Overnight Success? Donchian’s Journey Proves Otherwise
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Overnight Success?
Donchian’s Journey Proves Otherwise
Imagine spending decades perfecting your craft, knowing deep down you’re on the right path, yet seeing little tangible success. Most people would give up. But Richard Donchian didn’t. At 60 years old, with 42 years of market experience, he was still managing just $200,000. By the time he was 70, he had turned that into $27 million, earning an annual income of $2 million.
His story teaches us that success isn’t about how quickly you achieve it—it’s about consistency, patience, and the courage to stay the course.
Today, I want to take us back to the fundamentals, to the lessons of a man who didn’t need algorithms to crack the code of wealth: Richard Donchian, the father of trend-following.
Donchian’s life shows us that wealth isn’t built overnight—it’s built over time, with discipline, tenacity, and an unwavering commitment to your principles. His approach to investing, known as "Trend Following," is more than a market strategy. It’s a philosophy of life: Follow what works, ignore the noise, and trust the process.
The Birth of a Trend-Following Pioneer
Donchian’s journey began humbly in the family carpet business. But a spark ignited when he read the biography of Jesse Livermore, a legendary trader. Fascinated, Donchian began to study markets, but his first foray ended in losses during the 1929 crash. Instead of giving up, he used this setback as fuel, diving into technical analysis and historical price data. His resilience set the stage for his groundbreaking strategy.
He didn’t try to predict markets. Instead, he followed their trends. His mantra? "Stick to the system, even after losses." This discipline kept his capital intact until the right opportunities emerged—a lesson for all of us chasing short-term wins.
A Lifetime of Perseverance
For decades, Donchian’s career seemed like a slow burn. By the age of 60, he was managing just $200,000. But his steadfast belief in his system paid off. By 70, he was overseeing millions. Imagine the patience it takes to stick to your principles for over 40 years without significant recognition. His success wasn’t just financial—it was the triumph of persistence over doubt.
Today, we live in a world of instant gratification. We want immediate results, be it in fitness, relationships, or investments. Donchian’s life reminds us that the greatest achievements often come from long-term commitment.
Timeless Wisdom for Modern Investors
Donchian’s approach wasn’t flashy, but it was revolutionary. He taught that success isn’t about predicting the market—it’s about adapting to it. His system was simple: Follow trends, cut losses, and let winners run. These principles remain the backbone of many modern strategies, including the famous Turtle Trading System.
But his wisdom went beyond numbers. Donchian once said, “The job of an investor is incredibly simple: Don’t lose money.” It’s a lesson often overshadowed in the rush to chase returns. Risk management, not just profit potential, should guide every decision.
Donchian’s story isn’t just about investing—it’s about life. He showed us that it’s never too late to succeed. At 60, many people are planning retirement. Donchian was just hitting his stride. His journey resonates with anyone who’s ever felt stuck, doubted themselves, or wondered if their efforts were worth it.
We’ve all faced moments where quitting felt easier. Maybe it was a project, a relationship, or a dream. Donchian’s story reminds us that persistence isn’t just admirable—it’s transformative. And sometimes, the best things in life take time.
Conclusion
So, what can we learn from Richard Donchian? Follow the trends in your life—the things that consistently bring value. Ignore the noise of fleeting distractions. And most importantly, stay the course, even when the rewards seem distant.
As you leave here today, ask yourself: What system am I following? What’s the trend I need to trust in my life, my career, or my relationships? Don’t get distracted. Stay disciplined. Because success isn’t about how fast you reach the finish line—it’s about the journey you take to get there.
Donchian’s life is proof that perseverance, coupled with discipline, leads not just to financial success but to a legacy that endures. Let’s all strive to build something that lasts.
🔴[LIVE] New York Call
Every business day, we hold a live meeting with our Brazilian clients, called the New York Call, where we analyze the market, our portfolio, and assets on demand. This is an excerpt from the meeting in Portuguese.
With clients in 60 countries, we've included English subtitles to make this content accessible to a wider global audience.
Decoding Market Signals - Week #51/2024
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I am immensely grateful for sharing the inspiring story of Richard Donchian. At 72 years old, I deeply identified with the idea that success is built over time, with persistence and discipline. Although I have not yet achieved the financial success I aspire to, your narrative motivates me to continue striving for excellence in all that I do. After all, as Donchian demonstrated, it's never too late to start a new journey. Thank you for this valuable lesson and for reminding me that time is a valuable ally when used correctly.