Connect with us

news

Who is the best Forex trader of all time?

Forex trading remains the fastest growing sector of the global financial system, with daily turnover likely to exceed $7 billion. It retreated from its April 2019 peak of $6.6 billion and is now well-positioned to expand, partially driven by a pending resurgence of retail demand. With such a highly liquid market, the remarkable expansion in…

Forex trading remains the fastest growing sector of the global financial system, with daily turnover likely to exceed $7 billion. It retreated from its April 2019 peak of $6.6 billion and is now well-positioned to expand, partially driven by a pending resurgence of retail demand. With such a highly liquid market, the remarkable expansion in online trading will experience another revolution, led by technological advances. There are hundreds of millions of traders, from governments to institutional, through FinTech and retail.

best forex traders

While there is adequate quantity, there is only a concentrated small exclusive group of quality Forex traders. Over 70% of retail traders manage portfolios at a loss, and an estimated 2% or less trade for a living. This article will explore the best Forex traders, identify essential traits required to succeed, regardless of trading strategy and portfolio size, to place you on the proper track to join the strived-for group of successful Forex traders.

How Do I Become More Successful at Trading?

There is no universal answer to this question, but there are several steps a Forex trader can take to become more successful. They include:

1. Knowledge and Patience

  • One of the most overlooked aspects of trading. The word learning includes earning, and traders must acquire proper education before opening a live account. Trading is one of the most underappreciated professions, but it is a profession nevertheless.
  • It requires patience to build a portfolio. There is no such thing as sustainable easy money. Becoming a successful trader equates to executing a strategy patiently over time.

2. Discipline and Risk Management

  • Discipline is often ignored and overly simplified. Many retail traders attempt to make sense of the market according to their strategy, which is a guaranteed path to failure. Trade what the market gives you, adjust your approach, and execute it with discipline.
  • Risk management is more than placing a stop loss at a fixed amount of pips away from the entry price. It required a deep understanding of the interconnectivity of global financial markets, and an active, dynamic approach. The set-and-forget approach advocated by many Forex brokers in their educational material is one reason over 70% of their retail clients lose money.

3. Courage to Go Against the Crowd

  • Since successful Forex traders represent a small group of the total crowd, despite misleading marketing campaigns by Forex brokers, the courage to go against the crowd, and their belief of where a particular currency pair may move next, is essential. Today’s information age, with social media filled with advice and recommendations, attracts scores of new traders daily. The social-trading motivated crowd mentality adds to general losses for most traders, especially as the best Forex traders do not reveal their trades. Following the crowd, therefore, often results in an accumulation of unprofitable trading accounts.

The World’s Best Forex Traders

Let us take a look at three Forex traders widely regarded as some of the best ever in the field, recognized across their industry for their tremendous success.

1. George Soros

  • The co-founder of the Quantum Fund is known as the man who broke the Bank of England. His now-infamous short-position against the British Pound in 1992, leading towards Black Wednesday on September 16th, resulted in an estimated personal profit of over £1 billion. Soros went against the crowd in a disciplined manner, resulting in a windfall profit from one trade. It shows that quality is more significant than quantity. “I am only rich because I know when I am wrong.” The Soros quote displays his willingness to realize errors and adjust to changing market conditions accordingly.

2. Stanley Druckenmiller

  • He worked with Soros at the Quantum Fund, joining the massive short position against the British Pound in 1992, before venturing out with the foundation of Duquesne Capital. He solidified his position as one of the best Forex traders with consistent double-digit annual returns. His patience and risk management contributed to his success. Keep in mind that one of the greatest traders ever achieved “only” double-digit profits per year, next time you see marketing campaigns claiming excessive and unrealistic results.

3. Bill Lipschutz

  • Known as the Sultan of Currencies, he earned hundreds of millions of dollars in profit at Salomon Brothers in the 1980s, without having previous experience with the Forex market. It shows that knowledge is essential to succeed, and there is no replacement for it. He recognized that only between 20% to 30% of trades are profitable and stressed the importance of managing a successful portfolio despite facing more losses than profits in another confirmation that quality trumps quantity in financial markets.

Honorable Mentions

Here are seven more traders that deserve recognition for their excellence, discipline, patience, and courage in financial markets.

4. Andrew Krieger

  • He worked briefly at Salomon Brothers, like Bill Lipschutz, before moving to Bankers Trust in 1986. He is known for booking a $300 million profit in a matter of hours on a short position in the New Zealand Dollar, using maximum leverage of 1:400, in the aftermath of Black Monday, the market crash on October 19th, 1987. After leaving Salomon Brothers, he joined Soros at his Quantum Fund.

5. Paul Tudor Jones

  • The former chairman of the New York Stock Exchange, between 1992 and 1995, founded Tudor Investment Corporation after gain experience as a commodities trader. During the previously mentioned Black Monday, he managed to realize 62% in short positions and earned over $100 million in profits. He remains one of the best-known traders today and a perfect example of courage in financial markets.

6. Michael Marcus

  • A founding member of the Commodities Corporation, he is known for being one of the biggest traders in German Marks in the mid-1980s. With almost $300 million in holding, he rivaled global banks. In two decades, he turned his initial $30,000 into over $80 million. It is yet another testament of discipline and patience.

7. Bruce Kovner

  • He turned $3,000 from his credit card into $23,000 and went on to work at the Commodities Corporation, where Michael Marcus mentored him. Caxton Corporation, his firm, earned over $14 billion at its peak, granting him a spot on the Top 10 list.

8. Urs Schwarzenbach

  • A former employee of the Swiss Bank Corporation, he was sent to London, where he turned CHF 100,000 into CHF 1,000,000, trading in the Forex market on the side. A few million later, he founded Interexchange and now owns properties and assets across the world.

9. Joe Lewis

  • He quit school at the age of 15 to help in the family business, used the money to move to the Bahamas, where he traded in a tax-friendly jurisdiction. In the 1990s, he took a massive short position in the Mexican Peso. It is unknown how much he made from that trade, but his Forex career expanded from there.

10. Michael Steinhardt

  • His average annualized return was in excess of 24% over 28 years, evidence that consistency is essential to the success of any trader. He lost over 33% of his portfolio during the 1994 bond market crisis, and closed his fund in 1995, before returning to financial markets in 2004 as the head of WisdomTree Investments, with nearly US$43 billion in assets under management.

How Successful is a Successful Forex Trader?

The above list noted the most successful ones, but thousands of unknown traders enjoy tremendous success. For different individuals, this translates into something else, and the only limit to success is the one you place on it. There are many profitable trading strategies out there, and you can either create your own, adopt an existing one, or modify it to your preferences.

How to Find the Best Forex Broker

Trading with the right Forex broker is just as important as having a good trading strategy. There are hundreds of entities operational, and more join the competitive sector to satisfy demand. While different traders will seek various core requirements to suit their style, below are the essential facts to consider when deciding where to trade. Many successful Forex traders operate multiple accounts at a few brokers, which can be part of a proper risk management profile.

Company History and Reputation

When evaluating the history of a company, remember that there is no guarantee that a reputable broker will remain reputable. Many list industry awards on their websites but it is important to check when they were received. With EU-member Cyprus home to many Forex brokers, the implementation of MiFID II in January of 2018 resulted in massive changes. Always be wary of reviews and comments, as the majority are false and misleading, often sponsored by brokers.

Regulation and Security

Trading with an unregulated broker is not recommended. Since MiFID II, non-EU regulated brokers grant traders a competitive edge. Ensure the segregation of client funds that client funds and that an insurance policy in the event of default by the broker exists. Once you exceed the maximum deposit cover, you can always open a second account with another broker, keeping your capital 100% ensured until you exceed a certain threshold. Diversification is essential to secure your money.

Broker Costs, Spreads, and Forex Leverage

Read and understand the trading conditions offered by the broker. The cost structure, often a combination of spreads and commissions, together with the correct leverage, will be essential to the outcome of your trading operations. Successful traders either seek out raw spreads, as granted by ECN brokers, with a competitive commission or tight commission-free spreads, depending on their trading strategy. Leverage is critical and is used in conjunction with risk management. Brokers used to grant leverage up to 1:500, and this is still available at many brokers headquartered outside the E.U., U.S., and Canada.

Market Coverage

Diversification will fulfill a central part of your risk management strategy, while proper market coverage results in more trading opportunities. Check the available asset list with a focus on Forex pairs. Anything greater than approximately sixty assets represents acceptable market coverage.

Trading Platforms

The best trading platform for most retail traders is the MetaTrader 4 trading platform, due to its extensive suite of third-party application developed over the past fifteen years. It fully supports automated trading solutions and can be modified to fit any trading style. Almost every broker offers it, adding to the accessibility of it. MetaTrader 5, referred to as the failed successor platform, should be avoided, while numerous proprietary trading platforms are available. Feel free to try the demo versions and find the one that suits you the best. Mobile trading apps are advertised and popular among retail traders. Bear in mind that successful Forex traders do not trade on them, as they are unsuitable tools with which to conduct a proper analysis.

