What is George Soros' trading strategy?
- George Solotarov
- Hits: 397
In developing strategies, George Soros follows the theory that the market is always wrong. The investor is on the lookout for significant imbalances in the market and bets based on his experience and analysis of current information. Here are some of his outstanding strategies:
Active Money Management
This strategy involves tracking the performance of an investment portfolio and making decisions to buy, hold or sell a particular asset. It seeks to achieve a balance between risk and return on various investment instruments.
In this trading strategy, George Soros actively uses scientific methods to analyze and make predictions about the dynamics of financial and stock markets based on current market data. When testing hypotheses, the investor invests small amounts and scales successful projects, reducing losses on loss-making trades.
Global Macro Strategy
In his hedge fund, he uses a global macro strategy. It involves multiple one-way bets on stocks, speculation on exchange-traded assets, and currency movements. In applying this strategy, Soros bets that the value of investments will either fall or rise. He studies his target assets and lets the movements of financial markets and key participants determine his trades. According to the financier, the philosophy behind this trading strategy is reflexivity. According to the philosophy of reflexivity, assets are evaluated based on the available feedback from the market.
In the following article, we will take an in-depth look at George Soros' Tips for Beginners
___________
Also, if you want to use all available trading tools to increase your profits as soon as possible - follow this link below, or contact us via live chat. Our experts will help you to choose the best strategy for success.
Follow our updates for useful information in our series of articles. You can also visit our previous article to better understand this topic.