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The decentralized nature of the forex market makes it difficult to identify who is a highly successful trader and who is not, but one thing that is very clear is that successful analysts and traders have certain special traits. This is because winning and losing are an essential part of forex trading, and a large segment of traders stop trading after recording continuous losses for some time.
In contrast, winners are those who have the courage to continue and adopt a disciplined approach, besides having strong analytical skills to understand the market situations and their implications. These traits play a big role in ensuring that the analysts continue to trade and do well.
Here’s a look at some of the top forex analysts of the world, whose trading strategies other traders like to emulate.
One essential, and common, trait shared by some of the top forex analysts of the world is that they are highly disciplined and know when and where they are going wrong.
Think of successful names in forex trading and the first name that comes to mind is George Soros, one of the greatest investors in history. Known as a legendary money manager, Soros came into the limelight after he made profits of more than £1 billion from his short position in the pound sterling ahead of Black Wednesday, September 16, 1992. As a result of this trade, the United Kingdom had to withdraw its currency from the European Exchange Rate Mechanism, after failing to maintain the required trading band. Soros emerged as one of the top forex traders of all time and is currently one of the wealthiest people in the world.
Founder of one of the largest hedge funds, Bridgewater Associates, Dalio was listed as one of the 100 most influential people of the world in 2012. His net worth of $15.6 billion, as of February 2016, made him the 30th richest person in the US. Dalio’s firm has registered significant gains, outranking George Soros’ Quantum Endowment Fund. Another achievement to Dalio’s credit is his prediction of the 2008 financial crisis.
Another successful forex trader, Stanley Druckenmiller, began his financial career as a management trainee in 1977, but quickly emerged successful and started his own company, Duquesne Capital Management. Great success came to him as he was the lead portfolio manager for George Soros’ Quantum Fund. Druckenmiller is also known for his work with Soros on the famous Bank of England trade. He, however, closed his hedge fund after surviving the 2008 economic collapse, saying it was difficult to maintain his successful track record. His guiding principles for trade have been a focus on preserving capital.
Starting his tryst with the financial markets as a stock trader while attending Cornell University, Lipschutz learnt a significant lesson on risk management when he lost his entire stake. But he stood steady and went to work with Solomon Brothers’ forex division and emerged highly successful by registering significant profits for the firm during his eight-year stint.
The story of Bruce Kovner is highly inspiring. He got into trading while he was a cab driver in New York. His entry into the soybean market in 1977 was the first step to success in trading. Founder of Caxton Alternative Management, which emerged as one of the most successful hedge funds for commodities and currencies, Kovner is known as the biggest players in the forex world. He retired in 2011.
Known as one of the most aggressive currency traders, Andrew Kreiger worked at Solomon Brothers for several years and then joined Banker’s Trust in 1986. A very successful trader, he made good profits from Black Monday (the crash on October 19, 1987). Kreiger focused on the vulnerability of the New Zealand dollar to short selling. Applying an extraordinary high leverage of 400:1, Kreiger acquired short positions that were bigger than New Zealand’s money supply and registered significant gains. Krieger later went on to work with George Soros.
One thing that all these successful traders had in common was the passion for trading and the confidence to take unheard of positions.
Disclaimer
If you liked this educational article please consult our Risk Disclosure Notice before starting to trade. Trading leveraged products involves a high level of risk. You may lose more than your invested capital.
