Top 3 Most Successful Forex Traders You’ll Ever Know
There are a lot of people who have tried Forex trading. Fortunately, there are also a lot of instruments available for newcomers to learn and develop their skills, to try out their strategies and make profit on currencies and their volatility. However, despite the abundance of ready-made instruments, a percentage of successful Forex traders is about 10%; those are the people who have made any profit on trading. Still, stories of successful traders in Forex lure new market players into currency trading everyday making them strive for success like the best among the best.
Fame is another factor that attracts new traders. Everyone wants to stand out from the rest. Of course, there are many pretenders who only demonstrate half of the truth about how they earned their money from trading. They might claim they know a secret of gaining significant profit during very short periods of time, and they are even ready to share their "knowledge" or a "winning strategy" for a certain sum. In any case, truly successful Forex traders are those who are not only capable of earning on currencies, but who also multiply their earnings and manage to remain in the market for quite long.
Among the sea of small FX traders and impostors, there are a bunch of really famous Forex traders who have become legends in the industry. In this article, we'll provide you with a review of Forex successful traders who have managed to impress the world with their skills and the feeling of the market. We will try to understand why they have reached their heights. So, meet the first one: George Soros.
George Soros: The best Forex trader in the world
Probably, everybody who has ever been interested in the history of finances and investments would agree that the most successful Forex trader of all times is George Soros. He left his mark in history as " The Man Who Broke the Bank of England" after making $1 billion from the UK financial crisis in 1992.
Born in Budapest, Hungary, George Soros got his education in the UK. While he was enrolled to the London School of Economy as an impoverished student, he graduated with a PhD 7 years later. Soros started his career immediately after his graduation as a bank clerk, but a couple of years later, he emigrated to the USA and became a known trader. After gaining experience as a trader, developing his own strategies, and actively using the ideas by the philosopher Karl Popper, he managed to found his own fund in 1969, which was later named the Quantum Fund. Thank to George Soros and his talent, the company succeeded McDonald's in revenue in 1996. As we have already mentioned, the most successful trade that his Quantum Fund made was in 1992 when the British pounds were sold before their devaluation, which resulted in over $1 billion profit.
After his university years, while working in New York, Soros planned to go back to Europe to study philosophy which he needed to develop the theory of reflexivity based on Karl Popper's ideas. The main point there was that individuals who trade in the market are changing that market. One of his numerous books, Alchemy of Finance (1988), describes this theory of his.
George Soros and his reason for success
In his books, George Soros shares some of his investment strategies. The books, starting from the abovementioned Alchemy of Finance and up to his vision of the EU crisis, can teach every trader something new, and every one of us can use a set of Soros' books as a guide to how to be a successful trader in Forex. However, the main ingredient of the investor's success in FX cannot be found in the books. He slipped a very important phrase during an interview, which is mentioned in John Train's Money Masters of Our Time. He said that his secret of success was that, rather than predict the markets accurately, he has learned to see the flaws in the false predictions and correct them. Probably, this skill has made George Soros the most successful Forex trader.
A lot of people who have been working with George Soros for years would often find his strategy somewhat chaotic. for example, it sometimes looked as if Soros bought when the price was high and sold when it was low. James Marquez, who once worked as a CIO with Soros, believed that this behavior was a part of a greater plan, a mindset of a man who never wants to go broke.
George Soros and his trading strategy
Alan Raphael, also a former CIO, remembers one of the most successful Forex traders in the world always admitted being wrong, even if he needed to think it over. This made Soros different from most traders out there who continue to convince themselves that either their decision wasn't bad, or that it will turn out profitable in the long run. The ability to accept flaws in one's trading strategy is a sign of one's professional maturity.
Let us look at the list of things that any trader can learn from George Soros and which he/she can apply to his/her trading strategy.
- Being profitable in Forex trading has nothing to do with theories that explain financial markets and the way they work. It is all about how much you trade and how well you can opt out (when the trade gets unprofitable).
- You should always have a way out before opening a position; protect yourself from risks before making an entry.
