Millionaire Trader

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This Millionaire Forex Trader Took $12,000 Inheritance And Made Billions

Imagine taking a $12,000 inheritance from your grandmother and turning that into billions of dollars trading?

This is the story of Bill Lipschutz, and calling him a millionaire forex trader is an insult because as a matter of fact, he is not a millionaire forex trader but a billionaire forex trader.

Background Of Bill Lipschutz

Bill Lipschutz was studying in Cornell University to become an architect when his grandmother died. The kind hearted granny left him a sizeable chunk of inheritance…a portfolio of share worth about $12,000.

So what Bill did was to sell all the shares he got and used that money as his trading capital to start trading the stock market. And yes, he did that while still being a student in the University.

He completed his university, got his architectural degree. Whilst still in Cornell, he also studied a lot on business coursed and so also got an M.B.A.

Guess what happened to his Architect Degree? Well, it collected dust as he never used it.

It was the second business degree that enabled him to work with Salomon Brothers.

Here’s the funny thing: Bill Lipschutz said he never remember making a decision to be a trader. He said trading was a gradual process until it literally took over his life.

And he also never wanted to be an architect anyway? So why spend 5 years of your life studying something you don’t love? Well, Bill Lipschutz did!

What Happened To The $12,000 Trading Account?

Bill Lipschutz increased his $12,000 trading account to $250,000 within a 4-5 year period. He had an incredible string of success trading then something bad happened.

He made one trading decision and he blew up his trading account within a couple of days.

He was shattered…but he learnt from that mistake.

Bill Lipschutz Trading Highlights & Blunders

  • Made $6 million dollars in 6 hours trading the NZDUSD in September 1985
  • Made $20 million dollars trading the Japanese Yen in 1987
  • In 1988, shorted D-Mark (official currency of Germany pre EUR days) by $3 billion and was caught on the wrong side with no liquidity during the New York Trading Session when the dollar started increasing against the D-Mark. He was staring at a paper loss of $30 million dollars in just under 8 minutes and at one point during the time of that trade, the paper loss went up as far as $90 million. He managed to close that trade with a total of $18 million loss when liquidity was available during the Tokyo (Asian Trading Session).

Bill Lipschutz Net Worth

Bill Lipschutz net worth is unknown but he was considered one of the top 5 of all forex traders and in 1985, Lipschutz was making $300 million dollars a year from Salomon Brothers.

Bill Lipschutz Trading Strategy

I don’t trade on dreams or rumors. I’m a fundamental trader. I try to assemble facts and decide what kind of scenario I think will unfold”

It is well acknowledged that the most profitable market environment for FX [foreign exchange] trading is a trend – in particular a trend that unfolds over a medium-to long-term time horizon.

A key to profiting from a trend is the ability to stay in the trade and not be shaken out during periods of price consolidation or correction.

Bill Lipschutz Trading Quotes

I don’t think you can consistently be a winning trader if you’re banking on being right more than 50 percent of the time. You have to figure out how to make money being right only 20 to 30 percent of the time.

If most traders would learn to sit on their hands 50 per cent of the time, they would make a lot more money.

Always understand the risk/reward of the trade as it now stands, not as it existed when you put the position on. Some people say, “I was only playing with the market’s money.” That’s the most ridiculous thing I ever heard.

It’s very difficult to be different from the rest of the crowd the majority of the time, which by definition is what you’re doing if you’re a successful trader.

Don’t forget to share this article about Billionaire Trader Bill Lipschutz if you enjoyed it. Thanks

This Is How Millionaire Traders Think & Act

One of the hardest truths about trading to implement, is that if you hope to become consistently profitable you’re going to have to think and act like you are, BEFORE you are.

Aspiring traders should follow and mimic the mental traits, attitude, belief systems and trading processes of those successful traders and investors that have walked before them. This seems obvious and sounds relatively easy perhaps, but there’s a reason why so few people actually achieve trading success. You need some insight and help with what you need to actually change and do, if you want to start making money in the markets..

The main reason most people fail at trading is that people generally don’t like to consistently do anything that is somewhat “boring” or “uncomfortable”. Even when it comes to such important things like health and fitness for example, most people know what they SHOULD do, but they knowingly don’t do it, even when they are aware of the consequences.

It is when these “consequences” seem “far off” or “a long time away” that we start to ease up on our dedication to the discipline required to succeed. So, you need to keep these consequences in your mind, so that you begin to place more value into doing what you need to do to achieve what you want.

