Lex van Dam specializes in trading in equities, currencies and financial derivatives. He has been dubbed the man who teaches traders how to trade.
He earned a Master of Science degree from Econometrics and Investments at the University of Groningen.
His professional career began in 1992, trading stocks for Goldman Sachs where he worked for ten years, latterly as head of the equities proprietary trading desk.
Lex van Dam then headed money at GLG which, at the time, was Europe’s largest hedge fund. Lex van Dam then moved on to work for Hampstead Capital LLP.
In 2009 Lex van Dam has appeared on a reality show, “Million Dollar Trader.” He also wrote that year a companion book entitled, “How to Make Money Trading.”
In 2009 Lex van Dam has appeared on a reality show, Million Dollar Trader
Lex van Dam’s unique five trading methodology is used by individuals, schools, and universities to show how the stock market works in real life.
It is based on the following; Build a diversified portfolio of positions that are uncorrelated with each other. So if one position has a bad day, the other position compensates the portfolio. Come up with good trading ideas, use fundamental macro analysis and technical analysis. He talks about trading psychology (your state of mind and the markets)
Lex van Dam is a short-term swing trader with a diversified portfolio.
Lmiting losses when you are wrong, making up for losses when you are right – Lex van Dam
In 2009, Lex Van Dam featured in a three-part series on BBC2, entitled “Million Dollar Traders” which aims to educate eight ordinary people about the stock market.
The three-part series was inspired by the famous “turtle trader” by Richard Dennis in the 1980s.
Lex van Dam financed the experiment using the sterling equivalent of $1 million of his own money as trading capital for the novices to trade with over the course of eight weeks.
Those applicants who lasted the experiment reaffirmed the claim that novices could indeed become professional-level traders, making small profits or at least lower losses trading in very turbulent markets. During the filming professionals, lost four times greater amounts over the same period. Lex van Dam’s experiment supports the famous “turtle trader”view that trading is not gambling it is a knowledge-based skill which can be successfully taught to motivated people from various backgrounds.
Later that year a companion book “How to Make Money Trading” was released in order to expand on the trading techniques featured in the television series.
But what motived Lex van Dam’s to carry out this experiment (at his own expense)?
Lex van Dam wants to encourage the public to take a greater control of their finances, particularly in the wake of the 2009 financial crisis. He wants to expose the myths surrounding this somewhat mystical world of finance-that there is truly nothing special or magical about money managers. That you too can be the master of your own investments. Frankly, the most philanthropic thing a successful person can do is share their knowledge and help other people help themselves. Giving with strings attached to manipulated a situation for one’s own personal gain is wealth consolidation disguised as charity.
In November 2010, Lex van Dam launched the Lex van Dam Trading Academy which aims to teach people how to trade and invest in the stock market.
Later that year a companion book How to Make Money Trading was released in order to expand on the trading techniques featured in the television series.
Lack of consistent trading process – Lex van Dam (on why many beginners fail)
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Lex van Dam