Account Types

Some brokers offer better conditions to traders in their standard account, as it is more profitable for them. Equal access for all clients from the identical account type is a trend slowly gaining traction. Where various account types exist, retail trades with less than $10,000 should consider a mini account. Micro accounts are not widely available, but a superior choice for educational purposes over demo accounts. Ensure that the minimum transaction size is 0.01 lots, that order execution types allow you to manage positions properly, as available in MT4, and that the broker reports execution statistics under Pillar III disclosures. The account opening process, per industry standards, takes place via an online application followed by mandatory account verification for regulated brokers.

Bonuses

Many brokers offer bonuses as an incentive to trade. While these can be useful for committed traders focused on growing the account balance over time, most traders misunderstand them. Read the applicable terms and conditions before considering them, and only apply for one that is withdrawable over time without any time limit. It usually requires high trading volume, but if you implement a long-term plan, are patient, and disciplined, they can offer an acceptable boost to your trading strategy.

Tools and Features

While this is secondary, a broker offering an outstanding education section displays care about the success of traders. It is wise to check the quality of the educational material, as many provide poor quality content for marketing purposes only. There is plenty of valuable material online available for free. In-house research is another feature of interest for new traders, but you do not have to trade on it. View it as an effort by the broker to assist. Sometimes you can find ideas worth exploring. An upgrade to the standard MT4 trading platform, as provided by some brokers, should be favored. Traders who deploy automated trading may want to ensure the broker offers VPS hosting free of charge.

Payment Methods

Bank wires and credit/debit cards form the core of deposit/withdrawal options. It may not be suitable for you, and there is a plethora of third-party payment processors. Financial management will fulfill a more prominent role as you progress. Note the costs for withdrawals, processing times, and locate a broker that supports your preferred option. Ensure that your capital is always accessible with no questions asked. Reputable brokers will never question or delay a withdrawal request.

Customer Support and Customer Feedback

Most traders will never require customer support, especially at a well-managed broker, but having swift access to it in case of an unforeseen emergency is recommended. Approach customer feedback with caution, as you do not know who is behind it and what the motivation is. Most reviews are driven by new retail traders who failed to understand the terms and conditions of bonuses or by broker-sponsored comments.

Difference between an ECN/STP broker and a Market Maker

ECN/STP brokers grant you access to raw spreads and charges a commission per trade while filling your order in the open market. A market maker usually offers commission-free trading for a potentially unacceptable mark-up and is the direct counterparty to your position. Your trading losses are profits for the broker, and your trades are often filled in an internal order book, never reaching the open market. True ECN/STP brokers do not benefit from your losses, while market makers are known to manipulate orders and hunt stop losses of traders to increase their profits.

Scams

Regrettably, there are many scams in the Forex industry. Brokers make misleading claims about regulation and deploy marketing tactics to distract from unacceptable trading conditions. Self-proclaimed mentors offer education for a fee, signal providers manipulate results, and free automated trading solutions generally fail after a brief period of success. You can easily avoid scams by checking the information published by brokers, never pay for education, and do not blindly trust any free expert advisors (EAs) or other well-marketed solutions. Whenever you feel uneasy or pressured into a deposit, trade, or purchase, walk away. The best Forex traders do not share their strategies and only mentor those employed by them. Trustworthy Forex brokers never contact traders with offers.

Bottom Line

Becoming a successful Forex trader is an achievable goal, but it requires a specific skill set and approach. The best Forex traders understand that going against the crowd is an essential element of success. Therefore, the first step is to invest time in education, and build a strong knowledgebase from which you can create a trading strategy. Do not be afraid to be different from conviction, as successful traders are in the minority. Practice discipline and patience, have realistic expectations, find a trustworthy broker, be courageous, but do not neglect risk management. Treat Forex trading as a profession, and together with the character traits outlined in this article, you will possess the required tools to succeed. The rest is entirely dependent on you.

FAQs

Who is the best Forex trader?

George Soros is probably regarded as the best and most profitable Forex trader of all time, but others may have enjoyed less publicity but been even better.

How much do top Forex traders make?

Top Forex traders generally achieve double-digit returns per year. Consistency remains essential, but an annualized profit between 15% and 25% is considered excellent.

Are there profitable Forex traders?

Yes, but they are in a minority. Less than 30% manage profitable portfolios with an estimated 2% trading for a living.

Can you be successful in Forex trading?

You can be successful if you adopt the right mindset, develop the proper characteristics, and exercise patience and discipline. Misleading marketing campaigns by Forex brokers create the impression that small deposits with high leverage and minimal risk management will yield profitable results. Tacking the Forex market under these assumptions is why most retail traders fail.

