The majority of highly successful forex traders do everything within their power to remain anonymous. Who wouldn't? As the saying goes, 'Be rich, be successful, but be anonymous'. Fame has a price which most aren't willing to pay. There are however some individuals who couldn't avoid becoming famous through trading, mostly due to the shear scale of their success.
This article aims to shine a spotlight on some of the biggest forex players in the game, and give you an idea of how they did it.
One trait all these traders share is confidence. Their humble confidence and tenacity is what ultimately got them to where they wanted to be. They learned from the best and built strategies of their own to fine-tune their forex trading skills with enormous rewards.
Bruce Kovner - started at 32 years old
Bruce Kovner retired in 2011, having made his first trade back in 1977 at 32 years old using a personal credit card to net some $20,000 early profits. He was later employed by Commodities Corporation as a trader, gaining the firm millions of dollars in profits and making his name in the industry.
As with most independent traders who go on to build knowledge at a firm, Bruce then went on to found his own firm called Caxton Alternative Management (https://camcapital.com/) back in 1982. Unbelievably, the shear scale of his success resulted in his firm becoming one of the largest in the world with over $14BN (that's right, Billion!) worth of assets off the back of currency positions and commodities.
- Start small and build up
- You can start at any age, regardless of your background
- You don't need loads of capital to get started
Interesting further reading:
- Bruce Kovner listed one of his estates (Caribbean) for $67M, check it out here at MansionGlobal.com.
- Take a look at Kovner's Santa Barbara house on Google maps.
Bill Lipschutz - made hundreds of millions of dollars without currency market experience
Bill really stood out for us when researching for this article because despite having almost no currency market experience he was still able to make hundreds of millions of dollars at the Forex Trading division of Salomon Brothers ($300M per year trading forex to be precise).
Bill liked to focus on perception and treated the markets as a psychological challenge of prediction. Lipschutz had a view that a great forex trader must concede that they will not be right the majority of the time and it's all about finding a way to make profit when you're only right 20% of the time.
It wasn't always plain sailing for Lipschutz. Wikipedia reports that whilst in school reading about the market, he managed to build a portfolio of over $250,000 but lost it all with one bad decision and a turn on the market. This proved a valuable mistake which stood him in good stead for the rest of his career.
Bill also believed that before placing any trade, you must have sound logic and reason behind that trading decision. If you don't, then don't place the trade. He would always keep an eye on the fundamentals and price action changing and use this as an indicator to ease up.
it's also stated online that he emphasised the importance of managing risk - something we're very keen on highlighting. In this 24/7 market, timing can be wrong but your trade size should be selected to avoid being pushed from your position.
- Losses can be good learning experiences
- Without any trading experience, successes can still be achieved
- Make sure you manage the risk
Interesting further reading:
- Bill's wikipedia page: https://en.wikipedia.org/wiki/Bill_Lipschutz
- Great interview with Bill Lipschutz on profit-loss.com.
To be a great forex trader you must stay humble, manage risk, remind yourself that you will be wrong more often than you are right and learn from your mistakes. You can start trading at any age and you don't need huge amounts of capital to get started.
Importantly, it doesn't matter what background you come from or where you are based geographically. Forex trading is available for everyone - if you're focused and follow the principles set out by these two traders then you could gain an edge.
Ready to trade?
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Simply hit the 'Trade Now' button on the provider of your choice to get started trading forex online.
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