george soros Archives - MKTPlace https://mktplace.org/tag/george-soros/ all about trading, Fintech, Business, AI & technology in one place Thu, 18 Mar 2021 22:02:09 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.2 https://mktplace.org/wp-content/uploads/2021/03/favicon.png george soros Archives - MKTPlace https://mktplace.org/tag/george-soros/ 32 32 Top 10 Successful Traders Ever https://mktplace.org/top-10-successful-traders-ever/ https://mktplace.org/top-10-successful-traders-ever/#respond Thu, 25 Sep 2014 06:00:38 +0000 http://www.tradersdna.com/?p=32122

There are a number of fundamental differences between a trader and an investor. The only similarity they may share is that both investors and traders can lose money just as easily as they make it. We can learn from the successful traders.

To start trading though, you don’t need an investment or apply for a loan. You’d be surprised to know some of the world’s most brilliant and legendary traders themselves went through a lot of trial and tribulations before they became what they are today and before their names were immortalized in the history of trading.

Mentioned below are the names of the top successful traders who managed to beat others in the market through their skill, their diligence, tenacity and instincts. So, get ready to get some inspiration.

Top Ten Successful Traders of the World

1.  Jesse Livermore – The Master of Speculation

The skill of speculation that Jesse possessed thrived when he accurately predicted the 1929 stock market collapse. Livermore began trading as a 15-year old, trading at various gambling houses and through his studies and research he rose to fame and power when forecasted the 1907 and the 1929 markets collapses and made $100 million (which in today’s terms amounts up to $6 billion), in the blink of an eye. Having been associated with various industrialists at the time, Jesse proved to be instrumental in contributing towards America’s industrial revolution.

2. Paul Tudor Jones – Understanding the Core Dynamics of Trading

Paul Tudor Jones, another trading genius, called on the 1987 stock market crash because of that the day became labelled as Black Monday. Tudor accurately predicted the fall of the market by recognizing and understanding a series of events that led him to success. He understood at the time if the market started to descend rather than dry up, selling in the market would actually cascade. Jones understood an overvalued market would definitely give birth to more selling. Gambling on this, Paul went on making $100 million faster than you could say ‘I want to be rich!’

3.  George Soros – Defeating the Bank of England

As if this man needs any introduction at all, George Soros is the trader who broke the Bank of England without breaking a sweat. He predicted that the pound was going to fall and shorted it, making an easy $1 billion. Although many other traders deemed this gamble as nothing short of reckless, Soros was pleased about it. Well, of course, he would be. It was a ridiculously rewarding gamble! George forced the Bank of England to withdraw from the ERM (European Exchange Rate Mechanism).

4.  John Templeton – Betting on Japanese Assets and Winning

Templeton was the master of mutual funds. He invested $100,000 in Japanese assets when Japan was undergoing an economic change for the better, Templeton ended up making $55 million on a $100,000 investment. And in 1999, when Japan was starting to achieve it economic goals, Templeton decided to invest 60% of his funds into Japanese assets, which was again a spectacular success.

5.  Andrew Hall – Predicting the Oil Prices

In 2003, a barrel of oil was traded at $30. At the time, Andrew Hall predicted the price per barrel of oil is going to reach $100 within the next 5 years. Turned out his gamble was spot-on. He worked for Citigroup, making a ton of money for his employer. The trader made about $100 million.

6.  Paul Rotter – The Master Flipper

An expert in gauging the market’s psychology, his techniques were impeccable and significantly aided him in becoming a master of the markets. Paul being the initiator, his ideas and strategies proved to be instrumental in conducting trades on the Eurex exchange (Bund, Bobl and Schatz) markets.

7.  John Paulson – Shorting Real Estate

John Paulson is known for successfully executing what is known as the ‘greatest trade ever’. Paulson accurately predicted the asset bubble in the real estate market which had the potential for bringing in billions of dollars into Wall Street. Paulson ended up making $15 billion for his employers in 2007 for which he got a dizzying $3.7 billion.

8.  Jim Chanos – The Perceptive Short Seller

Jim Chanos rose to fame in October 2001 shortly after the downfall of Enron. Chanos was a master when it coming to shorting trades and made heavy profits by selling commodity currency and security. His most popular shorts include Baldwin-United and as of late, homebuilders like KB Home.

