Bill Lipschutz - Story of Risk and Perseverance
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    Bill Lipschutz - Story of Risk and Perseverance


    Bill Lipschutz one of the best forex traders in world history, was born in 1956 and grew in New York.
    Bill was a good student who had keen interest for Maths and Tennis. Later bill was admitted to Cornell University and graduated in Architectural Design and later studied for an MBA in Finance.

    Bill Lipschutz Forex Trading Career

    Bill investment career kick started during his student years when he inherited $12000 worth of stocks from his grandmother.

    Bill achieved early success when he turned his initially inherited stocks into $250,000, in four years, but these early results where short lived. perhaps he became too confident and greedy too quickly, improper management techniques led him to loosing everything in three days. but it is his determination which we can all learn from, he never gave up hope he continued on his mission to learn the basics of a successful trade.

    Following his initial downfall, Bill joined the Solomon Brothers as part of the newly formed Foreign Exchange department and was soon earning $300 million every year from the company. The firm acknowledged his success and 1988 they appointed him as the director of two subsidiaries within the firm. Soonest Bill was acknowledged as one of the top Forex Traders in the world.

    By 1990 Bill was ready for retirement from the trading world and he took five years away from the industry. This very act is uncommon withing trading, as most successful traders are always looking to earn more money and increase their wealth. Instead. Bill knew he needed to find time to rest and recuperate, to reduce the of pressure which he had put himself under.

    In 1995 Bill joined his former classmates to form Hathersage Capital Management. The firm is a Global Macro manager which specializes on G10 currencies. Its success is largely attributed to bill, who has been in place as the Principal and Director of the Portfolio Management division since its inception.

    Bill has an unusual motto which we can all learn from, ' Trade insane or remain the same '. Meaning that as a trader you must be motivated, Bill believed that the enjoyment gained from trading, lies in making money at insane speed. The trader would famously watch all markets at the same time, with a monitor up net to his bed so he could analyze everything round the clock. after all to make $300 million in just one year the person need to work extremely hard. This very act is mostly discouraged in trading today but it shows how hungry, passionate and motivated Bill was for success.

    Interview with Bill Lipschutz

    ===Well, I had you have a degree in architecture. How is it that you ended up as a trader?===
    When I was enrolled in the architectural program at Cornell, my grandmother died and left me a portfolio of an hundred different stocks with a total value of $12000 which i liquidated at great cost because all the positions were odd lots. The proceeds provided me with risk capital. I found more and more of myself playing around with the stocks market. It wasn't that i got less interested in architecture. I just became a lot more interested in trading. It takes a long time before you can get to the point where you have control over the design process of architectural study.

    === Did you get your degree eventually?===
    Yes, of course. Actually i got two degrees. The full-time architectural program took five years. I ended up taking a lot of business courses and also earned an M.B.A.

    ===What happened after you graduated at Cornell? Did you get a job related to architecture?===
    No, I never practiced as an architect because of the long apprenticeship process. I went directly to work for Salomon.

    === How did you get that job?===
    It's typically for students in the M.B.A. program to get business related summer jobs. In summer of 1981 I got a job in Salomon Brothers. By that time i was trading stock options actively for my own account.

    === Was this the account you started with the $12000 your grandmother left you?===
    Yes, and by this time i had built it up a bit.

    ===What did you know about stock options when you started trading?===
    I don't know a lot

    === Then on what basis did you make your trading decisions===
    I tried to read everything i could on the subject. I spent a lot of time in the library reading annual company reports. I became an avid reader of the various financial periodicals such as. The Economist, Barron's and Value line. I also began to watch stock tapes on cable. Because Ithaca, New York, is surrounded by mountains. I hasparticular poor television reception. As a result it was one of the first places in the country to get cable TV in the early 1970s. One of the channels had a fifteen-minute delayed stock page. I sent many hours watching the tape and, over time, I seemed to develop a feel for the price action.

    === Was that when you decided to become a trader?===
    I can't remember making any conscious decision, "I wan' to be a trader, I don't want to be an architect."It was a gradual process. Trading literally took over my life

    Lessons and Quotes from Bill

    Bills life can teach us that there is always hope, he may have lost everything quickly but regained it back and some more. We are all human, not all trades will make profit and mistakes do happen. To give yourself the best chance of success, learn from bill begin with the basics, manage risk and maintain a strong emotional discipline. It is important to remember that hard work will always beat talent, if talent is not prepared to hard work.


    So many people want the positive reward of being a successful trader
    without being willing to go through the commitment and pain and there's a lot of pain

    An experienced trader will understand the impact of outside market forces, whether they are recent economic changes or even natural disasters, everything can cause volatility. Alongside understanding the market, it is essential to create a strategy which pinpoint effective entry point and exit point for a trade. Once an investment is made it is important to stay alert to the market, so that the trade can be taken as far as possible.


    There are millions of ways to structure the trade and the devil is in the detail.

    You could have the dead right idea and lose money. If your timing is
    slightly of, you could lose
    You have to structure your trade in a manner that increases your profitability, your upside, and decreases your downside

    Success requires patience, endurance and commitment. All traders experience losses at some point, but it is a loss and how it is handled which can be the making of a successful trader. To maintain focus on the original goals and ignoring the success of others in the industry it will soon become possible to create your own pathway.


    Because i don't trade on dreams or rumors, I'm a fundamental trader.
    I try to assemble facts and decide what scenario
    think will unfold. To walk in and trade on a dream is absurd

    To Summarize the story

    The key to understanding the Forex market lies in learning how everything is interlinked. The relationship between currencies depends on the flow of information, which in turn depends on market capitalization. Understanding these aspect of the market is the key to becoming a knowledgeable trader and will make it possible to spot opportunity within the market.

    Bill Lipschutz is a great example of how anyone can rise from rags to riches. The commitment and principles he shows to trading can provide all traders with valuable lessons for many generations. We are all faced with numerous barriers during our lives which can slow down our path to success, but determination and strength will soon help everyone to achieve their goals.

    In did Bill story is a great motivation to everyone who's dream is to becoming a successful trader.

    No matter how many times we fail, no matter how much we have lost we can still get to our destination if we can be Discipline, Committed, Patient and Persistent.

    We should quickly accept our mistakes and learn from them quickly. Bill was very careful of making the same mistake that almost distroyed his dream, but just a year later he was thankful to God for making those mistake.

    There's so many lessons to learn from the life of Bill Lipschutz. Now I can see why they call him.

    The Man who rose from rags to Riches.
    The Sultan of Currencies

    I hope you enjoyed the story of Bill Lipschutz.

    Thanks for reading.
    Last edited by Gulfstream; 11-23-2018 at 07:49 PM. Reason: red colour

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