George Soros Strategy
George Soros is a famous billionaire who made his fortune through speculative
operations. His fortune is estimated at over $7 billion, and legends about how he earned his money continue to this day.
In some countries, the emergence of George Soros is heralded with the onset of a crisis, since he skillfully buys shares of strategic companies for almost nothing.
For example, in Russia they treat George’s appearance with such distrust that if he visited an investment forum of some country, then all the news broadcasts that something is going to happen soon.
It gets to the point that some politicians directly accuse him of deliberately stirring up conflicts in order to quickly profit from depreciated assets.
However, George is not only a global investor, but also an excellent speculator, and he prefers the foreign exchange market.
If we talk about Soros's trading strategy, then in fact it does not exist. Soros himself proudly claims that in every situation he applies certain trading skills, and most of all relies on intuition. However, if you look at the history of victories and defeats, it becomes clear that at least George is an excellent liar, and in fact is the person who knows more than anyone.
Around his hedge fund, Quantum Group of Funds, every year some scandals arise related to the use of insider information or speculative rumors. The recent scandal surrounding OTP Bank is associated with the banal spread of rumors, due to which the shares fell in value by 22 percent in one trading session.
However, after false information and a sudden fall, Soros found himself in the hands of 390 thousand shares, which were purchased at a reduced price. That day, Soros earned $500 thousand, but due to an investigation by the regulator, he was fined $0.9 million. This kind of speculation happens every year and all because it is part of his trading strategy.
The main components of Soros' strategy.
George Soros formulated his trading strategy in a book and called it “The Theory of Reflexivity in Stock Markets.” Based on the theory, the decision to buy any asset is based on an assumption of its future value. Since the expectation of a certain cost is a psychological category, it can be easily adjusted in the information space.
Thus, if the market is buying up assets, and George begins to actively influence large players thanks to false information through media sources, the expectations of the participants change, and his pre-planned plan comes true. However, despite the simplicity of the theory, this kind of speculation can only be made by large players like Soros.
Despite the strategy he has formulated, his son claims he doesn't stick to it at all. It got to the point that when his back hurt, he decided to buy something, and when he got sick, he immediately sold it. At first glance it seems funny, but in fact a person simply has a unique intuition, which he develops with various psychologists and hypnotists.
He specifically trains it by simulating various situations and monitors whether his forecast comes true over time and how accurately. If you delve into the history of his success, it turns out that he is a classic “bear” and trades mainly for the fall.
This is due to the fact that he, like no one else, knows how to capture the moments of the beginning of crises, and global ones at that. If you have ever read stock exchange literature, then you probably noticed that the main thesis boils down to the fact that you need to work strictly according to the trading system. However, an example of the success of George Soros is that good intuition can earn millions faster than a systematic approach.