The Witch of Trader - George Soros

George Soros is one of the greatest and most successful speculators in history. He is best known for the short sale of the British pound in 1992 that brought in a billion dollars in profits, and has since been dubbed the "man who brought down the central bank of England".

Here's how Soros makes money:

1, "The hardest thing to judge is what level of risk is called safe."

Determine the level of risk you can take and comply with it. We must not be blinded by the huge profits that increase the risk to an unacceptable level. Everyone has a different risk appetite.

2, “I'm only rich because I know when I'm wrong. Basically, I survived by realizing my mistakes. ”

3. “It's not whether you're right or wrong, but how much money you make when you're right and how much you lose when you're wrong.”

Both 2 and 3 sentences together form an important principle in trading: knowing when you are wrong and limiting the amount of money you lose on each wrong. Question 3 Soros talks about the return to risk ratio and that is the formula for finding profits: make as much money on each win as possible, and lose as little money on every losing trade as possible.

4, “Market bubbles did not appear naturally. They have a very solid foundation in reality, but that reality is distorted by human actions. "

Soros has a very clear definition of a market bubble. All the initial bubbles have real value, but that value is inflated by humans at unbelievable prices, like Bitcoin in 2017 or the bubble flower of the 80s.

The Witch of Trader - Stanley Druckenmiller

Billionaire investor Stanley Druckenmiller managed Soros's Quantum fund from 1988 to 2000. In 2000 he opened his own fund and has so far managed more than $ 12 billion.

1, "Never invest in the present."

2. “Put all your eggs in one basket and then watch that basket.”

This advice seems to go against the usual advice in the market, however, it is the only way traders can get rich by speculating. Put all your money into a market and observe it closely.