George Soros : Man who made 2500 Cr in a SINGLE DAY! - YouTube

It is a matter of 1992, when a trader and his fund house

when they had almost forced one of the biggest foreign bank to admit their defeat

Just imagine the power of the trader, who keep sorting pounds, and forced a bank

and friends today, In this video , we are going to tell you about one such trader

what kind of policy he used to follow, the strategy he used to follow

and who he was.

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Friends, In today's video we are going to talk about a Trader, and you might have heard about him somewhere

may be through me or from an article or seen on Google or if youre following someone on Twitter then might have seen their

But you might know only some common things about him, probably one or two incident for example in 1992

when he had brought Black Wednesday

oe you might have know some small small situation

So today we are gonna know about him in detail, i.e Basically Who is he?

So, Friends we are talking about George Soros

So friends, George soros for now is a very big Fund manager

He is a BIllionare, and their is no shortage of money

He is almost 90 years old, his birthday was in last month only

Along with all this,Today, his asset inter management runs on billions of Dollars

and his personal net worth is almost 8.3 Billion dollar

Friends till now in our series of Amazing Traders, we have talked about 3-4 traders

When we talked about Japnease Traders, we talked how they used make money by trading in index, they made money via sorting

where in the last video, we learnt about Dang Zengar, who own so many world records but he was against sorting

but he advices to focus more on buying, and he make money money by chart pattern, breakouts plus quater results

I mean he believes more in chart patterns, he dont believe on indicators at all

if you haven't watched the previous video yet, then you can check out the previous video of amazing trader,

or else you can also check out the playlist of "Amazing Traders" on my channel

just before that, we have talked about lavey Moji , who uses skills which is knows as tape reading skills in today's time

He dont use to do all the candlesticks or japenese candlestick

which is called today as " Tape reading" or like we say "Money is god"

He used to follow the exact same thing

and the trader about whom we are talking today Mr.George Soros

His style and his philosophy is totally different

The strategy he follows is mojorly dependent on economics

He believed that when he started his career, and the first time when he got the chance of Trading

because he was passed out from London school of economics, so he had derieved a theory which is Theory of Reflexibity

and on the basis of this he made his career

Friends, his philosophy says a plain and simple things i.e.

He believe, whether you take micro economics or take fundamentals or take any other thing like economic cycle ,

everything is just a part of how to run a market

The maximum part for running the market is Emotions and Sentiments, according to his theory

He says , if you try to understand the phscology of human, if you are able understand the phscology of masses

Then you can make good amount of money, thats what he say

He say that if you have

Economics,

means economic concept, Like Demand and supply plus the impact of global asset on different kind of market

for example whats the impact of crude or the impact of currency or whats the imapct of fluctutions of interest rate somewhere

so he says that if we try to understand these things clearly, mixed with sentimental analysis, This can surely help

and even i agree to some extent that, yes the theory of reflexibity works and this surely had helped him in 1992

will surely come back to this

So in the starting of his career, basically he was an Immigrant

After being immigrant, when he went to Abroad, When he went to London he started doing a job

After that, he first started working in Arbitrage Department , now what is arbitraging,

Lets take an example, lets say you look at the price diffence of two Index's

so lets say you quoted Xyz share at Rs. 100 on NSE and quoted the same share at Rs. 100.50

so you brought from Nse @100 and sold on BSE @100.50

So friends as here we are discussing about 1970-60's

so at that time' digitalisation was not that much and it was also not that much transparent

so it was really easy for them to buy sell like this

Even today it shrinked, Because of digitalisation everyone knows everything

Even in India, before 90s this thing was so common there

Because if any trader wants to sell something in Kolkata then they enquire about it via their extention, about the price in Mumbai

but it was not visible on screen

So thats how people use to take advantage by inquiring, and used to do Arbitratging

and he also took the advantage of same thing at that time

and after that, after doing arbitaging as career, he move forward in his career of trading

and he understood that if somehow, understood to analyse the events and the phscology behind events

then we can make a good amount of money

So he convinced some of his clients and started a fund house

Hedge fund, as its known today

He started this thing from 4 Million dollars plus his own earning which is saved from all his trading and past thing, he started this

let's move forward friends, a lot of incidents happened in between

in fact,Today his fund house name is Quantum funds,

At first its name was Soros funds, he changed his name a lot of time but his main break was in 1992

In 1992,he started heavily sorting pounds with his money plus his fund house money

pounds, you might know already, London's currency, he was selling it very badly

Infact, with leverage, he sold out pounds worth of 10 million pound

friends, the situation became like, now why he was doing it, because he had analysed the sentiment

that neither the interest rate are in their favour and the inflation rate in going in their favour plus

also somewhere the interst rate of British are hurting the quality of pounds , one meeting was also going on

so now he took the advantage of time and decided that now he gonna sell in huge quantity through his fund house

Now he sold so much that, so much, that for taking that pressure

Bank of England started putting its money, but then a stage came when even that bank failed to take the pressure

