A fresh torrent of hate has been initiated against famous trader George Soros after Trump accused him of controlling the district attorney. This event had so much resonance that even US fact-checkers got entangled in debunking conspiracies against him. Let’s use this chance and talk more about famous Forex traders and how they managed to become successful in these turbulent markets.
Best Forex traders in the world
Recent dramatic events involving the ex-president of the United States Donald Trump have created a renewed stream of hate towards one of the best FX traders in the World, George Soros. Soros is among the top 5 of the best Forex traders in the world together with Stanley Druckenmiller, Bill Lipschutz, Paul Tudor Jones, and Andrew Kreiger for a reason. He has been trading the Forex and other markets for decades with great success with some of his trades making billions of dollars from a single transaction.
Top trades that made billions to George Soros
- The Black Wednesday trade (1992): George Soros shorted the British pound famously betting that it would devalue against other currencies. This trade made $1 billion in a single day.
- The Asian Financial Crisis trade (1997): Soros made huge profits by shorting Thai Baht, Malaysian and Indonesian currencies among other several fiat currencies during the Asian financial crisis. He reportedly made $1 billion from these trades.
- The dot-com bubble trade (2000): Soros anticipated the dot-com bubble bursting and shorted technology stocks and made yet another billion from profits.
- The subprime mortgage crisis trade (2007-2008): When the market crashed George Soros made billions in profits after he made large bets against the US housing market and the subprime mortgage industry.
Soros knew how markets operate and how central bank decisions can change prices and affect Forex markets in general.
Another peculiar case of famous Forex trading is Stanley Druckenmiller who is known to retire with a net worth of $2 billion. He emphasizes capital preservation and risk management as the main factors to build a successful trading career. It is important to minimize losses and maximize profits and use risk/reward to the trader’s advantage if we believe Stanley Druckenmiller’s philosophy. He also considers George Soros as his mentor. As we can see it is possible to make money on Forex markets if relevant knowledge and skills are deployed, the only trick is to find what these skills are and master them to their full potential.
Becoming a successful Forex trader
So, how did these traders accomplish this level of success? There is only one thing that could make it possible for George Soros and other famous Fx traders. To make successful trades consecutively it is a must to hold extensive knowledge of financial markets and macroeconomic factors that impact the currency and stock prices heavily. Soros also has his own philosophy about financial markets that he refers to as reflexivity, which follows traditional beliefs that all information is known to all market participants and is already priced into asset prices. Soros has a degree in philosophy and has extensive knowledge and experience in Forex markets. Since he was a fund manager, he had an understanding of the exact factors that can change currency rates including central bank policies and how it affects prices. What’s great about this knowledge is that it is not a secret and anyone can learn it if enough time and attention have been made. Modern devices are all connected to the internet and it takes a few taps and clicks to access the educational resources required. After fundamental analysis and market working principles, it will be required to gain practical trading knowledge that can be accomplished by a demo account and trading platform. After these, the only thing remaining is to build a trading strategy with a strict set of rules and detailed risk management practices and deploy it to Forex markets. Not to get frustrated or confused let’s list the top factors in successful Forex trading:
- Robust knowledge of financial markets and what makes currency rates move
- How to open and manage trading positions in a live market environment
- Learning at least one advanced trading platform that provides charting software with inbuilt indicators and other tools to analyze markets
- Developing a trading strategy that contains all rules and makes all trading decisions logical and free of subjectivity as much as possible
- Trading psychology basics and how to maintain table emotional balance
After knowing these principles it becomes much easier to create a syllabus for basic Forex trading practice.
Summary
George Soros, a famous Forex trader, and philanthropist have faced a renewed stream of hate recently after Donald Trump accused him of controlling the district attorney. Despite this, Soros remains among the top five best Forex traders in the world. He has made billions of dollars from his famous trades including betting against the British pound and several Asian currencies. What makes Soros and other top Forex traders in the world so special is their deep understanding of financial markets and fundamental factors that affect currency rates. Soros has his own philosophy called reflexivity which he uses in his trading activities. He believes all information is already priced into markets. To achieve his level of success traders are required to practice trading with extensive knowledge and risk management strategies that lower losses and maximize profits.
