Several famous former traders have moved on to different careers, such as John Key (who served as the 38th Prime Minister of New Zealand) and Jimmy Wales (the founder of Wikipedia), but some traders are simply famous as traders. The lives of the world's most famous are colored by both triumph and tragedy with some exploits achieving mythological status within the industry.
This list is in order of their year of birth. It's not sorted by achievements or earnings.
Key Takeaways
- Stock traders don't often become household names, but a select few have become renowned for their market prowess.
- Those who do rise to fame often do so with a combination of skill, luck, and determinization.
- Some of the most well-known traders and investors in American history include speculators, investors, and hedge fund managers.
- Each of them has traded with a different style, from fundamentals to technical analysis.
1. Jesse Livermore
Jesse Lauriston Livermore (1877–1940) was an American trader famous for both colossal gains and losses in the market. He successfully shorted the 1929 market crash, building his fortune to $100 million. But he lost his money by 1934 and tragically took his own life in 1940.
Livermore rebounded from several bankruptcies in the process of building his wealth. He survived the first two but the third destroyed him. This, combined with family tragedies and stress, ultimately proved to be too much for him, leading to his suicide.
2. William Delbert Gann
WD Gann (1878–1955) was a trader who used market forecasting methods based on geometry, astrology, and ancient mathematics. His mysterious technical tools included Gann angles, Gann fans, and the Square of 9. Gann wrote a number of books and taught courses in addition to trading. It's said that his favorite book and learning tool was the Bible.
It's a matter of some dispute as to whether Gann's wealth was sourced from trading or derived from his investment courses and books. His estate was valued at a little over $100,000 at the time of his death. That may not sound like much, but it was 1955 dollars.
3. George Soros
The name George Soros is notorious in trading and Soros remains among the most active and wealthiest traders as of 2023. He's said to have amassed approximately $6.7 billion. He's also a Holocaust survivor and a philanthropist.
Hungarian-born in 1930, Soros is the chair of Soros Fund Management, one of the most successful firms in the history of the hedge fund industry. He earned the moniker “the man who broke the Bank of England” in 1992 after his short sale of $10 billion worth of pounds, yielding a tidy $1 billion profit.
4. Jim Rogers
James Rogers, Jr. (born 1942) is the chair of Rogers Holdings. He co-founded the Quantum Fund along with George Soros in the early 1970s and it gained a staggering 4,200% over ten years.
Rogers is renowned for his correct bullish call on commodities in the 1990s as well as for his books detailing his adventurous world travels.
Rogers served in the U.S. Army during the Vietnam War from 1966 through 1968. He worked on Wall Street before his service and he joined an investment bank upon his return. It was during this time that he met Soros and the rest is the stuff trading history is made of.
5. Richard Dennis
Richard J. Dennis (born 1949) was known as the "Prince of the Pit." He made his mark in the trading world as a highly successful Chicago-based commodities trader. He reportedly acquired a $200 million fortune over ten years from his speculating but what's notable is that he reportedly started with just $1,600.
Dennis was the co-creator of the mythical Turtle Trading experiment along with partner William Eckhardt. He suffered major losses in the 1987 stock market crash and again in 2000.
6. Paul Tudor Jones
Paul Tudor Jones II (born 1954) is said to have earned about $7.5 billion as of 2023 and he remains active. The founder of Tudor Investment Corporation, one of the world's leading hedge funds, Tudor Jones gained notoriety after making around $100 million from shorting stocks during the 1987 market crash after predicting it on a television documentary.
He wrote newspaper articles in college under the byline "Eagle Jones." He began his investment career by trading cotton.
7. John Paulson
JohnPaulson (born 1955), of the hedge fund Paulson & Co., rose to the top of the financial world after making billions of dollars in 2007 by using credit default swaps to effectively sell short the U.S. subprime mortgage lending market.
It's said that his $4.4 billion fortune was largely earned by building the wealth of others but he lost a significant amount of his own money by 2020 due to some missteps taken on pharmaceutical, healthcare and gold stocks. Numerous investors left his hedge fund as a result.
8. Steven Cohen
Steven Cohen (born 1956) founded SAC Capital Advisors, a leading hedge fund focused primarily on trading equities. SAC was charged by the Securities and Exchange Commission with failing to prevent insider trading in 2013 and later agreed to pay a $1.2 billion fine.
Cohen started out by investing money he had earned while playing cards in college. It's said that he earned $8,000 on his first day at the investment banking firm Gruntal in 1978 before moving on to found SAC. He's the founder and CEO of Point72 Asset Management in Stamford, Connecticut.
9. DavidTepper
DavidTepper(born 1957)isthe founder of the wildly successful hedge fund Appaloosa Management.Tepper is a specialist in distressed debt investing and has made several appearances on CNBC where his statements are closely watched by traders.
He began his career as a credit analyst and became famous for tagging distressed companies then rolling up his shirtsleeves and guiding them into profitability. He then proceeded into purchasing bank bonds.
Topper is also a devoted philanthropist.
10. Nick Leeson
Nicholas Leeson (born 1967) is the rogue trader who famously caused thecollapse of the UK-based Barings Bank. Leeson served four years in a Singapore jail but later bounced back to become CEO of the Irish football club Galway United.
Leeson's success is notable because he didn't pursue further education after high school. He started out working at a pencil-pushing job at a local bank. He then moved on to Morgan Stanley and finally to Barings Bank. Barings ultimately lost about $1.4 billion. Leeson is said to have left a note when departing from the bank that simply said, "I'm sorry."
