Bill Lipschutz (Trader) Bio/Wiki, Age Height, Family, Education, Wife, Forex, Forex Strategy, Book and Net Worth
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There are many lessons that one can learn from the story of Bill Lipschutz. For one, he shows that it is possible to make money trading forex. His life experience of taking $12,000 to $250,000 is itself a remarkable achievement.
Many advanced to experienced traders today trade with this same amount of capital. But not many have managed to increase their capital tenfold and more. However, the fact that Lipschutz lost most of the $250,000 he made has another story for all of us.
If you do not manage your risk well, there is a good chance that you could end up giving back the profits you made. This is something that traders struggle with on a day to day basis. While it is possible to profit from the forex markets, the trick is in keeping those profits.
Capital preservation is one of the most important things when it comes to trading, not just forex but any type of financial market. Another thing of interest from the story of Lipschutz is that you do not need to trade all the time.
What Lipschutz is saying here is that timing plays an important role in the markets. Many traders end up trading one trade after another. This is mostly because of the psychological aspect that one would miss the lucrative trading opportunity.
But as Lipschutz proves, this is not the case. You do not need to make x number of trades every day to grow your capital. You can bide your time and wait for the perfect set up before you pull the trigger.
A typical example of this would be the forex markets where at times you can expect the market to trade flat or sideways. Such markets are not conducive to making proper profits. Still, traders tend to make these trades despite the risks.
Recovering from taking a big hit is something else that one can’t miss about the story of Bill Lipschutz. Many traders tend to grapple with the psychological downside of taking a loss. It can dent your confidence and it will make you fear the markets.
Under these conditions, traders end up either trading with small positions, or some just give up. One of the factors to be successful in forex trading is to be persistent in your efforts. Losses are a part and parcel of trading.
Despite taking a big hit, Lipschutz went on to become a successful trader, to the point that he now manages his own asset fund management company. How cool is that? Imagine if Lipschutz simply gave up and walked away? It would be a different story.
