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Friday, November 6, 2015

Louis Bacon: A Rare Trading Genius

 INSIGHTS INTO THE MINDSET OF SUPER TRADERS – Part 16

“…Remember to view setbacks, losses and failures as learning opportunities. All great achievers have made innumerable mistakes and have failed, that is what provided the “experience” and the “education.” – Dr. Woody Johnson

Name: Louis Bacon
Date of birth: July 25, 1953
Nationality: American
Occupation: Hedge Funds Manager

Career
Born in Raleigh, North Carolina, Louis attended Episcopal High School in Alexandria, Virginia. He went to Middlebury College in Vermont, earning a B.A in American literature. In 1981, he got an MBA degree in finance from Columbia Business School.

After getting his MBA, he worked in various capacities at various firms and companies like Bankers Trust, Walter N. Frank & Co, New York Cotton Exchange, and Shearson Lehman Brothers. He founded Remington Trading Partners in 1987 and began to forecast the market crashes and rallies. He traded according to his own forecasts (something that most analysts today don’t do) and made huge amount of money from that.

He founded Moore Capital Management LLC in 1989 with the $25,000 he inherited from his family. Needless to say, his ventures became hugely successful.  In 2006, Forbes referred to him as the 746th richest person on this planet. In the world’s rich list, he took the 736th position in the year 2011, and he was named the 238 richest American in 2010.

In the year 2010, Louis Bacon was worth $100,600,000,000.

He’d 4 children from his first marriage. He was remarried in 2007. In November 2007, he bought a $175,000,000-property in Costilla County, Colorado, from the Forbes family. He’s also supported political parties and causes.

Insights
  1. When did you start trading? Have you faced any challenges? Most trading masters faced losses in the past. Louis started trading with a low interest loan he collected while he was till at Columbia, he lost money during his first 3 semesters. He’d to take another loan from his dad in order to stay afloat. In the 4th semester, he recovered his losses and made profits. Too many people quit trading after the first or second series of losses without being aware that they might become very rich in future if they held out long enough. Someone we call a genius today refused to give up when things seemed hopeless. Louis didn’t quit and he’s a billionaire today. Do you know the value of a billion dollars in terms of USD?

  1. As a speculator you must embrace disorder and chaos. This is what Louis believes. The unpredictability and uncertainties of the trading environment must be embraced and mastered before we can become triumphant in spite of what the market throws at us. We can make money in spite of the fact that the market is uncertain and unpredictable.

  1. When you become rich, you will easily engage in other activities in which you’re interested. Just like Louis Bacon, you might want to engage in philanthropy. Louis founded the Moore Charitable Foundation (MCF) in 1992, to provide financial support to nonprofit organizations that work to preserve and protect wildlife habitat and improve water systems. He’s also contributed millions of dollars to other environmental and conservation organizations, and thus won well-deserved recognition for doing this. In order to emphasize his conservationist views, he says: “I am a conservationist. It is in my DNA… When a profit-seeking company proposes to take citizens' private land away for its own gain, people should stand up for their rights…We are too quickly losing important landscapes in this country to development - and I worry that if we do not act to protect them now, future generations will grow up in a profoundly different world.”

Conclusion: The best way to cut your learning curve and achieve a specific result is to find people who’ve already achieved what you want and then model their behavior. Louise Bedford says: Find a mentor, no matter what the cost. A mentor makes a huge difference in your development. Of course, if you have a spare 10 – 20 years up your sleeve to perfect your skills alone, then by all means do so. However, most people want more immediate results. I am where I am because I found good mentors and I followed their advice. Failure can take a great personal cost, and a mentor can help you avoid errors. I don’t know how people can begin a business without mentors to help them. (Source: Tradinggame.com.au). 

This piece is ended with a quote from Louis: 

“The ability to manage large assets well - it's like being Michael Jordan or winning the gold in the Olympics; it's what you aspire to.”




What Super Traders Don’t Want You To Know: Super Traders

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