For you to succeed as a forex trader, the forex broker you trade with is very significant. Another factor that determines your success as a forex trader is your choice of trading platform. Majorities of traders in the forex market fail because they made the wrong choice from the beginning. On the other side of the coin, there are few renowned traders who have made fortune in the forex market by playing along the rules. Top rated forex brokers takes care of the needs of traders with different degrees of needs both beginners and inexperienced traders.
Finding a good forex broker would boost your rate of succeeding in the market. The key to finding the best and most secure Forex brokers is to know where to make your search and how to sift the good ones from the bad ones.
Successful forex traders
Every trader in the forex market has a common aspiration which is to make profit. One way to boost your trading strategy is to watch the most successful Forex traders. We will talk about what successful forex traders have in common and how those features help them to succeed. There are numbers of statistics flying round the web implying that the number of successful traders are small compared to unsuccessful traders.
The statistics of losers is a bit larger than winners, mostly as a result of the effect of market spread. Therefore, the percentage of successful Forex traders is not considerably smaller than those are not successful.
Investigating a few popular successful traders, we have found out that they all possess the following common features:
- They have enough discipline to discover when they are making a losing trade and thus taking swift actions to mitigate their loses.
- Risk management—they have thorough understanding of forex trading trade’s risk/reward and are able to properly manage their risk.
- They are courageous: They are determined to make a different from the rest of the crowd.
- They are astute minded and are able to judge how perceptions shape market trends.
The following five successful brokers exemplified the above characteristics and are popular names in the forex industry today.
1. George Soros
George Soros began his career in the financial industry at Singer and Friedlander in London in 1954 after dodging Nazi that was occupied by Hungarians during the Second World War II. When Britain was a section of the Exchange Rate Mechanism (ERM) which required government intervention if the pound weakens above a specific level against the Deutsche Mark, Soros accurately predicted that a mixture of conditions which includes the high level of British interest rates and the critical rate at which Britain had tied to the ERM had made the Bank of England susceptible. He made profit of one billion dollars in a single day from one transaction. This made him famous and he gained reputation as the man that “broke the Bank of England”, by shifting more than ten billion dollars worth of British pounds out of Britain.
2. Stanley Druckenmiller
Stanley Druckenmiller started his financial career in 1977 as a management trainee at a Pittsburgh bank. He rapidly succeeded and started his company, Duquesne Capital Management, after four years. Druckenmiller after that managed money for George Soros successfully for many years when he worked as the top portfolio manager for the Quantum Fund from1988 to 2000. Druckenmiller as well worked with Soros on the disreputable Bank of England trade, which was the beginning of his success.
3. Andrew Krieger
Andrew Krieger worked with Banker’s Trust in 1986 after quitting his job at Solomon Brothers. He immediately won reputation for successful trading and was compensated by the company with an extended capital limit from 50 million to 700 million dollars.
This finance limit privilege gave him the opportunity to win during the October 1987 economic meltdown referred to as Black Monday.
Krieger main trade focus is on the New Zealand dollar (NZD) which he felt was susceptible to short selling as part of a global panic in financial assets. He traded with excessive leverage of 400:1 in addition to his increased trade limit and acquired a short position larger than the New Zealand money supply. He made for his employer from this trade a profit of 300 million dollars. The year after that, he gave up his job in the company with a compensation of 3 million dollars from the trade.
4. Bill Lipschutz
Bill Lipschutz began trading while studying at Cornell University in the late 1970s. Within this period he grew his account from 12,000 to 250,000. Nevertheless, he ignored proper risk management and made a wrong trade decision which sapped the whole stake. In 1982, he started working for Solomon Brothers when he was studying for his MBA degree.
Lipschutz started working at Solomon’s freshly created forex department at the time the popularity of trading the forex market started becoming popular. He became successful instantly and earned 300 million every for the company by 1985. He was made the primary trader for the company’s gigantic forex account in 1984 and worked in that capacity till his departure in 1990.
5. Bruce Kovner
Bruce Kovner was born in Brooklyn, New York but made his first forex trade in 1977 turned 32. He loaned money against his personal credit card t and bought soybean futures contracts which made him a profit of 20,000 dollars. He eventually joined Commodities Corporation as a trader and made profits of millions in profits and this gained him a solid reputation in the industry.
The Bottom Line
What was clear among these famous forex traders is that they made huge profit from their unselfish trades, together with their self-confidence and an unbelievable hunger for risk.