If you want to keep beating the market, please beat yourself first-keep updating, keep learning and try more ...
-Steven Cohen
Author: Yue Kuohai, WeChat official account: Stock Option Investment.
this article has 18 words and 3 pictures, and it takes about 5 minutes to read.
was targeted by the U.S. attorney's office, fined by the U.S. Department of Justice, and grounded by the U.S. Securities and Exchange Commission. His SAC Capital Advisors, one of the most profitable hedge funds in the world, was nominated by US President Trump as the chairman of the Securities and Exchange Commission, a "big shark" with both glory and stain, and a mysterious figure, Steven Cohen.
Cohen didn't come from a rich family. Worked odd jobs in a supermarket as a teenager. But he has a unique talent and mind. Cohen said that when he was young, he was on the stock exchange, staring at a string of numbers that appeared in front of him, and a group automatically emerged in his mind, which could be judged by the trend. Cohen's SAC Capital is as high as a frightening annual return of 3%. Because of insider trading, Cohen reached an agreement with the Ministry of Justice to close SAC and impose a fine of $1.8 billion. Only by 218 can he re-manage external investment.
although SAC is down now, Point 72 is born again, Cohen body of work. In Forbes' latest list of the world's richest people and list of the most profitable hedge fund managers in 215, Cohen ranked 72nd in the rich list and 3rd in the most profitable fund manager with a net worth of $12.7 billion and a profit of $721.55 billion respectively.
Cohen's growth history
Cohen was born in Great Neck, new york in 1956. His father was a clothing manufacturer in Manhattan clothing district, and his mother was a part-time piano teacher. There are seven brothers and sisters, who are used to focusing on the essence of things since childhood.
Young Cohen believes that he fell in love with Texas Hold 'em because he likes adventure, learned to control risks, and became a master of Texas Hold 'em. I graduated from wharton school with a degree in economics, and with the help of a friend, I opened a trading account for $1,.
at the age of 21, I worked as a junior trader in the options department of Grunt Al&Co. on Wall Street, and earned $8, on my first day. Six years later, the trading profit reached $1, every day, and finally managed a $75 million portfolio and a team of six traders.
SAC-crazy money-making machine
in 1992, Cohen founded SAC Capital Advisors, which quickly became one of the most profitable hedge funds.
In 21, the average daily stock trading of this hedge fund was as high as 1 million shares, accounting for 1% of the daily trading volume of US stocks.
in the 18 years since its establishment in 1992, the average annual return rate of SAC has exceeded 3%, of which the return rate reached 68% in 1999 when the technology bubble broke out, and it was as high as 73.4% in 2.
Even in the financial crisis when 2,3 fund companies closed down, Cohen's SAC survived.
in the data tracked by Bloomberg, it was the most profitable fund in the world at that time, and there was no one.
A senior customer of Cohen told the media: "If Soros is a tiger, he is a great white shark in the hedge fund industry." The tide rises and falls, and in 213, this bloodthirsty great white shark ran aground.
In November 213, the US Department of Justice announced that SAC had agreed to plead guilty to the insider trading case and would pay a total fine of $1.8 billion. This has also become the biggest ticket for insider trading in American history.
However, Cohen himself has not been charged with any crime, but the closed-door crisis is inevitable. According to the announcement of the US Department of Justice, SAC must stop accepting funds from outside investors and stop consulting business. Compared with the domestic stock god Xu Xiang (see the introduction at the end of the article), Cohen is much luckier.
SAC, which Cohen is in charge of, charges investors a management fee of 3% and an investment income commission of 5% respectively, although these two rates are generally 2% and 2% in the hedge fund industry. The reason why he can charge such a high fee is that he has never let investors down. Cohen's flagship fund has a compound return rate of more than 3% every year until 213,18.
Trump, then US President, also nominated Cohen as the chairman of the Securities and Exchange Commission, but Cohen did not accept it.
what is the secret of Cohen's amazing success?
He is used to combining a lot of information from all directions to form a good feeling about market betting. Sometimes up to 3 transactions can be made every day without studying any economic details. By continuously monitoring the quotation during the working day, the maximum profit can be obtained. I firmly believe that the main reason for his success is his ability to build an incredible team. Be clear about your position, not blindly follow.
don't try to be both an investor and a day trader. Choose a method for yourself that makes you feel comfortable. After you have the foundation, you need to find your own style. Because it is very important that your trading style matches your personality. There is no only right way to trade in the market. Know yourself.
it is also very important to ensure a good reason for opening positions.
It is not a good reason to buy a stock because the stock price is too low or sell a stock because the stock price is too high. If your analysis only reaches this level, you have no reason to expect yourself to win in the market.
To be a great trader is a process, and it is an endless game. The market will not be static, so no style or method can achieve excellent returns in the long run. If you want to keep beating the market, please beat yourself first-keep updating, keep learning and try more ...
Note: Xu Xiang, born in Ningbo in 1978, is the most legendary stock god in the history of China capital market, and later founded Sunshine Private Equity Company, Shanghai Zexi Investment Management Co., Ltd. As the legal representative and general manager, he has issued 6 products, and the number one private placement of Sunshine. He was sentenced to five years and six months in prison for manipulating stock prices and insider trading, fined 11 billion yuan, suspended for life, and released on July 9, 221.