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Thursday, May 12, 2016

Alan Howard: A Self-made Billionaire Trader

WHAT YOU NEED TO KNOW ABOUT MASTER TRADERS – PART 8

“Try not to do something just because everyone else is doing it. Successful traders are rare. If the crowd is doing it, watch out!” - Andy Jordan 

Name: Alan Howard
Date of birth: September 11, 1963
Nationality: British
Occupation: Hedge fund manager and philanthropist

GIVING BACK TO THE SOCIETY
Alan was born in UK, to a Jewish family. He attended Imperial College London, bagging an MSc. He then began working in the financial industry. 

He co-founded Brevan Howard Asset Management LLP. In the year 2014, Forbes named Alan one of the 40 highest-earning hedge fund managers. In the same year, he was mentioned in the 53rd rank of the Sunday Times Rich List. This is a proof that the fund management company he co-founded has been successful. As of April 2015, Alan was worth GBP £1.5 billion.

One source reveals that Alan serves in other capacities like on the New York Federal Reserve's Investor Advisory Committee on Financial Markets and is one of a group of financial managers who on occasion advise New York Federal Reserve officials on economic policy. He’s also engaged in various charitable foundations that support Jewish causes and other needs.

He was a former director of the Conservative Friends of Israel. Alan is married to Sabine Howard and they’re blessed with 4 children. He lives in Geneva, Switzerland.

What You Need to Know:
  1. Alan is a self-made billionaire. He wasn’t born a billionaire. You might not have been born with a sliver spoon, but you can attain you goal of financial freedom. Alan made his money from the markets, and you can too (though you might not be as rich as him).

  1. No matter how good you’re, you’ll have losing weeks or month. Alan’s Brevan Howard Asset Management had a losing year in 2014, which made the firm forfeit some of its funds.  As long as you are able to survive losing weeks, months or years, you’d be fine.

  1. Veteran speculators often open more positions than neophytes; for veteran speculators follow most of their trading signals religiously while neophytes shrink from fear of opening trades that might turn out to be losers. The criteria being considered by each camp differ, since veteran speculators aren’t swayed by noises.  Neophytes open big positions relative to their portfolios, whereas veteran speculators use prudent volume sizes. Although, veteran speculators open more positions than neophytes, their risk is remarkably less per position. This fact is in harmony with the notion that that equity fluctuations and market impacts are more telling on neophytes’ portfolios. 

This article is concluded with a quote from Charles Sizemore:

“…My style is not right for everyone. Other people try to invest the way I do and fail, just as I often fail when I get outside of my areas of expertise and try a style that is not suited for me.”



What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html

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