Research Summary
The article discusses the trading strategies of Bill Lipschutz, a successful trader known for his expertise in the foreign exchange market. Lipschutz started his trading journey at Cornell University and later joined Salomon Brothers, where he quickly became the head of the forex department. He then founded Hathersage Capital Management, a successful global macro firm. The article provides a detailed breakdown of Lipschutz’s trading strategy and shares some of his timeless market wisdom.
Actionable Insights
- Opportunistic Trading: Lipschutz capitalized on mispricing in the bond market, demonstrating the importance of being alert to market inefficiencies.
- Never Miss an Opportunity: Lipschutz emphasizes the importance of being always ready to seize market opportunities, even when on vacation.
- Risk Control and Position Sizing: Lipschutz advises traders to know their standing, avoid concentrating too much money on one big trade, and understand the risk/reward of the trade as it stands.
- Handling Trading Drawdowns: Lipschutz suggests reducing trading size during losing streaks to protect both financial and emotional capital.
