The most successful Forex traders in the world share many similarities, despite using different trading strategies. Retail traders may do well to consider identifying and adopting these commonalities in the approaches of successful traders. In this article, I have provided a list of well-known traders to introduce their strategies, philosophies, and triumphs. Read on and learn how you can become a better Forex trader.
Top Forex Brokers
George Soros
George Soros often tops the list of the most successful Forex traders in the world after trading against the Bank of England, which earned him the nickname “the man who broke the Bank of England.” He founded Soros Fund Management in 1970 and employed Jim Rogers, Stanley Druckenmiller, Mark Schwartz, and Keith Anderson in senior positions.
Trading Strategy
At the core of George Soros’ approach is fundamental analysis. While he used macroeconomic analysis to break the Bank of England, he is also one of the pioneers of quantum investing, as evident in his Quantum Fund.
Philosophy
George Soros believes investor sentiment can influence economic fundamentals, and he stresses values including staying adaptive, challenging conventional wisdom, and effective risk management.
Triumph
Besides breaking the Bank of England in 1992, which netted him a reported $1 billion profit in one day, the most notable triumph of George Soros is his Quantum Fund.
Paul Tudor Jones
Paul Tudor Jones rose to fame during the 1987 Black Monday Crash, analyzed by his second-in-command Peter Borish. He founded Tudor Investment Corporation in 1980 and is one of the best-known hedge fund managers with $12+ billion in assets under management.
Trading Strategy
Macro-trading and trend-following form the core trading strategies Paul Tudor Jones uses, backed by sophisticated risk management and a deep understanding of trading psychology.
Philosophy
Preserving capital using risk management is the most crucial aspect of the success of Paul Tudor Jones. He also emphasizes discipline and mastering emotion.
Triumph
Paul Tudor Jones is known for his short trade during the Black Monday stock market crash of 1987, netting him over $100 million in profits. He is also a prominent hedge fund manager.
Bill Lipschutz
Bill Lipschutz ranks among the most successful Forex traders in the world with a history as a Forex trader. He began his career at Salomon Brothers in 1981, managing the newly formed Forex division. Bill Lipschutz became the principal trader of the Forex account in 1984 and earned $300M+ per year.
Trading Strategy
Unlike most Forex traders, Bill Lipschutz prefers low-leveraged trading coupled with patience. He also understands when to sit on the sidelines.
Philosophy
Bill Lipschutz is best known for his patience and approach to risk management.
Triumph
Retail Forex traders focus on how Bill Lipschutz turned $12,000 into $250,000 before losing everything on one trade, followed by his tremendous career as a Forex trader.
Stanley Druckenmiller
Stanley Druckenmiller founded his firm Duquesne Capital Management in 1981. He is one of the most successful Forex traders in the world due to being the lead hedge fund manager for George Soros’ Quantum Fund until 2000.
Trading Strategy
In-depth market analysis and prudent risk management have helped Stanley Druckenmiller carve out a career as a billionaire trader and investor.
Philosophy
While many Forex traders prefer offense, Stanley Druckenmiller relies on defense. He anchors his success in risk management using well-defined stop-loss levels and his ability to react swiftly to market changes.
Triumph
Stanley Druckenmiller rose to fame alongside Geroge Soros during the 1992 Black Wednesday British Pound currency crisis.
Michael Marcus
Michael Marcus started his career in 1972 with his life savings of $7,000 as a plywood futures trader and became EVP at Commodities Corporation (now owned by Goldman Sachs).
Trading Strategy
While Forex mentorship has a spotty record, Michael Marcus is a prime example of how a good mentor can help new Forex traders. Michael Marcus learned risk management from Ed Seykota, which continues to impact his momentum trading strategy.
Philosophy
Michael Marcus anchors his success on constant learning and mentorship from experienced traders with a prudent focus on risk management.
Triumph
During the Ronald Reagan administration, Michael Marcus maintained a $300M+ position in Deutsche Marks, but he is most known for turning $30,000 into $80M+ over 20 years.
Andy Krieger
Andy Krieger, once groomed as a successor to Geroge Soros, rose to fame during the 1987 Black Monday market crash, where his short position in the New Zealand Dollar placed him among the most successful Forex traders in the world.
Trading Strategy
Countering the more risk-averse approach by many of his peers, Andy Krieger ranks among the most aggressive traders using leverage to his advantage.
Philosophy
A deep understanding of fundamentals and market interconnectivity fueled the aggressive trading style that made Andy Krieger famous.
Triumph
After Bankers Trust raised Andy Krieger’s trading limit from the maximum of $50 million to $700 million, he took a short position in the New Zealand Dollar, rumored to exceed the entire New Zealand capital supply, netting a $300M+ profit during the 1987 market crash.
Bruce Kovner
Bruce Kovner borrowed $3,000 against his credit card in 1977 to start trading soybean futures.
Trading Strategy
Besides trend-following and strict risk management, Bruce Kovner exploits central bank and government mistakes that create disequilibria in financial markets.
Philosophy
As a trader at Commodities Corporation under Michael Marcus, Bruce Kovner relies on a combination of mentorship and prudent risk management.
Triumph
Bruce Kovner founded Caxton Associates and grew it to $14B+ in AUM before retiring to run his family office, CAM Capital.
Bill Gross
Bill Gross earned fame trading bonds at PIMCO, the fixed-asset management company he co-founded, and is often known as the “Bond King.”
Trading Strategy
In-depth analysis of fundamental factors and the ability to distill complex ideas into simple strategies form the core of how Bill Gross manages portfolios.
Philosophy
With an ability to identify and exploit market inefficiencies, embrace new technologies, and adapt as PIMCO grew, Bill Gross excels at navigating the central bank-influenced fixed-market environment.
Triumph
After growing PIMCO into the leading bond management company globally, Bill Gross moved on to Janus Henderson in 2014.
Ray Dalio
Ray Dalio is a billionaire hedge fund manager and best-selling author who began his financial career in 1975 after founding Bridgewater Associates.
Trading Strategy
The Pure Alpha fund at Bridgewater Associates best reflects how Ray Dalio manages capital, but he also has low-risk alternatives that excel at risk parity strategies.
Philosophy
While Ray Dalio claims to use sophisticated trading systems, some insiders note that his hedge funds rely on personal picks by Ray Dalio based on closely guarded principles.
Triumph
After profiting from the 1987 stock market crash, Ray Dalios Bridgewater Associates became the largest hedge fund in 2005.
Carl Icahn
Carl Icahn started his investment career as a stockbroker in 1961 and became one of the most active and feared activist investors over the past six decades.
Trading Strategy
As a feared corporate raider using asset stripping, Carl Icahn specializes in leveraged buyouts.
Philosophy
Each Carl Icahn investment focuses on improving corporate efficiency and increasing shareholder value.
Triumph
In 1968, Carl Icahn founded Icahn & Co with $150,000 of his own capital, and a $400,000 investment by his uncle Elliot Schnall, which he grew into the publicly listed Icahn Enterprises LP.
Bottom Line
The most successful Forex traders in the world all have one defining investment or trade that launched their career. They also share certain values, including the prioritization of risk management, an in-depth understanding of market forces, and discipline. Before you choose the best Forex brokers for your trading style, you must first learn about market drivers and how to improve your risk management, in line with the principles shared by these leading forex traders.