- Your strategy has to make sense; it should be logical and practical. It should be more important than being "consistent".
- Always accept the risks and losses, and be realistic when it comes to close your trade to avoid further losses. You must not go broke under any circumstances.
George Soros has well deserved his place among the most successful Forex traders in the world. If you want to get familiar with his life and his views, you can look for interviews with him or dedicate some time to reading the books he wrote. We are pretty sure that you will get inspired enough to start your mind-blowing trading career.
Who are the other most successful Forex traders in the world?
Meanwhile, we will continue our overview of the financial legends. The top Forex traders in the world are never just traders; people of these heights are extremely good at planning, organizing, managing, and delegating. This is why they always have their companies and people working for them who are constantly researching new strategies and exploring new instruments for trading.
Apart from George Soros, the other two who top the list of successful Forex traders are Bill Lipschutz and John R. Taylor, Jr. Let us look at their stories.
The story of Bill Lipschutz
Bill Lipschutz has always had an interest for Mathematics. He has got a sufficient education from the Cornell University. Not only has he a BA degree in Fine Arts (Architectural Design), but he also has an MBA in Finance. His professional interest in trading was almost coincidental. After he inherited stocks with a total worth of $12,000 from his grandmother, he decided on investing in the stock market. As a result, $12,000 turned into $250,000. However, this first victory of his could not be absolute: Bill Lipschutz made some mistakes which cost him this money.
The story with a 12-thousand-dollar investment is a very educatory one. It shows how one's acquaintance with trading often occurs, with all the risks involved. There are two important lessons we can take from it:
- Always trade with the risk capital, or the money that you have no other plans for.
- Always accept the risks and the possibility of a loss. If that happens, it shouldn't avert you from trading, but rather serve as a part of learning.
Bill Lipschutz' first job was with the Salomon Brothers company where he was an intern while studying at Cornell. After graduating, he joined the company as a full-time employee in 1982. He got deeply involved with Forex, which was gaining popularity at that time, and became the head of the Foreign Exchange Department. Several years later, Lipschutz was earning Salomon Brothers $300 million annually. This resulted in his further career promotion to the Global Head and Managing Director for the Forex direction.
In 1990, Bill Lipschutz retired from Salomon Brothers and started his own company, Rowayton Capital Management, and then another company, Hathersage Capital Management, in 1995. Right now, he remains employed with the latter and is recognized as one of the world's most successful Forex traders.
John R. Taylor Jr. and his road to success
The third world's most famous trader is John R. Taylor Jr. He is well-known as the CEO, Chairman, and Founder at FX Concepts, LLC., which was one of the biggest hedge funds in the history. He graduated from Princeton and started his career at Chemical Bank, as the Foreign Exchange Advisor back in 1972. The bank published his Foreign Exchange Exposure Management. He also worked as an advisor for Citibank. During his early banking career, Taylor gained sufficient experience in foreign exchange and made important connections in the world of finances.
John R. Taylor Jr. founded his company, FX Concepts, in 1981. From the very first days, FX Concepts was extremely successful in Forex management. Taylor himself worked on developing the first computer-based models for international corporations, associated with risk-management in foreign currencies exchange. He also is an author of a number of articles and a publisher of journals for investors and financiers. Right now, he is listed as a Co-Founder of Inspiration Biopharmaceuticals and as one of the prominent investment advisor and analyst.
The mindset of the Forex successful traders
We have covered three stories of the three world's most successful Forex traders. They all have a different background and all walked different paths towards success. What makes them all similar to each other is that they managed to generate significant profits over years in the Forex business.
Profit is a key word which tells a successful trader apart from an average one. It does not matter how much you earn: everyone has his or her own definition of a sufficient revenue. It is all about learning and growing professionally, about developing one's own skills and trying out new ways to become better at what you do. The three stories above teach us to never stop learning and to accept all the consequences — no matter what happens, it is a part of our learning.
Surely, there are more super successful traders in the world, apart from George Soros, Bill Lipschutz, and John R. Taylor Jr. Might be, one day, you will join their army.