Connect with us

Hi, what are you looking for?


Bruce Kovner’s 4 trading principles that made him one of the greatest investors of all time

Bruce Kovner is one of the greatest investors of all time. He is an American hedge fund manager and chairman of CAM Capital, a family office based in New York with a focus in the Americas and Western Europe.

In 28 years at his own fund, Kovner generated 21% CAGR (i.e., Compounded Annual Growth Rate), and prior to that, about 90% when working for a decade at Commodities Corp.

What made Bruce successful, and how could such returns be achieved? Here are four trading principles that made him one of the great investors of all time:

Risk management is paramountMacro is really importantBe willing to make mistakesStudying the charts is critical

Risk management is paramount

Investing without risk management is not possible. As such, Kovner always traded with a stop-loss order, knowing when he would get out before getting into a market position.

The market should not reach a stop if the analysis is correct. If it does, it means you are wrong, and it is better to get out as soon as possible from a bad trade.

Macro is essential when investing

Macroeconomics is what moves markets. While technical analysis is important, it is the fundamental one that moves financial markets.

Understanding why the markets move is critical to successful investing.

Be ready to make mistakes

No one is perfect, and there is room for error in trading. Be ready to make mistakes as long as you are disciplined enough to take the correct size positions, have an independent view, and be a contrarian when other traders are unwilling to trade.

Technical analysis is critical

Technical analysis refers to studying the charts or past price action in order to forecast future market moves. To many, technical analysis looks like guessing, but to Kovner, the charts alert him on existing disequilibria and potential changes.

Drawing conclusions on what some other traders did in the past offers an educated guess regarding what they will do in the future.

The post Bruce Kovner’s 4 trading principles that made him one of the greatest investors of all time appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Reprinted from the Future of Freedom Foundation President Biden’s campaign to banish (or maybe outlaw) political paranoia took a wallop last spring. In April,...


    Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...

    Editor's Pick

    It’s already a cliché, but technology is rapidly improving. And for many businesses, it’s hard to catch up. However, it’s not just the average...

    Editor's Pick

    At Broadband World Forum 2022, Fibocom launched 5G module FG370 based on MediaTek T830 platform, aiming to empower the deployment of 5G FWA for...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.