Take a look at the best and legendary forex traders to learn while trading. Implement their business vision into your business strategy and be ready to benefit more.
To invest in Forex and become one of the most successful MT5 brokers, you need capital. The level of gains and losses varies according to the value of the capital invested. The novice trader must determine the amount that can be invested in the foreign exchange market in the short and medium term. He must also adopt a methodology and know how to manage risks. By reading books, the beginner trader can assimilate the fundamentals.
Setting up a trading plan is a fundamental rule for success in Forex. The trader must determine his strategy for buying or selling currencies according to the market trend.
To succeed in operations, one must not act by intuition but by planning taking into account the context. Prices in the forex market can be in a bullish or bearish phase. In all situations, you have to know how to adapt to the plans. You can also try trading on a demo account before starting a serious trade.
Jesse Livermore is recognized as one of the pioneers of technical analysis. Jesse Livermore has gained and lost several fortunes by actively investing in the stock market. Because Livermore studied the market meticulously, noted down his observations, and laid them down in clear rules, his reading remains essential even today.
Jesse Livermore views the daily reversal pattern as a strong signal.
This pattern is used on the daily charts. A daily reversal pattern occurs when the low of the candle is lower than the low of the previous candle, but the close of the candle is higher than the close of the previous candle. A short daily reversal pattern occurs when the high of the candle is higher than the high of the previous candle, but the close of the candle is lower than the close of the previous candle.
Jesse Livermore often used the volume indicator as confirmation. When a daily reversal occurs, the order volume corresponding to the signal candle must be higher than the order volume of the previous day.
Paul Tudor Jones is considered one of the famous market wizards. He is known for predicting and profiting from Black Monday. Black Monday refers to Monday, October 19, 1987, when all global markets experienced a huge correction. That day, the Dow Jones lost almost 23%.
The causes which led to this disaster are diverse: the strong fluctuations of the dollar since 1985, the moral hazard due to a system of insurance on the risk of the portfolios as well as the beginning of automation of the trading operations which would have for effect of amplifying variations in values.
Shortly before the crash, through technical analysis and analysis of historical S&P data, Paul Tudor Jones came to the conclusion that the market was headed straight for the wall. In order to take advantage of this, he began to sell American stocks massively. With a drop of more than 22% in a single day for the Dow Jones, Paul Tudor Jones earned in a single day more than 100 million dollars.
John Paulson made the biggest short sales in history. John Paulson made some pretty specific choices during his career, including devoting himself solely to agriculture and industry. He considers that services are too fragile compared to the first two sectors. But he didn’t get noticed until the 2000s, contenting himself with being an undistinguished fund manager.
Another legendary trader, Richard Dennis, has proven that beginners can learn to trade successfully. The internet is full of positive, negative, success and disappointment stories regarding the Forex market these days. You can find dozens of stories to suit every taste. However, you certainly haven’t heard of the incredible story of Richard Dennis, an astonishingly wealthy, brilliant man and pioneer in the commodity trade.
Dennis’ story could still inspire many traders today. At about 23 years old, this legendary trader reportedly borrowed $1,600 and converted some of that ($400) into over $200 million over a period of about 10 years. At 26, he was already a millionaire!
Quotes from Famous and Successful Traders on Trading Rules
- “Investing what is comfortable is rarely profitable.” —Robert Arnott.
- “Never argue with your trading system.” —Michael Covel.
- “Fans think about how much money they can make. Professionals think about how much money they could lose. -Jack Schwager.
- “The price of a commodity will never fall to zero. When you invest in commodity futures, you’re not buying a piece of paper that says you own a company intangible that can go bankrupt. -Jim Rogers.
- It’s not always easy to do what’s not popular, but that’s where you make your money. Buy stocks that look bad to less cautious investors and hang in there until their true value is recognized. – John Neff.
- “Over 99% of traders don’t care about Ferraris and yachts. They just want to pay their bills, save a little extra cash, and sleep well at night. The only way to do that is to beat 70% or more. Nothing less, and these lenses are nothing more than fantasy. —Marc Melnick.
- “Are you prepared to lose money on a trade? If not, don’t take it. You can only win if you are not afraid to lose. And you can’t only if you really accept the risks that are offered to you. Sami Abusad.
Now you can really figure out which famous traders’ strategies you’re better off adapting to your online forex trading. Using these methods would surely allow you to trade with complete success. Use all the advantages of these legendary traders to get the best results from trading sessions.