The popular Nigerian saying - “follow who know road” - is pretty much a very straightforward and logical piece of advice which simply implies that you should only follow those who have a proven track record of delivery and success in a particular field.
Mentorship and followership are vital components of success in any chosen field, as it is popularly advised that in order to “be the best”, you have to first of all, “follow the best”.
What's important is to ride on their backs and ensure that you learn from their various experiences and errors, and not repeat costly mistakes.
With mentorship and followership being established as vital ingredients to attaining outstanding success in any field, it follows that the very first step to being a great Forex trader is knowing the best Forex traders in history.
THE TWO GREATEST TRADERS ALIVE
This week, we would review the life and journey of two veterans that we and many others in the finance world would call the “top Forex traders in the world”.
Before going on, one thing to note is that forex traders tend to live a particularly quiet and reserved life, avoiding the limelight as much as possible, as such, there are possibly many traders doing great stuff but they have decided to stay off the spotlight.
However, these two Forex traders we’ve chosen aren’t such and are in fact really popular people in the industry.
Between these two veterans is so much money adding up to the tune of a whopping 16 BILLION DOLLARS and enormous authority and power on Wall Street.
Beyond their mouth-gaping wealth, we would focus more on our viewpoint for today - the mentorship relationship between these two veterans and their shocking humble beginnings.
George Soros was born in Budapest in 1930. His father was a WW1 prisoner in Russia who escaped and spent 3 years on the run.
Talking about a bad start, George had his own fair share of gory experiences, as his beloved mother was raped by two Russian soldiers.
Life's drama was not enough to deter him from pursuing his aspirations. He travelled to London when he was only 17 years and worked as a waiter where he ate leftovers from customers. He thereafter attended the prestigious London School of Economics.
George wanted to become a philosopher but the lack of finances hindered him. Discovering a great deal of money in finance, he began applying for jobs and finally got one as a trainee.
After WW2, he moved to the USA. His goal was to come to America, work for 5 years and make $100,000 and start living off that. In his job, he figured out the inter-connectedness of different assets in the world.
As expected, he was a huge risk taker and daring Forex player who loved to take the bull by the horn.
In the 70s, he made more money than anybody else in the world of finance. In the first decade of his fund, he had realized 3000% return on investment which had never been done before on Wall Street in the 1980s.
He broke through the norm at his time and figured out a system of trading that made more sense to him at such a time that was contrary to popular opinion.
His system was basically the CHAOS THEORY which dictates the existence of a gap between expectation and reality, and this gap represented trading opportunities. These insights put him ten steps ahead of everyone else on Wall Street.
At various points in his life, due to some major losses, Soros was frustrated and attempted to retire from active trading twice in his career.
On September 16, 1992, Soros made a billion dollars overnight, the same time the Bank of England lost 3.5billion. AT various times, he has also been blamed for the financial crash in Indonesia, Japan, Thailand, Malaysia and Russia.
Similar to Soros, Stanley had a humble beginning and had to sell hotdogs in school to get himself through and pay for his expenses.
But today, he has delivered a whopping 30% profit for his investment for 3 decades, which stands as an unrivalled record on Wall Street.
Druckenmiller was initially interested in studying economics but soon realized that the principles taught in school weren’t going to make him rich. He then secured a job at the bank where he began learning technical analysis.
At age 25, he became the Head of Equity Research for the bank in 1972 and people began paying him as much as $10,000 just to consult with him. By 28 years of age, he had raised a staggering 1 million dollars and started his own hedge fund.
Interestingly, Stanley was mentored by George Soros and Soros eventually hired him to head his company (The Quantum Fund) and in just 3 years, he had tripled the fund’s assets, surpassing even George Soros’ record.
Druckenmiller's hire was the best investment decision Soros ever made. He made Soros more money than Soros could have ever made himself.
It's possible that Druckenmiller may not have recorded such groundbreaking success if he was not mentored by Soros and not given such a platform as THE QUANTUM FUND to show his ability. This accentuates the fact that mentorship is pretty important and cannot be discarded with a wave of the hand.
Soros too, on the other hand, would not have emerged as the biggest player in the Forex trading industry if he had given up after his few first tries and a few losses. Druckenmiller was in fact the one who suggested that they take the trade that brought in 1 BILLION DOLLARS in just 1 day.
THE GOAL OF THIS ARTICLE
The aim of our discourse today is to show you that a mammoth of possibilities exists in the Forex trading world and it takes strong mentorship and a strong diehard attitude to scale into the great heights.
Therefore, before you throw in the towel after a bad trading day, think about what would have become of these two Forex veterans if they had given up after failing and if they didn't take mentorship seriously.
We hope their stories inspire you and challenge you to become that dogged trader that everybody - including us - will be dying to write about.