Top three most successful Forex traders ever and what we can learn
What does it cross your mind when you hear the word wealth? Is it multiple possessions, security, health? What do you associate with forex? Many people became wealthy thanks to the right trading strategies, but who are the top three most successful forex traders ever?
We decided to write about the top three most successful Forex traders ever if we include money only, and how we can learn from their strategy.
This is the man who earned the title “The Man Who Broke the Bank of England.” It happened when he short-sold 10 billion dollars back in 19992, netting a profit of 1 billion dollars. What is even more surprising is that this man succeeded in doing this during the UK financial crisis, also known as Black Wednesday. He still holds the title of the best forex trader in the world.
Soros got a master’s degree in Philosophy, and the most groundbreaking thing is that he applied Popper’s Theory of Reflexivity to the foreign exchange market. This theory, in short, covers cause and effect, meaning both affect one another. It gave him a completely different view on things, and he was able to have more precise insights into the market itself.
After figuring this out, George started short-term currency speculator trading. This means he would place high leverage bets, depending on the financial market direction. He was relying heavily on the fact that traders influence the market, and he knew that they would often behave irrationally, which he used to his advance.
2. Stanley Druckenmiller
Stanley Druckenmiller began his investment endeavors at Pittsburgh National bank in 1977. He advanced to head of equity after a year, and four years later, he had his own company. When he became the head of the Dreyfus Fund, that is where he started getting popularity. He worked beside George Soros when he “broke the bank of England.” This only brought him more credibility, and he was even featured in a book called “The New Market Wizards.”
He used a top-down investment strategy and was an important part that made Soros famous during the Black Wednesday. His approach was similar to Soros’, where he believed in using “concentrated bets’. This means he would use only the best market opportunities where he was sure that he would win the trade and put all his money into it.
Unlike Soros, he vouched for everyone to have an exit strategy, as well. You should be prepared for how much money you could potentially lose before making a trade. That is why the timing was essential, but also flexibility. This is how he became who he is.
3. Bill Lipschutz
Bill Lipschutz received a Bachelor’s degree in Architecture and one from the Johnsons School of Finance. He inherited money from his grandmother during his college years and decided to liquidate those 12000 dollars. He was researching in his free time and learning as much as he could about the financial market. He turned the initial capital into almost $250,000. He lost it soon after, because of a wrong trading decision. He used this as a lesson as well, which made him rich in the future.
Bill is a firm believer in having a passion for trading itself in the first place if you want to start forex trading. He says that the profit will be a byproduct of your process if you aim to perfect it. A trader should not focus on earning money, but rather on the process and strategy itself.
In the end
Looking at these examples, the top three most successful traders ever were passionate but decisive and persistent in their way of thinking. Once they came up with a strategy, they stuck to it because they believed in it. We hope you can take something as an example, and find your forex strategy, being inspired by them.