Forex trading is no easy business and it’s estimated that 70-90% of traders lose more money than they make in the markets. However, here are some tips from some of the traders who manage to take down the markets year after year.
Jim Rogers – ”Wait till there is money lying in the corner and go over there and pick it up.”
Rogers made a name for himself as co founder of the Quantum fund with George Soros and has made a lot of money in commodities. He believes in finding trades that are severely ‘depressed’.
George Soros – “It takes courage to be a pig”.
Soros believes when you have conviction about a trade you should be bold and bet big. He also said “The way to attain truly superior long-term returns is to grind it out until you’re up 30 or 40 percent, and then if you have the conviction, go for a 100 percent year.”
Guest post by FXTM
Ed Seykota – “Everyone gets what they want out of the market”.
Ed was an early pioneer of computer trading and is a very good systems trader with somewhat of a cult following. He also believes that the main thing holding people back from making money in the markets are themselves.
Jesse Livermore – “Don’t fight the tape”.
One of the most famous traders of all time and immortalised in the book ‘Reminiscences of a stock operator’, Jesse made and lost many millions during his career. He refrained from using the words bullish or bearish and preferred to follow the market direction, cutting losses quickly before they got out of control.
William Eckhardt – “…professionals go broke taking small profits”.
Eckhardt has been in the business for over 40 years so it’s fair to say he knows a thing or two about trading. “One common adage…that is completely wrongheaded is: You can’t go broke taking profits. That’s precisely how many traders do go broke. While amateurs go broke by taking large losses, professionals go broke by taking small profits.”
Meyer Rothschild – “Buy when there is blood on the streets”.
German banker Rothschild made his fortune during Napoleonic times. He is quoted as saying you should buy when there is “blood on the streets, panic, chaos” and he always sold “too soon”.
Bruce Kovner – “You have to be willing to make mistakes.”
Kovner is another top trader who made a killing in 2008 as markets imploded. He is also quoted in the original Market Wizards book as saying this:
“Michael Marcus taught me one other thing that is absolutely critical: You have to be willing to make mistakes regularly; there is nothing wrong with it. Michael taught me about making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money.”
Further reading: 6 Steps to creating a robust forex system
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