So, what DO Millionaire Traders Value?

  • They value abundance and opportunity

Want to know the fastest way to lose all your money trading? Trade like you’re desperate. Or, if you want to lose your money REALLY fast, trade like you’re desperate and not even know you’re doing it!

What is “trading like you’re desperate”?

Trading like you’re desperate essentially means you are “desperate” to make as much money as you can as fast as you can, and this is what prevents most traders from actually ever making money, ironically. When you do things like trade when your edge isn’t there, or increase your position size beyond what you know you’re comfortable with losing or otherwise deviate from your trading plan, you are trading as if you’re “desperate” to make money. You will have to stop this if you want to think and trade like a millionaire.

Millionaires operate from a mindset of abundance. They don’t feel desperate to make money, and not just because they are millionaires. It’s because they see the endless opportunities in the market and elsewhere in business, so they don’t feel like they’re in a “rush” to take the next thing that comes along. Instead, they feel like they should wait patiently for the most obvious trade setup or perhaps the lower risk opportunity to come along.

Here is one of my favorite quotes that relates to not trading like you’re “desperate”:

I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime. Even people who lose money in the market say, “I just lost my money, now I have to do something to make it back.” No, you don’t. You should sit there until you find something. – Jim Rogers

I know it can be difficult and cliche sounding, but honestly, if you want to become a successful trader you’re doing to have to start trading as if you’re already a professional. The habits and mindset of a losing trader (desperate to make money) are NEVER going to translate into consistently making money in the markets. So, even if you have a $200 trading account, you have to trade it as if you are NOT desperate to grow it too fast or you WILL blow it out, quickly.

  • Millionaire traders value their performance in the market

One of the biggest distinctions between a successful trader and a losing trader, is that the former values performance whereas the latter primarily values money. When you value your actual trading performance in the market, you start focusing on all the right things and developing the proper trading habits that cause your performance to remain positive. When you value only money, you start to forget about all the things you need to do properly to improve your performance. Things like having a trading plan, being disciplined and not over-trading or risking too much per trade, holding your trades longer, placing your stops further away, etc. You value what you need to do to see your equity curve consistently go up.

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You see, it’s impossible to value your trading performance and not also value the proper processes and habits that allow you to see your trading performance improve. But, when you start only valuing the money, you can easily forget that it’s not just about “making money”, it’s about SLOWLY making money over time. Because trying to make “fast money” always results in LOST MONEY.

Focus on performance, on the actual trading “game” and being good at it, not on the money.

The goal of a successful trader is to make the best trades. Money is secondary. – Alexander Elder

  • Millionaire traders value themselves and their abilities

Self-doubt does not help anything for the most part. Yet, time and time again traders will stare a perfectly good price action signal in the face and not take the trade, because they’re afraid, for one reason or another. They are doubting themselves and they are not confident in their ability to trade. Now, sometimes this is caused by just not really knowing what your trading edge actually is (which I can help you with in my professional trading courses), but often it’s just caused by overthinking.

One thing you’re going to have to begin doing right away is thinking and acting more confident in your trading abilities. Just like in life and in business, the confident players are typically the ones who come out on top, it’s the same in trading. I’m not saying you have to be some “outgoing prick” but you need to at least have solid confidence in yourself and your ability if you want to make money trading. Fear, insecurity and hesitation are not attractive qualities in relationships, business or trading; they do not attract people or money, so figure out how to drop them, quick.

This quote by famed trading educator Dr. Van K. Tharp discusses how to build confidence in your trading. First, you learn and study the markets, then you develop a refined trading strategy and then you practice it until you believe in it:

The top traders that I’ve worked with began their careers with an extensive study of the markets. They developed and refined models of how to trade. They mentally rehearsed what they wanted to do extensively until they had the belief that they would win. At this point, they had both the confidence and the commitment necessary to produce success. – Dr. Van K. Tharp

Side note: Being a “confident” trader does not mean you should be a “cocky” trader, and there’s a big difference. A cocky trader will take stupid risks, and too many of them. A confident trader will stick to his plan and execute his trading strategies when he sees his signal present, he doesn’t hesitate but he isn’t stupid and careless either. Hopefully, you see the difference.

I’ve written a multitude of lessons discussing trader psychology and behavior and how significant having the proper trading mindset is. Check out my article on the psychology of forex trading, to learn more.

How do Millionaire Traders Act?

