He was born in Hungary in After the World War II was over, he left for England to study at the London School of Economy. Upon graduating, he went to New York and began his banking career, later leaving for a broker company. Many years later, he formed the Soros Fund Management that became a part of the mentioned Quantum Fund. Over the years of active work, Soros made several impressive trades and investments. He is one of the most famous investors in the financial world, known for making trades with currencies that are huge even for the global financial world.

Soros's capital in was above 8 billion USD. Moreover, he donatef more than 30 billion USD on charity and political projects. Let us take a look at threw Soros's trades with currencies that made him wealthy and famous. Soros's Forex stake against the British pound is called one of the greatest currency trades of the modern world. Great Britain joined the European Exchange Rate Mechanism ERM in , when inflation was high and interest rates were low.

By this mechanism, the government planned to hold the exchange rate of the national currency at 2. However, there was no good reason for such a rate, firstly because inflation in Britain at that time was much higher than in Germany. Being an economist, Soros noticed that the pound was seriously overestimated against the German mark, and un summer started making stakes against the British currency via his Quantum fund.

The total sum of the trade is evaluated as about 5 billion pounds. Alongside Soros, many market players started selling the pound against the mark and dollar expecting the exchange rate to drop. Soon the British government realised that it would have to spend a lot of money due to the extremely high rates and the necessity to hold the rate of the pound that high. Apart from that, German authorities publicly announced possible reorganization inside the ERM.

On 16 September , the British government decided to leave the ERM and unbind the pound, and this day got the name of Black Wednesday. By different evaluations, Soros made about 1 billion USD on this trade. Another famous Soros's trade with currency was selling the Thai baht during the Asian financial crisis in Roughly assessing, he invested in selling the baht against the US dollar more than 1 billion USD from his investment portfolio. He stated that the baht was seriously overpriced and was counting on a serious decline of the Thai currency due to the financial crisis.

In the end, this happened when the Bank of Thailand spent all its resources on supporting the exchange rate of the national currency and decided to let it float. As a result, the Thai baht dropped twice against the USD — from 24 to 52 baht per 1 USD. The true forecast about the falling of the baht let Soros make on Forex another billion USD. In and , Soros made a large stake on Forex against one more currency — the Japanese yen. He knew that Shinzo Abe, recently appointed Japanese prime minister at the end of , was planning wide QE of the credit and monetary policy to push the economy forward.

This economic policy known nowadays as abenomics, pushes the yen down. As George Soros had expected, Abe's soft monetary policy led to the devaluation of the yen. At the same time, the trader opened a long position in the Japanese stock index Nikkei.

The decrease in the yen supported the stocks of Japanese companies, mainly oriented on export. Thanks to his plan coming true, Soros earned another billion of USD. George Soros is a trader who can easily be called an outstanding person. Some call him a genius, some say he is a talented manipulator. Thanks to his trades with currencies, Soros has made real money and has gone down to history as a financial legend of modern day.

Has traded in financial markets since The knowledge and experience he has acquired constitute his own approach to analyzing assets, which he is happy to share with the listeners of RoboForex webinars.

This week could be a relatively quiet one for the currencies, but it is worth keeping an eye on oil prices and the rhetoric of the Fed officials. The IPO of KWESST Micro System Inc. Even though Britain was in a recession in , the pound joined the ERM that year. But as the political and financial situation in Germany changed during its unification, many ERM currencies were under big pressure to keep their currencies within the agreed limits.

Britain had the most problems — its inflation rate was very high and the USD rate was also falling. The decreasing USD rate was bad because many British exporters were being paid in USD. As it became clear that the pound was not able to artificially withstand the natural market forces, more and more speculators began circling around and making plans on how to profit from this situation. Big forex traders waited until the financial situation got as bad as it could naturally get, and then created extra pressure on the pound by selling it in huge amounts.

The most aggressive of them was George Soros who made a short trade every 5 minutes, profiting each time as the British pound fell by the minute. And then you buy back the sterling when the loan expires.

In order to sustain the fixed rate, the Bank of England was buying 2 billion GBP an hour, which was an unprecedented amount. The policies of the ERM demanded that the countries with the strongest currencies have to sell their currencies and buy the weakest to help maintain the equilibrium.

