Today’s guest, Ray Barros, is a veteran trader and retired hedge fund manager whose trading journey is definitely worth turning into a biography book. Despite owning a profitable legal practice in his early days as a lawyer, he abruptly sold the practice in 1980 and dived full-on into trading within knowing what he was really doing.
Over the subsequent 6 years, he blew up his account on multiple occasions and lost a total of AUD 750,000 during that period. Somehow, he persevered through the entire ordeal and finally saw the light at the end of his tunnel when he registered his first profitable year of trading in 1987 and did not look back since.
In 1990, he started his hedge fund with AUD 20m of investor money and traded it to nearly a billion dollars over the next 20 years. In Dec 2010, Ray registered the most profitable year of his career and as usual, decided to abruptly end his hedge fund career on a high, by returning about 943m dollars back to his investors.
Since then, he went into a semi-retirement mode. Instead of making more money than he can spend, he decided to turn his attention towards paying it forward by starting a trading school to coach and mentor budding traders.
With almost 40 years of both painful and glorious trading experiences under his belt, I’m sure we’ll all be able to learn and get inspiration from his story.
[00:03:38] Ray explains why he shut his legal practice in 1980 to become a full-time trader.
[00:06:03] Ray details his first six years of unprofitable trading as a full-time trader.
[00:10:07] Ray explains how a trader can get support from the spouse when embarking on the initial difficult phase of the trading journey.
[00:14:18] Ray talks about the key factors that helped him persist through the initial 6 years of unprofitable full-time trading experiences.
[00:17:52] Ray recalls the year 1987 when he finally had his first full year of profitability.
[00:21:41] Ray shares how his broker helped him got started in his fund management career.
[00:28:05] Ray discusses about the important things to watch out for when managing money for family and friends.
[00:29:51] Ray talks about his trading strategy as his funds grew from millions of dollars to hundreds of millions of dollars.
[00:31:36] Ray illustrates the trading horizon of his winning and losing trades.
[00:34:20] Ray details how he overcame a 3 year draw-down period in which his fund nearly closed down.
[00:44:24] Ray explains how he managed to end on a high note for his fund management career with his final year registering a triple digit profitability.
[00:46:49] Ray shares how he manages his exits to maximise his returns.
[00:51:03] Ray talks about his experiences starting a trading school after he retired from fund management.
[00:57:29] Ray concludes with the trading best practices he would have implemented if he had an opportunity to start all over again at the start of his 40 years trading career.
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