‘I have made enough money’, said no one ever.
Human nature or plain old greed, throwing away money-making chances isn’t a common trait among the human race. This is what instructs our investments in stocks, bonds and other financial assets.
While the chances of winning a lottery in one’s lifetime may be relatively slim, there are other ways of making lottery like fortunes that we can explore if we dare to take more risks.
Wealth creation requires some amount of risk taking that may birth massive results or be disappointing all together.
Don’t be satisfied with investments that bring little returns because of the relative safety. Work up your greed sometimes.
While the same formula may not work for two persons, there are always lessons to be learnt from stories of outstanding people.
The George Soros Story
Considered one of the most successful investors in the world, George Soros is an outstanding individual.
A Hungarian American born in 1930 in Budapest, he survived the Nazis occupation of Hungary.
Currently the 19th richest man in the world, according to Forbes’ list, one of his biggest feats is making a profit of over $1 billion dollars in a day (that is more than the yearly budget of some third world countries)
How did he do it?
Well, let’s say understanding that people trade more on emotions than logic may have played a big part in his success story.
After graduating from the London School of Economics in 1952, George Soros immigrated to the United States in 1956, where he took up a job as a financial analyst and trader in New York.
He honed his skills working in different positions in financial institutions before starting a hedge funds company that gave him access to even more capital to test his trading strategies.
His deep knowledge of the market and approach led to risking $10 billion on a single currency speculation when he shorted the pound.
He was spot on with the speculation. That trade decision led to a ground breaking profit of $1 billion generated in a day. It is widely believed that his profit must have reached $2 million, earning him the title of ‘the man that broke the bank of England’.
Do all risks have such huge pay-outs? Well your guess is as good as mine.
Lessons to learn
Some risks may have you go from 100-0. What is most important is for you to take calculated risks and be sure to understand the market.
The moral lesson in the mini biography is that you can grow your wealth if you have a good understanding of the financial market by placing daring trades based on your knowledge.
The financial market can be very unstable but if you have long studied the trend and you are almost certain that things will turn out in certain ways, then you should put your money where your mouth is.
There are a lot of brokerage firms with great apps and easy to use interface where you can test your skills.
You may take it really serious or make it a recreation. One thing that is true is that you may be on your way to making news.
George Soros was renowned for being a master at translating broad scale economic trends, using that as an advantage in trading bonds and currencies. He made his investment decisions majorly by employing short term speculation and making huge bets on the direction of the financial market.
You may not be as good as George Soros in making great analysis but you can employ the services of a good broker or better, still find out if there are hedge funds firms that are open to taking bigger risks in the currencies and derivatives trade, where you can make your money work for you.