Friends, this was a incident of 1992

and guys you are going to be shocked that when he finally closed his position

Infact he said that he would like to sell the pounds at 15 Billion Dollar

I'm not yet ready but somewhere he closed it after being convienced

and in just one day, he earned Rupees One Billion Dollors

and yeah obviously some of you will say that his fund house earned it and now him

But friends, how many fund house

if you talk about 1992 , and if im not wrong the value of one dollor at that time was almost Rs. 25 or Rs. 26

so, according to Rs.25-26, in one day , yes only in one day shot, he earned Rs.25 Crore

Which fund house, even nowadays, earn this much in one day and here we are talking about 1992

Friends, his dread was grown up so much, after getting limilight from this incident

that, its been opened up later that

A lot of economical leaders alredy had made him villian

According to them, the currency which caught attention of George Soros

Its been rumoured that , he even decreased Thailand's bhat

a lot of places like Malaysia

they created a moment of terror by keep selling in different places, and thats how they were keeping the control on currancies

friends you would be shocked to know that he never have focused on equity or commodity in his whole carreer

his focus was always on currencies

A lot of people says that he dont do any moral thing, he do a wrong thing

he also got into some one or two cases like of insider trading for which a penality was emposed to him of Rs. 2.3 million dollor

but Friends how much is 2.3 million Dollor is,for a Billionare ?

I guess you do understand that

but one of his mistake, which he confess himself, i mean it was not a mistake but an honest confession that sometimes

he used to believe "He is God"

So guys yes we can say it was over confidence, but in his mind he had that feeling that he is a god or a Messiah

who is sent for the pupose of creating earthquake in global economy

But guys let me tell you this as well , that along with all this , he also had done so many philontrophic activities

So firstly we should understand that what we learnt till now, from this short brief story

Firsly, its not important that you had to make career in equity only

people in history had made career in currency and in commodity as well

We have almost covered each type of trader till now in "Amazing Traders"

currency, commodity, swing index trader , tape reader, we had covered almost everything

So its not neccesity that you had to go with equity only

second question you guys might had in your mind is

That sir this trader is managing fund , so how he become trader?

So friends let me tell you that, in the first 4.5 years he traded in his own account and proved the theory of reflexibility

Now let me tell you one more thing that when your capital goes above a certain level, above a certain limit

so the traders become compel to pick up two option

First option is either he become a full time investor and do a little bit trading for time-pass

Because with huge capitals, some constraints also come, so you have to understand this

So here someone with small capital try to make 100% for a year

but let say once his capital become 1 crore 2 crore or 3 crore or 4 crore from their he starts investing his 50-60% exposure

that fine if im able to make 20-30% annualy thats good but atleast my money is safe , and their is no issue of liquidity

and so on reasons ...

that's why when people ask that even after making so high returns, why traders dont defeat Warren Buffet in terms of Wealth

So, thats the actual reason, because after a certain limit, certain limitation, when a trader turns

So what are those two things?

One is in which he can turn into investor

and the second option is, he starts to manage funds , with a huge capital

So now you will say , that sir you just said that when the capital becomes huge then they are not able to do it

Friends, even when they are managing funds im not saying they are gonna make 100%-200% every year

They are gonna make the same on that time as well

but here with the help of their trading skills and hedgeing skills they are able to manage huge amounts

so you have to understand that because of the constraints that comes with huge capital

thats why These people change their frequency and their everything

secondly, when a person comes to manage funds

he don't have only 4 crore but atleast 40 Crore, 50 Crore, 100 crore, this kind of amounts

So they, using complex algorithm or various machine technique, can hedge their positions easily and grow

one more thing we understands here is

the people who says, how traders contribute to society

They pay taxes

They also do philontrophic activities , as well as give donations

and also employee a lot of people

The people who ask this question, Please go to IIM's or IIT's

The highest paid people always went to Hedge funds of Investment bank only

and what do the hedge funds do, friends

Trading is all what they do, so at the end if you are getting that high end package, then thats somehow because of traders or

traders feternity

This is an imporatant thing that you have to understand

the people who think how else traders do contribute?

Who is balancing the commodity prices?

Traders are doing that

If their will be no equity then investors also cant do anything

same goes with currency , same goes with equity

to strike a balance you always need and to strike the balance with equity

you always need to have traders into the market

Thats why we need traders

Next things is, the people who think that they gonna make good money only using technical analysis

technical analysis

Friends its not possible, you need three things

Technical analysis

Basics of fundamental anlytics , i'm not saying advanced but yes basics

and third Intuition

and this intuition will only built up when you will get a lots of experience

Now you guys do ask sometimes like Sir how you told that it fallen down or how it fallen down

these all intuitive abalities only built up when you have experience

So till the time you dont have these three cores

till then the chances of you becoming a great trader are very less

Yes, for sure you can become a decent trader

but becoming great trader is difficult

So friends, this was the short and swift story about Mr. George Soros

he is very generous and also have done so many philanthropy things

and had been into so many controversies

but this is how life of a Hedge fund manager is

he had brought crises in Asia also in Bank of England

but come on, its the habit of a trader and they cant leave it, if they are able to make through sorts,

and as they want to make money

So they do things like that

So i hope you got to learn something new today

Keep learning, Keep Trading and Keep growing.