Success Forex Stories Introduction
It Based on Successful Forex Traders. Forex is not meant for a select few individuals. Anyone can become a trader provided one has the requisite trading knowledge and is above 18 years old. A beginner can understand the underlying technology and go on to become a guru. Some of the current crops of billionaires have engaged in forex trading and made a killing just by exchanging currencies.
The most notable of them is George Soros, whose net worth is $8.3 billion. In 1992, he risked $10 billion but in return made $1 billion in just a single day. At that time, he banked on the pound short position, which refers to the higher propensity of the pound to increase in value based on good news than to decrease because of bad tidings. As such, his risk was based on an analysis of the market, and he used the $10 billion knowing that there was a high chance that he would earn a large amount of money in profit.
Top Most Success Traders Ever:
- Steve Cohen;
(net worth: $13 billion)
- Stanley Druckenmiller;
he was Soros’ protégé (net worth: $4.7 billion)
- Urs Schwarzenbach
(60% return on the investment and the first Billion dollars that the man would make for his employer).
Born in June 11th,1956, Steve Cohen is a billionaire investor and hedge fund manager. Forbes ranks him at position 35 in the Forbes 400 2019 list with a net worth of $13.7 billion. Presently, he is the head of a hedge fund firm known as Point72 Asset Management. He used to head SAC Capital Advisors but the company was closed down in 2016 following a fraud case that surfaced in 2010. It is worth noting that Cohen was not charged for fraud although 8 employees at SAC Capital were found guilty. Nonetheless, the Securities and Exchange Commission (SEC) levelled charges against him in a civil lawsuit which was settled in 2016. As a result, Cohen was barred from investing or managing a hedge fund for 2 years. Despite this upset, the billionaire did not give up his trading and investing side. For instance, in 2019, Market Insider reported that he intended to buy an 80% stake in the New York Mets, a baseball team, for $2.6 billion. However, the deal is yet to be finalized.
Cohen graduated with an economics degree in 1978 and immediately started working as a junior trader from an investment bank. He transitioned to becoming a manager of a trading group within the company. While at the firm, the daily turnover from the trades he oversaw was about $100,000 earnings which translated to an increase in his personal wealth as well. He founded SAC Capital Advisors, his hedge fund, in 1992 with a capital of $25 million. Cohen used to employ a strategy where he held the position for only a short time, that is, days or even hours. With time, he grew the number of shares his company traded. By 1999, SAC was trading 20 million shares daily. As of 2006, the company’s trading accounted for 2% of the shares sold and bout in the entire stock market.
Cohen’s hedge fund firm employed a high risk, high return strategy. As a result, over the course of 21 years since being founded, SAC averaged 30% returns for the people whose funds it managed. The billionaire rod on the dotcom bubble making in excess of 70% returns during this period and a further 70% when it finally burst in 2000. For the latter, he shorted the market. It is worth noting that trading was not always rosy for Cohen and SAC Capital Advisors. The company also made substantial losses on some investments it made. It lost millions of dollars by holding long positions. However, SAC later got involved in insider trading where Cohen would profit from betting against companies in which his hedge fund had invested. This behavior resulted in a ban that was lifted in 2018.
Forbes quotes Stanley Druckenmiller’s latest net worth figure as $4.7 billion. This amount pits him at position 145 in the Forbes 400 2019 list and 413th in the Billionaires 2019 list. Stanley, a hedge fund manager and investor, was born on June 14th, 1953. He then attended Collegiate School where he graduated in 1971 after which he enrolled in Bowdoin College where he graduated in 1975 with a B.A in English and Economics. He would then start his Ph.D. in economics but did not finish. Instead, he became an equity analyst at Pittsburgh National Bank. By the time he was 25, he had already been promoted to the research director position at the firm. Three years later in 1981, he founded Duquesne Capital. While still managing Duquesne, he worked at a mutual funds company called Dreyfus and in 1988, he joined George Soros’ fund management firm where he worked until 2000. His tenure as the chief strategies at Soros’ company made him his protégé.
Stanley’s rise to fame came after he shorted the pound in 1992 making $1 billion. In 2000, he quit working for Soros and concentrated on his company. It is reported that following this transition, the hedge fund firm averaged 30% returns annually. However, in 2010, he experienced his most frustrating year which forced him to close down Duquesne. Stanley felt that he could not replicate the success he used to experience in the past while managing clients’ money. At that time, the fund was worth $12 billion.
Stanley’s strategy entails building long-term returns by preserving capital. He built his fortune by leveraging the opportunities that came his way. In so doing, he made high-risk moves. For instance, he is known to have made more money in the bear market than the bull market. This strategy highlights the fact that he bets big.
Urs Schwarzenbach, a currency trading millionaire, was born in 1948. He started his trading career when he established a forex dealership firm (Intex Exchange) in 1974 in Switzerland. According to a 2011 interview, Urs stated that he started trading after his father had given him money. He then went ahead and focussed on forex, speculating in currencies. He mainly dealt with pounds. In the 1970s, he also worked as the head of foreign exchange operations at UBS in London. The former, however, was what set the stage for the growth of his forex trading empire that earned him a fortune. In 2016, he was worth £1.08 billion, thereby making him the 109th wealthiest person in Britain. It is worth noting that he diversified his investment portfolio by venturing into real estate. He purchased hotels and restaurants in Switzerland and the United Kingdom.
Forex Success Analysis
The individuals whose stories have been highlighted above are some of the top traders in the world. Being successful FX traders, certain similarities exist. For instance, they have faced major obstacles that have affected their returns. Regardless of this fact, they have continued trading. As such, in order to succeed as a trader, one should not give up. In Stanley Druckenmiller’s case, he closed down his hedge fund firm because he felt that he could no longer realize the returns he used to achieve for his clients.
This is a lesson by itself. Stanley, a billionaire trader showed that successful traders know when to walk away. Similarly, Urs ventured into real estate investment, thereby diversifying his portfolio. As such, successful forex traders also know when to walk away. Additionally, these famous traders made big bets which resulted in big returns. As such, forex success stories only arise from taking huge risks but doing so strategically.
Success Of Forex Traders Conclusion
Forex trading involves speculating currencies and determining the right time to buy or sell. Making huge fortunes requires that a trader makes strategic decisions. He or she should also make huge risks since great fortunes only come after making big bets. The secret to success in forex is also predicated on having vast knowledge. For instance, Stanley worked under George Soros. It is prudent for investors to first learn the ropes from seasoned investors before making any big bets since information is power.