Knowing how millionaire traders think about trading is only half of the equation, the other half is how they act in the market. As you may well know, it’s one thing to know something and an entirely other thing to put it into action and actually DO IT. So, I don’t want you to just read this lesson and think you “know it all”, I want you to actually put it into action in your trading.

  • Millionaire traders, trade less than you.

Anyone who’s followed me for any length of time has probably read one of my lessons on end of day trading and why you should do it and how powerful it is. But, let me just repeat it here: end-of-day trading is how most millionaire traders trade. How do I know this you ask? It’s easy. There simply aren’t enough high-probability trading opportunities in the market each day, week or month to allow most traders to day trade and become really successful at it. Furthermore, day-trading is often a catalyst for people to trade too much, risk too much and do everything else wrong. I really can’t say enough bad things about trading too frequently, if you don’t believe me, it’s only a matter of time before you find out through trial and error!

This quote by Jim Rogers is one of my all-time favorites on over-trading:

One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do. Most people – not that I’m better than most people – always have to be playing; they always have to be doing something. They make a big play and say, “Boy, am I smart, I just tripled my money.” Then they rush out and have to do something else with that money. They can’t just sit there and wait for something new to develop. – Jim Rogers

  • Millionaire traders control their risk, carefully

Controlling position size is really one of the overall keys to trading success. If your position size is in-check then it’s going to go a long ways to calming your mind down and putting you into the proper trading mindset. Also, managing / controlling your position size is one good example of HOW you trade from a mindset of abundance and opportunity, instead of desperation, as I discussed earlier. Keeping your position size at the dollar risk level you know you’re OK with possibly losing per trade, means you’re staying calm and you’re Ok with whatever the outcome and you’re not trying to make “fast money”; you aren’t desperate.

As the following quote from the trading great Paul Tudor Jones highlights, we should be more focused on protecting our capital than on “making money”, because when you focus on being a defensive trader, everything else tends to “fall into place”.

“I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have” – Paul Tudor Jones


I want you to close your eyes and imagine that you’re already where you want to be with your trading. You’re making consistent money in the markets for a year, you have a plan you’ve followed to get here and you are comfortable with your risk per trade. You have no issues with losses because you know that as long as you stick to the plan, the wins will eventually make up for them and much more. Now, every time you sit down to look at the charts, before you turn on the computer, do this same exercise or similar. Every time.

Eventually, we do what we think about the most, whether those thoughts are positive or negative, hurtful or helpful to our goals. Hence, all of this, trading success, etc. starts in your head, as thoughts. I know it sounds cliche, but it’s true that “thoughts become things”, so be very careful what you are focusing on when you think about trading. Ask yourself, are you thinking about “dollar signs”, money and all the things you’ll buy with it? Or, are you thinking about your trading performance, about a consistently rising equity curve over time and about becoming a more calm and self-controlled human being? Start implementing positive trading habits and effective trading strategies. Fill your mind with positive yet realistic expectations about what is possible in the market and set sail on the journey of self-discovery and improvement that IS trading, and don’t ever look back.

Please Leave A Comment Below With Your Thoughts On This Lesson…

If You Have Any Questions, Please Contact Me Here.

4 Trading Tips From Millionaire Traders

Successful Traders Reveal Winning Investment Tips

Each trader forges their own path, usually by absorbing the knowledge of successful traders that came before them. While no quote or trading tip will make you a successful trader on its own, insights from successful traders can tell you where you should be focusing your attention, and what you should be working on.

Here are 4 tips from millionaire and successful traders. Most of these quotes are from the Market Wizards books by Jack D. Schwager—interesting books which look at the diverse trading methods of successful traders. Worth the read.

4 Trading Tips from Millionaire Traders

If I have positions going against me, I get right out; if they are going for me, I keep them. Risk control is the most important thing in trading. If you have a losing position that is making you uncomfortable, the solution is very simple: get out, because you can always get back in. – Paul Tudor Jones

Loss aversion—an unwillingness to cut a loss—is one of the most common trading problems and can deplete an account quickly. On the flip side, not giving winning trades enough room to run can also be a problem. If you win less than 50% of the time, winners have to be bigger than losers on average. Even if you win more often, strive to keep your average loss smaller than your average win.

The next three quotes align with this.

