Michael Marcus began his career as a commodity research analyst for a major brokerage house. His near-compulsive attraction to trading led him to abandon his salaried position to pursue full-time trading. After a brief, almost comical, stint as a floor trader, he went to work for Commodities Corporation, a firm that hired professional traders to trade the company’s own funds. Marcus became one of their most successful traders. In a number of years, his profits exceeded the combined total profit of all the other traders. Over a ten-year period, he multiplied his company account by an incredible 2,500-fold!
Marcus learned money management from Ed Seykota, whom he met while working as an analyst. He was a founding trader of Commodities Corporation, where he was chief currency trader and hired and taught Bruce Kovner as a trader. Marcus blamed the ending of his first marriage on his having to check the markets every two hours throughout the night. Marcus eventually became an EVP at Commodities Corporation. Marcus has recently invested in small-company stock through his holding company Canmarc Trading Co and later made private-placement investments in small OTC Bulletin Board listed companies like Prospector Consolidated Resource and Encore Clean Energy Inc and Pink Sheets Touchstone Resources.
“I really feel that if you can trade one market, you can trade them all. The principles are the same. Trading is emotion. It is mass psychology, greed, and fear. It is all the same in every situation.”
I found it particularly interesting that, despite a number of painful trading losses, Marcus’ most devastating experience was actually a profitable trade in which he got out prematurely. Taking advantage of potential major winning trades is not only important to the mental health of the trader, but is also critical to winning. In the interview, Marcus stressed that letting winners ride is every bit as important as cutting losses short. In his own words, “If you don’t stay with your winners, you are not going to be able to pay for the losers.”
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