9.  Louis Bacon – The Gamble on Geopolitical Factors

Bacon is one of successful traders and ended up rightly predicting that Saddam Hussein would invade Kuwait. Just a year after that, he also predicted and gambled on the fact that the US would defeat Iraq when the oil markets were beginning to recover. He was a master at trading using geopolitical motivators and aspects and has made a lot of money doing so.

10. David Tepper – Investing Money in Diminishing Assets

The last on the list, another successful traders is Tepper has a record for investing in distressed assets and has made a lot of money doing so. He predicted the Bank of America along with Citigroup will not be nationalized and he made a fortune. David bought extremely depreciated shares and saw them grow tremendously in value towards the end of 2009.

So, these are the best traders you can learn from and be inspired by.

]]> https://mktplace.org/top-10-successful-traders-ever/feed/ 0 The Best Traders Alive https://mktplace.org/best-traders-alive/ https://mktplace.org/best-traders-alive/#respond Tue, 23 Sep 2014 06:00:26 +0000 http://www.tradersdna.com/?p=32101

While it is true that investors trade to make money, a trade, strictly in technical terms, does not necessarily have to be an investment in anything.  Let’s consider the best traders alive. Do you know why? The answer to this question lies in the explanation of value investing given by Benjamin Graham, who is known to be the father of all value investment and movements. According to Benjamin Graham, an investment should always guarantee one thing, and that is the “safety of principal and a lucrative return”. In light of this information, the difference between a ‘trader’ and an ‘investor’ becomes significantly clear.

An investor takes their time to put in their money, and is in the habit of making informed and diligent decisions after a thorough evaluation of a particular set of business fundamentals of a specific company or organization. A trader, on the other hand, applies the use of careful evaluation and technical analysis to focus on the core aspects of the trading market, and then bets on which of them have the potential to provide a hefty profit with limited market volatility.

Exactly fourteen years ago, it was very common for people to terminate their employment, get the cash out of their 401k plan and start down the line of trading, and that too from the ease of their homes. Fuelled by a large and volatile stock market with real estate bubbles, it was easy to throw away investments, but it was easy to make money as well. However, things have changed over the past couple of years. The recession that crippled the economy in 2007, for example, also resulted in the consistent proliferation of financial regulations.

Moreover, who can ignore the significant advancements in technology which allow trading to be carried out by powerful software and sophisticated algorithms. Did you know that today, 50% to 70% of all trading is done through complex algorithms every given day?

Losing money in today’s financial markets is routine and there are many traders and investors who lose massive amounts of money in the span of a single trading day. On top of this, these traders hope their gains will fill in for the losses they have experienced. And in order to gain more money, traders have to incur substantial expenses to pay for rising transaction and trading costs, and to pay for keeping up with traders who use state of the art trading software and platforms.

With all of this being said, there is still a selective number of traders who possess the diligence, the grit, the boldness, and the heart to go against the odds and make money along the way. Here are a few of those people:

Paul Tudor Jones (1954-Present)

Paul Tudor Jones is the founder of the Tudor Investment Corporation, which consists of a $12 billion hedge fund. Tudor is famous for short selling his stocks in the 1987 stock market crash which ended up making him $100 million. He did this by predicting a massive multiplier effect on the portfolio insurance on the bear market.

Portfolio insurance is a risk management instrument popularly used by traders around the world. Investors and traders use portfolio insurance to reduce the investment risks which could threaten their portfolio. Jones’ brilliant analytical insight led to this prediction which in turn helped him become a very rich trader in 1987. He has an estimated net worth of $3.6 billion and still heads his own hedge fund.

George Soros (1930-Present)

Soros is by far the most popular trader of all time. In fact, he is known as “The Man Who Broke the Bank of England”. George Soros made a well calculated bet in 1992 that the British pound would deflate in value. The British pound at that time was on an ERM – the European Exchange Rate Mechanism – which was introduced to keep the currencies held together in a defined boundary to maximize financial stability. George Soros, along with his partners from the Quantum Investment Fund, found a pattern which led him to believe the pound would become weak and thus would not be able to survive in the ERM.

He then made a short position, borrowed a substantial amount of money from the fund, and made $1 billion.

John Paulson (1955-Present)

John Paulson is renowned for carrying out what is known as the ‘greatest trade ever’. Paulson became a wealthy trader in 2007, when he shorted the real estate market via the collateralized-debt market. He was the founding member of Paulson & Co., which was established in 1994. Although being a brilliant trader, Paulson was not very popular in Wall Street, at least not until the crippling of the economy in 2007.

