3 Experts’ Suggestions for Successful Forex Trading

by Darwin on February 9, 2018

Image Source: Unsplash.com

When it comes to the foreign exchange stock market, it’s safe to say that there are hundreds of thousands of them out there. But only a few have managed to achieve great results that will go down in history. These successful men are an example to be followed by anyone who aspires to similar things.

The Experts

With a bit of expert advice and the proper forex tools, you too can excel in this field. Here are the world’s top three forex traders and their winning strategies explained.

1.    George Soros

As you may already know by now, George Soros is one of the most famous and successful traders and investors in the world. He will always be remembered as the man who broke the Bank of England in 1992 by buying billions of dollars-worth of British pounds and exchanging them for German marks.

This, along with plenty other similarly successful moves, added to up to a total net worth of 8 billion dollars as of December 2017. He is the 19th richest person in the world and wealthiest hedge fund manager according to Forbes Magazine’s renowned annual listing. That’s very impressive, to say the least. But how did the do it?

The Strategy

According to Investopedia, Soros’ philosophy is a fairly simple one. He is a short-term speculator who bets huge and highly-leveraged sums of money on the direction in which the financial market is heading. The best way to illustrate his theory is through housing prices.

Let’s assume that a crash in stocks in this field has just been predicted. To apply Soros’ strategy, what you need to do is short-sell the shares of luxury home builders. In this way, after the bubble bursts, you will be left with a considerable profit.

2.    Bill Lipschutz

While still in college, he came into a 12,000-dollar inheritance, which he successfully traded and turned into 250,000 dollars. However, he subsequently lost it all. But this didn’t stop him from becoming one of the most prolific foreign exchange traders in the world. If anything, it made him stronger by teaching him a valuable lesson on risk management.

In his eight years spent trading for the Salomon Brothers firm, he gained half a billion dollars from forex alone. Due to his amazing success in the field, he has been inducted into the Traders Hall of Fame. And he managed all of this by abiding by just a few simple rules.

The Strategy

In the words of Lipschutz himself, he is a fundamental trader. Instead of relying on dreams or rumors, he prefers to analyze the market thoroughly using core concepts such as interest rates, GDPs and so on. There are the things that incite movement, and when they are favorable, that’s when Bill jumps in.

Furthermore, he is a master in the art of trend following. Unlike George Soros’ short-term approach, Lipschutz is all about riding the wave long-term to its completion. To ensure that he ends up on the winning side, he consults with charts and other data daily. A lot of detail work goes into it, but in the end, it’s almost always worth it.

3.    Stanley Druckenmiller

Although George Soros is always at the top of the list when it comes to expert traders, he would be nowhere today without Stanley Druckenmiller, his long-time financial partner. Druckenmiller became an oil analyst in 1977 for the Pittsburgh National Bank, and he quickly rose to the top of the financial sector and joined Soros’ Quantum Fund in 1988.

The Strategy

Needless to say, he has since then flourished economically. His top-down strategy is similar to that employed by Soros, but yet highly unconventional in approach. His macroeconomics-focused investment style uses a mix of short exposure and securities to achieve the most profitable results.

Final Thoughts

By taking a look at these three suggested strategies, it is easily observable that success is achieved in many ways. Thus, your own understanding of the market is important in determining how to proceed. These examples are to be understood as being merely educational. The rest is up to you.

 

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