In the late afternoon of September 16, as the traders understood that the Bank of England had insufficient amounts of foreign currencies to buy in all the pounds that were sold, they pushed even more which resulted in a collapse.

At , the British prime minister confirmed defeat and declared that Britain is leaving the ERM. If you want to see live trading ideas and signals for the British pound, you can check out this site where popular traders share their strategies and insights for free.

Unlike most beginner traders, his charts were NOT littered with fancy indicators , which, by the way, often contradict each other. All that traders like George Soros want to know are the key critical levels. Maintain these positions for a year and a half and cut losses short while adding to winning positions. Rule 5 : The financial markets generally are unpredictable.

So that one has to have different scenarios… The idea that you can actually predict what will happen contradicts my way of looking at the market. Rather it is far wiser to wait and confirm what is expected to happen. Never plunge in too early, nor jump out too early. Rule 6 : We try to catch new trends early, and in later stages, we try to catch trend reversals.

Therefore, we tend to stabilize rather than destabilize the market. We are not doing this as a public service. It is our style of making money. Explanation: Trade till the end, when it starts to take a bend. Many hedge funds do what is called trend trading. Follow market trends by increasing your time duration to a daily or weekly frame.

Rule 7 : Markets are constantly in a state of uncertainty and flux, and money is made by discounting the obvious and betting on the unexpected. Explanation: Usually, the trades that are not such profitable turn out to be the obvious ones.

A trade that is counter-intuitive and unexpected is more likely a profitable one. Hedge funders usually have a view that is contrary to the view of the masses. Rule 8 : The worse a situation becomes, the less it takes to turn it around, and the bigger the upside. Explanation: Any cryptocurrency hype, or stock market hype, is what causes the price to spike beyond expectation. Rule 9 : The markets are always on the side of exuberance or fear. It is fear and greed. Explanation: More often than not, market trends are caused less by fundamental reasons.

Always remember that all safe currencies usually get appreciated and gain a higher value during uncertainties. The risk currencies will depreciate during such times. Rule 10 : My approach works not by making valid predictions but by correcting false ones.

The following is straight from Operator Kean, a member of the Macro Ops Collective. To contact Kean, visit his website here. One of the things that makes George Soros a market legend is his uncanny ability to find lucrative trades. The reality is… herd mentality and groupthink are hard forces to overcome.

Instead of looking at the recent past and extrapolating into the future, Soros focuses on variables that might be misunderstood or overlooked. If one of these variables upsets the present consensus, he knows a large move will likely occur and reward those who anticipated the potential disruption. If there is a wide difference between what we see and the market price of a stock, all the better, because then we can make money. Too many investors look at the present; the present is already in the price.

After the Fukushima disaster, foreign investors fled Japanese financial assets. Pessimism surrounding the struggling economy was extremely high. Together they fueled risk aversion across global financial markets, causing the Japanese Yen to strengthen relative to other currencies. The stronger JPY caused Japanese exporters to earn less after currency translation, which meant their stock prices struggled as well.

For nearly a year after the Fukushima disaster sent prices tumbling lower, the market did next to nothing. Valuations were cheap and depressed. No one was interested in Japan.

Investors were convinced the country would continue its decades-long battle with deflation. With all this negative sentiment, the market completely overlooked Shinzo Abe taking leadership of the LDP in September ….

Forbes reported that Soros was actively participating in the Japanese equity markets while being short their currency as early as October He was positioned before reality materialised. An investor using either traditional valuation metrics or plain old technicals would likely have been reluctant to foray into Japan before Abe-san was elected there would be no buy signal according to their framework. But Soros was able to stay ahead of the crowd and capitalise when the unexpected situation materialised.

He believes we need to differentiate our circumstances to understand these 3 types of realities. In particular, he emphasises defining false trends — which occur when a belief is founded on false assumptions, but many believe it. According to Soros, false trends can be so dominant, that they move financial markets, causing a cascading effect on asset prices and secondary effects that reinforce the initial false beliefs.

This reflexiveness creates a false reality, which is exactly how bubbles form. Doing so requires establishing positions at appropriate times while maintaining objectivity and flexibility.

And of course, sticking to your risk management plan is key. Be sober, analytical, and pragmatic. Seek to invert your thinking and understand all possible viewpoints. What matters is whether you can exploit them to profit! Experimenting with complex systems like economies generally leads to imbalances and unintended consequences.

