Gerry Beverde, a major investor in Treasury futures, used poker to explain trading legendary traders

The book "Financial Geeks: Wall Street's Top Traders" contains the legendary trading stories of 17 financial geeks, including Gary Beverde, a well-known government bond futures player on Wall Street.

Start from scratch: Raise $1,000, starting with a part-time trader

From the beginning of his work, Beverde hoped to become a full-time trader, but because the capital was too small, he could only work as a part-time trader in the early days, relying on a small brokerage company to make a living. Beverde's strong desire to become a professional trader led him to take greater risks, and he raised the $1,000 he needed to start a legendary trading career.

Limited by the size of the funds, Beverde initially could only engage in corn futures trading, and Beverd did not believe in diversification. His trading philosophy is: pick an investment project, but go all out and become an expert in the field. Therefore, the soybean and related grain markets are the focus of his trading.

By 1965, Beverd's money had grown from $1,000 to $10,000. At that time, Beverde judged that the price of soybeans would rise based on his knowledge of the soybean market and the opinions of his professor of agricultural economics. So he made a desperate bet and used all his funds to buy a 20-lot soybean contract. At first, soybean prices fell and Beverd was on the verge of bankruptcy. However, Beverd gritted his teeth and held on, and finally waited until the price of soybeans rose and his assets doubled.

Fight alone to become the world's largest bond trader

Since then, Beverd's deal has been smooth sailing. By the early 1980s, he had reached the limit of the U.S. government's quota for soybean and grain speculation. Later, Beverd made a very bad soybean trade, so Beverde decided to shift the focus of the transaction to the Government bond futures market, which did not have a cap on speculative positions at that time.

Beverd entered the market just in time for the Treasury futures market to fall to the bottom and held a large number of long positions. From 1984 to the beginning of 1986, the government bond futures market continued to rise, and Beverd became famous due to its long-term long-term long-term growth, not only achieving the goal of becoming a full-time trader, Beverd also became one of the few traders in the bond futures market who could sit on an equal footing with legal entities, and one of the world's largest bond traders.

Explain trading with poker: the importance of patience

When it comes to trading, Beverde likes to use the metaphor of playing poker, and he learned to play poker from an early age and applied his card playing skills to trading.

When trading, Beverd always reminds himself to be patient and wait for the opportunity to trade that is beneficial in all aspects. If a trade is not right, you should play immediately and reduce your losses, which is like getting a bad card and simply giving up early to avoid losing more. And when the market trend is favorable, it should be like getting a good hand, increase the bet, and be determined to give it a go.

Beverde's concept of playing cards is in line with the most important principles in trading, and you must be patient and wait for trading opportunities that are beneficial to you.

The secret to Gary Beverde's success

Beverde believes that the most important thing in a successful transaction is to firmly hold the profitable trading instrument and quickly empty the losing trading symbol, that is, to "hold the profit and stop loss".

In addition, Beverde believes that successful traders should have 5 qualities:

1. Abide by the transaction discipline;

2, want to become a successful trader, must be patient, if you hold a good variety of money, you must be patient, firmly hold;

3, the need to have the courage to enter the transaction, this courage comes from sufficient trading funds;

4, you must be willing to admit the mistake of stop loss, calmly accept the loss, which is also related to sufficient trading funds;

5, you need to have a strong desire to win.