The famous financier and investor George Soros in an interview with Die Welt revealed the secret of his own success, which no longer brings results. It was lost due to the fact that many market participants began to study the book written by Soros.
In response to a question about the methods that allowed him to make money over time, Soros noted that his approach is largely psychological. вЂњThis is not about markets, but about the relationship between thinking and reality, but I used the market as a testing ground for testing my theories,вЂќ said the billionaire.
Soros's two main theses boil down to the fact that the worldview of market participants is always incomplete and distorted, and this directly affects many situations. вЂњDistorted views of things also lead to inappropriate actions. This is due to reflexivity. This teaching gave me some advantages over others, вЂќ the financier says.
Soros outlined his observations in the book вЂњThe Alchemy of FinanceвЂќ, which many traders began to study. Ultimately, this led to the loss of the billionaire's former leading position. вЂњTherefore, I have no business with the market anymore,вЂќ he concluded.
Soros gained fame with a 1992 deal in which his Quantum fund sold off the pound sterling, which led to its weakening and the UK's exit from the European Monetary System (EMU). Many analysts have tried to unravel the trading strategies and principles of Soros, but most of the theories boiled down to the presence of insider information or the gift of foresight. Soros was also repeatedly accused of financing and helping the opposition in different countries, including the post-Soviet space. The reason was the activities of his Open Society charitable foundation.