The dream of becoming filthy rich is as old as time, and who doesn’t want fancy cars, homes, and parties? Forex trading is an exciting trading activity touted as a great source of huge profits. But can forex make you a billionaire?
Forex can make you a billionaire since many famous billionaires exist in its market, but you need to have huge capital and spend a few years building your account. There are no shortcuts. You should be prepared to take huge risks, put a lot of effort, and bear considerable losses.
In this article, we’ll talk about the most famous billionaires who trade forex. We’ll also elaborate on how you can make billions by trading forex.
IMPORTANT SIDENOTE: I surveyed 1500+ traders to understand how social trading impacted their trading outcomes. The results shocked my belief system! Read my latest article: ‘Exploring Social Trading: Community, Profit, and Collaboration’ for my in-depth findings through the data collected from this survey!
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Famous Forex Billionaires
Many famous billionaires carved out a successful business out of forex trading. It means becoming a billionaire by doing forex is possible. These people can be role models for new traders to get rich by forex trading.
Here are the top billionaires in the forex market:
George Soros
Speaking of the wealthiest forex traders, George Soros is on top of the list. He has extensive studies in finance and holds a degree from the London School of Economics. He has an 8.4 billion dollars estimated wealth after transferring 18 billion dollars of his fortune to charity.
He famously shaped the market on an occasion that brought him the title, “the man who broke the Bank of England.” He made 1 billion dollars net profit in one day by shorting a position against the pound. He defeated England’s central bank by proving that the artificially-maintained exchange rates can’t hold up against his speculations.
Stanley Druckenmiller
He’s an American forex trader and hedge fund manager who used to work for George Soros. As the lead portfolio manager at Soros’ Quantum Fund, he helped Soros bet against the pound.
He’s worth 4.4 billion dollars. He studied economics and worked at the Pittsburgh National Bank as an oil analyst before founding Duquesne Capital Management. It was an investment firm that managed people’s money, and he closed it in 2010.
Bill Lipschutz
The so-called Sultan of Currencies, Bill Lipschutz, is a phenomenally successful forex trader. He has a unique approach to forex trading because he thinks forex is under the influence of psychological factors.
He has made significant profits and painful losses over his career. At first, he was a stock trader, but he turned to forex due to its higher stability after losing all his capital in stocks. He has famously earned nearly 300 million dollars for the firm he worked for, Salomon Brothers.
They’re only a few examples of many forex traders who have become billionaires. Paul Tudor Jones, Joe Lewis, Bruce Kovner, Larry Williams, Alexander Elder, and many more are famous billionaires in forex.
So, it’s possible to achieve astronomical figures in this market. However, becoming a billionaire at any business takes huge commitments on your part, which is why not many people can do it.
How To Become a Billionaire in Forex?
Now, if you have the determination to set foot in forex and earn millions and billions, get prepared for the journey. Here’s what you should know:
Be Prepared To Lose Money
Most successful forex traders have experienced tragic losses in their trading, with their total accounts wiped out. Losing money among beginners and retail traders is very common due to poor planning, lack of discipline, and failure to educate themselves.
Trading isn’t for you if you’re a perfectionist who can’t bear losses. Besides, if you don’t have a sustainable income source, entering forex is a big mistake. You should expect to not withdraw any money from your account for a few years until you can build enough capital.
If you rely on forex trading as a monthly income source, losses will be more difficult for you to bear. Plus, it may make you anxious to enter trades that aren’t the best option.
Have the Minimum Capital
Forex trading has an enormous potential to make massive profits, but it’s a known fact that you can’t expect huge returns with small investments.
You could enter forex with a capital as small as 100 dollars, but that’s not going to make you a billionaire. You should have at least 10,000 dollars, and you can’t make profits right after entering the market. Your monthly income depends on the monthly percentage of profit and the length of time you’ll be trading. So, the larger your investment capital, the better your earnings.
Plus, you’ll have to grow your account to have the potential of becoming a billionaire. If you’re unemployed or in debt, don’t enter forex with the hope of becoming a billionaire. Experienced forex traders have always said that you should invest the money you can afford to lose.
Have Realistic Expectations
Becoming a billionaire in any legitimate industry isn’t doable in a short time, and forex is no exception. It’s not a get-rich-quick scheme that gives you a 7-figure account after a couple of years.
If you’re a newbie, no matter how large your capital is, you shouldn’t invest more than 2% of your money. This tiny percentage takes years to make you a billionaire, but that’s the only logical way that makes the difference between successful and losing traders. The latter group can’t wait long enough and expect enormous profits from the beginning.
A reasonable profit is 5% to 10%, and you can’t have more than 20% monthly profits at best. So, depending on your account size and capital, it’s going to take a while until your account grows.
It takes continuous practice and learning through studying and experience. If trading forex were easy, most forex traders would be millionaires.
In theory, it’s possible to earn billions through forex trading. You should have a big account, take huge risks, and make the right decisions for every trade, but things are different in reality. You can’t predict the market movements correctly in every trade.
Don’t Look for Shortcuts
The path to becoming a successful forex trader is clear. You should start with education, self-development, and forming a vision. Earn experience through a demo account and develop a risk-management strategy.
Instead of trying various techniques, come up with one simple trading strategy and follow it consistently. After working with the demo account and being profitable for six months, you can start with your live account.
Another critical factor is to find a reliable broker who lets you grow your account. Don’t let the lure of becoming a billionaire make you fall into the trap of scams. Unrealistic profits with a small amount of money will never come true.
Learn to curb your emotions and kick your bad trading habits. Learning from successful forex traders is an excellent way to develop the necessary skills. Reading the biographies of forex billionaires can be a source of knowledge and inspiration to help you build your strengths and beat your weak points.
The only thing that can help you is knowledge, consistency, and patience. There’s no shortcut.
Author’s Recommendations: Top Trading and Investment Resources To Consider
Before concluding this article, I wanted to share few trading and investment resources that I have vetted, with the help of 50+ consistently profitable traders, for you. I am confident that you will greatly benefit in your trading journey by considering one or more of these resources.
- Roadmap to Becoming a Consistently Profitable Trader: I surveyed 5000+ traders (and interviewed 50+ profitable traders) to create the best possible step by step trading guide for you. Read my article: ‘7 Proven Steps To Profitable Trading’ to learn about my findings from surveying 5000+ traders, and to learn how these learnings can be leveraged to your advantage.
- Best Broker For Trading Success: I reviewed 15+ brokers and discussed my findings with 50+ consistently profitable traders. Post all that assessment, the best all round broker that our collective minds picked was M1 Finance. If you are looking to open a brokerage account, choose M1 Finance. You just cannot go wrong with it! Click Here To Sign Up for M1 Finance Today!
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Conclusion
The famous success stories of forex billionaires show that earning billions through forex is possible. However, like any other business, it takes a long time to build your skills and turn into a profitable forex trader.
Forex is not gambling in which luck plays the central role. You should start with a big enough capital that you can afford to lose, learn through constant reading and experiencing, and be consistent and in control of your emotions. There’s no other way around it!
BEFORE YOU GO: Don’t forget to check out my latest article – ‘Exploring Social Trading: Community, Profit, and Collaboration’. I surveyed 1500+ traders to identify the impact social trading can have on your trading performance, and shared all my findings in this article. No matter where you are in your trading journey today, I am confident that you will find this article helpful!
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