From Rags to Riches: A Day Trader's Tale of Fortunes and Foresight (2024)

FAQs

How much did Jesse Livermore make? ›

Key Takeaways. Jesse Livermore was a stock trader that amassed a huge fortune worth $100 million ($1.5 billion in today's money) at his peak in 1929. Livermore traded on his own, using his own funds, his own system, and not trading anyone else's capital.

Steve Cohen is arguably the most profitable hedge fund trader ever. His SAC Capital returned 30% annually for more than 20 years since its inception in 1992, making Cohen a billionaire.

Day trading describes buying and selling common stock within the same day to profit from short-term price movements. Since they are prone to rapid price swings and high volatility, penny stocks are particularly attractive to day traders as opportunities for quick profits.

Can you make money with penny stocks? Yes, you can make money with penny stocks, but you can also make money playing the lottery, though you probably won't. To make money in penny stocks, you have to be able to separate the good companies from the bad, and that means you have to be able to analyze companies.

Key Takeaway: Day Trading Statistics

Low Success Rate: Only 13% of day traders maintain consistent profitability over six months, and a mere 1% succeed over five years. Financial Losses Predominate: 72% of day traders ended the year with financial losses, according to FINRA.

George Soros

This feat cemented his reputation as the "man who broke the Bank of England" and solidified his status as a forex trading legend. Soros' net worth is estimated to be around $8 billion, making him one of the wealthiest individuals in the world.

Traders can be individuals working on their own or professionals working for a financial company. The greatest three traders in the history of trading are George Soros, Michel Burry, and David Tepper.

On average, day traders with $10,000 accounts can make $200-$600 per day, with skilled traders aiming for 2%-5% returns daily. So, it is possible to achieve a daily profit of $200 to $600 with a $10,000 account.

The overwhelming majority of day traders lose money. While a select few are able to generate steady profits, these are generally people who had careers in the financial industry or who have devoted themselves to studying markets.

What's the hottest penny stock right now? ›

Your $1 a day could turn into more money than you think

It's based on earning a 10% average annual return (in line with the market's performance over the last 50 years) and contributing $365 a year to an investment account every year. Data source: Author's calculations.

Day trading can be profitable, but it's far from guaranteed. Many day traders end up losing money before calling it quits. Success in day trading requires a deep understanding of market dynamics, the ability to analyze and act on market data quickly, and strict discipline in risk management.

In summary, if you want to make a living from day trading, your odds are probably around 4% with adequate capital and investing multiple hours every day honing your method over six months or more (once you have a method to even work on).

His successful short selling, especially before the market crashes of 1907 and 1929, was widely recognized. These achievements contributed to Livermore becoming one of Wall Street's most iconic figures. It's reported that he made over $100 million during the 1929 crash alone.

Jesse Livermore was one of the many investors who lost millions during the Crash of 1929. He had been betting heavily on the market, and when it crashed, he was left with nothing. Livermore's downfall was due, in part, to his overconfidence.

Probably the greatest single trade in history occurred in the early 1990s when George Soros shorted the British Pound, making over $1 billion on the trade. Most of the greatest trades in history are highly leveraged, currency exploitation trades.

1. George Soros. George Soros, often referred to as the «Man Who Broke the Bank of England», is an iconic figure in the world of forex trading. His net worth, estimated at around $8 billion, reflects not only his financial success but also his enduring influence on global markets.