The Forex market has been growing at a tremendous rate over recent years.
There are now many people trading currencies on a regular basis, making huge sums of money from trading currency pairs.
However, who is the best trader in forex?
This article will give you the lowdown on who is the best trader in the Forex market.
Who Is the Best Trader in Forex?
Stanley Druckenmiller is the best trader in forex due to his impressive analysis which George Soros took action on. If it wasn’t for Druckenmiller, Soros wouldn’t have made the infamous Pound Trade.
But here’s the thing:
There isn’t one person that stands head and shoulders above all others when it comes to being successful as a trader.
But, here we will look into some key things about these successful traders so you can learn more about how to become a successful trader yourself.
First of all, you need to understand what a ‘Forex Trader’ is.
Traders work by buying and selling currencies in order to make a profit based on changes in exchange rates between two different currencies.
There are lots of ways to trade Forex.
You can trade using the traditional methods such as charting, or you could try automated systems that allow you to enter trades without having to watch charts.
Of course, it can be difficult to know when to buy and sell when trading Forex, but it’s important to follow the news to keep up to date with market conditions. This will help you to see when the markets are moving.
The best forex trader is one who trades with a system that works consistently.
A good forex trader is one who trades with a system that works consistently.
Both provide essences of Druckenmiller’s ability to trade.
How Many Forex Traders Are Successful?
The simple answer is, no-one knows for sure.
Some people suggest that the success rate of Forex trading is low, but others say that it’s high.
The fact is that no-one really knows for sure.
However, the number of successful traders is estimated at less than 2% of those who try to become successful traders.
These traders may have been trading for some time, or maybe they are just getting started with the market.
Forex Trading is an art which involves a lot of skills.
It requires a certain level of knowledge of the markets, as well as knowing what kind of strategy you want to use.
There is a very good chance that if you learn enough about the market and get some experience in trading, you will be able to become a successful Forex trader.
If you want to be one of the profitable Forex Traders, then it’s important for you to understand how other people trade.
There are a lot of different strategies available, which can help you become a better trader. But, if you don’t understand what others do, you won’t be able to learn anything new.
So, the best way to improve your trading skills is to observe the behaviour of experienced traders.
This is because they have already mastered the art of trading.
So, you can use their knowledge to make yourself a more effective and profitable trader.
There are three main things that you should focus on when observing other traders.
These include:
- the type of chart that they prefer to watch,
- the types of indicators that they like to use, and
- the time frame in which they trade.
Once you’ve identified these factors, then you will be able to see exactly what kind of strategy works well for them.
Once you have seen the pattern that is used by successful traders, you should start using it as part of your own strategy.
By doing this, you will increase your chances of success and also make it easier to adapt to changing market conditions.
The Best Forex Traders in the World
1. Stanley Druckenmiller
Stanley Druckenmiller is one of the best-known traders in the world.
He is known for his role as co-manager of George Soros’ Quantum Fund and has a net worth of $3.5 billion.
Druckenmiller’s strategy is more focused on capital preservation vs. going for large gains. A strategy that has seen returns for his clients over time.
BUT most importantly:
He keeps aggressively trading his profitable trades and cuts his losses early.
Something that most traders do the opposite.
It was Druckenmiller’s research and analysis that influenced Soros to take on the GBP thanks to his keen eye for macroeconomic data points. This is extremely useful when trading forex.
This analysis alone helped the fund reap a quick $1 billion dollars profit!
In 2011, he was named one of the top 100 most influential people by Time magazine.
Druckenmiller set up his own fund which returned more than 20% annually.
2. Bill Lipschutz
Bill Lipschutz is one of the most inspiring and relatable forex traders on the list.
That is because he too lost all his money whilst trading.
He started trading with $12,000 in the 1970s – which was a lot of money back then. He then managed to trade his way to $250,000.
And just like most beginners, it took one trade and a big mistake to wipe him out.
However, he used this experience to become a behemoth trader at Soloman Brothers, where he was generating $300,000,000 per year in profits for the bank.
Lipschutz then went on to form Hathersage Capital Management – which is one of the most successful hedge funds running.
One of their current strategies has annualised 19.05% per year in profits.
3. Andrew Krieger
Krieger also made a killing when the GBP crashed in 1987.
He took advantage of by selling the New Zealand Dollar.
In fact, he wiped out the Kiwi liquidity causing it to move 5% in just a few hours.
This netted his company $300,000,000 in a very short trading period.
Krieger was also a top trader from Solomon Brothers.
He was so valued, he was given a trading cap of $700,000,000.
This was very generous compared to the rest of the traders who were capped at $50,000,000.
This shows the faith they had in Krieger’s trading ability.
4. Paul Tudor Jones
One of the best traders in forex is Paul Tudor Jones, a veteran in day trading the markets.
Tudor Investment Corporation was built on the back of his success.
He has made significant returns for his investors in the past few years.
His firm earned a 20% return rate on his short-selling of the Japanese Yen.
This trade made the firm hundreds of millions of returns.
Paul Tudor Jones is most well known for his swing trading, but he is also a contrarian investor.
As a contrarian investor, he looks to profit from trading against overall market opinions.
His firm has an impressive track record in trading stocks, commodities and forex and has earned a reputation as one of the most successful traders in the industry.
He has successfully called tops and bottoms of trends on many occasions.
5. Michael Marcus
Michael Marcus tells people he had zero ideas about what he was trading at first.
In fact, just like most traders, he blew up a few trading accounts in his progress to becoming a successful trader.
It was only until Michael met another brilliant trader, Ed Seykota, that everything began to fall into place.
Michael took $30,000 and traded his way to $80 million in just 10 years by trading currencies through a brokerage account. That’s astounding!
6. James Simmons
James Simmons is a unique trader on this list.
He was a quantitative trader and implemented his trading decisions via mathematical models and algorithms.
He is the founder of Renaissance Technologies, a quantitative hedge fund that has seen returns of up to 80% in a year for its clients.
To Wrap It Up
Who is the best trader in forex? This depends on the definition of “best.”
As a general rule of thumb, the best traders in the forex market have strong fundamental and technical analysis skills. In other words, they are very observant.
They can pick up on details and nuances in the markets and are able to look at a chart and determine what is going on.
Then, they take all that data and turn it into actionable signals that they can trade with.
You’ll want to study the article below to learn more about the best traders in the forex market.