Friday, October 21, 2011

Inspiring story of successful traders

Hello Trader,
This inspiring story of hope to excite trading for new be traders and traders are undecided :
1.
George Soros made 1 Billion Dollars in one day
trading Forex. It happened in 1992 when Britain was
part of the European Exchange Rate Mechanism (ERM).
France, Germany and Italy were also members of the
ERM, and between them they had an agreement they
would only allow their currencies to fluctuate within
a certain range. This was an attempt to keep the
main currencies that formed the alliance stable.

The theory behind the ERM was sound, but it had one
main flaw. Because each country's economy was
growing, or shrinking at different rates, it proved
hard to maintain the stability in the currencies
they had hoped for. This is where the story gets
interesting.

In 1992, George Soros was in charge of a hedge fund
called the Quantum Fund. He could clearly see that
there was a basic flaw in the ERM, and positioned
himself to take advantage of it. He did this by
selling (shorting) the British Pound, which at the
time, he considered to be the most vulnerable in the
ERM alliance. The results were devastating.

When news broke that Soros had sold the Pound, it
started a wave of short selling on the Pound.
Britain did its best to try and stabilise the
currency by raising interest rates, but in the end
the sheer momentum of traders selling the Pound
forced Great Britain out of the ERM.

What I find interesting about Soros, is that he
worked as a waiter, porter and travelling salesman
when he was studying in London to support himself.
No one gave it to him on a plate, he worked for it.
(Source, worldclasstradingstar.com)

2 comments:

Harry said...

Hi, Nice post! Would you please consider adding a link to my website on your page. Please email me back.

Thanks!

Harry
harry.roger10@gmail.com

Obat Batuk Alami Untuk Anak said...

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