Most famous traders and investors had gone a long way before achieving success in the market — even figures like Buffet and Soros became “market legends” in their mature years. The millennial have no time to waste, especially since modern technologies made financial markets more accessible than ever before. Who are these young talents who turned millionaires before they turned twenty?
High school millionaire
A classic example of the fact that young age is no obstacle to stock trading is the story of an American high school student Mohammed Islam. Born to a family of Bengal immigrants, the boy became curious of the opportunities offered by financial markets at the age of 9, when his cousin took up Forex. His brother never made it big, but Mohammed earned a 70-million fortune by the age of 16.
Mohammed admits he didn’t succeed right from the start. However, by trying different styles and perusing the experiences of such market geniuses as Jesse Livermore, the kid found himself in trading futures contracts for oil and gold. The young millionaire says an important element of his trading strategy was observing a flow of orders, which helps make the most appropriate decision on opening or closing a deal. This trading style — price action — is practiced by many successful futures traders.
Mohammed dedicates his school lunch recesses to trading. However, the young celebrity is not planning to continue his studies — Islam is more interested in opening a hedge fund of his own. He is indifferent about other business sectors. “Money, the financial flows, is what makes the world move”, says Mohammed. “Without money, there will be no business, no new technologies, no progress. Investment and trading are always relevant”.
From tennis to trading
What does the future hold for Mohammed Islam? How much can I make trading on forex? One possible answer to this question is the biography of Timothy Sykes, a trader who became a celebrity back in 2000 and is still successful in trading. Timothy managed to make 2 million dollars before he turned 20 — three years after he started trading. Currently Sykes runs his own hedge fund, writes books on trading and takes part in a popular TV show Wall Street Wars.
Timothy came to trading from sports — lawn tennis, to be precise. By the way, many people rightfully compare the trader’s job to that of a professional sportsman: it is just as important to be able to keep your composure under stress. When an injury interrupted Sykes’ sports career, the 17-year-old started looking for something equally profitable and exciting. Ultimately he decided to invest his savings of $12,000 into the stock market.
To achieve maximum diversity with this relatively small capital, Timothy invested into penny stock of 15 companies — and that strategy turned suddenly lucrative: 123,000 dollars in the first year, 800,000 in the second year, and 1.6 million in the third year! Sykes likes short positions. “I prefer to ‘short’ small and medium companies”, says Timothy. “Heavy volatility in this market segments opens up great opportunities for making money”.
Sykes also eagerly shares his experience — and not only during paid trainings he conducts regularly. You can always see some example deals with his comments at his website.
Ingenious teenagers set the example
Business Insider recently published a rating of 20 teenage traders who made their first millions in the making when they were aged 14 to 19. If you look at the list closely, you will see this is not just blind luck. Definitely, good fortune needs to be factored in as well — but it is clear that the guys do not spare their time and effort to improve their skills.
To begin with, each “young talent” has 4 to 5 years of trading experience. It’s just that they started very early. This doesn’t affect their serious attitude, though. For example, Buena Patria, a 14-year-old from Indonesia, who achieved phenomenal success in the Forex market, says he focuses on the market “7 days a week, 24 hours a day”. This is no wonder: Patria’s favorite book is Trading in the Zone by Mark Douglas.
Some are just lucky — like Andrew Kuhn, an American who made his most successful stock deal with a smartphone, while sitting at a literature class. Nevertheless, he also agrees it is important to study trading — and then success is only a matter of time. Especially since there are so many opportunities for training these days.