Larry Williams is the record holder of the Robbins Cup All – America Futures Contest. Within one year, he astonishingly turned $10,000 into $1,130,000, achieving a remarkable return of 11376% and leaving others far behind.
The most legendary thing is that he has proved that one can pass on trading success. His daughter, Michelle Williams, won the 1997 championship with a 1000% yield in the competition and has been the record holder for female participants so far.
Media reports say that when Michelle trades, her father’s investment philosophy always subtly influences her. For example, don’t predict the market (futures market) because the price level is unpredictable. One must control losses and put survival first. One can only make money on days with sharp fluctuations. On days with sharp rises, the closing price often nears the highest point; on days with sharp falls, the closing price often nears the lowest point…
With her father’s guidance, Michelle thrived in the financial market, and her mother also achieved remarkable results. From this, we can see that Larry Williams’ investment methods are worth learning. Larry also said in an interview, “If my underage daughter and my engineer wife can learn to invest, then everyone can.”
As a trading master, Williams published a book: Short-Term Trading. Many of the ideas in the book are still not outdated today. We’ll give away several copies to everyone today.
It’s worth mentioning that many trading disciplines in the book are very different from the common understanding of most people in the market.
Williams hates pyramiding the most. In an interview, he revealed that he once had a friend who believed in pyramiding. Once after adding positions, the market suddenly worsened sharply, causing his friend a huge loss and a direct margin call.
Based on his long-term trading experience, Williams proposed the 30% stop – loss rule. Note that this rule doesn’t mean a 30% loss. Instead, when the funds invested in the market reach 30% of the total funds, one should stop investing immediately. If one feels inexperienced, Williams suggests only investing 20%.
Secondly, Williams likes to set the stop – loss level slightly lower than others. He believes that if the stop – loss point is at a lower position, it’s more helpful to capture the bottom market. From the perspective of conventional operation methods, institutions often wash out some low – level buying orders in the market to further optimize their buying prices. So if the stop – loss level is lowered, other orders will be stopped first, giving one’s own orders a greater chance of capturing the market.
The most important point is that Williams only buys on falling days and only sells on rising days. Chasing the rise and killing the fall is a necessary path for individual investors. However, Williams pointed out from historical data that the probability of a rapid rebound during a fall and a sudden drop during a rise is greater. Of course, this is a result that requires comprehensive judgment, but overall, it’s easier to prevent us from getting stuck in a locked position.
Reproduction Notes：InvestFancy » Larry Williams:How to Achieve a Hundredfold Return within One Year?