All Forex traders aspire to become successful traders. Most have a hunger for that one big trade which has the potential to crave down their name in the currency trading market and the industry. However, pondering about becoming a legendary trader is easier than achieving the goals which can get you there. It is still great to get a bit of inspiration from some of the world’s most diligent and industrious traders. Andy Krieger is one of those legends.
Andy Krieger, after graduating from Wharton School, joined Salomon Brothers and in 1986 joined Bankers’ Trust. Within a short span of time, he was labeled as one of the world’s most assertive and hard-hitting dealers in the company. His reputation was so in the Bankers’ Trust that he gained the full confidence and support of the board members to let him have a trade limit of $700 million, compared to the normal limit of $50 million.
The Raid on the New Zealand Dollar:
In the wake of the stock market crash on 1987, this has been noted in history books as Black Monday, Krieger turned out to be excessively persuaded and certain that the Kiwi (the New Zealand dollar) was susceptible to attack. Krieger, in light of his research, his diligence and aggressiveness chose to hit the Kiwi and take advantage of the situation. As he had a fairly large trading limit, he used it to sell the Kiwi, with a leverage of 400:1. This amount exceeded even the actual circulating liquidity of the currency. Within a few hours, the currency went down 5% against the US dollar, and Andy Krieger ended up making $300 million for his company. In fact, he created such a large short position that the Bank of New Zealand literally had no defence. Sometime later he claimed that his short position was so large that it was bigger than the entire New Zealand money supply. In other words, through his short position he controlled more Kiwi dollars than were actually in circulation. It takes nerves of steel and complete confidence to do something like that – and Krieger had both in abundance.
Krieger’s Trading Strategy:
Krieger also belongs to the school of those traders who believe in fundamentals. Fundamental analysis played a crucial role for Krieger during the raid on the New Zealand Dollar. He had the right information and market monitoring skills to actually identify the currency that was overvalued. In hindsight, this could have cost the company a fortune, but his confidence in his findings took care of the rest. He also believes that a good trading strategy is also about knowing when to exit. Even though Krieger was right at that time, New Zealand Dollar went bullish in 1988, which means that he ended his position at precisely the right time.
Krieger is a man full of self-belief and confidence. His passion for trading and his approach has made him a legend. He is the perfect guy from whom you can learn a lot.