Trading in foreign currencies and exchange rates (forex) is a potentially great way to earn money from home. However, many of the new traders fail due to a lack of experience and perseverance. Trading in forex requires effort, skill, and dedication (the same as any other profit-making activity).
In this article, you can see who the most successful forex traders in the world are and use them as your role models on your forex journey. Not all forex millionaires are as famous (or notorious) as George Soros, but they are all similarly successful.
Net Worth: Unknown, we know that he earned hundreds of millions p/a for Salomon Brothers before 1990.
Lipschultz managed to turn a 12,000 USD inheritance into 250,000 USD via the stock market before finishing his degree. Due to some overexposure to high-risk investments, he lost his capital. He switched to forex in 1982 and generated 300 million USD p/an in three years of working for Salomon Brothers. He currently leads the Portfolio Management unit of Hathersage Capital Management, a company he founded in 1995 and focused on G10 currencies.
Net Worth: 4.8bn USD at the time of writing
Even though he is diversified, Lewis has concentrated his efforts on forex. One of Lewis’s most famous moves was partnering in 1992 with Soros to short the GBP, devaluing the currency and forcing it to be withdrawn from the European Exchange Rate Mechanism (ERM). There are even claims that Lewis made even more than Soros on that day, which (if true) would mean that he made 1.8bn USD in a single day.
Net Worth: 4.4bn USD at the time of writing
Another associate of Soros, Druckenmiller, was a lead portfolio manager for the Quantum Fund when he and Soros “broke the BoE,” betting against the pound sterling. Their secret of success was figuring out the low levels of forex reserves that the BoE held, as well as its inability to raise interest rates. After the dot-com crisis of 2000, he parted ways with Soros to focus more on Duquesne Capital, a company he founded before joining Soros in 1988. After ten years, he closed Duquesne when it had more than 12bn USD in assets, saying it was time to move on.
4Paul Tudor Jones
Net Worth: 5.8bn USD at the time of writing
With a focus on currency pairs and interest rate fluctuations, Paul Tudor Jones II is one of the wealthiest day traders. One of the main things that Jones has focused on to have good returns is mental stops. These are points where if an asset’s price touches it, Jones will close the trade and exit the position no matter what. Another visit he often uses is the time to stop.
Net Worth: 8.6bn USD at the time of writing
With plenty of spoilers before, it is time for the Big Bad himself. Earning more than one bn USD in a day in 1992 due to shorting the GBP, Soros set an unprecedented level of wealth generation. The man who “broke the Bank of England” bet against the artificially maintained GBP/DM (German Deutsche Mark) and built up such a massive position that for once, the actions of a trader moved the market, rather than a trader acting on existing market intelligence. The blow to the UK was such that the Conservative Party lost credibility and did not return to power until 2010.
All of these traders come from fairly different backgrounds and with different goals, but what makes them successful is the fact they were ready to act when the time is right after gaining lots of knowledge. With that and a little bit of luck, they managed to become who they are. Most importantly they believed in their own system.