How Jim Simons made $100 Billion by Day Trading

So, you have decided to make a lot of money in the stock market by day trading. Let me share a story. This is the story about Jim Simons, who has made the most money in the stock market by day trading.

How did he do it? He did three things.

One, he himself is a genius. He won the Nobel Prize for mathematics, which is called the Fields Medal, and he hired other friends of his who were genius mathematicians to come and work with him. This way, they could write programs that would analyze the data for the stock market and stock trades.

Two, they scoured the entire world for data about companies, about stocks, about commodities, and about futures.

Three, they put their programs and their data on powerful computers and trained them to beat the stock market. They started doing this back in the 70s, and by the mid-1980s, they had built such a machine that they were able to make billions of dollars of profit every year. Between 1982 and 2018, they made 100 billion dollars in profits.

If you think you can beat people like Jim Simons and his team at Renaissance Technologies, you should day trade. Otherwise, you should invest either in stock funds, index funds like the S&P 500, or you should invest in companies that you believe in and know really well, and hold on to those companies for a long, long time.