Introduction to Bruce Kaufner:
Bruce Kovner, the founder of macro hedge fund Caxton Associates, is a world-famous fund manager. Only 1987 earned more than 300 million dollars for customers. From 1983 to 20 13, CA Company controlled assets of1400 million US dollars, and maintained an annualized return of 14.5% all the year round, while the average market return rate in the same period was only 9.5%. 20 18 Forbes global rich list, Bruce ranked 398th with $5.2 billion.
From taxi drivers to financial predators
Bruce Kaufner was born in Brooklyn, new york. 1945. 1953, moved from new york to Los Angeles with his family. Kaufner was obsessed with basketball and loved literature and art in middle school. He won many scholarships and became a campus star.
From 65438 to 0962, Kaufner successfully entered Harvard and studied law and politics with Professor Dhaka. After graduation, he became a teacher, teaching political science at Harvard University and the University of Pennsylvania. However, he is not keen on his academic career and expects to make a difference in politics. In the early 1970s, Koffner began to go into politics. First, he helped others run for public office, and he plans to run for public office himself in the future. Because of lack of funds, he didn't want to start from the committee and climb up slowly, so he had to give up his plan to go to Juilliard, a famous music school in new york, to study musical instruments, and the result ended in failure. After many failures, Kaufner had to become a taxi driver in order to make a living.
As the saying goes, gold always shines. After many failures, 32-year-old Kaufner finally found a new direction in life. By chance, Kaufner came into contact with commodity futures. 1977, he borrowed $3,000 from a credit card to make soybean futures, and the highest floating profit reached $40,000. Later, he closed his position at $23,000 and made a net profit of $20,000. After successfully testing the water in the futures market, Kaufner thought he might be able to work as a trader on Wall Street.
At first, Kaufner went to a commodity company to apply for the position of trading assistant, and his immediate boss was Michael Marcus, a Wall Street legend. A few weeks after the interview, Michel Marcos said to Kaufner, "I have good news and bad news. The bad news is that you can't get the position of trading assistant. The good news is that we want to hire you as a trader directly. " In this way, Kaufner became a trader and began to make great efforts in the financial market. During this period, Kaufner learned a lot from Marcus, such as building confidence, going in and out of the stadium according to principles, and being brave enough to admit mistakes. Later, his performance also proved that Marcus was not mistaken. He is like a gold digger with an annual profit rate of 80%.
1983, Kaufner established its own capital management company, CAXTON Associate (CA). From 65438 to 0987, Bruce Kaufner earned more than $300 million for his clients, with a compound annual rate of return as high as 87%, which was a blockbuster in the whole financial market and gained the attention and appreciation of the whole industry. During the period from 1983 to 20 13, CA Company has controlled assets of1400 million US dollars, and maintained an annualized return of 14.5% all the year round, while the average market return rate in the same period was only 9.5%.
Bruce Kaufner's trading experience and suggestions
So how did Bruce Kaufner make so much money through trading?
Market dislocation solution
Bruce Kaufner loves "market dislocation solution" very much. In short, in the forward foreign exchange market, Kaufner will choose the Federal Reserve to raise interest rates, wait for the exchange rate to soar, and then wait for the exchange rate to fall sharply, but he will do more exchange rates every time, because he finds that the market's expectation of exchange rate decline is often excessive, so he can make a lot of money every time.
Be rational and cautious about technical analysis.
Of course, it is impossible for Kaufner to shine on Wall Street with a little trick. He also has a lot of experience and suggestions. He especially likes to persuade others to be rational and cautious about technical analysis, because he thinks that technical analysis can only reflect the past market trend, but not predict the future.
Kaufner believes that technical analysis reflects the voting situation of all market participants, that is, everyone's choices, intentions and decisions, and can capture unusual price behaviors. According to the characteristics of technical analysis, there must be something unusual behind any new chart mode. It is very important for him to study the details of the price movement, which can help traders find out whether they can check how everyone in the market votes. When using technical analysis to draw conclusions, he will use his wisdom to assume the future trading behavior of other traders through the past trading behavior of some traders.
