theories that can help inform their decisions.
Financial markets fluctuate, but a good trader won't panic. By avoiding overly emotional responses, a smart trader can make practical decisions, as opposed to being influenced by fear and anxiety. In addition to not excessively stressing about losses, good traders avoid being overly optimistic. They won't let internet hype and false promises trick them into paying too much for a popular — yet worthless — asset.
Like any other proficiency, trading takes time to learn and hone the skills. Even the best traders in the world don't start making millions of dollars their first week. Most traders need at least six to 12 months of practice to start enjoying consistent success.
When you look at well-known traders, you'll notice that most have substantial experience within the trading scene. To become a true success, you need several years of consistent experience. People usually only become truly impressive traders after three to seven years of analyzing endless historical market data, using all sorts of technical and fundamental analysis.
To learn more about what it takes to be a famous trader, check out these real-life success stories. Here are ten of the best traders in the industry.
This legendary trader once made $300 million with a single trade. Krieger is one of the top foreign exchange (forex) traders, having made a huge profit during a tremendous market downturn in 1987. While other traders were panicking about plummeting stock values, Krieger shorted the New Zealand dollar and made millions.
Krieger is famous for his ability to stay composed and focus on the positives in any situation. His trading history shows that even major market losses can be a great opportunity. Krieger currently offers trading lessons to new traders looking to benefit from his decades of experience.
Richard Dennis is famous for turning a $400 trading account into a $200 million account in just 10 years. He’s also a firm believer in the accessibility of trading. Under Dennis's guidance, other traders have managed to make profits in excess of $1 million.
The main secret to Dennis's strategy is to start small. He encourages day traders to work only with small sums so that they can learn and make mistakes without losing all their capital.
Ross Cameron is mostly well-known for creating Warrior Trading. This chat room is a gathering place for day traders to network and discuss their strategies. Not only can Cameron make upward of $200,000 in a single year, but he's also a successful YouTuber with over 1 million subscribers.
Cameron's main trading strategy focuses on low-priced stocks with a lot of momentum. He mostly works with stocks under $20 and performs simple, repetitive trades. Cameron says most of his day focuses on identifying promising stocks and performing risk management analyses.
Steven Cohen is known for being one of the most successful hedge fund managers around. With an estimated net worth of over $12.8 billion, Cohen is certainly successful at his job. In addition to trading, Cohen also runs his own investment firm.
Cohen's main advice to traders is to make sure to look at the big picture. Even if an individual stock or crypto is promising, it can't perform well when the entire sector and market are down. Therefore, Cohen recommends following broad market trends and adapting as soon as the market changes.
As a college student at Tulane University, Timothy Sykes made over $1 million in day trades. He started with just $12,415 and worked with penny stocks for three years. Sykes emphasizes the importance of constant, small increases, instead of attempts at making huge profits in a hurry.
Timothy Sykes is also the founder ofInvestimonials andProfit.ly. These services teach others to replicate Sykes’s trading techniques and provide users with helpful stock trade information.
Rayner Teo is an independent trader who’s known for his popular YouTube channel, TradingWithRayner. With over 1.7 million subscribers, Teo influences a lot of modern traders. His success relies on his realistic approach to trading.
Teo's main strategy centers on avoiding loss. In his view, not losing money is more important than earning it. By understanding technical elements, such as price action trading, his students can prioritize slow yet steady gains.
Kathy Lien started at JP Morgan Chase when she was just 18. She’s now an independent trader who runsDailyFX.com andBK Forex. Lien mainly focuses on the forex market, but she also does some day trading and swing trading.
Lien recommends that people carefully research promising opportunities and find specialized niches. Her strategy also emphasizes the importance of taking profit at regular intervals to help offset potential losses.
Sasha Evdakov has written several books on the subject of trading, and runs a popular YouTube channel with trading videos. He's known for his ability to take complex market concepts and explain them in an easily understandable way.
Evdakov primarily focuses on swing trading, which involves holding market positions for lengthier periods of time. This requires a close understanding of market conditions, but it can result in impressive profits.
Andrew Aziz is a day trader known for emphasizing research and market study. Originally a chemical engineering scientist, Aziz pivoted to day trading and made impressive profits. He then wrote several books that have provided helpful tips for other prospective day traders.
Aziz emphasizes the importance of risk management and simplicity. He encourages traders to use easily understandable strategies, like support and resistance trading, and his books recommend never risking more than 2% of your total capital in a trade.
Mark Minervini is one of the most iconic day traders because he started with just a few thousand dollars and has made millions. A look at Minervini's trading history reveals that he once made 220% profit for five years in a row, and even in his worst year still made a profit of 128%.
The secret to Minervini's success is about patience. Instead of trying to time the market perfectly, he finds it's better to identify trends, purchase accordingly and then wait to see how the trend progresses. Minervini believes several low-profit trades can be more effective than a single high-profit trade.
On average, a day trader can make as little as $34,000 per year or as much as $96,500. The absolute best of the best can make quite a bit more. Some of the leading solo traders report making around $200,000 to $300,000 a year.
Keep in mind that the amount of money you make is closely linked to the amount you invest. An independent trader with around $10,000 to invest can potentially make six figures. However, traders who work for investment firms and have more capital can make millions of dollars worth of profit.
As with any other discipline, the best traders tend to be people who are willing to put in a lot of work. Like most other careers, being a stock or crypto trader doesn't guarantee overnight success without any effort. If you want to join the ranks of legendary crypto traders, you'll need to take time to learn about the industry. Following in the footsteps of other top traders can be a great way to learn which trading methods work best.
Disclaimer: This content is purely for educational purposes only. This does not endorse the listed traders or Bybit products or services. The strategies and the traders discussed above in this article are not intended to be financial advice. Users should consult professional financial advisors before making any financial decisions.
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