Michael Marcus, an American commodities trader, turned $30,000 into $80 million between the early 1970s and late 1990s.
To this day, Marcus is still trading and some of his tactics may give you a few ideas on how you can achieve the success you are looking for in your field.
Out of college in 1969 Marcus took his life savings of $1000 and invested it in trading soybeans, wheat, and other commodities.
Michael Marcus’ initial stake was, in fact, a bust but he did learn valuable insights into commodities trading.
He continued trading, sometimes borrowing money from family members. This was just a hobby but he did see his hobby grow. Marcus learned the necessary skills at gathering more capital together and taking action on his ideas.
Whatever idea you have, if you invest a personal stake in it as Marcus did, your ability to gain valuable skills will happen much faster than taking a course or reading a book about it.
What Marcus did in the early 1970’s was to take his hobby of investing more seriously.
With a bigger stake of $30,000 from his savings and an additional $20,000 he borrowed from his mother, he quickly learned how to manage risk and diversify his investments.
You’ve heard the old saying, “Don’t put all your eggs in one basket.”
From the mouth of Marcus, “Always bet less than 5 percent of your money on any one idea. That way you can be wrong more than twenty times; it will take you a long time to lose your money.”
While doing this he discovered how to successfully trade commodities by weighing opportunity costs. By deploying capital into one trade means there is less for the next one, but there is always another one.
For example, if you decide to start a business, your opportunity cost might be your favorite hobby that you would then have little time for.
You might also spend several years working for one company; the opportunity costs might be an alternative career in a different industry.
The decision is yours. If you find the costs are worthwhile and the cause is important to you, go for it!
Michael Marcus said, “I’ve learned not to be as attached to material things. I accepted it as a life lesson. I learned I don’t have to own a house in every beautiful place in the world; I can stay at a hotel and walk on the beach or climb a trail there.
One of Michael Marcus’ biggest lessons to any aspiring trader or reader is to keep the winners and let go of the losers.
Staying with the winners will help you pay for the losers.
This is also an important life lesson.
Look around at what is adding value to your life or business. Once you have an idea about what is bringing you value, you can then decide to do more of that.
Lastly from Michael Marcus, “Being a successful trader also takes courage: the courage to try, the courage to fail, the courage to succeed, and the courage to keep on going when the going gets tough.”
So yes it takes a bit of a bold move when you are investing or starting a business.
“It will require you to be courageous and use those lessons you learn along to way to improve your likelihood success.”, Michael Marcus
Sonia Rina Davies is a passionate entrepreneur, speaker, author, and personal development coach. She is an outspoken advocate of the free market economy and has helped countless clients identify their core values, envision and realize goals that resonate with those values. She oversees several businesses both online and offline.