Three Trading Tips from Successful Forex Traders
The majority of forex traders don’t make significant money from their trading activities. In fact, most make a loss. Nevertheless, with the right approach, it is possible to make enough money to treat forex trading as a successful side gig. The extra cash you make can be used to fund a business venture, boost your retirement plan, or pay for a new car. There are a handful of names whose forex trading activities have achieved legendary status. The following are the best-known, along with some handy tips you can learn from their successes.
George Soros has enjoyed phenomenal success over the last few decades. His reputation was sealed when he famously made a killing on Black Wednesday in 1992. The debacle cost the Bank of England an estimated £3.3 billion and made Soros around £1 billion. Soros once told the Wall Street Journal: “I’m only rich because I know when I’m wrong.” This demonstrates a high degree of insight. Unlike some less successful forex traders, Soros knows when to cut his losses. This requires a lot of discipline and many inexperienced forex traders chase their losses in the hope of making back some money. Learn from Soros and don’t make that mistake open a trading account on a platform such as easyMarkets.
Bill Lipschutz made a fortune trading currency at Salomon Brothers back in the 1980s. Money never sleeps and Lipschutz recognized this. Lipschutz understood that the forex markets never go to bed and there is always a market trading somewhere around the world. He is famous for saying that traders only make money some of the time. As long as you have a trading strategy that is profitable at least 20-30% of the time, you can be successful. Another useful kernel of advice from Lipschutz is to manage risk. If you don’t do this, you could end up losing big money.
If you are familiar with life and times of George Soros, you probably already know who Stanley Druckenmiller is. Druckenmiller was part of Soros’s team when he worked at the Quantum Fund, so he learned from the best. However, Druckenmiller is just as successful and when he retired, he had accrued a nest egg of around $2 billion – which is no mean feat! What can we learn from Druckenmiller? Well, his most important tip is to keep your trading capital safe at all times. He stated that he only traded when the conditions were right, but when they were, he pursued a profit with the tenacity of a terrier chewing a bone.
Andrew Krieger is another successful trader who worked with George Soros. Krieger made his name when he made $300 million for his employers by correctly spotting that the NZD was overvalued. What can we learn from Krieger? Knowledge is power. Successful forex traders understand the fundamentals of currencies and their relationships with each other. They leverage these insights to make money when others panic.
You can learn a lot by studying how successful forex traders operate. Make this your first lesson when you start trading in the forex markets.