Who Should You Study as a Trader?

[Henrik Ekenberg]

Who Should You Study as a Trader? 

Great traders constantly seek to refine their craft, and one of the best ways to do so is by studying other successful traders. Each legendary trader offers unique insights into strategy, psychology, and risk management. Whether you're into technical analysis, swing trading, or macro investing, there's a wealth of knowledge to gain. 

Here's a breakdown of some iconic traders and the lessons they offer: 

 

1. Jesse Livermore (The Speculator's Edge) 
Why Study Him: Known as one of history's greatest speculators, Livermore's trend-following and breakout strategies remain timeless. 
Key Lessons: 

• Patience: "Be right, and sit tight." Wait for the right setup. 
  
• Market Psychology: Understand emotional extremes and crowd behavior. 
  
• Risk Management: Avoid overleveraging. 
  

Book Recommendation: Reminiscences of a Stock Operator by Edwin Lefèvre. 

 

2. Paul Tudor Jones (The Contrarian Macro Trader) 
Why Study Him: Famously profited from the 1987 crash, combining macroeconomic trends with technical analysis. 
Key Lessons: 

• Risk Control: Always have a stop-loss. 
  
• Contrarian Thinking: Look for opportunities where the crowd is wrong. 
  
• Flexibility: Adapt quickly to changing markets. 
  

Key Quote: "Focus on protecting what you have." 

 

3. William O'Neil (Growth Stock Innovator) 
Why Study Him: Creator of the CAN SLIM methodology for identifying high-growth stocks. 
Key Lessons: 

• Combine Fundamentals & Technicals: Strong earnings + technical breakouts. 
  
• Cut Losses Quickly: Exit when a stock drops 7-8%. 
  
• Focus on Leaders: Trade stocks in leading industries. 
  

Book Recommendation: How to Make Money in Stocks by William O'Neil. 

 

4. Mark Minervini (Swing Trading Mastery) 
Why Study Him: A master of momentum and swing trading with a focus on risk management. 
Key Lessons: 

• Risk-Reward Ratios: Take trades with significantly higher upside than downside. 
  
• Tight Risk Control: Keep losses small and let winners run. 
  
• Study Price Action: Time entries and exits with precision. 
  

Book Recommendation: Trade Like a Stock Market Wizard by Mark Minervini. 

 

5. Richard Dennis (Trend-Following Pioneer) 
Why Study Him: Co-creator of the Turtle Trading experiment, proving trading success can be taught. 
Key Lessons: 

• Follow Trends: Trade with the prevailing trend until it ends. 
  
• Simple Systems Work: Complexity isn't necessary for success. 
  
• Risk Management: Position sizing ensures survival. 
  

 

6. George Soros (The Reflexive Macro Trader) 
Why Study Him: Known for high-conviction macro trades, including shorting the British pound in 1992. 
Key Lessons: 

• Reflexivity: Prices influence fundamentals, not just vice versa. 
  
• Aggressive Conviction: When confident, size up. 
  
• Risk Management: Cut losing trades ruthlessly. 
  

Key Quote: "It's not whether you're right or wrong, but how much you make when you're right." 

 

Final Thoughts: 

Studying great traders isn't about mimicking their style—it's about learning their principles. No one-size-fits-all strategy exists, but by analyzing the strengths and mistakes of these legends, you can refine your own approach. 

Who inspires your trading journey? Let's discuss!