There are several famous former traders who moved on to different careers, such as John Key (who served as the 38th Prime Minister of New Zealand) and Jimmy Wales (founder of Wikipedia). However, this list is made up of traders famous for being traders. The lives of the world’s most famous traders are colored by both triumph and tragedy, with some exploits achieving mythological status within the industry.
The list begins with legendary traders of history and progresses to those of the present day.
Key Takeaways
- Stock traders often don’t become household names, but a select few have become renowned for their market prowess.
- Those that do rise to fame often do so with a combination of skill, luck, and determinization.
- Here we look at then of the most well-known traders and investors in American history.
- These include speculators, investors, and hedge fund managers.
- Each 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. However, by 1934 he had lost his money and tragically took his own life in 1940.
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 include Gann angles, Gann fans, and the Square of 9. As well as trading, Gann wrote a number of books and courses.
3. George Soros
Hungarian-born George Soros (born 1930) 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, which gained a staggering 4200% over 10 years. Rogers is renowned for his correct bullish call on commodities in the 1990s and also for his books detailing his adventurous world travels.
5. Richard Dennis
Richard J. Dennis (born 1949) 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. Along with partner William Eckhardt, Dennis was co-creator of the mythical Turtle Trading experiment.
6. Paul Tudor Jones
Paul Tudor Jones II (born 1954) is 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.
7. John Paulson
John Paulson (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 US subprime mortgage lending market.
8. Steven Cohen
Steven Cohen (born 1956) founded SAC Capital Advisors, a leading hedge fund focused primarily on trading equities. In 2013, SAC was charged by the Securities and Exchange Commission with failing to prevent insider trading and later agreed to pay a $1.2 billion fine.
9. David Tepper
David Tepper (born 1957) is the founder of the wildly successful hedge fund Appaloosa Management. Tepper, a specialist in distressed debt investing, has made several appearances on CNBC where his statements are closely watched by traders.
10. Nick Leeson
Nicholas Leeson (born 1967) is the rogue trader who famously caused the collapse of the UK-based Barings Bank. Leeson served four years in a Singapore jail but later bounced back to become CEO of Irish football club Galway United.
Who Is the Richest Day Trader in the World?
We may never know who the most successful day trader in the world is or was, since many like to remain anonymous. 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?
As opposed to trading in and out every day, investors buy and hold for longer-term growth. 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 made compelling material for 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.