Tudor Jones ended up taking his firm to new heights. Michael Marcus is one of the best Forex traders in the world.

He is one of the original members who founded the Commodities Corporation Company. He was trained by the notorious Ed Seykota and went on to mentor another great trader by the name of Bruce Kovner. It can be said that along with banks, he was the largest currency trader in German marks at that time. So far, I have mentioned in this article several of the most famous traders. However, there are many successful, lesser known, traders all around the world, and discovering what their traits and strategies are can only widen your perspective on trading.

Who is the best Forex trader in SA, for example? Hint: it's George Soros. But what about in Switzerland? Or Japan? If you are curious, why not find out? Studying the best Forex traders in the world is an effective way of improving your trading strategy, but there is one thing I need to mention next, that is worth considering for any trader. Now, it is time to mention that, beyond learning and copying the best traders, there are many reasons to use a VPS when trading, regardless of whether you are one of the best traders in the world or not.

Technical problems with your connection can lead to devastating consequences. A VPS removes the potential of such devastating complications occurring. In turn, they can make your trading more successful. Even if you have a strong internet connection, disappointing problems can still occur. Here are a few of them:. By using a VPS service like FXvps you eliminate a lot of the worry that comes with trading and you free yourself up to focus more on your strategy and trades.

Mj forex billionaires club forex trading how to do it

So far, we've looked at the best Forex traders. There are definitely many more successful Forex traders to learn from. But remember, while there are many professional FX traders in the world trading with what seem to be flawless trading strategies, there are many strategies. Each one works better for different traders. If you aim to make it on the list of traders that regularly earn a profit each month trading FX, it is certainly an achievable goal.

However, you need to develop your own Forex trading plan first. So far, I have given a list of the most successful traders in the world and given some insight on their personality traits. Now, in case you are interested in more than who these people are, and you would like to know a bit about how to trade like them, I will now give you some basic trading strategies.

I cannot provide the strategies that these famous traders have used, but I can give you some fundamental strategies that you can consider. Past performance is not necessarily an indication of future performance. Our first strategy aims to find out when a trend might be developing. It searches for price breakouts. Markets often range between support and resistance bands. This is called consolidation.

Bill Lipschutz

A breakout is when the market shifts outside of the boundaries of its consolidation, to a new level of high or low. When a fresh trend forms, a breakout must take place first.

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As such, breakouts are perceived as a possible signal that a new trend is developing. However, every trader must be careful, because not every breakout means that a new trend has started. In Forex, no matter whether you are using complex or simple strategies, it is essential to always employ risk management. In doing so, you can minimize your losses while the trend is breaking down. If the breakout sets a new high, it means that an upward trend could be forming. As you may have guessed, if the breakout results in a new low, then what follows could likely be a downward trend.

We can consider it a buy signal when the price has broken out beyond the day high. On the other hand, it is a signal to sell when the price breaks below the day low. While this is simple, it comes with one potential drawback. Specifically, as I mentioned above, while a breakout to new highs can indicate that an upward trend is forming, it is not always the case.

The same is also true for downtrends.

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Downtrends do not always follow new lows. These are called false signals. This is one example of how, even when a trader follows a strategy, it is essential to employ risk management all the while. Using a stop-loss is one way to help prevent losses after you enter into a trade.

For long term trading, some traders follow the rule to simply exit a trade after a certain number of days have elapsed. By using this strategy, you can avoid misinterpreting downtrend signals. However, this is a long term strategy, not a short term strategy.

And, as always, if you find that it does not yield positive results, then you should adjust it. For example, you can shorten your strategy and use hours instead of days. This strategy uses what we call a simple moving average SMA. If you are unfamiliar with what that is, you can read all about it here.

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The SMA is an indicator that uses older price data and evolves more slowly than the rate at which the current market price changes. The SMA can be averaged over various periods of time. If it is averaged over a longer period of time, then the SMA moves more slowly.

It is common for traders to use both a long and short SMA in conjunction with each other. For this example, we will use a day moving average and a day moving average. In this chart above, you can see the day moving average, which is the dotted red line. This line follows the real price closely.

The day moving average is the smoother, dotted green line. You can see that it smooths out the price changes over time, depicting a different, less volatile looking, trend. Now, when the two SMAs cross each other, it often indicates a trend change. Specifically, when the short SMA crosses above the long SMA, this means that the current prices are higher than old ones. This can indicate a bullish trend, which would be a buy signal. When the opposite occurs, and the short SMA crosses below the long SMA, it means that current prices are lower than old ones, which can signal a downtrend, which we can interpret as a sell signal.

Aside from indicating buy and sell signals, SMAs can also be used to confirm overall trends. As such, we can combine two different strategies with the SMAs to help identify dangerous situations in which we could lose.

If it is not, then it is often better to wait. This is an essential strategy. This one is in wide use by professionals, so we cannot consider it a complete beginner strategy. However, it is quite simple to understand and implement. The aim of a carry trade is to profit off the difference in the yield between two currencies. In order to understand, I am first going to demonstrate a basic principle with an example of a person who converts money. Suppose that a trader borrows some amount of the Japanese Yen. If the benchmark Japanese interest rate is very low, then the cost of holding this debt is also very low.

Next, the trader exchanges the Japanese Yen into US dollars and then buys a government bond, which yields a higher percent than the benchmark Japanese interest rate. The interest this trader will receive on the bond should cover the cost of financing the Yen debt. If the Yen appreciates against the US dollar, the trader will lose money, in the end.

The same principles are relevant when someone is trading Forex. However, Forex traders have the luxury of it all being consolidated into one trade.