An annual return rate of 2000%! He is the "Treasury futures god" who is known wo
2024-08-17
In 2020, it was an extremely challenging year for various industries. The spread of the COVID-19 pandemic severely impacted the financial market, also driving rapid fluctuations and significant declines in risk assets and U.S. Treasury yields. For investors, the volatile market was both an opportunity and a tribulation, which would cause many investors to suffer losses or even bankruptcy, while also providing a small number of investors who could seize the opportunity with a fortune. Today, we are going to introduce a trading giant, who is a genius in U.S. Treasury futures investment - Gary Bevord.
Everyone in the industry knows that he is not only a "chaos" trading god who is good at using high leverage, but also a major player in the U.S. Treasury futures market.
Starting with $1,000, he made $20,000 in one year.
In the early 1970s, Bevord, who had long wanted to enter the financial market, prepared to start trading with a capital of $1,000. Initially, due to the limitation of capital scale, he only engaged in corn futures trading. Bevord rarely diversified his investments. His belief in trading philosophy is: choose an investment project, study it hard, and become an expert in that field. In his early trading career, soybeans and related grain markets were the focus of trading.
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Due to the small capital scale, Bevord could only be a part-time trader in the early stage, relying on working in a small brokerage firm to make a living. The problem he faced at that time was: how to transform from a part-time trader lacking capital into a professional trader with abundant capital? This strong desire made him take risks many times to invest.
It was not until 1965, in just over a year, that Bevord's capital had grown from $1,000 to $10,000. That year, Bevord, based on his understanding of the soybean market and the opinions of his agricultural economics professor, judged that the price of soybeans would rise.
So he took a gamble and used all his capital to buy 20 soybean contracts. At first, the price of soybeans fell, pushing Bevord to the brink of bankruptcy. However, Bevord still gritted his teeth and held on, and in the end, the price of soybeans did rise. Bevord doubled his assets with this single trade and took a big step towards becoming a full-time trader.
Switching to the futures market, he became famous overnight by "going long"!From then on, Beveridge's trading went smoothly. By the early 1980s, his trading volume had reached the upper limit of soybean and grain speculative positions stipulated by the U.S. government. This prompted Beveridge to shift the focus of his trading to the Treasury futures market, which did not have speculative position limits at the time.
Fortunately, in 1983, when Beveridge shifted his trading focus, he happened to encounter a bottom in the Treasury futures market. At this time, Beveridge entered the market and held a large number of long positions. From 1984 to early 1986, the Treasury futures market continued to rise, and Beveridge, due to his long-term long positions, became famous overnight! He also became one of the few traders in the Treasury futures market who could stand on an equal footing with institutional investors.
What conditions are necessary for successful investment?
Beveridge's success is inseparable from two aspects: he not only has strong patience in trading but also has a very proactive trading style. What can his success teach us? The following five points are the conditions that Beveridge believes are necessary for successful investment:
First, the most important thing is to be decisive. People who are indecisive when it comes to making decisions will not succeed in anything.
Second, perseverance and patience. If you have a good trade in hand, seize the opportunity to make it bigger and stronger.
Third, the courage to enter the market, and courage comes from the abundance of funds.
Fourth, accept failure and have the courage to admit defeat, which is also supported by abundant funds.
Fifth, a strong desire to survive. To some extent, perhaps the stronger the desire to survive, the closer success is to you.
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