Steven Cohen is a well-known trader whose wealth is known for managing investments with high-risk strategies which can help traders thread through the risks in currency trading.For those seeking a compelling trading tale, Traders Union has tinkered with Steve Cohen’s valuable trading insights for a smoother experience in the Forex market.
Steven Cohen: a billionaire with high risk appetite
Born in 1956 in Great Neck, New York, Steven A. Cohen is the third of seven siblings in a family that makes both ends meet. Despite financial challenges in his early days, he pursued education and attended the University of Pennsylvania’s Wharton School of Business. Cohen graduated in 1978 with a degree in economics but his early fascination with poker is an earlier testament for his risk-taking nature.
During high school, Cohen’s interest in poker hinted at the bold and aggressive traits that later defined his trading career. Taking significant risks, Cohen used $1,000 of his tuition to open a brokerage account with a friend’s assistance and the bold move marked the beginning of his remarkable journey in trading.
Early days in the trading floor
Steven Cohen began his career as a junior trader at Gruntal & Co., where he quickly excelled in the options arbitrage division, making $8,000 in profit on his first day. He continued to achieve remarkable success, managing six traders and a $75 million portfolio. In 1992, he founded SAC, accumulating $14 billion by 2009 and earning the title “hedge fund king.” However, SAC reached a downfall due to insider trading allegations in 2013, paying $1.8 billion in fines and has then faced restrictions on managing third-party investments.
Cohen’s secret to making it to the top
Stephen Cohen got his massive wealth through high-stakes trading, starting from his days as a trainee at Gruntal & Co.’s options arbitrage sector. As the founder of SAC Capital Advisors, Cohen demonstrated his skills in managing substantial portfolios and ensuring consistent returns for clients.
His success stems from navigating high-risk, high-reward trades, as seen in SAC’s impressive 70% returns during the dot-com bubble and profitable short positions in 2000. Currently, Steve Cohen holds a net worth of $19.8 billion, securing his position as the 94th richest person globally according to Forbes. Moreover, his approach gave life to the well-known Steven Cohen Investment strategy today.
Cohen’ trading strategy
Steven Cohen uses a risky strategy that involves buying and selling stocks based on the potential for quick and significant gains. He works with a team of professionals, combining their efforts to identify undervalued stocks with growth potential – the billionaire encourages teamwork but commands final decisions. The strategy targets stocks from volatile, growth-oriented companies bearing risks due to unpredictable stock movements.
Here are some of the critical points in Cohen’s trading strategy:
- Bet big on small stock price changes.
- Engage in aggressive, high-volume trading with risky positions.
- Use data from various markets to understand trends and make strategic bets.
Traders Union suggests following Cohen’s strictly could help generate substantial profits in the market world. Additionally, the tycoon also shared his tips for beginners about trading.
Trading advice by Steven Cohen
Steven Cohen advises newcomers to have a passion for trading, highlighting the importance of enthusiasm for investing in stocks. Here are his top 5 investment advice.
- Don’t rush into investments: a calm approach builds better financial strategies, considering the psychological aspects of investing.
- Stay committed to learning: it’s better to be an expert in one subject and focus on researching and understanding one stock.
- Avoid relying on other people’s strategies: developing a personalized strategy is crucial, as trading approaches vary based on individual variables.
- Learn from failed trades: move past losses, take a break, analyze, and understand what went wrong to make smarter decisions.
- Keep researching and evolving: the market changes, and a dynamic strategy is essential for long-term profitability.
The last tip stands out as it emphasizes the importance of choosing the right platform. Traders Union experts set an example through their Evolve Markets platform review to strengthen this observation further.
TU’s review on Evolve Markets
According to the TU official site, Evolve Market is a moderate-risk broker with an overall TU score of 6.3 out of 10. The platform ranks 58 among 383 companies and for long-term cryptocurrency investors looking to engage in short-term trading of various assets. However, Traders Union advises users to carefully assess the pros and cons before opening an account with this broker. Not all clients are satisfied, according to reviews.
Here is a quick rundown of the pros and cons of Evolve Markets:
Pros
- Over 100 trading assets, including cryptocurrencies
- There is no withdrawal fee
- There are no minimum deposit prerequisites
Cons
- Lack of educational resources provided by the broker
- Lack of regulatory oversight
Evolve Markets’ disadvantage may significantly affect its platform since traders opt for the learning while earning path. In addition, a fellow financial platform, ING Direct, compared with Evolve Markets, is providing more consistent long-term results.
Evolve Markets Vs. ING Direct
Evolve Markets and ING Direct are hot debates in the financial sector. An article has been published by Packageslab, drawing on the analysis provided by Traders Union. This article states that Evolve Markets is synonymous with Bitcoin trading. Launched in 2016, this platform targets modern traders and has many cryptocurrency-specific perks, making it more ideal for high-risk takers.
On the other hand, ING Direct, a traditional bank founded in 1997, stands out with no-fee banking, attractive savings rates, and user-friendly support. Despite waiving commissions for new clients, its brokerage services have limited tools for active trading compared to Evolve Markets.
Making a choice
Choosing a platform between Evolve Markets and ING Direct should be based on financial goals. Evolve markets is the best partner for traders trading Bitcoin as it is excellent for its security, support for cryptocurrencies, and competitive fees.
Meanwhile, traders who love money and go to traditional banks should opt for ING Direct since it provides no monthly fees and offers high savings interest rates. Overall, aligning financial needs with investment goals creates a clear vision of which platform to choose from.
Wrap it up
Steven Cohen suggests a high-risk and high-reward method is not all for traders as it requires following strict rules. TU’s revelation of his step-by-step guide also enabled traders to determine the correct platform fit for their investments carefully.
Although the overall market sphere may operate in a shaky wave, generating passive investment still depends on the trader. In the words of Steven Cohen,” You can’t control what the market does, but you can control your reaction to the market.”
About the author
The article was written by Oleg Tkachenko, a seasoned economist-analyst and risk manager, possesses more than seven years of hands-on experience in financial institutions and has been an author at Traders Union since 2018.