Soros loves to exploit these. Is there a government meddling with the free market capital controls and such? The most famous example is his bet against the Bank of England in There was also another situation in the s where Soros observed that the boom in Asian economies would reverse and come crashing down if liquidity conditions changed.

The stage was set as most Asian economies had their debt denominated in hard currencies like the US Dollar, while they booked their revenues in their own local currencies. Additionally, many Asian central banks maintained a peg to the greenback to help them tap into international debt financing. This was a classic reflexive scenario where a strengthening USD would cause severe economic contractions throughout emerging Asian economies.

A stronger dollar would also lead an even stronger dollar as the situation reinforced itself, trouncing the Asian economies. This eventually forced Asian central banks to break their dollar peg after finally being overwhelmed.

Soros positioned himself in several markets like Thailand, profiting from the crisis. Macro dislocations, far-from-equilibrium situations, politicians meddling with free market affairs… these are all playgrounds for the macro speculator. In December , activist investor Bill Ackman went public in his crusade against Herbalife HLF. The most prominent of them all was Carl Icahn, who went long HLF and publicly sparred against Ackman, debating his claims.

It was reported that Soros went long HLF sometime in the second quarter of , which spurred a rally in the stock price. About 2 years later, Soros fully exited his long position during the third quarter of Soros slipped in and out of the stock while Ackman and Icahn were playing tug-of-war over who was right….

Regardless of his fundamental view, market sentiment and positioning gave Soros the opportunity to profit off a gigantic short squeeze. Look for popular trades or overcrowded positions. You may agree with the consensus view, but if most participants are positioned that way, you may want to fade them.

To learn more from George Soros and other investing legends, click here. All content in this page, on our website, all emails, social media posts, comments on other websites or other material generated by Macro Ops is intended for general information and educational purposes only.

Click here for full disclaimer. Brandon has been a professional investor focusing on value for over 13 years, spending his time in small to micro-cap companies, spin-offs, SPACs, and deep value liquidation situations. Brandon has a tenacious passion for investing, broad-based learning, and business. He previously worked for several leading investment firms before joining the team at Macro Ops. He lives by the famous Munger mantra of trying to get a little smarter each day.

With Macro Ops focused primarily on institutional clients, AK moved to servicing new investors just starting their journey. He takes the professional research and education produced at Macro Ops and breaks it down for beginners. The goal is to help clients find the best solution for their investing needs through effective education.

Certified in Quantitative Finance from the Fitch Learning Center in London, England where he studied under famous quants such as Paul Wilmott. Founder and head macro trader at Macro Ops. He subsequently spent a decade in the military. Serving in various capacities from scout sniper to interrogator and counterintelligence specialist. Following his military service, he worked as a contract intelligence professional for a number of US agencies from the DIA to FBI with a focus on counterintelligence and terrorist financing.

He also spent time consulting for a tech company that specialized in building analytic software for finance and intelligence analysis.

After leaving the field of intelligence he went to work at a global macro hedge fund. Macro Ops is a market research firm geared toward professional and experienced retail traders and investors. You can find out more about Alex on his LinkedIn account here and also find him on Twitter where he frequently shares his market research.

Operators Dashboard. Services Research Menu. July 14, - Alex Barrow. I Look Forward! Most traders realize they need to be forward looking. But few practice it. We all know what happened after that.

The JPY got crushed and Japanese equities took off. This is macro investing on a higher level. Learn to anticipate! II False Trends — Learn To Play Them! Soros once said there are 3 realities: Things that are true Things that are untrue And things that are reflexive He believes we need to differentiate our circumstances to understand these 3 types of realities.

Is there a central bank, for whatever illogical reason, pegging its currency? IV Fade Extreme Investor Positioning In December , activist investor Bill Ackman went public in his crusade against Herbalife HLF.

Fade Extreme Investor Positioning When everyone is on one side of the boat, sometimes it pays to take the other side!

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As George Soros had expected, Abe's soft monetary policy led to the devaluation of the yen. Explanation: More than winning percentages, the key to profitability is more about incurring small losses and striking big wins. Be sober, analytical, and pragmatic. The decreasing USD rate was bad because many British exporters were being paid in USD. Big forex traders waited until the financial situation got as bad as it could naturally get, and then created extra pressure on the pound by selling it in huge amounts.

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