Bill Lipschutz Success Story – Traders and investors who have been successful in their careers mostly dedicate their knowledge and time to developing the world of trading and investment such as establishing investment companies, becoming consultants, commentators on various investment and business media, developing trading software, writing books, and so on. We can benefit positively from their career stories and views on the world of trading and investing.
Bill Lipschutz is a leading professional trader in the forex market and was awarded the Trader Monthly Hall of Fame in October 2006. He is the co-founder and director of portfolio management at Hathersage Capital Management. As a trader who has been considered successful, Lipschutz includes one interviewed by Jack D. Schwager in his best-selling book The NewMarket Wizards: Conversations with America’s Top Traders. Due to his relatively high success rating he earned the nickname “The Sultan of Currencies”.
Bill Lipschutz was born and raised in Farmingdale, New York. Having earned a bachelor’s degree in architecture, he then continued his studies in business management until he received an MBA from the Johnson School of Management, Cornell University in 1982. Lipschutz entered the forex market by accident. While still studying at Cornell University, he inherited from his grandmother a trading account of 100 types of stocks from various brokers that were still open or not liquidated, worth US$ 12,000. Apparently the grandmother is also an active stock trader.
Lipschutz then found out that the grandmother did not apply risk management properly so that the account would suffer a loss if liquidated. He immediately learned more about risk management and read everything about the current market conditions. But then he was more interested in the forex market and before graduating from Cornell University Lipschutz worked at the then famous investment company Salomon Brothers, in the forex department (FX Department).
Although his grandmother’s inheritance could grow to US$ 250,000, the funds did not last long and were almost sold out. Lipschutz does not regret the funds that have been lost, but very disappointed in the way of trading that is wrong and lack of direction. The trading method he acquired from Salomon Brothers became obtuse just by a mistake. Bill Lipschutz immediately tested several trading strategies by emphasizing risk control through appropriate distribution of a portfolio of currency pairs. In addition, he is also very concerned about the risk/reward ratio factor every time he trades. After that, from time to time his trading account got better and continued to grow.
According to Lipschutz, fundamental factors are very important things that forex traders need to know. ”Observe how the market responds to changes in fundamental data. Don’t let you, forex trader, miss the opportunity to enter the market. Missing an opportunity is a mistake. If you’re late, you’ve entered the wrong market,”said Bill Lipschutz, who was president and CEO of investment firm North Tower Group, part of the Merrill Lynch Corporation.
Bill Lipschutz who likes to use pending orders (stop or limit orders) shares a few tips for forex traders: ”If the price moves according to the position you open, try to increase the trading lot size, averaging, pyramiding, or whatever you call it. Or, do you really want to limit your profits? ”
Source : orderflowforex.com : Bill Lipschutz Market Wizard