For a lot of new traders learning about the best in the game often proves to be quite inspirational. So, to bring you your doze of motivation for the week, we have put together a list of the top 5 Forex Traders and their strategies and best trades.
1. George Soros
Reading any of these forex traders list, you will very likely find George Soros most likely at the top, and ours is no exception.
In less than a day, he was able to make over a billion dollars in profit by going short on 10 billion British pound. By betting against the pound sterling, he was able to bring in over a billion of dollars. This continues to be the biggest win in a single day in forex history.
For this reason he is started being called the man who broke the Bank of England.
Due to this trade the value of the Pound Sterling dropped below the minimum limit set by the European Foreign Exchange and the Bank of England was forced to withdraw the pound. This is why people started saying he broke the bank of England.
He founded Quantum Funds in 1973 to manage hedge funds and this company still stands and is being run by his children.
2. Andrew Krieger
Much like George Soros made things harder for the Bank of England, Andy Krieger did it to the Bank of New Zealand. It’s interesting then that Krieger later left Bankers Trust, where he made his legendary trade, to work for George Soros.
At a time of great uncertainty and volatility in the market, after the Black Monday crash, the New Zealand Dollar or Kiwi, became highly overvalued. This led to Kiwi going out of circulation. This is when Krieger decided to sell hundreds of millions of kiwis. The number is considered to be greater than the entire supply of New Zealand.
What this achieved was a sharp drop in the value of NZD, thus making Banker’s Trust for which Krieger worked millions.
3. Stanley Druckenmiller
Stanley Druckenmiller made a sale worth millions of dollars for his boss, George Soros.
His currency of choice was the German Mark and he went long when it was suffering from some depreciation. He predicted a rally, in other words a shift and appreciation of the Mark, and it ended up being spot on.
Initially he hadn’t put too much into this trade, but Soros asked him to buy 2 billion more Marks. This was all because Soros own Sterling trade was on its way and the plan was that as the value of the Pound goes down, the Mark will rally against it. And that is what ended up happening too.
4. Bill Lipschutz
Lipschutz is a successful traders by all means. Most of trading consists of managing risk and making consistent profits. This is what Bill Lipschutz has been able to achieve and turned the $12,000 he inherited from his grandmother into billions of dollars.
So he is one example of someone who truly started small. The traders mentioned above who made millions off of a trade had invested millions too. Bill started small and climbed his way up to the top through being consistently intelligent with his trades.
He has been known to say, “If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money.”
He is the co-founder of Hathersage Capital Management and is a great inspiration for a lot of new traders.
5. Bruce Kovner
Kovner is another example of making it big through pure intelligence and foresight. He invested in some very lucrative futures contracts.
His first investment was in soybeans futures. He made this investment by using his MasterCard credit worth $3000. This $3000 turned into $40,000 but he discarded a hedge saving him from losses and the market turned bringing the value of his profits down to $23,000.
This was still a great profit or a $3,000 investment but Kovner says he was ill for a week after this because of this error in risk management. However, he is glad that it happened because it taught him the value of using the required measures and protection against risk early on in his career.
He went on to foundCaxton Associates which, at its best, was making over $14 billion.