LEARN FROM GENERALS OF THE MARKETS
- PART 12
George Soros, born in August 12,
1930, is one of the wealthiest and one of the most successful traders in his
generation. He’s the chairman of Soros Fund Management and a notable
humanitarian. He’s given away about eight billion dollars for humanitarian
purposes. Earlier this year, an apex magazine ranked him as the twenty-second
wealthiest individual on earth – the seventh wealthiest American. He’s an
estimated fortune of twenty billion dollars.
Why is George Soros called, “the
man who broke the Bank of England?” How
did he do it? In September 16, 1992, he shorted ten billion pounds as the
British government either dithered over an interest rate hike or failed to
float the pound. The British government’s action resulted in a devaluation of
the pound, thus enabling George to realize a gain of one billion pounds. This
happened on Wednesday of that month (the notorious Black Wednesday).
Lesson
We can learn some lessons from
George Soros. Here are some of them:
A. George
has successful trading strategies that have made him victorious for about two
decades. He made around thirty per cent profits per annum (sometimes gaining
more than that per annum). On the contrary, most newbies believe that the real
issue is in making hundreds of percentage per month. Even the best traders in
the world don’t double their accounts always. A skilled fund manager may make
ten, fifteen, twenty, twenty-five, thirty, thirty-five per cent or whatever (or
more or less) per year. If someone makes an annual profit of fifty per cent on
his one thousand dollar account, no-one would take him serious. But if a giant
hedge fund manager makes twenty-five per cent profits per annum on a twenty
billion dollar account, he’ll be celebrated throughout the world. Most traders
would put an exceedingly small amount of money in their trading accounts and
expect to live a luxurious life out of that. No wonder many end up getting
frustrated.
B. George
wasn’t always right. He was right less than half of the time, yet he enjoyed
permanent success as a market speculator. He experienced a successful career
(retiring in 2000). He himself said that it's not whether you're right or wrong
that's important, but how much money you make when you're right and how much
you lose when you're wrong. Despite the perpetual unpredictability in the
markets, there are winning trading styles and strategies that can ensure that
one continues to be victorious in the markets. Loss trades and uncertainty
aren’t a threat to our trading career unless we allow them to be a threat.
C. George
is very rich and fulfilled because he managed other people’s money
successfully. There are highly skilled and victorious funds managers who manage
money for rich individuals. These victorious funds managers have good long-term
track records. If you can manage your own account successfully for some years,
you may be able to do so for others. So try to find winning trading strategies
that also guarantee the safety of portfolios.
This article is concluded with a
quote from George:
“Markets are constantly in a state of uncertainty and
flux and money is made by discounting the obvious and betting on the
unexpected… Markets are designed to allow individuals to look after their
private needs and to pursue profit. It's really a great invention and I
wouldn't under-estimate the value of that, but they're not designed to take
care of social needs.”
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Copyright (C) ADVFN PLC
NB: If you want
to receive permanently free winning Forex trading signals, please send me an
email titled: “A Request for Free Trading Signals.”
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