Lewis Borcelino, one of the greatest traders in history, reveals his 10 commandments for profitable trading, emphasizing discipline, self-awareness, and managing losses. He shares his experiences from the Chicago trading pits, the evolution of trading technology, and advice for traders today to succeed by understanding themselves and sticking to a solid process.
Lewis Borcelino, renowned as one of the greatest traders of all time and the largest trader in the S&P trading pit in Chicago, shares invaluable insights into the art and discipline of trading. With a career spanning decades and a record of never having a losing year, Lewis offers a rare glimpse into the mindset, strategies, and principles that underpin successful trading.
Lewis Borcelino made headlines after making $4.7 million trading S&P futures, earning recognition as the biggest trader in the country. Trading in the pits was intense and physical, with no practice days—every day was game day. Lewis emphasizes that successful trading is not about swinging for the fences daily but about consistent, disciplined approaches.
Lewis discusses how technology, especially AI, has transformed trading. What once cost $200,000 annually to gather information and develop trading signals can now be automated for as little as $5,000. This democratization of information and automation is poised to create more millionaires than ever before.
In the 1990s, Lewis was ahead of his time, creating a website to shorten the learning curve for traders and developing trading programs based on technical analysis. One such program, based on the open and five-minute close, yielded $2 million in six months before it stopped working—a classic example of trading programs' limitations.
Trading in the pits required quick reactions and the ability to interpret order flow and market psychology. Lewis compares this to athletes who train their minds and bodies to perform at game speed. The physical presence and emotional energy in the pits provided cues that screen traders today often miss.
Lewis shares his 10 commandments, timeless principles that remain relevant today:
Lewis explains the different pressures involved in managing funds for others compared to trading your own capital. Managing others' money introduces additional stress and governance requirements, while trading your own money demands a strong constitution to handle drawdowns.
Lewis shares personal stories, including his ventures outside trading, such as starting a healthcare company and later a cybersecurity business after significant financial setbacks. These experiences highlight the importance of resilience, learning from mistakes, and moving forward.
Discussing macroeconomic factors, Lewis notes the massive global debt and the potential shift from the petro dollar to a system pegged to gold and cryptocurrencies. He expresses cautious optimism about AI's role in trading, acknowledging both its potential and the risks of a bubble.
Lewis advises traders to be honest with themselves about why they may not be profitable, often due to being undercapitalized or influenced by external stress. He stresses the importance of discipline, process adherence, and self-awareness.
Lewis Borcelino's insights offer a comprehensive guide to trading success grounded in discipline, self-knowledge, and respect for the market's realities. His 10 commandments serve as a timeless framework for traders seeking to navigate the complexities of live trading profitably.
Lewis Borcelino's journey from the chaotic pits of Chicago to becoming a trading legend underscores the blend of skill, psychology, and discipline required to excel. His teachings remain profoundly relevant in today's technologically advanced trading environment, reminding traders that while tools and markets evolve, the core principles of successful trading endure.
