1 The Story
A 2,500-fold run
Michael Marcus was a commodities trader at Commodities Corporation who, over roughly a decade, multiplied his trading account about 2,500-fold — turning an initial ~$30,000 into some $80 million.1
He was the opening interview in Jack Schwager's Market Wizards, and sits at the centre of a remarkable lineage: mentored by Ed Seykota, he in turn mentored Bruce Kovner.1
2 The Big Idea
Let winners run; manage risk; trade your conviction
The big trends pay for everything — if you have the size on and the discipline to hold.
Marcus learned systematic trend following from Ed Seykota and built it into a fortune: cut losers fast, ride winners hard, and put real size on your best ideas — while always managing risk so a bad streak can't end you. He was also candid about the psychological side of staying with a winning position.1
3 The Method
The Marcus approach
Ride your winners
'If you don't stay with your winners, you can't pay for the losers' — let the big trends run.
Cut losers fast
Small, controlled losses are the cost of catching the rare large move.
Trade with conviction & size
Put meaningful size on your best ideas — but only with strict risk control.
Mind the psychology
Staying with a winner (and surviving losses) is as much emotional as analytical.
4 Try It Today
Test the idea for yourself
A no-risk exercise
On a long trend, mark every small loss a trend-follower would have taken, and the one big winner that paid for them all. Then ask the hard question Marcus faced: could you actually have held that winner — with size on — without taking profits early? That discipline is the whole game.
5 In Their Words
Michael Marcus, quoted
"If you don't stay with your winners, you are not going to be able to pay for the losers."— Michael Marcus, in Market Wizards (Jack Schwager)1
6 Watch & Read
Go deeper
- TRADEREd Seykota (his mentor) & Bruce Kovner (his student).
- PLAYBOOKThe Donchian Channel Breakout — trend following in practice.
- BOOKMarket Wizards — Jack Schwager
§ Sources
- Michael Marcus interview in Jack Schwager, Market Wizards (1989); profile via TurtleTrader — turtletrader.com