Whether you are a beginner or a seasoned forex trader, you are expected to share one crucial aspiration: to become a successful trader in the world of forex. This article will tell of the success stories of famous forex traders. It will also give you tips on how to become successful too.
Here are the top three professionals in the world of forex trading and how they exhibit the characteristics which made them famous and rich.
Let us begin the list with one of the legendary beacons in the industry, none other than George Soros. If asked who is the greatest forex trader, Soros will surely be on the top of the list. He is known to be the greatest investors in the history of trading. Soros gained his reputation as an eminent money manager by allegedly earning over £1 billion from a short position in pound sterling.
During that time, Britain was a part of ERM or Exchange Rate Mechanism. This made the government compulsory intrude if the pound lessened beyond a specific rank against the Deutsche Mark.
Soros has forecasted successfully that a combination of conditions had left the BoE or Bank of England to be vulnerable.
The commitment of Britain to maintain the value of the pound against the Deutsche Mark included intervention by either raising interest rates or buying sterling when the pound became weak. The recession implied that interest rates which are higher are harmful for the economy. This delayed investment at such a time when encouragement was instead needed. The economists at BoE acknowledged that the right degree of interest rates are lower than what is required to support the pound as part of the ERM’s part.
But the sterling value was preserved due to the UK’s public vow to buy sterling.
In weeks of leading to black Wednesday, Soros utilized his Quantum Fund to create a large spot of short sterling. But on the night of black Wednesday, the president of the German Bundesbank made some comments which suggested that there were specific currencies that will come under pressure.
This led Soros to considerably increase his position. When the BoE started to buy billions of pounds that Wednesday morning, it was discovered that the value of the pound had moved hardly. This was because of the flood selling in the market made by speculators who followed the lead of Soros.
Notice how strong his appreciation is for risk/reward which is one of the aspects that helped shape his reputation to be the best trader in the world of forex trading.
This man considered Soros as his mentor. Druckenmiller has actually worked with him for over a decade at the Quantum Fund. Aside from being part of Soros’ popular black Wednesday trade, Druckenmiller displayed an amazing record of consecutive years of gaining double digits with Duquesne before his subsequent retirement. He says that his trading viewpoint for creating long-term results lies on the preserving capital, then assertively pursuing gains when the trades are well. This technique emphasizes the importance of maximizing the opportunity when you are right, and minimizing the loss when you are wrong.
The bottom line here is that even the famous successful forex traders have started from somewhere. And if you are already generating profits now, you can already consider yourself as a successful forex trader.