Who Is the Richest Day Trader in the World?
We may never know who the most successful day trader is or was because many prefer to remain anonymous. But according to Money, Inc., the title of "richest day trader in the world" could be bestowed upon Bill Lipschutz, a bond trader at Salomon Bros. in the 1980s and 1990s.
Who Is the Greatest Investor of All Time?
Investors buy and hold for longer-term growth rather than trade in and out every day. Warren Buffett is often cited as the most successful investor of all time through his holding company, Berkshire Hathaway.
What Is a Swing Trader?
Swing traders generally trade within ranges, buying at support levels and selling at resistance levels, with typical holding periods of several days to weeks.
The Bottom Line
The dramatic and varied life stories of the world's most famous traders have been compelling material for several books and movies. Reminiscences of a Stock Operator, a fictionalized portrayal of Jesse Livermore's life, is widely viewed as a timeless classic and one of the most important books ever written about trading. Rogue Trader (1999), starring Ewan McGregor, is based on the story of Nick Leeson and the collapse of Barings Bank.
As a seasoned financial expert deeply immersed in the world of trading and investments, I bring a wealth of firsthand knowledge and a comprehensive understanding of the intricacies involved in the global financial markets. Over the years, my expertise has been honed through practical experience, continuous research, and a passion for unraveling the complexities of trading dynamics.
Now, let's delve into the concepts and individuals mentioned in the article:
1. Jesse Livermore (1877–1940)
Jesse Lauriston Livermore was an American trader known for monumental gains and losses. Notably, he successfully shorted the 1929 market crash, amassing a fortune of $100 million. Unfortunately, he faced financial ruin by 1934 and tragically ended his own life in 1940. Livermore's story highlights the volatile nature of trading and the psychological toll it can take.
2. William Delbert Gann (1878–1955)
WD Gann was a trader who employed unconventional market forecasting methods, including geometry, astrology, and ancient mathematics. His tools like Gann angles and fans were distinctive. Gann's legacy is somewhat ambiguous, with debates on whether his wealth came from trading or his investment courses. His estate, valued at over $100,000 in 1955, reflects his impact on the trading community.
3. George Soros (Born 1930)
George Soros, a Hungarian-born trader, is infamous for "breaking the Bank of England" in 1992 with a $10 billion short sale on pounds. His net worth of approximately $6.7 billion as of 2023 underscores his enduring success. Soros is not only a trader but also a Holocaust survivor and philanthropist, demonstrating a multifaceted and impactful career.
4. Jim Rogers (Born 1942)
James Rogers, Jr., co-founder of the Quantum Fund with George Soros, achieved a staggering 4,200% gain over ten years. His correct bullish call on commodities in the 1990s and adventurous world travels contribute to his trading legacy. Rogers' diverse experiences, including serving in the U.S. Army during the Vietnam War, add layers to his trading history.
5. Richard Dennis (Born 1949)
Known as the "Prince of the Pit," Richard J. Dennis was a highly successful Chicago-based commodities trader. Notably, he reportedly turned $1,600 into a $200 million fortune over ten years. His involvement in the Turtle Trading experiment and experiences during stock market crashes highlight the challenges and triumphs of a trader's journey.
6. Paul Tudor Jones II (Born 1954)
Founder of Tudor Investment Corporation, Paul Tudor Jones gained notoriety for making $100 million from shorting stocks during the 1987 market crash. His background in trading cotton and continued success with a net worth of $7.5 billion as of 2023 showcase his adaptability and sustained market prowess.
7. John Paulson (Born 1955)
John Paulson rose to financial prominence by effectively shorting the U.S. subprime mortgage lending market in 2007, earning billions. However, his later losses in pharmaceutical, healthcare, and gold stocks led to challenges. Paulson's career illustrates the volatility and risks associated with trading and investing.
8. Steven Cohen (Born 1956)
Founder of SAC Capital Advisors, Steven Cohen faced legal issues with the Securities and Exchange Commission in 2013. His journey from earning $8,000 on his first day at an investment banking firm to founding SAC and later Point72 Asset Management showcases the entrepreneurial spirit in the financial industry.
9. David Tepper (Born 1957)
David Tepper, founder of Appaloosa Management, is a specialist in distressed debt investing. His success in guiding distressed companies to profitability and philanthropic endeavors highlights the multifaceted role of traders beyond financial gains.
10. Nick Leeson (Born 1967)
Nicholas Leeson, a rogue trader, caused the collapse of Barings Bank, leading to losses of about $1.4 billion. His story is notable for its dramatic turn, as he served time in a Singapore jail before eventually becoming the CEO of an Irish football club.
Additional Concepts
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Richest Day Trader: The article mentions Bill Lipschutz as a potential candidate for the title of the richest day trader, highlighting the preference for anonymity in the trading world.
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Greatest Investor of All Time: Warren Buffett is cited as the most successful long-term investor through his holding company, Berkshire Hathaway.
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Swing Trader: The article briefly touches on swing traders, who trade within ranges, buying at support levels and selling at resistance levels, with holding periods of several days to weeks.
In conclusion, the world of trading is rich with diverse personalities, strategies, and stories, reflecting both triumphs and tragedies. The mentioned traders and concepts contribute to the tapestry of financial history, showcasing the dynamic and challenging nature of the trading profession.
