Bill Lipschutz : the man who rose from rags to riches 4.5/5 (2)

“Why do we fall? So that we can rise again”

The currency market is scary. The currency market is fun. The currency market is volatile. But the currency market is genuine. Genuine in the sense that it will never betray you if you do thorough research, homework and learn proper risk management techniques. The last technique is something that Bill Lipschutz forgot. The result was that he lost everything that he started with.

But life is 10% of what happens to us and 90% how we react to it. Right?

That’s what Bill thought. He did not give up. He rose from the ashes. He researched the market, learned proper risk management techniques and moved on. The result – $300 million in a year.

To be honest, his net worth is totally unknown as of now, but one fact is guaranteed. He is a billionaire. A person who makes $300 million just by working for someone else, Solomon Brothers to be exact and then founding his own capital management firm, the Hathersage Capital Management Firm, must be worth more than a billion. I can bet on that.

Let’s dive into his past :

  • He was born and bred in New York, always got good grades, Maths being his favourite subject.
  • The point to be noted here is that he graduated in Fine Arts. Well, it takes time to know your passion. He later did an MBA in Finance.
  • During his undergraduate days, he inherited $12,000 worth of stock after his grandmother’s death. Since then, he first gathered all the stocks together and then started investing.
  • He found early success by converting that money in $250,000. But the good days were soon going to be over.
  • Greed and improper money management techniques lead him to lose everything that he earned. Yes, you read that right. Everything.
  • He didn’t lose hope. He got his basics right this time.
  • He started his career with Solomon Brothers as a part of the newly formed Foreign Exchange. Soon he was earning $300 million each year.
  • In 1988, he was appointed as the director of the firm heading two principal subsidiaries of the Solomon Brothers.
  • Then came 1990, when he opted for retirement from Solomon Brothers. What followed later was a period of rest for 5 years. This is something that most traders don’t do. Their greed for money is so much that they forget to find time for themselves.
  • In 1995, he founded Hathersage Capital Management with his former classmates. Hathersage Capital Management is a Global Macro manager that specializes in G10 currencies. Lipschutz has been the Principal and Director of Portfolio Management at this firm since its inception.

Lessons learnt from Mr Lipschutz :

  • Trade insane or remain the same. “When they call you ‘crazy’, you are in the right direction”. Bill taught us that you need to get mad at whatever you do. So mad that others think that you need to be admitted into a mental asylum. The real fun lies in earning money through trade, not losing like most of the traders do. Bill used to keep a watch at all the markets at the same time. He even kept a monitor in front of his bed so that he could watch the markets in the middle of the night. After all, making $300 million dollars in a year, and also working as a managing director, isn’t easy right. In Bill’s words, at the end, everything boils down to business.
  • Learn to rise from the ashes. Bill lost everything that he earned in a jiffy. Sad, isn’t it. But the lesson to learn here is that no matter what happens, never lose hope. There is always scope for a better tomorrow. You are human. Mistakes happen. Just don’t repeat them. Learn the basics. Learn proper money management techniques. Learn adequate risk management techniques. Cultivate your emotional discipline. Do proper homework. Work Hard. Remember that hard work beats talent when talent does not work hard.
  • Trade depends upon the outside influencers. The real trade happens when one is able to properly grasp the outside forces. It may include the recent economic policy changes by the government or perhaps a natural disaster. It may include the influx of the buyers and the sellers. It may also include having a proper grasp of the exact entry and exit points during a trade. One must keep his eyes open during a trade and check if some new event is scheduled or not. Learn to take the trade in your own direction as far as possible.

  • Patience is a virtue. Yes, it will take time. It will take patience. It will take some part of your endurance. There will be sudden losses that will keep piling up now and then. But this is where the test of a real trader begins. He needs to keep his mind on the trade and the policies of the trade. He needs to focus on his goals, even if the path is full of barriers. Never try to compare Chapter 1 of your life with Chapter 20 of some other trader’s life.

  • Forex Trading is all about currency relationships, information flow and market capitalization. The currency relationship depends upon the information flow. The information flow depends upon the market capitalization. In short, each and everything is interlinked. These three musketeers stand tall in the forex market where one needs to keep a good eye at. If one becomes the master in digesting all the information from these three pillars of success, then the next success story will be his.

Rarely, can we find someone so diligent in the trading business. His shrewd sense of trading, his elegant lessons and principles and his story of life will inspire many more future generations to come.
This world is cruel. It will always try to bring you down. You need to have the ability to push yourself up.

This man chose to push himself up. See where he stands now. So can you. What are you waiting for? Pimp your skills in Crypto trading. Free sign up and more useful info at Banc De Crypto.

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