Set the starting point before placing an order.
In Kaufner's mind, the key to the success of the market game is how to better control the trading risk. He once said that the most terrible thing in the market is not the huge amount of money, but the unknown, just like a poisonous snake hiding in the dark, which may bite at any time. So Koffner will set a starting point before placing an order. He stressed that the risk must be assessed according to the overall portfolio, not just the risk of a single transaction. If there is a high positive correlation between the positions held by a trader, it is absolutely important to set the exit point first, because the risks actually faced by all the positions held by this trader must be far greater than the risks he realizes. If traders only consider the risk of a single position, but do not consider the risk of the overall portfolio, a high degree of positive correlation between positions will only superimpose risks, but will not disperse risks.
If this stop loss is set, if the trading strategy is proved to be correct, then Kaufner will have the possibility of maximizing profits, and will not miss the subsequent profit opportunities because of its easy stop loss. At the same time, he will abide by strict discipline of fund management.
In Kaufner's view, the correct and reasonable stop loss method is to set the stop loss point at a certain price. If the transaction price touches or falls below this price, it naturally shows that the decision of the transaction is wrong and it needs to stop immediately, instead of setting the stop point according to the maximum amount of loss that the trader is willing to lose on a single futures contract.
"Impulse trading" is fatal
Kaufner said that the most serious trading mistakes are caused by impulsive trading, and "impulsive trading" is fatal. Once a trader chooses a trading strategy, he should stick to his trading plan and avoid making impulsive trading decisions. Therefore, when making suggestions for new laptops, Kaufner stressed that we must do less, do less and do less again.
Successful traders and failed traders
In Kaufner's view, successful traders are independent, know that extremes meet, and can hold positions when others don't want to. They all know self-discipline and restraint, so the position size is appropriate. The positions held by failed traders are usually too large, and they never try to keep all the money they earn to open positions. Kaufner said that the trader of a commodity futures company he knew was very talented, and the trading ideas he came up with were exquisite, and the trading market he chose was usually accurate. However, he can keep the money, but the trader cannot.
Bruce's advice to beginners
In an interview, Kaufner mentioned several suggestions for beginners. The first suggestion is to recognize the importance of risk management. The second suggestion is to do less, do less, do less. Bruce said that no matter how many orders you think you should enter, you should reduce them by half first. In addition, novices often humanize the market. The most common mistake is to regard the market as an individual opponent. In fact, the market is completely detached. It doesn't care whether you win or lose. If a trader says "I hope" or "hope" subjectively, then he can't concentrate on analyzing the market, which is harmful.
Bruce Kaufner's trading rules
1, preset stop-loss point when entering the market, which is the only way to let me sleep peacefully.
2. Avoid setting the stop loss point at a price that the market may easily reach.
3. Trading should be carried out according to the established trading signals, and trading strategies should not be changed hastily on impulse.
4. When trading, you must learn to control risks and prepare for the worst.
5. For light warehouse transactions, the loss of each transaction shall be controlled at 1%-2% of the capital.
6. Overambitious traders will always screw up the deal in the end, and they will never be able to keep profits.
7. The market has no personality and doesn't care whether you make money or not. Going in and out of the market with hope and preference will ruin your future.
8. Technical analysis is like a thermometer.
9. Some technical analysis is quite credible, and many of them are nonsense.
10, as long as the market situation is different from my analysis, I will appear immediately.
1 1, don't let a market change that can't figure out the reason seize it, and it will cause heavy losses.
12, everyone thinks that there is no reason for the price to rise, but the price has broken through, and this rising force may be quite great.
13, I always wait for the price to rise to a certain level, and then wait until it falls to a certain price before adding more.
14, I will just wait for the market to change, and then follow the direction of the market change.