Continue Reading
Advertisement

news

Statements about Cryptocurrency

Statements about Cryptocurrency

Cryptocurrencies are in a bubble and regulators could burst this at a whim.

  • Eight years after the introduction of Bitcoin, there are now over 900 cryptocurrencies and their prices are at all-time highs.
  • Richard Schiller categorizes bubbles as an underlying story driving the market forward, as opposed to the fundamentals of the assets. Cryptocurrencies are riding on a narrative of economic empowerment and freedom.
  • Despite the widespread attention that cryptocurrency receive, many of the actors involved in the market are not fully informed. Debate tends to turn to hype and naive investors are buying crypto-assets without fully understanding what they are.
  • Banks spend 73% of the market capitalization of Bitcoin each year on regulatory compliance. Crypto-assets are currently unregulated and free of these restrictions. As such, the market has thrived but also developed some bad habits.
  • Regulators cannot necessarily shut down cryptocurrencies, but they can restrict liquidity into them from fiat currencies and hamper their growth. The global derivatives market, for example, is worth $1.2 quadrillion, dwarfing Bitcoin’s $100 billion market cap.

Statements about Cryptocurrency

Market manipulations in crypto markets are undermining their credibility.

  • Due to low liquidity, no regulation, and a lack of clear understanding of the markets, pump and dumps are widespread in crypto markets. This is where a speculator can artificially sell while concurrently buying their own currency, wait for the market to rise, and then dump their holdings.
  • Frontrunning is also a common occurrence in ICOs, where early investors—who are used to show initial faith in the enterprise—buy discounted tokens before immediately selling them on.

As with historic bubbles, scams are exploiting naive investors.

ICOs can have the characteristics of vaporware. Entrepreneurs are raising hundred of millions of dollars purely on concepts. Money is being raised from investors who do not truly understand the technical concepts being proposed to them, let alone whether they are feasible.

  • The actual asset structures of ICOs are not only complex but also new forms of assets in their own right. This further confuses investors, which is compounded by the “FOMO” mentality of rushing into investments and following the crowd.
  • The use of celebrities to promote ICOs further demonstrates the use of manipulative marketing techniques used to cajole immature investors into participating in ICOs.
  • The current ICO craze is reminiscent of the South Sea Bubble of the 18th century, a speculatory period that involved crazed investment into enterprises in the New World. Once one of the highest valued companies of all time, the South Sea Company’s bubble burst and the company disappeared almost as quickly as it appeared.

Blockchains are still not proven technology, and more work is required.

  • Blockchains are still new concepts and their technology has not yet been proven on a consumer-wide scale. Attention should be focused on developing this, not speculating on short-termist projects.
  • The security of blockchains is a concept that most investors in crypto-assets do not understand. The onus is on them to protect their assets, which, on the basis of the amount of thefts and frauds in the space, is not being done properly.

There are some solutions to these issues.

  • A less polarized mentality of “us against the world” is needed; this could be enforced by the promotion of self-regulatory standards. These could also help to highlight the bad actors in the ecosystem.
  • More development is required into the underlying technology of blockchains. In the long run, this would be far more valuable than ICO moon-shot projects.
  • Awareness and discussion needs to be promoted. Conferences should present balanced debates from both sides of the crypto-view and more emphasis should be placed on educating investors instead of soliciting their investments.

Originally Published here at https://www.toptal.com

Statements about Cryptocurrency

Continue Reading

news

CMStrader Signals provider, the number 1 signal provider 4 years in a row

CMStrader Signals provider, the number 1 signal provider 4 years in a row.

CMStrader, the number 1 signal provider 4 years in a row, is now offering free signals to new clients!  Reliable trading tools are fundamental part of successful trading.

cmstrader for the Best Trading Signals

cmstrader for the Best Trading Signals

 

CMStrader’s signals success rate is estimated in 91% this should be enough to take a look and decide for yourself. since this is their biggest feature and drives this broker towards success, it is opretty afe to say that they do their utmost to provide you with quality forex signals.

This broker also entered the cryptocurrency market and offers several cryptocurrencies.  in short they act on the market and engage their clients directly.

when you start trading at CMSTrader, you can choose from a extended list of currencies, indices, commodities, gold and oil.

CMStrader Signals for better Trading

CMSTrader sends trading signals to traders’ accounts when there is an opportunity to buy or sell orders at specific points; an overview of the speculated price or loss ratio is included.

CMStrader Signals the number 1 signal provider among brokers

CMStrader Signals the number 1 signal provider among brokers

The signals are sent directly via SMS to a cellphone for major currencies traded on the stock exchange, foreign goods and precious metals.

