Being a forex trader comes with its own unique set of challenges. You need to know which forex traders have overcome these and scale out of the industry to become successful. Here we look at five successful forex traders for career inspiration, motivation, and keeping your feet on the ground when it can all get a bit crazy.
Did you know that the US accounts for only 19% of the world's currency trade, while the UK accounts for 41%? Read 10 Trading Statistics You Might Not Know>>
5 Traders' Success Stories to Inspire Your Career
The best way to make money is to invest in the future – George Soros
George Soros is a perfect example of a titan in the field of currency investing. Born in Hungary, he survived the Nazi occupation of Hungary during World War II by living with a non-Jewish family. He left Budapest in 1947 for England, where he enrolled in the London School of Economics. After graduating with an MSc. in Philosophy, he focused on finance.
In his heyday, Soros was known as the man who broke the Bank of England. A short position on the pound sterling earned him £1 billion after he shorted it with leveraged positions and forced a devaluation of the currency.
The year 1973 saw Soros become the Chairman of the Quantum Fund, a huge hedge fund with $12 million under management. His position made him one of the greatest money handlers of all time. Applying his outstanding investment skills to profit from financial markets, Soros made more than 100 billion USD in profits for himself and is one of the most successful investors in the history of the world.
There are key principles to George Soros' trading style, which was made famous by his Quantum Fund. The first principle is that market movements are often not just unpredictable but also highly irrational. Second, he believes that even the world's greatest financial minds cannot reliably predict market behavior due to this unpredictability. Since no one can truly anticipate what will happen next, Soros argues that trading should be based on anticipation of how other traders will react. This strategy is known as reflexivity.
"40% of all behaviour is genetic, and 60% is learned - which is good news, because if we’ve learned something, we can unlearn it to learn a better pattern of behaviour." Read our Q&A with trading psychology coach Mandi Rafsendjani here>>
If it's too good to be true, wait for someone to prove it wrong - Geraldine Weiss
Geraldine Weiss is one of the first women to succeed in investment finance. She started an investment newsletter in 1966 and signed off as "G Weiss" to mask that she was a woman. G Weiss had an incredible knack for finding profitable investments.
Through many different financial crises, Geraldine was able to stick it out and continue to succeed in forex trading. The analysts who have recently followed in her footsteps have made millions with the same strategies.
Geraldine Weiss is well-known in the dividend investing community and was one of the most influential investors of her generation. Her investment style was based on finding stocks with high dividend yields and letting time do the rest.
Her passion for markets helped her create a diversified portfolio that would take care of not only her future but that of her family. She passes on her knowledge to the younger generations to continue this love of market investing.
Looking for more female traders to inspire your career? Read 5 Female Forex Traders to Inspire Your Career>>
The FX market is not all about the highest probability trades, although these are helpful. It is just as important to accept the risk-reward relationship; to make good money with probability among the highest possible, but also lose within reason – Richard Dennis
The creator of the Turtle Trading system, Richard Dennis, has made his way through to the history books. But that's not all. Dennis is a humble trader who has received equal respect from his peers. And he's always been a great mentor to traders, including the ones around today.
Richard Dennis was the youngest trader on the floor of the Chicago Mercantile Exchange. His company made him a billionaire in 1988. Today, his true legacy comes from the fact that he single-handedly created an entire generation of world-class traders.
Dennis's Turtles is an investment experiment that started in 1980. For two weeks, Dennis trained his turtles to become successful traders. Five years later, the experiment ended, and the results were impressive. The collective profit was an incredible $175 million.
Dennis was a currency trader who enjoyed spotting trends in the market. He increased the number of trades he made in the direction of the trend while increasing leverage to make as much money as possible.
Looking for some straightforward, no-nonsense advice? “Trade your system. Stay the fuck out of the way. Repeat.” Read our Q&A with No Nonsense Forex here>>
Fear of loss is not fear; fear of fear is fear. Fear of loss is greed. The more you run away from your losses, the more you compound them – Ingeborga Mootz
Ingeborga Mootz is now considered one of the most successful forex traders, but her life was not always easy. Her early life was marred by several years of poverty, forcing her into marriage at seventeen.
Even after her marriage, she had to beg her husband for every penny. Ingeborga Mootz had been having a hard time finding work, and her husband was not making matters any better. One day, when she snapped, she told him that she would start trading on the stock market if he thought she wasn't qualified to get a job.
Years ago, at 76, Ingeborga Mootz traded her late husband's shares to invest in the currency market. Even when Germany went through several economic crises, her portfolio grew. Fifteen years later, this investment has grown immensely, and she is now among the ten richest people in Germany with an estimated fortune of over $1.5 billion! Her incredible story may serve as inspiration for young people who are just starting in their careers.
"Women make excellent traders because they are not afraid to talk about or confront their feelings or emotions - something that's necessary to succeed as a trader." Read our Q&A with Kim Krompass here>>
Edward Arthur Seykota
There has been a lot written about following your rules, staying disciplined, and all that. However, what about those times when you should break the rules? In this case, trading futures as a beginner will scare you as you can lose a LOT of money, but these people have lost even more – Ed Seykota
Seykota had a quick start to his career. At the age of 5, he made his first trade bartering a gold-colored medallion to his neighbor for five magnifying lenses. He went on to become a multi-millionaire during his trading career.
He is an experienced trader and known as the father of system trading. Seykota became interested in developing automated strategies to analyze the formation of trends.
In the early 1970s, Arthur Seykota began his trading career by developing automated algorithms traded using software programs. This resulted in him making over 250,000 percent profits for one client over 16 years. That means Seykota's client made $15 million on a $5000 investment.