Master’s demeanor (6) Green out of blue—Bruce Kovner
Bruce Kovner is one of the largest foreign exchange and futures speculators today, and he relies on his ability to defeat the enemy The method of thousands of miles away is an incisive analysis of the economies of various countries. The scope of the research is extremely wide and the details are astounding. In the ten years from 1977 to 1987, the investment funds of Bruce Covenant increased by an average of 87% per year , in 1992, he ranked sixth in the ranking list of Wall Street’s top ten highest earners published by the American “Financial World” magazine, with an annual income of 100 million U.S. dollars. Keep a low profile and never like to be interviewed by the media.
After graduating from Harvard University, Bruce Covenant taught at his alma mater and the University of Pennsylvania, and also engaged in political activities, which laid the foundation for future economic analysis of various countries. However, due to limited economic conditions, he finally entered the speculative industry. In the middle of 1970, after a year of in-depth research and frequent investigations, Bruce Godfrey entered the market with US$3,000 and made a profit of US$1,000 from a soybean and copper arbitrage, starting his speculative career. But the experience of soybean arbitrage trading in 1977 made Bruce Godfrey unforgettable. At that time, there was a serious shortage of soybeans in the spot market. Bruce Goffner analyzed the price difference between the July soybean contract and the November contract.
For the soybean contract, the spread was 60 cents, and the stop loss was set at 45 cents. Soon the spread widened to 70 cents, and Bruce Gao Funa continued to increase the order volume of arbitrage in a pyramid way. On April 13, 1977, soybeans hit a record high again. The broker called and said excitedly: “Bruce, soybeans are flying straight into the sky. It seems that the market will close at the daily limit again today. July has already reached the daily limit, and November has followed suit. Wouldn’t it be foolish to keep the November short position? It’s better to close the November short position first and only hold the July soybean long position, and if soybeans go up to the limit for a few days later, wouldn’t the profit be more impressive?” In the brokerage’s Under the instigation, Bruce Goffner closed all the empty positions of soybeans in November. Ten minutes later, the broker said to Bruce Godfrey in a frenzied tone: “I don’t know how to explain to you, but all the soybeans have fallen to the limit! What should I do?” Bruce Godfrey almost passed out on the spot.
A slight rebound gave him a chance to close his position and leave the market. Account equity dropped from a peak of $45,000 to $22,000. A reckless decision made Bruce Godfner feel ashamed of himself, unable to eat for several days, and at the same time realized the risks of futures trading, so he decided to stop fighting for a month and thoroughly review the reasons for his mistakes, which made Bruce Godfner even more Obey discipline, strengthen capital and risk management, and understand that when drastic changes in the market affect emotional balance, and the future is blurred, you should close your positions and leave the market regardless.
Because of his political activities, Bruce Covenant paid great attention to the basic factors in his analysis. Before entering the market, he must have a clear view of the market situation. Only when he fully understands the reasons for the rise or fall of the market, will he follow the chart’s At the same time, chart analysis can confirm the trend shown by the basic factors and strengthen confidence in entering the market. In order to analyze the market more carefully, Bruce Covenant subscribed to a large number of investment analysis reports, such as wave masters Pachter, Smith, Davis, etc., but Bruce Covenant did not rely solely on the analysis reports to carry out Trading, because personal confidence is more important to make profits in the market. If you enter the market based on the opinions of others, it may be difficult to follow through. This is a taboo in the futures market. If the opinions of most experts are the same, but the market situation does not match, it will constitute a warning signal, because in this case, most people will make wrong investment decisions. In other words, when most people are optimistic, the market will go down.
offner believes that in order to become a master speculator today, at least three important conditions must be met:
1. To fantasize about things that may happen in the future, in your mind, you often conceive different images of the future situation, and then wait for the facts to unfold. Prove which image will make your dream come true. In this way, you can know the market trend well, and you will not be chaotic. The old saying goes: everything is forewarned, and nothing is foregone. YSHX
2. Under the pressure of the market, one must still maintain reason and discipline, be strong-willed and indomitable, and must be independent while being able to flexibly use the opposite theory.yunshfx
3. You must have the courage to admit your mistakes and accept the reality that you often make mistakes. His teacher often reminded him: Misjudgment is not something to be shy about. According to past experience, I often miss the deal that I thought was the best investment opportunity, and then choose the second choice to attack. Johnson’s third choice challenge, the result was a complete victory. Yun Shang Hui Xin
Bruce Gao Funer has been baptized and tempered by countless market risks, and has unique skills in arranging stop losses. Every time before entering the market, you must first set a stop loss to ensure that you can rest easy. The stop loss position is always placed outside the important price on the chart. The transaction bet depends on the amount involved in the stop loss. It will be touched due to small adjustments in the market. That is to say, it is better to reduce the trading volume to accommodate a safe stop loss position.
After experiencing the painful trading of many defeats, and under the guidance of the famous teacher Michael Marcus, he learned a lot of speculative skills, coupled with his high comprehension and the advantages of accurate analysis of basic factors, within a short period of time, The investment fund under management has risen to more than 650 million US dollars, and he has become a master of the generation. Yun Shang Hui Xin Limited
