Whether you are a new or seasoned Forex trader, you most likely share one primary aspiration: to become successful in the currency markets. We want to make profits on our trading. However, in the big world of Forex trading, there’s bound to be individuals who do way better than others. Those that we could refer to as the “royalties of Forex trading.” In this piece, we name seven of the most successful forex traders who have made fortunes with their exemplary risk management and investment acumen. Stick with us through the end, and who knows, you could learn a few tips that might help you with your trading.
How to become among the most successful Forex traders in the world
We have earlier discussed several important money management tips to become a more successful Forex trader. There is little doubt that the most successful traders are a relatively small group between 1-5% of all the traders out there. This little group of successful traders has obviously a few things in common:
- Risk control—having a strong understanding of when to enter and when to leave a trade
- Discipline -- the most successful traders know how to recognize when a trade is wrong and therefore minimize losses
- Courage -- they are willing to go all-in, while they also have a plan B
- Astuteness -- judging how perceptions are shaping market trends
The results of these four properties lead to some consistent and large profits. Let’s find out which professional traders exhibit these characteristics and more, with our list of most successful Forex traders from all around the world!
1. George Soros
A Hungary native-born in 1930, George Soros began his financial career aged 24. Soro’s most famous achievement was in 1992 when he made over $1 Billion in profits on a single trade, shorting the British Sterling Pound. His success in short sales began being frequently mentioned across the world, and he was eventually dubbed “the man that broke the Bank of England.”
Apart from trading, Soros has authored many books on finances and investing. He is also an active philanthropist and has donated over $7 Billion to many charity organizations. Like most other great traders, Soros looks for uncertainties and bets on the unexpected, i.e., the least possible outcomes. He attempts making huge wins while trying to minimize his losses. The man is estimated to be worth more $25 Billion.
2. Bill Lipschutz
Lipschutz started investing in stocks while in University with $12000 he had inherited from his grandmother. He quickly turned the money into $25000, but he later lost most of it following a big market shift and a bad commercial decision. Apparently, the loss taught him how important risk management is, and it went on to be very helpful for the rest of his trading career.
At his peak, Lipschutz was making up to $300million a year from trading on Foreign Exchange markets. The man embodies the mantra of setting yourself apart from the rest and making unexpected trades. He points out that any Forex trading idea must well be reasoned out and that the popular opinion is almost always unlikely to make any big profits in currency markets.
You can read more about Bill Lipschutz on TradeRace.
3. Stanley Druckenmiller
Stanley worked with George Soros at the latter’s Quantum Fund for more than a decade, during which time he enjoyed a lot of success. He later left Quantum Fund and started his own fund known as Duquesne Capital, famous for averaging an incredible annual return of 30% from its inception in 1980 until it was closed in 2010.
Druckenmiller was the portfolio manager at Quantum Fund when he and Soros shorted the British Sterling Pound, making more than $1 Billion in profits on a single day. He has carefully monitored the German Mark and understanding that the currency was undervalued, he saw an opportunity for investment. He points out that trading is a big game, and one needs to be open-minded, decisive, flexible, and competitive.
You can read more about Stanley Druckenmiller in Business Insider.
4. Andy Krieger
A graduate of Wharton Business School, Krieger is famously known for his particular interest in the New Zealand Dollar. He joined Salomon Brothers in 1986 after graduating but would later leave and start working with the Bankers Trust, where he quickly became a very worthy employee. His reputation grew fast, and the company rewarded him with a higher capital limit- $700 million from a previous limit of $50 million. He became famous after earning over $300 million selling the New Zealand Dollar. He later joined Soro’s Quantum Fund, which he changed to Northbridge Capital Management. You can read more about Andry Kriger on FXCrunch.
5. Bruce Kovner
Born in Brooklyn, NY, in 1945, Kovner made his first trade aged 32. Using $3000 on his MasterCard Credit card, he bought soybean futures and made $40000 in gains. He later suffered a fall and closed with $23000 in profits. He would later nurture his interest in hedge funds and go on to amass a sizable fortune. His fund (Caxton Associates) has averaged double-digit percentage profits throughout its existence. Having lost a lot of money early in his Forex career, Kovner learned tough lessons on risk management and developed a uniquely pragmatic approach to risks.
You can read more about Bruce Kovner.
6. Paul Tudor Jones
Paul Tudor Jones is a hedge fund manager, investor, and philanthropist estimated to be worth over $4.5 Billion. The man became famous after he predicted the 1987 Black Monday incident. With a unique swing trading strategy, Tudor Jones approached currency trading by catching both the market’s bottoms and tops so he could make quick low-risk gains compared to long-term trend followers. In 2013, his company, Tudor BVI Global, obtained 14.3% in returns.
7. Michael Marcus
The founding member of Commodities Corporation Company, Michael Marcus is one of the world’s most respected professional Forex trader. He learned his trading from Ed Seykota, with whom he was working at Commodities Corporation. He would later mentor Bruce Kovner, who he’d hired to work as a Forex trader for Commodities Corporation. He held positions of up to $300million in German Marks during Ronald Reagan’s tenure as president. This made Marcus the world’s largest currency trader, along with banks. You can read more about Michael Marcus in Forbes.
Most successful traders conclusion
No matter how much research we do about the most successful forex traders in the world, we need to focus on some fundamentals, like a powerful Forex strategy that actually works. You should check out our article where we have studied successful Forex strategies that work right now.
We hope you liked this Top 7 list of successful traders. Which of these traders inspire you the most? Can you learn anything from them to become more profitable? Please share, like and comment in our Forex and Profits Club.