What do the world’s best Traders do differently than the average investor? Can the average investor learn from the Trader Legend’s success stories and their systems used?Before we will give some insights on those questions let’s have a look at some of the most successful Trader Legends:Nicolas Darvas turned an $ 36’000 account into $ 2’000’000 in 18 months!!!Ed Seykota, a Turtle Trader, turned $ 5'000 into $ 15'000'000 in 12 years!!!Jesse Livermore made several multi-million dollar fortunes in the early 1900'sRichard Dennis, another Turtle Trader, made between $ 100 and $ 200 millionGeorge Soros is believed to be one of the greatest Trader of all time!!!The results are quite impressive and some other amazing Traders could be added easily to the list above. Why do these guys have such tremendous results?
There are common factors, which can be observed through most of the successful Trader Legends:They have a System which they strictly follow.Most of them have a trend-following trading style.Most of them have a mid- to long-term approach.They have no fear and greed mentality.They have absolute discipline and stick 100% to their system.Their trades are fully planed; they are prepared for all scenarios in advance.They know that a system goes through bad times and good times. Cut losses early and let profits run.Their systems fit to their personality.
Some of these points sound logical and I see people nodding their heads. But in reality the average investor behaves completely different. Some of them burned their fingers over the last three years and some even lost a fortune. Here are some examples of observed behaviour patterns:Losses are not cut early enough.Investment with a short-term horizon become long-term horizon in hope of raising prices.People listen to the advise of their investment Brokers and Analysts.People invest in hot stocks recommended by colleagues of their colleagues.People have no plan for their investments.Money Management is not considered at all.People use trading styles which do fit their personality.Greed and fear is omnipresent.
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