Discover The Three Biggest Currency Trades That Were Ever Made!

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) October 21, 2011 -- Mark McRae: Do you know the three biggest trades ever made in Forex? OK, you will like this little piece of trivia. Let's start in reverse order:

#3 Stanley Druckenmiller (Hundreds of millions)

Druckenmiller started his career in 1977 as a management trainee at Pittsburgh National Bank. He was such a successful trader, that he was once offered $10,000 just to talk to him. He was constantly being courted by big name financial institutions, until he eventually landed up at the George Soros Quantum Fund.

1

Discover The Three Biggest Currency Trades That Were Ever Made!

Welcome visit Our WebSite:

http://www.ninjatraderblog.com/trading/2011/10/world-class-trading-stars/

When the Berlin Wall fell, the German Mark came under pressure because, many observers thought the reunification between East and West Germany would present problems. Druckenmiller however, saw this an opportune moment to buy the weakened Mark, and in the process made hundreds of millions of dollars.

Interestingly, I read that Druckenmiller prefers technical analysis to decided on which trades to take. That's basically the same way most small traders would do it too. You can see three of the best traders in the world here:

#2 Andy Krieger (Hundreds of millions)

At 32, Andy Krieger was a currency trader for Bankers Trust when he decided to make one of the biggest trades ever placed on the New Zealand Dollar (Kiwi). Just after October 19th 1987, infamously know as Black Monday, there was a huge flight of money from the US Dollar into other currencies.

Krieger anticipated this, but went one stage further. He thought that the currencies that did strengthen would become overvalued. He observed this happening on the Kiwi and took a short position against the Kiwi. It was said that his position was more than the countries cash supply at the time. Trading Forex is probably one of the only things I can think of, where there is an even playing field, regardless of how small or big a player you are.

#1 George Soros ($1 Billion in one day)

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. That's why I like the traders of the World Class Trading Stars. You just read about three great traders and I think you would find these three traders interesting as well!

More information can be found online at http://www.ninjatraderblog.com/trading/2011/10/world-class-trading-stars/

Andy Krieger     currency market     currency trading     forex market     forex trading     George Soros     Stanley Druckenmiller     world class trading stars