In the world of Forex trading, there are winners and losers. The winners are those who find a way to make a lot of money using the Forex trade. Of course, we all want to be winners, but not everyone can succeed in an endeavor that carries with it a level of risk.
It is inspiring to see just how successful some Forex traders can be. Successful Forex traders do not just accept the risky nature of Forex trading; they embrace it. As a result, their names go down in history as some of the most successful Forex traders ever. With their great risk came great rewards. The stories of these successful traders will help you to know how to be a successful forex trader.
Top 5 Successful Forex Traders
Born in 1930, George Soros escaped the Nazis in his native Hungary during World War II. He was able to make his way to London, studying at the London School of Economics, earning a Bachelor’s and a Master’s degree in philosophy. He worked a series of odd jobs before beginning his financial career at Singer and Friedlander. In 1970, he established the Soros Fund Management.
Soros claim to fame is thanks mostly to his actions in 1992, wherein he predicted the fall of the GBP, which Soros believed was inevitable due to the UK government’s reluctance to raise its interest rates or float its currency. This resulted in the Soros Fund earning over 10 billion GBP in an event that has become known as Black Wednesday.
Stanley Druckenmiller began his financial career in 1977, serving as a management trainee at Pittsburgh bank. Four years later, he formed his own company, Duquesne Capital Management. For several years, Druckenmiller managed money for George Soros, serving as the lead portfolio manager for Soros’s Quantum Fund from 1988 to 2000.
Druckenmiller was one of the main players working for Soros when he successfully executed the famed Black Wednesday trade. This gained him a reputation in the world of finance. In 2010, he closed his hedge fund, saying he felt worn down by the need to keep up with his successful track record.
Andrew Krieger gained himself a reputation for being a successful trader back in the 1980s with Banker’s Trust. This success led to the company increasing his capital limit from 50 million USD to 700 million USD.
This allowed him to profit tremendously from the October 19, 1987 Black Monday crash. Krieger set his sights on the New Zealand dollar, which he believed was particularly vulnerable to due to the worldwide panic in financial assets. He earned 300 million USD in profits for the company. He left a year later with 3 million USD from the trade.
From Bill Lipshutz, we learn the lesson of perseverance. While still a student at Cornell University in the 1970s, Lipshutz was able to turn 12,000 USD to 250,000 USD. However, he lost it all due to a bad trading decision, which taught him a valuable lesson regarding risk management.
In 1982, he began working for Solomon Brothers, in particular, their new Forex division. He was vastly successful in this field, earning around 300 million per year. From 1984 to 1990, Lipshutz was the principal trader in the company’s Forex account. Lipshutz left Solomon in 1990. Since 1995, he has served as director of portfolio management at Hathersage Capital Management.
Bruce Kovner teaches us that it’s never too late to start, as he made his first trade when he was already 32 years old. He borrowed against his personal credit card to buy futures contracts to buy soybeans, making 20,000 USD in profit. He joined Commodities Corporation shortly after.
In 1982, he founded Caxton Alternative Management. He then transformed it into a vastly successful hedge fund with more than 14 billion USD in assets. This fund made Kovner one of the biggest names in Forex until his retirement in 2011.
In the end, we can learn quite a bit from the five most successful Forex traders. They certainly were fans of risk, sometimes betting it all on a chance. While not all of those who engage in such risky trades survive, these five people used their expertise to reasonably predict what could happen. In the end, they believed in themselves enough to take the chance.