I was surprised when I read on forexlive.com that George Soros made $60 Million in 18 hours thourgh Forex.
I wonder what strategies he uses, what broker he has, are there any special platforms that he makes use of.
And what about other billionaire and multimillionaire traders , what strategies do they use or any special things you would like to tell them about. I am particularly very interested in them, as if we follow their footsteps, we become atleast 1/100th of them over the course of long time.
The strategies of the mega-wealthy are quite simple, really.
They generally do exactly the opposite of what the market is doing. As the market declines they buy. As it declines more they buy more and as it declines even further is when they really start getting interested as by now the entire world is in a panic and selling like crazy. They are picking up every position they can amass at rock-bottom prices and then they sit back, light a cigar with a couple of $100 bills and wait for the markets to rise and make them even wealthier.
As an example, look at the buying frenzy Warren Buffet went on in late 2007 and through 2009. The more the stock markets declined and the more panic driven the news was at the time the more he bought. He has since made billions as the markets reversed and increased to new highs.
It was recently reported that Soros is already garnering put options on the S&P 500. Why? Because everyone is buying as the S&P keeps bumping higher. When it corrects (as it must at some point) he is perfectly positioned to reap massive rewards. When the falling markets then begin to panic the masses as stock prices plummet, he and Buffet and the rest of the gazillionaires will begin buying at steep discounts, light up their cigars with $100 bills and become even wealthier, laughing at the rest of us.
Unlike retail traders, they have the luxury of having enough money to ride out massive corrections and enter what you and I would consider unbearable but as yet unrealized losses.
Buffet’s strategy is the easiest to follow for small investors in stocks (he will even tell you!). Buy. Hold. Repeat as often as you can afford to do so.
Soros’ is a bit more complicated. Buy low and sell high and sell high cover low.
They are in much longer term trades than typical retail traders who are in a position from a few minutes to a few weeks. Buffet doesn’t even trade. He just buys.
You need money to make money. The scale is still the same. I still would guess they only make around 30% to 100% on average a year. Its the billion dollar accounts that make it sound like they have some magical system to make millions when only its a small percent of there initial balance.
I would like $200000 as a starting balance as 50% a year would give you a nice annual income. Unfortunately I have to build my tiny savings account & add money to it when I can. Should get there in 10 years, finger crossed.
Why bother? Their strategy is applied along with a huge capital, which of-course you don’t have. These guys don’t share their strategies, so how would we know. I suggest you go ask them.
Soros and the other big time players have enough money to somehow move a currency pair – institutional order volumes shift the demand/supply balance to one side and that’s the side with more orders (Soros side)
Somehow I don’t think Soros sits in front of a screen and trades. He employs people to do that job for him. At most he would attend a meeting of the heads of department every month/quarter and occasionally nod his head.
