{"id":26803,"date":"2018-06-06T11:20:18","date_gmt":"2018-06-06T05:50:18","guid":{"rendered":"http:\/\/www.icmarkets.com\/blog\/?p=26803"},"modified":"2020-04-18T01:33:00","modified_gmt":"2020-04-17T15:33:00","slug":"successful-traders","status":"publish","type":"post","link":"https:\/\/www.icmarkets.com\/blog\/successful-traders\/","title":{"rendered":"What Can We Learn From Successful Traders?"},"content":{"rendered":"

Updated April 2020<\/strong><\/p>\n

Although at times trading may seem like banging one\u2019s head against a wall, there is <\/em>light at the end of the tunnel.<\/p>\n

There are traders \u2013 some legendary and some unheard of \u2013 extracting money out of the markets on a consistent basis.<\/p>\n

The question then arises, what can you learn from these individuals?<\/p>\n

George Soros<\/strong><\/h2>\n

Soros sealed his reputation as a legendary money manager on September 16, 1992 \u2013 later dubbed Black Wednesday<\/em>. He reportedly profited more than $1 billion shorting the GBP amid speculation the British government would be forced to break from the European Exchange Rate Mechanism, and allow the pound to devalue relative to other currencies. This cemented his reputation as a premier currency speculator. From then on, Soros earned the title: \u2018The Man Who Broke the Bank of England\u2019[1]<\/a>.<\/p>\n

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\u2018I\u2019m only rich because I know when I\u2019m wrong\u2026 I have survived by recognising my mistakes\u2019 \u2013 George Soros<\/p>\n

Soros recognised his mistakes. This is likely to strike a chord with most traders. How many times have you made the same mistake over and over again, and lost money as a direct result? Identifying mistakes not only helps your bottom line, it helps you grow as a trader.<\/p>\n

\u2018It\u2019s not whether you\u2019re right or wrong that\u2019s important, but how much you make when you\u2019re right and how much you lose when you\u2019re wrong\u2019 \u2013 George Soros.<\/p>\n

Soros\u2019 quote drives home the point you can make money in this business even if you do not win the majority of trades. Further reading on the subject can be found here<\/a> and also here<\/a>. At its most basic, though, traders must understand as your reward on each trade increases, the number of winning trades required diminishes.<\/p>\n

Stanley Druckenmiller \u00a0<\/strong><\/h2>\n

While not as recognised as Soros, Stanley Druckenmiller[2]<\/a> is another legend of the business.<\/p>\n

Until 2000, he worked for Soros. The duo famously bet against the British pound in 1992 and, as mentioned above, netted huge profits.<\/p>\n

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Druckenmiller made it big as a hedge fund manager for 30 years. The man averaged more than 30% returns over three decades. He had few losing quarters and did all of this trading size. According to research, he was the<\/em> perfect trader, possessing mental flexibility and the ability to think independently.<\/p>\n

\u2018I only focus on what is black and white and kind of sift out the grey area in my investing style\u2019 \u2013 Stanley Druckenmiller<\/p>\n

This quote is particularly stand out and may resonate with many traders.<\/p>\n

Ever found yourself deviating from your trade plan and entering no man\u2019s land? Focusing on only those setups clearly defined in your trading methodology and leaving out the grey areas is one of the key elements to staying consistently successful.<\/p>\n

Trader A<\/strong><\/h2>\n

Trading quietly in the background, yet controlling a reasonably hefty account, Trader A is an interesting character. For the sake of identity, we\u2019ll not be using his real name, however he was recently interviewed for this piece.<\/p>\n

Trader A travels a lot and is, for the most part, trading on the go using a laptop and a compact monitor. His account is in six figures and uses price action as a central trading medium. During our conversation, he emphasised the following points:<\/p>\n