The art of
speculation (Jesse Livermore)
This art became even more thriving at Jesse Livermore’s call
on the 1929 Crash. Through studies and gambling, this trader started his fame
when he predicted both the 1907 and the 1929 stock market crash. From nothing,
he succeeded in piling up to $100 million.
Understanding
the dynamics (Paul Tudor Jones)
Paul Tudor Jones when predicting the Black Monday of 1987
understood a sequence of events that will lead him to success. If the market
started to go down, instead of drying up, the selling would actually cascade.
This means that an overvalued market is sure to create more selling. Gambling
on this technique makes him win about 100 million.
Break of
the Bank Of England (George Soros)
George Soros made fairly $1 billion by shorting the sterling
pound. Although considered as being reckless, this gambling was more than
rewarding. He managed BOF to withdraw from the European Exchange Rate Mechanism
(ERM) in the exact date of September 16, 1992.
Bet on
Japanese assets (Templeton Shorts)
This trader invested $100,000 stake in Japan in 1954 to go
out with $55 million in 1999. Right after that, Japan was beginning its
three-decade long economic miracle. He nearly put about 60 percent of his fund
in Japanese assets which was a full success.
Oil trade
(Andrew Hall)
The barrel of oil was trading at in $30. Andrew Hall gambled
that this price would reach $100 per barrel within five years which actually
became true in 2008. Citigroup, his employer made fortune and the trader returned
home with $100 million.
Flipping
(Paul Rotter)
Dwelling on the basis of the market’s psychology, this
technique proved to be successful in handling and mastering markets. Rotter
Paul is the initiator of this trade when he executed trades on the Eurex
exchange mainly in the Bund, in the Bobl and Schatz interest rate futures.
Shorting
real estate market (John Paulson)
Foreseeing the asset bubble in real estate brought several
billions of dollars on Wall Street. Famous for accomplishing the greatest trade
ever, John Paulson made $15 billion in 2007 whereas he only planned pocketing
$3.7 billion.
Prescient
short-seller (Jim Chanos)
Jim Chanos got famous at the demise of Enron in October
2001. He profited from selling of commodity, currency and security. Its famous
successful shorts include Baldwin-United and lately homebuilders like KB Home
(NYSE: KBH).
Gambling on
Geopolitical play (Louis Bacon)
In 1990, Bacon anticipated the invasion of Saddam Hussein in
Kuwait. Right the following year, he gambled that the U.S would defeat Iraq
with the oil market recovering. Betting and anticipating a geopolitical event
to make the most in trading field.
Investing
in distressed assets (David Tepper)
Tepper’s track record in distressed investing proves
otherwise to be a success. He bet the Bank of America and Citigroup wouldn’t be
nationalized and he won a lot. He bought severely depressed shares and saw them
quadrupled in value in the end of the year 2009.
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