You have to learn how to lose; it is more important than learning how to win. – Mark Weinstein

Winning is as much about controlling losses as it is about racking up winning trades. If you make $1000 one trade, but lose it (or more) the next, you’re no better off. But if you can make $1000, then only lose $700, then make $1100 then lose $500, you are making progress. Trading is always two steps forward one step back; making sure the steps back don’t erase everything you have done prior is key if you want to succeed.

On the topic of controlling risk.

Whenever I enter a position, I have a predetermined stop [loss]. That is the only way I can sleep. I know where I’m getting out before I get in. The position size on a trade is determined by the stop [loss], and the stop is determined on a technical basis. I always place my stop beyond some technical barrier. – Bruce Kovner

The stop-loss order is one of the simplest ways to help control risk. Under normal market conditions, it will keep your risk limited to a specific amount of capital. With the maximum risk known, you can then assess whether the profit potential of the trade is worth the risk (remember, we want winners to be bigger than losers).

I don’t think you can consistently be a winning trader if you’re banking on being right more than 50 percent of the time. You have to figure out how to make money being right only 20 to 30 percent of the time. – Bill Lipschutz

A strange statement? Recall that ideally winning trades should be bigger than losses, even if you do win 50% or more of the time. Most traders are searching for that elusive method where they never lose or can win 8 or 9 trades out of 10, amassing huge profits in a short amount of time with no risk. But successful trading takes time. There is also a risk, always, and it needs to be defined and controlled. As soon as you cap your risk, you invite the possibility of losing trades (stop loss being reached), but ironically that is more likely to make your profitable since the losses are small and controlled.

When creating a trading plan and strategies, analyze them based on worst case scenarios. Maybe you do tend to win 60% or 70% of the time (not unreasonable), but undoubtedly you will face periods where you only win 2 to 4 trades out of 10. How does your system perform then? Does it manage to keep your account steady or profitable? Or does the slower period result in big account losses? Plan for the worst case, assume you will only win 3 or 4 trades out of 10. In that way, your strategy is more robust, and during the periods where you do win 6 or 7 trades out of 10, you will be very happy indeed.

Millionaire Trading Tips – Final Word

All these traders discussed losses. Most novice traders like to think about winning or avoiding losses, but controlling risk is even more important. Anyone can make a profit simply because of random price movements. moving two steps forward. Successful traders control their risk though. When losing trades come–and they will– the trader only takes one step back, and doesn’t erase everything made prior.

Have a trading plan, control risk and focus on creating strategies that will keep you in the profit or steady even if you only win 3 or 4 trades out of 10. Eventually, you may win more than that, but it isn’t wise to try to trade based on best-case-scenarios. Instead, plan for a worse case and your results will likely be better.

Millionaire Traders: How to Beat Wall Street Professionals on Their Own Field

Publisher: Alpina Publisher, 2020
ISBN 978-5-9614-1584-1
Pages: 284 pages
Format: 70 × 100/16 (170×240 mm)
Circulation: 1500 copies.
Weight: 350 g
Binding: Dust Cover

Read the book Millionaire Traders: How to Outperform Wall Street Professionals in Their Own Field


“The market will forgive you a lot, including unsuccessful, even stupid deals, but it will not forgive the loss of capital. Having lost capital, you cannot compensate for losses. Therefore, all the traders with whom we spoke, first of all, cared about the preservation of capital. ” Ketty Lin, Boris Schlossberg

What is the book “Millionaire Traders” about

About why and how people are not just tradersand successful players making a fortune. Lin and Schlossberg minimized their author’s text; their mastery was manifested in well-chosen questions for millionaires and a masterly designed abstract in each chapter.

Why Millionaire Traders is Worth Reading

The interview form always favors a more attentive reading. A minimum of instructions and “universal” rules, a maximum of emancipation and personal experience. Extremely simple mortal people who were included in Trading almost penniless for a soul.

The heroes of the book cover the stock, futures, options and foreign exchange markets in their stories. The heroes of the book are Americans, but with different nationality, which undoubtedly demonstrates the characteristic features of each of them.

Who are the authors

Ketty Lin He is the chief strategist at FXCXI in New York. Her book, “Intraday Trading in the Foreign Exchange Market: Technical and Fundamental Strategies for Profiting from Market Fluctuations” (2005), written for both beginners and professionals, has been widely recognized.

Boris Schlossberg He is the currency strategist of the world’s largest retail FOREX retail market maker – Forex Capital Markets in New York. His articles on good risk management, trader psychology and market dynamics are published monthly in SFO magazine.

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