John Paulson

Successfully forecasting a massive asset bubble in the real estate market, he helped his funds make a massive $15 billion, out which he got a cool $3.7 billion. Paul still manages his companies and is worth an estimated $11 billion.

Come to think of it, all three super traders shared one thing in common: each of their brilliant and high paying ideas was based on leveraged shorts. What does that tell you? It tells you that all traders have clear conflicts of interest, and each trader is motivated to make profits from a fluctuating market.

]]> https://mktplace.org/best-traders-alive/feed/ 0 The Greatest Traders in History https://mktplace.org/greatest-trades-history/ https://mktplace.org/greatest-trades-history/#respond Fri, 19 Sep 2014 06:00:30 +0000 http://www.tradersdna.com/?p=32061

Every day, there are thousands upon thousands of trades and transactions which are conducted between investors all across the globe. However, if you come to think of it, many of those investors will not be remembered for anything.  And in this regard, the legendary trades which have become a memorable part of financial history have to be absolutely amazing indeed.

If you are thinking the guys who made it into the history books simply landed there through making tons of money in the market, then you are wrong. Some of the greatest trades ever made have been made by people who used their intellect, their gut feeling, and cunning and intuition to determine the right moment to strike and to make it big, even when everybody else thought they were simply nuts for making such trades.

Just pause and think for a second. The famous John Paulson shorted the housing market of the US when every trader on Wall Street deemed the market bullish. Jim Chanos kept his Enron shares short even though he knew the stocks were going to shoot up. Now, moves like those require critical analysis, thorough knowledge, and above all, they require grit.

Listed below are some of the greatest traders who have made history, by making some of the greatest trades in the world through their diligence, and their feats still stand unmatched:

Jesse Livermore – The Man Who Shorted the Market Collapse in 1929 and made $100 million 

jesse livermore quote

Jesse Livermore is regarded as the most famous short seller in US stock market history. He began shorting stock purely on gut instinct just before the San Francisco earthquake hit. Although there was no way he could have predicted the earthquake, the trade did make him $250,000, which led to him consistently short selling stocks in the market. Shortly after, in 1907, he went on to make millions when he shorted the market collapse.

However, it wasn’t until 1929 that he made it into the big leagues. It was when he shorted the whole stock market and made a cool $100 million in the process. Imagine that! He is deemed as the pioneer of short sell trading and was the inspiration for the book, Reminiscences of a Stock Operator, which is a fictional account of a trader.

Paul Tudor James – The Man who Made $100 million by accurately Predicting Black Monday in 1987 and Shorting the Entire Stock Market

paul tudor jones quote

Utilizing the analysis from technical reports, various evaluations, and the historical information of S&P, Paul Tudor Jones accurately predicted that the market will collapse in 1987, and followed through by short selling his stock in huge quantities. And as he predicted, the Dow dropped by 22%, which made him an estimated $100 million.

Subsequently, PBS made a documentary about Paul Tudor Jones, which was named Trader, and just after its release, Jones went out and bought all the copies so that no one else could see the documentary. He was concerned it could reveal his trading secrets.

Andy Krieger – The Man who shorted the Kiwi in the 1980’s and Ended Up Making $300 million

Back in 1987, when the market crashed on Black Monday, a majority of the investors discarded the US dollar and began to look for other currencies. 32 at the time, Krieger was a currency trader working for Banker’s Trust. He analyzed that the New Zealand dollar, which is also known as the Kiwi, was ridiculously overvalued. Using financial trading instruments which were new at the time, he shorted his position against the Kiwi, which was worth millions of dollars. His short sell order exceeded the entire New Zealand supply at the time.

And just like he had anticipated, the Kiwi fluctuated between a 3 to 5% loss, which made his company $300 million. Krieger himself ended up making $3 million from the trade.

George Soros – The Man who Made $1 billion by Shorting the British Pound

george soros quote

Back in the 1990’s, when the British economy was doing very well, the legendary George Soros proceeded to short the pound, and he borrowed massive amounts to accomplish this harrowing feat. Soros shorted the pound when the currency was traded on a fixed rate of exchange.

After Soros made the bet, the government of Britain realized it could end up losing billions if they consistently and artificially piled up the pound. Soon after, they moved away from the European Rate Mechanism, which resulted in a massive plummet of the pound’s value. This made Soros $1 billion, giving him the status: brilliant billionaire investor.

So, what do you think now? Some of the major traders and investors of today have been inspired by these great men who took trading to an entirely new level.

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