Ed Seykota: The Mastermind Behind Unprecedented Trading Success

How Ed Seykota Turned $5,000 into $15 Million with Simple Yet Effective Trading Strategies

Ed Seykota, named by some as one of the best, if not the best, stock trader of our time, maintained a low profile until he was featured in Jack Schwager's book, Market Wizards. From 1972 to 1988, Seykota turned a $5,000 client account into almost $15 million. Without withdrawals, this account would have appreciated by several million percent. In this article, we uncover Ed's personal trading style, rules, and wisdom that have made him possibly one of the most successful self-taught traders alive today.

A Humble Beginning

Ed began his trading career during the 1970s and was hired by a major brokerage firm to help develop one of the first computerized trading systems aimed at managing clients' trading accounts. However, management interference led Seykota to leave and start his own trading venture. He was heavily influenced by Richard Donchian and his channel breakout strategy. Known as a trend follower, Seykota had a deep understanding of the psychological aspects of trading and solid risk management.

The Aha Moment

Seykota alludes to the "aha moment" as the reason for price change and trend