Millions of people devote their time and money to operations in the hope of making good money. And someone really succeeds by playing on the difference in exchange rates.
The success of a trader depends on theoretical training, and on experience, and on intuition. Today we suggest considering four of the most successful Forex deals, which are an example of how courage, calculation and intuition play the trader "on hand".
Of course, the players had huge resources at their disposal, but the main thing that these examples teach is the ability to rely on facts from the sphere of politics and economics.
4. Warren Buffett and the US Dollar
By the beginning of the 2000s, the “Oracle from Omaha” had already gained a reputation as a person with excellent business intuition, because he earned the first millions in 1965. Until 2002, Buffett never played on exchange rates. Buffett’s first deals were cautious; the great investor “tried the soil.” A year later, in 2003, Buffett's investment company Berkshire Hathaway earned $ 1.3 billion in a deal to buy five foreign currencies against the dollar.
With a stunning profit, Buffett proved that he can predict not only the dynamics of the exchange rate of securities, but also exchange rates.
3. Andy Krieger and the New Zealand Dollar
In 1987, Bankers Trust trader Andy Krieger monitored exchange rates that rose against the US dollar after the Black Monday stock market crash. Naturally, having thrown from the dollar to other currencies, traders have clearly overestimated some monetary units. Krieger’s attention was attracted by the New Zealand dollar, or “kiwi,” as traders called it.
At the disposal of Andy Krieger was significant cash, because at Forex he represented a large investment company. Putting several hundred million dollars in a short position against the Qiwi, he ensured that the New Zealand dollar depreciated by 5%. Krieger brought millions of dollars of profit to his employers.
2. Standley Drackmiller and the German mark
A trader at Quantum Fund, owned by George Soros, Stanley Drackmiller opened a long position against the German currency during the fall of the Berlin Wall. Extreme decline of the German mark and the correct assessment of the market brought a yield of 60% of the transaction amount. A couple of years later, Drackemmiller again put on the mark, but now on the assumption that it will grow against the British pound.
Drackemmiller correctly suggested that the United Kingdom in those years sought to stimulate business and attract investment, for which it lowered rates and the national currency. The second transaction was no less successful, bringing in the millionth revenue of Quantum Fund.
1. George Soros and the British Pound
This Forex game is interconnected with the Stanley Drackmiller transaction. Soros understood that Britain’s desire to maintain a high pound was not justified in terms of the economic situation. Soros began to open short positions against the pound, betting huge money on the line. Having accurately calculated the moment when the British currency nevertheless collapses against the German mark, Soros earned at least a billion dollars.
