To the Forex market, millions of people devote their time and money in the hope of making good money. And someone really succeeds, playing on the difference in exchange rates.
The success of a trader depends on theoretical preparation, and on experience, and on intuition. Today we propose to consider the four most successful transactions in the history of Forex , which are an example of how courage, calculation and intuition play the trader "on hand."
Of course, at the disposal of players were huge funds, but most importantly, what these examples teach is the ability to draw on facts from the sphere of politics and economics.
4. Warren Buffett and the US dollar
By the beginning of the 2000s, the "Oracle of Omaha" had already acquired a reputation as a man with great business intuition, because the first millions he earned in 1965.Until 2002, Buffett never played on currency rates. The first transactions Buffett was cautious, a great investor "tried the ground."A year later, in 2003, the investment company Buffett Berkshire Hathaway earned $ 1.3 billion in a deal to buy five foreign currencies against the dollar.
The staggering profit of Buffett proved that he can predict not only the dynamics of the exchange rate, but also the exchange rates.
3. Andy Krieger and the New Zealand Dollar
In 1987, Anders Krieger, a trader at Bankers Trust, followed the exchange rates that grew against the US dollar after the exchange blackmail collapse. Naturally, having rushed from the dollar to other currencies, traders clearly overestimated some monetary units. Krieger's attention was drawn to the New Zealand dollar or "kiwi," as the stockbrokers called it.
At the disposal of Andy Krieger were significant cash, because in Forex he represented a major investment company. Putting on a short position against the "kiwi" several hundred million dollars, he achieved that the New Zealand dollar depreciated by 5%.Krieger brought millions of dollars in profits to his employers.
2. Standley Druckemiller and the German brand
The trader of the company Quantum Fund, owned by George Soros, Standley Druckemiller opened a long position against the German currency in the days of the fall of the Berlin Wall. The extreme decline of the German mark and the correct assessment of the market brought profitability of 60% of the transaction amount. A couple of years later, Druckemiller again put on the brand, but now on the assumption that it will grow in relation to the British pound.
Druckemiller rightly assumed that the UK in those years sought to stimulate business and attract investment, for which it lowered rates and the exchange rate of the national currency. The second deal turned out to be no less successful, bringing the millionth income to Quantum Fund.
1. George Soros and the British pound
This Forex game has a relationship with the Standley Drahammiller deal. Soros understood that Britain's desire to keep the high rate of the pound sterling was not justified from the point of view of the economic situation. Soros began to open short positions against the pound, betting huge money. Accurately calculating the moment when the British currency still collapses against the German mark, Soros earned a minimum of a billion dollars.