Can you trust forex traders? Top 3 traders

Can you trust forex traders? Check out the top 3 traders. Achieving professional status as a forex trader requires years of dedication and a series of well-defined strategies that consistently generate revenue.

However, trading in the financial markets does not have a set formula for success. Consider the trader as a surfer and the markets as the ocean. Talent, balance, patience, the right supplies, and awareness of your surroundings are all necessary for surfing.

It has the same mentality when it comes to trading in the forex market. Your success rate will potentially increase if you combine solid research with efficient execution. As with many skill sets, successful trading is the result of a combination of hard work and talent.

Therefore, following professional traders with proven expertise might be a good idea if you adjust your trading strategy and plan. Not everything works for everyone, though. You might take something from one top trader and something from another, test it out, and see if it works for you. Let’s examine some of the best forex traders around the globe.

Top 3 forex traders

While the majority of currency traders stay out of the spotlight, a small number have become well-known worldwide. These well-known traders exceeded expectations by achieving incredible results over lengthy careers. These are powerful individuals who have significantly impacted the investment sector.

These people provide new forex traders with guidance or help experienced traders seeking to potentially increase their profitability. These traders set an example by carefully weighing the risks they took. What ties them all together is a solid sense of confidence that drives their financial outcomes.

George Soros

George Soros, who was born in 1930, left Hungary in 1947 and started his financial career at Singer & Friedlander in London. Later, in 1973, he established Soros Fund Management, which by August 1998 was said to have made $22 billion in profits. In 1992, Soros grew in popularity when he was caught short-selling an estimated $10 billion worth of British pound sterling (GBP).

This resulted in a $1 billion profit for Soros and the U.K.’s September 16, 1992, “Black Wednesday” withdrawal from the European Exchange Rate Mechanism. This incident established Soros as one of the greatest traders and was a turning point in his career. Soros continues to rank among the 300 richest people in the world as of 2021.

Stanley Druckenmiller

Experienced portfolio manager Stanley Druckenmiller started his financial career in 1977 at Pittsburgh National Bank. He established Duquesne Capital Management in 1981, and from 1988 to 2000, he oversaw George Soros’ Quantum Fund.

In 1992, he was included in The New Market Wizards and became well-known for the Bank of England trade. He shut down his hedge fund following the 2008 financial crisis because it was too difficult to manage large amounts of capital and an elite trading record.

Bill Lipschutz

Bill Lipschutz turned $12,000 into $250,000. He started trading while a student at Cornell University in the late 1970s. But one poor trade erased all of his gains, and that taught him an important lesson in risk management.

He started working in the foreign exchange division of Salomon Brothers in 1981 and soon rose to the top, earning over $300 million a year by 1985. When he left in 1990, he had been in charge of the company’s main forex account since 1984. Later on, Lipschutz joined Hathersage Capital Management as a principal and director of portfolio management.

Professional forex traders’ common practices

Market research

Since they are aware of the ways in which central banks such as the Peoples Bank of China (PBOC), European Central Bank (ECB), Bank of Japan (BOJ), and Federal Reserve (FOMC) affect currency values, forex professionals have a keen interest in global economic and central bank policies. They often skip sleep when a crucial meeting is scheduled outside of their regular market viewing hours because they maintain a thorough calendar of economic announcements and monetary policy discussions that will influence their strategies.

While enjoying their first cup of coffee, they review the most recent economic releases, making any necessary stop adjustments and exiting positions. Because many professionals now hold an extensive core of smaller positions for longer holding periods, the time frame becomes relevant. Because of this, they can maintain flexibility and stay clear of the aggressive algorithms that rule today’s markets.

These effective robot traders identify price areas where selling stops are concentrated and react to economic releases or slower trading hours to enter those levels.

A day in forex trading

Since currency markets are accessible and prices have moved during the night, traders often turn on their screens as soon as they wake up. But there’s not much stress because their capital is held by reliable brokers and well-placed stops.

Furthermore, they constantly assess their exposure at the end of the trading day to make sure that any losses incurred during the sleep period are within the parameters of their risk tolerance.

Setting up market hours

The extreme complexity of the currency market typically forces a professional forex trader to choose an area of expertise. Furthermore, this is not only logistically necessary but also biologically necessary. In U.S. time zones, forex trades are open from Sunday evening to Friday afternoon, 24 hours a day. Since it is impossible to watch continuously in real time due to the round-the-clock action, a razor-like focus on particular time frames and forex pairs is encouraged.

The majority of American professionals begin by trading EUR/USD and USD/JPY, then add other pairs as they fit into the timeframes set by these widely traded instruments. This frequently includes crosses for the Australian and Canadian dollars, as well as other euro and yen crosses. They know that following too many markets can weaken the consistency of their strategies, so they make thoughtful selections, frequently switching out closely watched pairs over time.

Local traders rise earlier than their U.S. counterparts as a result of the peak in euro price action occurring between 1:00 and 3:00 a.m. EST. Therefore, there is less forex trading during US afternoons. Traders then have to decide whether to adjust their sleep cycles to match the Asian session or to match the hours of the U.S. market. Whatever the case, they gradually modify their strategies and concentrate on currency pairs with the highest potential for profit.

Key characteristics

It is evident from examining this group of well-known and successful traders that they share certain characteristics.

Self-control: the capacity to establish and follow to a trading strategy

Risk management is the process of identifying the possible risk associated with each trade and using the appropriate trading instruments to reduce it as much as possible.

Courage: the self-assurance to believe in one’s own analysis and work

Intelligence: the capacity to assess how opinions are influencing market trends at any given moment

It may seem difficult to cultivate every one of the qualities mentioned above. Long-term, though, these are some of the most crucial characteristics for trading.

Even though it’s inevitable that everyone will make mistakes and incur losses as a result, it’s crucial that you learn from them in order to advance as a forex trader.

Final thoughts about forex traders

Every forex trader has the same primary goal, regardless of experience level: to become a profitable trader on the foreign exchange markets. The above list of well-known forex traders, from Soros to Lipschutz, has one thing in common: they have all made significant profits from their well-considered trades. This, along with their incredible appetite for risk and self-confidence, has solidified them as some of the greatest and wealthiest investors in history.

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This information is not considered investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced or hyperlinked in this communication.