George Soros Trading Principles and 20 Quotes

George Soros Drawing tradersdna
George Soros Drawing tradersdna

George Soros Trading Principles and 20 Quotes!

George Soros the man and his myth!

Loved and hated George Soros is one of the most polemic and successful traders and investors of all times. His biography is big and his actions bigger than life itself, so powerful that it created various myths and conspiracy theories.

In this article we will digress about George Soros “The Man Who Broke the Bank of England”, and his vision, life, trading ideas, books and other projects. Soros was born August 12, 1930, as Schwartz György and is an American global citizen, business magnate, investor, philanthropist, and prolific author and thought leader who is of Jewish-Hungarian ancestry and holds dual citizenship – Hungary and the United States.

Born in Budapest in 1930, his life was parallel with the biggest events of the 20th Century and now the 21st. He survived the Nazi occupation during World War II and fled communist-dominated Hungary in 1947 for England, where he graduated from the London School of Economics and started his professional activity as a trader and investor. He then settled in the US, where he accumulated most of his large fortune through the international investment fund he founded and still manages and chairs.

Although his age, 86 in 2016, and history, he runs as chairman the Soros Fund Management, where he is still very active. In fact his hedge fund ranked the top 10 in Forbes list of global hedge funds with an impressive earning of $300 millions in 2016.

Soros is also known as “The Man Who Broke the Bank of England” because of his polemic and outrageous short sale of US$10 billion worth of pounds, during the 1992 Black Wednesday UK currency crisis, making him a profit of $1 billion.

In most of the global lists of billionaires, Soros is one of the 30 richest people in the world. Forbes ranks him as the 23d richest man in the world

George Soros, Forbes List of Billionaires
George Soros, Forbes List of Billionaires

George Soros the Trader with a traders’ DNA and wise Investor!

George Soros the trader and investor, that with his short-selling the pound sterling made the Bank of England fall, is still active, and is a critical personality to understand the world of trading and investing, macro-economics and the markets as a whole.Independent of his political outspoken ideas and views his trading track record is equally to no one with exception to Warren Buffet,

A self-made, survivor, man Soros was probably the only man that has had a the capacity to break one of the top economies in the world in a legal way. Although this accomplishment he is as well a brain detailed risk manager that knows that the key to profitability in trading is more about big wins and small losses than his winning percentage.

A key thing for Soros was that he has understood that he was not always right, and that enabled him to cut losses short and position size right. Soros’ is also flexible in his trades, and he changes his mind and reverses positions when needed. He makes sure is is adapting with times, markets and does not marry his trades.

Soros understand and preaches that the more extended a trend gets from its average the greater the odds of a snap back and reversion to that mean. For him the more extended a trend gets from its average the greater the odds of a snap back and reversion to that mean.

The problem with trading is not in a losing trade, but in failing to cut the losses or add to a losing position. Soros is therefore systematic and understands that profitable trading based on math and probabilities is usually not exciting and fun. Good trading is about keeping trends and methodological, risk management and is mostly boring in almost all instances.

As few Soros understood that market trends, and the whole capital markets industry and innovations are caused more by the extremes of investors emotions than fundamental reasons. For him, the obvious trade is usually not the profitable one. Profitable trades tend to be the one that is not expected according to Soros, and, therefore counter intuitive. George Soros is known for trading with the trend until the end when it starts to bend.

George Soros likely uses some form of reactive analysis to tell him in which direction to take a trade based on how a scenario or price action markets unfolds. He may have multiple possibilities on what could happen and trades in the direction of the one that plays out and his focus is being able to adapt and continue trading with the right risk ratio.

George Soros
George Soros

George Soros top Quotes about Trading and Investing!

We did a research and gather his top quotes about trading and investing as they can help any investors or trader to manage better his strategy. Here they are:

“The financial markets generally are unpredictable. So that one has to have different scenarios… The idea that you can actually predict what’s going to happen contradicts my way of looking at the market.”

