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The best Forex trading system in the World

The best Forex trading system in the world is the one that’s works for you.

In other words, there’s no no one-size-fits-all method, and that the one that works best will be highly specific to your situation and personality.

The best trading philosophy in the world

Firstly, the best Forex trading system must operate according to a trading philosophy that you understand and accept.

If you think trend trading makes the most sense, then go with a trend trading system. Likewise for all the other trading styles.

That said, one of the biggest mistakes that amateur traders make is to try to trade every setup they see. They try to trade swings, trends, and even trade the news, all at the same time.

The problem with this approach is that beginner traders have not yet understood the philosophy behind each of these trading styles.

By spreading themselves thin, they don’t develop a deep enough appreciation for each trading style to have conviction in applying them.

  • So take the time to fully understand the philosophy behind each trading style, and then pick the one that makes the most sense to you.

That’s the first step to finding the best Forex trading system in the world.

The best trading system fit

The next step is to identify a trading system that gels with your personal situation and temperament.

  • For example, if you’re busy with a day job then a trading system that requires a lot of screen time will not work for you

Similarly, if you’re highly uncomfortable with keeping trades open for over 24 hours then the best trading system for you is likely to operate on the intraday time frames.

The point is to go with something that fits specifically with your personality and unique situation.

This contrasts with beginner traders who tend to go for trading systems that excite them. There’s often a difference between a system that suits you, and one that gets you excited.

The former is like putting on a pair of old shoes - it’s comfortable and reliable. The latter is like rolling a dice at the casino - a lot of fun, but you’re going to lose money over time.

The last thing to keep in mind is that even among certain types of trading styles you’ll find a variety of different approaches.

For example, there are trend trading systems that operate on the 4 hour chart, as well as trend trading systems that operate on the 15 minute chart. Even if you’re a trend trader, you’re likely to be more comfortable with one of these systems over the other.

Just as how you have very specific likes and dislike as an individual, so will you have very specific comforts and discomforts with various trading systems.

The trick is to be aware of how you’re feeling as you trade with them.

When in doubt, always go with the trading system that makes you feel the most comfortable.

A profitable trading system

Last but certainly not least, the best Forex trading system in the world is one that is profitable, regardless of how much.

Even if you make just $20 a month from a trading system that you are 100% comfortable with, that’s already a lot better than 90% of the people out there who are losing money.

Profitability isn’t everything, but it’s not something you can do without.

I’m mentioning this point last because over the long run, this is actually the least important aspect of finding the best Forex trading system for you.

If you fulfil the previous two points, it’s inevitable for you to meet this third and final criteria.

How to find the best Forex trading system in the world

Unfortunately, the only way to find a trading system that meets all 3 criteria is by trying out as many as you can.

However, this doesn’t mean that you should test them randomly. There’s a better, faster way to do this!

The key is to first pick trading systems that are vastly different in almost every aspect.

For example, you might first want to test a trading system with these characteristics:

  • focuses on just one currency pair
  • focuses on the very short-term time frame (such as the 5 minute chart)
  • requires at least a few hours of screen time each day

Next, test another trading system with the opposite characteristics:

  • trades across multiple currency pairs
  • focuses on the long-term time frame (such as the daily chart)
  • requires just 15 minutes to monitor the market each day

In testing two diametrically opposite approaches you’ll be able to better estimate the approach that best fits you.

Using the same example, if you find that you are much more comfortable trading on the long-term time frame, then you test a variant of that system by tweaking one or more components. You might, for example, try trading on the 4 hour chart instead of the daily chart.

In this way, you quickly narrow down your choices to trading systems that increasingly fit your profile and circumstances.

Eventually, you’ll settle on the perfect approach for you, and that will be the best Forex trading system in the world for you.

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These are the most famous forex traders ever

Most currency traders avoid the limelight, but a select few have risen to international stardom. These well-known players have broken the mold, posting incredible results over long careers. Theyre people of influence who have had a profound impact on the investment industry.

These individuals offer guidance to forex traders at the start of their career and journeymen looking to improve their bottom-line results. These traders have led by example, by taking meticulously calculated risks. Below we have profiled five that are among the best, some of whom are surprisingly humble while others flaunt their success. What they all have in common is that they share an unshakable sense of confidence, which guides their financial performance. (Read more on the topic in "5 Biggest Obstacles Facing First-Year Traders.")

George Soros

George Soros was born in 1930 and began his financial career at Singer and Friedlander in London in 1954 after escaping Nazi-occupied Hungary during World War II. He worked at a series of financial firms until he established Soros Fund Management in 1970. The firm has gone on to generate more than $40 billion in profits in the last five decades.

He rose to international fame in 1992 as the trader who broke the Bank of England, netting a profit of $1 billion after short selling $10 billion in British pound sterling (GBP). On Sept. 16, 1992 the U.K. withdrew the currency from the European Exchange Rate Mechanism after failing to maintain the required trading band due to Soros' trade, solidifying a day known as Black Wednesday in history. This incredible trade is a highlight of his career and cemented his title of one of the top traders of all time. Soros is currently one of the thirty wealthiest individuals in the world.

Stanley Druckenmiller

Stanley Druckenmiller grew up in a middle-class suburban Philadelphia family and began his financial career in 1977 as a management trainee at a Pittsburgh bank. He quickly rose to success and formed his company, Duquesne Capital Management, four years later. Druckenmiller then successfully managed money for George Soros for several years in his role as the lead portfolio manager for the Quantum Fund between 1988 and 2000.

Druckenmiller also worked with Soros on the notorious Bank of England trade, which launched his rise to stardom. His fame intensified when he was featured in the best-selling book, The New Market Wizards, published in 1994. After surviving the 2008 economic collapse, he closed his hedge fund, admitting he was worn down by the constant need to maintain his successful track record.

Andrew Krieger

Andrew Krieger joined Bankers Trust in 1986 after leaving a position at Solomon Brothers. He acquired an immediate reputation as a successful trader, and the company rewarded him by increasing his capital limit to $700 million, significantly more than the standard $50 million limit. This bankroll put him in a perfect position to profit from the Oct. 19, 1987 crash known now as Black Monday.

Krieger focused on the New Zealand dollar (NZD), which he believed was vulnerable to short selling as part of a worldwide panic in financial assets. He applied the extraordinary leverage of 400:1 to his already high trading limit, acquiring a short position bigger than the New Zealand money supply. As a result of this trade, he netted $300 million in profits for his employer. The following year, he left the company with $3 million in his pocket from the trade.

Bill Lipschutz

Bill Lipschutz started trading while attending Cornell University in the late 1970s. During that time, he turned $12,000 into $250,000; however, he lost the entire stake after one poor trading decision, a hard lesson on risk management that he carried throughout his career. In 1982, he began working for Solomon Brothers while he pursued his MBA degree.

Lipschutz migrated into Solomons newly-formed foreign exchange division at the same time forex markets were exploding in popularity. He was an immediate success, earning $300 million per year for the company by 1985. He became the principal trader for the firms massive forex account in 1984, holding that position until his departure in 1990. He has held the position of director of portfolio management at Hathersage Capital Management since 1995.

Bruce Kovner

Bruce Kovner was born in 1945 in Brooklyn, New York and didnt make his first trade until 1977 when he was 32 years old. He borrowed against his personal credit card to buy soybean futures contracts and netted a $20,000 profit. He subsequently joined Commodities Corporation as a trader, booking millions in profits and gaining a solid industry reputation.

He founded Caxton Alternative Management in 1982, transforming it into one of the worlds most successful hedge funds with more than $14 billion in assets. The funds profits and management fees, split between commodity and currency positions, made the reclusive Kovner one of the biggest players in the forex world until he retired in 2011.

The Bottom Line

From Soros to Kovner, the common theme among this list of famous forex traders is that they have profited mightily from their thoughtful trades, which coupled with self-confidence and an incredible appetite for risk, has cemented them among the best and richest investors in history.

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