In addition, signals can be sent to an e-mail address and or traders can be notified directly over the phone.  This service is available 24/5.

Like with Most proper signal services don’t expect 50 signals a day as simply there are not that many. you will get maybe a few good ones a day on which you could and most of the time should act.

Earn profits with CMStrader Signals in the forex market – the biggest trading scene in the world. Enjoy our unique benefits, trading education, minimum margin and best leverage! Start with a demo account and enter the amazing world of forex with CMStrader.

More about CMStrader Signals & Forex Broker

  • Name :CMSTrader
  • Website :cmstrader.com
  • Established :2013
  • Regulation :FSP
  • Country :United Kingdom
  • U.S. Clients Allowed ?  :No

CMSTrader is a leading investment advisor specializing in personal wealth management and growth and is a somewhat a newcomer to the Forex market.

they started in 2013 and since then have won several awards 2 including one for having best customer service in 2013.

CMSTrader “CMStrader Signals” is authorized under the name of CMS Ventures Limited which is a New Zealand Registered Financial Service Provider (FSP).

Continue Reading

Daily Financial News

Supreme Court Sides With Bits of Gold in Bank Dispute

Supreme Court Sides With Bitcoin Broker “Bits of Gold” in Israeli Bank Dispute

Upon appeal, the Israeli Supreme Court has rejected the closure of Bits of Gold’s banking facilities at Leumi bank, Tel Aviv.

The Israeli cryptocurrency brokerage’s appeal followed a previous ruling against it that has now been set aside by the higher court.

As Israel and many other countries struggle with the accelerated phenomenon of virtual currencies, Leumi Bank recently made the news for being a particularly blunt in its rejection of Bitcoin.

We should of course not be surprised with the banks attitude towards bitcoin or any other cryptocurrency for that matter. keep in mind that the banks become more and more obsolete because of them. Bits of gold versus leumi

They will keep on loosing money which now they make with ridiculous commissions of work that is fully automated. so they will try to see how they are able to make the operation and acquiring cryptos  as hard as possible knowing that they will never be able to stop them.

There is widespread anticipation that the upcoming G20 Summit in March 2018 will produce a global, moderate framework for a regulatory approach. Set against that are persistent hostile stances the world over from banks, asset managers and even governments towards cryptocurrencies.

Now that the countries understand there is money to be made with Taxation in cryptocurrencies they might want to make sure that the banks stay within their lane. 

Apart from the Israeli revenue service opting to tax cryptocurrency assets as “properties” and other more positive developments dating back to mid-2017, Israel remains a strange mix of genteel acceptance alongside wildly opposing voices.

There is thus Hope But no decision

Bits of Gold has fought a David and Goliath battle since their banker decided it wanted to steer clear of all cryptocurrency-related business.

On record as recently telling another bitcoin-related trader that they simply don’t want the business, Leumi Bank’s hard-line stance is accumulating bad press. The second-largest bank in Israel appears as discriminatory when analyzing virtual currency traders and other digital coin businesses.

During 2017, a customer made a bank transfer to the Kraken exchange site for buying bitcoin worth $1000. The bank identified the request, halted it, and started investigating.

The elated CEO of Bits of Gold, Youval Rouach said that “The court’s decision enables us to focus on the growth of the Israeli cryptocurrency community.”

 

The February 26 Supreme Court ruling granted Bits of Gold a temporary injunction against their account closure pending further scrutiny by the bank and other parties. The presiding bench declared that the company had “acted transparently and did not violate any provision of law.”

Calling the bank’s concerns “speculative” and turning an unsympathetic ear to the plaintiff, the ruling does, however, allow for the bank to still close the account on any small technical detail that defies legislation. As a record of a public spat around cryptocurrency’s right to be recognized in many ways, the ruling is seen as a victory for the local cryptocurrency community.

One Small Step Forward

Although not as absolute as nations like China that has opted for draconian bans, Israel is a front line for digital coins’ right not just to exist, but also become assets in the true sense of the word. The Supreme Court noted in its written ruling that Bits of Gold had not made itself guilty of the violation of any standing laws since opening its doors for business.

 

The Bits of Gold v. Leumi Bank case might become something of a test case once the bank applies its mind in scrutinizing the company’s accounts against the backdrop of existing legislation. The outcome will also be informed by sentiment post the G20 Summit due in March as well as other global regulatory trends.

Now that the countries understand there is money to be made with Taxation in cryptocurrencies they might want to make sure that the banks stay within their lane.

This was First Published by coindesk

 

Continue Reading

Trending