“The markets are always on the side of exuberance or fear. It’s fear and greed. Right now greed has the better of it, which is rather nice (for investors) as long as it doesn’t get out of hand,”

“I’m only rich because I know when I’m wrong…I basically have survived by recognizing my mistakes.”

“My approach works not by making valid predictions but by allowing me to correct false ones.”

“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.”

“Once we realize that imperfect understanding is the human condition there is no shame in being wrong, only in failing to correct our mistakes.”

“The worse a situation becomes, the less it takes to turn it around, and the bigger the upside.”

“If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.”

“Markets are constantly in a state of uncertainty and flux, and money is made by discounting the obvious and betting on the unexpected.”

“Stock market bubbles don’t grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.”

“We try to catch new trends early and in later stages we try to catch trend reversals. Therefore, we tend to stabilize rather than destabilize the market. We are not doing this as a public service. It is our style of making money.”

“I chose America as my home because I value freedom and democracy, civil liberties and an open society.”

“I very often used to get backaches due to the fact that I was wrong. Whenever you are wrong you have to fight or [take] flight. When [I] make the decision, the backache goes away.

“The financial markets generally are unpredictable. So that one has to have different scenarios. … The idea that you can actually predict what’s going to happen contradicts my way of looking at the market.”

“Once we realize that imperfect understanding is the human condition there is no shame in being wrong, only in failing to correct our mistakes.”

“Whenever there is a conflict between universal principles and self-interest, self-interest is likely to prevail.”

“Markets are constantly in a state of uncertainty and flux, and money is made by discounting the obvious and betting on the unexpected.”

“Markets are designed to allow individuals to look after their private needs and to pursue profit. It’s really a great invention, and I wouldn’t underestimate the value of that. But they’re not designed to take care of social needs.”

“A global economy is characterized not only by the free movement of goods and services but, more important, by the free movement of ideas and of.”

“If I had to sum up my practical skills, I would use one word: survival. And operating a hedge fund utilized my training in survival to the fullest.”

George Soros the Progressive and Liberal Political Causes Supporter!

Soros during the last decades is a well-known supporter of progressive and liberal political causes around the world. Between 1979 and 2015 Soros has donated more than $11 billion to various philanthropic causes. He also has played a significant role in the peaceful transition from communism to capitalism in Eastern Europe (1984–89) and provided one of Europe’s largest ever higher education endowments to the Central European University in Budapest.

Soros is also the chairman of the Open Society Foundations. This philanthropic activist organization, the Open Society Foundations, supports democracy and human rights in more than 100 countries.

He has been a prominent international personality and also a powerful supporter of various ideals and causes for decades, some of them quiet polemic and disruptive.

George Soros Books!

Soros is the author of over a dozen books, including the most recent The Tragedy of the European Union (2014). His articles and essays on politics, society, and economics are well regarded and his writings regularly appear in major newspapers and magazines around the world.

List of his books that he has been publishing regularly since 1987:
  • The Tragedy of the European Union, George Soros, Mar 11, 2014.
  • Financial Turmoil in Europe and the United States: Essays, George Soros, Feb 7, 2012.
  • The Soros Lectures at the Central European University, George Soros, Mar 29, 2011.
  • The Crash of 2008 and What it Means, George Soros, Mar 30, 2009.
  • The Age of Fallibility, George Soros, Jun 26, 2007.
  • George Soros on Globalization, George Soros, Mar 14, 2005.
  • The Bubble of American Supremacy, George Soros, Oct 11, 2004.
  • Open Society, George Soros, Nov 28, 2000.
  • The Crisis of Global Capitalism: Open Society Endangered. George Soros, Jan 1, 1998.
  • Soros on Soros: Staying Ahead of the Curve, George Soros, Aug 18, 1995.
  • Underwriting Democracy, George Soros, May 12, 1991.
  • Opening the Soviet System, George Soros, Feb 2, 1990.
  • The Alchemy of Finance, George Soros, Oct 19, 1987.

Soros writes actively and some of his essays can be found here: