What is Swap in Forex Trading? (With Examples)
Forex Success Stories: 10 of The Most Successful Forex Traders
Every forex trader whether they are a beginner or a veteran has a single goal in mind which is to become a successful forex trader someday.
Many traders who have officially made it on the forex markets come forward with their forex success stories and share what they did to become successful at their craft.
Reading their stories is sure to give you valuable insight into their minds and how they work. So let us look at ten such success stories of notorious forex traders.
People in the trading industry look up to George Soros and have dubbed him The Greatest Forex Traders Of All Time.
George is regarded as a legend for his iconic feat of securing a profit of more than £1 billion from his short position which refers to the practice of buying low and selling high to make a profit on the change in that particular asset’s price.
On top of that, George was able to do all this before the famous Black Wednesday of September 1992 when the pound sterling currency fell to a dangerously low value.
Soros was sharp enough to read the situation and take decisions on his investments accordingly. His decision to go short earned him a handsome profit and recorded his name in forex history.
What you can take away from George Soros’ success story is to keep your eyes and ears open at all times and keep up with all relevant current affairs that are happening in the countries of the currencies that you are trading in.
The Black Wednesday witnessed the pound sterling losing against the Deutschmark miserably which led to many people losing their money as the pound sterling fell in value.
Therefore, keeping up with all relevant occurrences around the world is a must for any forex trader if they want to be successful one day.
If you do that then who knows maybe the next George Soros could be you!
Stanley Druckenmiller is also a participant of the famous Black Wednesday along with the legendary George Soros.
With a net worth of a handsome $2 million and a good reputation for successfully managing the Duquesne Capital, Stanley is regarded as one of the best forex traders of his time.
The secret behind this particular success story is Stanley’s philosophy which has helped him reach the top of his game when it comes to trading currencies on the foreign exchange market.
The philosophy, in Stanley’s own words, is “preserving capital and chasing profits on good trades aggressively.”
As we said before, forex success stories come with some insight on the strategies that these big-time traders used in order to become successful and in this case, its preserving capital.
Ensuring that you have a decent amount of capital in your hands to further your trading endeavors is a sound strategy so be sure to keep that in mind.
Paul Tudor Jones
Paul Tudor Jones was born in 1954 and lived quite a normal life until he took the risk of giving up the opportunity of getting into Harvard Business School and took a job as a commodity trader at the New York Stock Exchange.
Tudor took another big step and opened his company which he named Tudor Investment Corporation and during the market crash of October 1987, he went on to make a profit of 62% on short positions for his company.
Paul managed to make a whopping $100 million during that dangerous time and went on to become the chairman of the New York Stock Exchange in 1992.
Forex success stories have a lot to teach us and Paul’s story teaches us to have courage. Paul’s decision to work as a commodity trader instead of going for higher studies at a reputable business school changed his life.
From being a common trader in the NYSE to becoming the chairman of the very same organization, Paul’s journey is inspirational to many who wish to follow in his footsteps.
Bill’s story clearly outlines the importance of risk management in forex trading. The reason why Bill is on this list is that his success story is very peculiar yet inspiring. Especially for inexperienced traders.
Bill did not have any prior experience in forex trading and yet he was able to amass hundreds of millions of dollars in profit with an FX department called Salomon Brothers.
Bill has often told his followers that having a correct mindset was the key to his success. He had a very different approach to fx trading.
Bill’s advice to upcoming traders is to focus on taking advantage of the times that they are in rather than focusing on being right all the time.
Bill Lipschutz’s story inspires many new traders who have very little experience in the field. If you are motivated enough, you could be the very next Bill Lipschutz.
Michael Marcus is the founding member of the Commodities Corporation Company and is regarded as one of the best forex traders of his time.
During his prime, he was the biggest currency trader in German marks as he owned around USD 300 million in German marks alone.
Marcus learned everything he could from his mentor Ed Seykota and he later became the mentor of Bruce Kovner who himself became a successful trader later on.
Many of these forex success stories have a lot to teach you and Marcus’ story is no different. Having a strong mentor proved to be very valuable for him and he passed on all his knowledge to his protégé continuing the chain,
Andrew Kreiger graduated from Wharton School of Business and went on to join the famous Salomon Brothers but he didn’t last long with them.
In the year 1986, he joined the Bankers Trust where he quickly became a famous trader due to his aggressive tactics.
Krieger made history during the 1987 crash when he went extremely short on the New Zealand dollar at a leverage of 400:1 which ended up in giving his company a profit of $300 million.
Kreiger became so famous for his skills that he was invited to work for the legendary George Soros after this historical event.
Wheeler’s forex success story is the source of inspiration for all those newcomers in forex trading who are worried about the returns on their deposits.
Inexperienced traders often worry about their capital as they don’t want to invest too much of their money on a dud as they can find forex trading to be very confusing at first.
Chris Wheeler is the person who managed to withdraw a payment of $1,000,000 after his initial deposit of $25,000 within a mind-bending period of just 2 months!
Who said you can’t get lucky in forex?
Richard Dennis started trading commodities when he was only 17. At that time he was working at the Chicago Mercantile Exchange as a floor order runner.
To fuel his career, Richard borrowed $1600 from his friends and family and started trading. After a decade, Richard became a millionaire.
He believed that one should never throw away their capital on sub-optimal trades and preserve capital for rare instances where you have a chance of making lots of money in a short period.
Forex success stories such as these give many the strength to chase their dreams. Had Dennis shied away from borrowing money from his friends, he would not have become a millionaire.
Seykota was a successful trader in the 70s and he is the mentor of the famous trader Michael Marcus.
One can say that Seykota is somewhat different from the rest of the traders on this list because he comes from an older generation of forex traders.
Seykota is said to be the first one to implement the methods of trial, testing, and implementation of the most viable system.
While working at a brokerage house, Seykota researched his trading systems on basic computers as well as punch cards that were common during the 70s.
Seykota’s story has a strong message of innovation and staying ahead of the curve. Traders should never shy away from using unconventional means to perfect their craft.
Bruce Kovner was the protégé of Michael Marcus who took a calculated risk at the very beginning of his career by borrowing money against his social credit and buying soybean futures contracts.
This calculated risk ended up in a profit of $20,000 for the young trader who later on joined the Commodities Corporation as a trader and earned millions.
Kovner went on to become one of the greatest forex traders of his time until his retirement in 2011.
In all these forex success stories, there was something of significant value to be learned. Most of these men who made history in the world of forex trading had something or the other to teach you.
From risk management to capital preservation and self-confidence and an innovative mindset, we hope these forex success stories had an impact on your entire thought process help you come with your tactics and strategies.