[center]Experience talk of foreign exchange master

Experience talk of master[/center]

Compared with the stock and futures markets, the foreign exchange market has a short history, but in recent years a group of trading masters have emerged. In terms of investment theory and experience, they may be slightly inferior to veterans in the stock market, but in terms of profits, they are even better than them. Their annual income is calculated in billions. The foreign exchange masters introduced in this article include directors of the foreign exchange department of large companies, bosses of large funds, and individual accounts. They are naturally little known in China, and they are not well-known outside the financial circles of the United States. But in the foreign exchange and futures industry, as long as these people are mentioned, people will immediately respect them.

It’s not that these people are outstanding in appearance, but that they have made a lot of wealth from the market by virtue of their genius and hard work, and this wealth is what many investors want to earn and seem to be able to earn.

Bill Lipschutz: Bill Lipschutz is just 36 years old this year and has been in charge of the foreign exchange department of Salomon Brothers for nearly 10 years. A huge profit of five or six billion U.S. dollars was made. The young man in his early thirties was dubbed the “Forex Sultan” by Wall Street. The scale of his orders is staggering, and it is common for him to enter hundreds of millions of dollars or even billions of dollars at a time. Due to his outstanding achievements, supplemented by the financial strength of Solomon Corporation, the foreign exchange department he presided over has a credit line of 80 billion US dollars in hundreds of banks all over the world, and he earns hundreds of millions of profits from the foreign exchange market every year.

　　Interestingly, Lipschutz had almost zero knowledge of the foreign exchange market when he first started doing foreign exchange. With no one to guide him, he used the company’s reputation and strength in Wall Street to break new ground within a few years. Lipschutz originally studied architecture, but became interested in stock options when he was a graduate student. He simply took a master’s degree in business administration at the same time, and was hired by Solomon after graduation. The company is well-managed, meritocracy-based, and often exceptional in its selection. In 1982, the Philadelphia Exchange newly opened foreign exchange options trading. At that time, only Lipschutz had done options in the foreign exchange department, so he was appointed to be in charge of this business. Lipschutz built a network with the help of colleagues. He believes that doing foreign exchange mainly depends on being well-informed, and those who make a lot of money are those who are accepted by the banking industry.

The movements of big investors affect the market, and some important news can make money if they get it early. Of course, most of the news is public, the key is how to analyze it. The use of information should be flexible, depending on the reaction of the market. Lipschutz believes that the impact of German unification on the foreign exchange market is the most telling. When the Berlin Wall came down, the sentiment in the market was that now everyone was going to put their money into East Germany, so the mark went up. After a while, the market realized that it would take time for Germany to absorb East Germany after reunification, so it would be unwise to invest money in it.

How did the market change its mind? It was nothing more than a speech by German Chancellor Kohl, a comment by US Secretary of State Baker, the high unemployment rate in East Germany, and the high expectations of East Germans for West Germany, etc. The investment community is starting to realize how easy it is to rebuild Eastern Europe. After this kind of thinking gained the upper hand, Mark began to plummet. In fact, some people have held this view for a long time, but the market trend often depends on the focus of the market at a certain moment. This requires communication with market participants. Not everyone thinks in one direction, but everyone’s attention can be felt. For example, one day the market focuses on interest rate differentials, and the next day it emphasizes economic growth.

　　There is a specific example that shows Lipschutz’s skill in dealing with interpersonal relationships. He was never merciful when his opponent pleaded for mercy due to negligence when doing options, and he must execute the contract. But there is one exception. That day he found out that a foreign exchange trader on the Philadelphia exchange

The commissioner’s quotation was significantly lower than the market price by 100 points. He went to inquire about the price, and the other party quoted the same price, and he immediately bought 50 contracts. Then he asked the other party to quote again, but the result was still the same. He politely asked the other party to verify again, and the answer was yes, and he took another 250 cards in a row. Another large company bought hundreds of copies after discovering the mistake. After a while Lipschutz went to ask the price again, but the careless commissioner still didn’t notice.

Lipschutz asked him if he could sell 1,000 sheets. Now the other party was terrified, and after checking, he found out that he was finished. At this time, Lipschutz was merciful and told him that except for the first 50 bills, all other bills had been canceled, and the other party was very grateful. Lipschutz explained afterwards that he was entirely out of long-term interests. At that time, the Philadelphia Exchange had just launched foreign exchange options trading. If the commissioner was killed, this new market might also die. At that time, there was no benefit for Solomon. Years later, that person became the chief on-site trader of a large family and provided a lot of convenience to Solomon Company. Another company that took advantage of the fire at the time insisted that the other party cash it out afterwards, and it often ran into trouble on the Philadelphia Exchange many years later. In the spot market, wrong prices are often reported. As a rule, as long as you ask the other party to verify that the other party still reports the wrong price, you cannot repent.

　　Lipschutz’s most impressive transaction was in September 1985. Seven developed countries held a summit meeting and determined policies to weaken the dollar. At that time, he was on vacation in Sardinia, Italy, and knew nothing about the news of the seven-nation summit meeting.

Central banks have intervened many times in the past when the dollar was on the way, but to no avail. So this time it didn’t cause much reaction at first. Lipschutz called the company and got the news when his assistant Andy was home sick. He hurriedly called Andy. As soon as the New Zealand market (the earliest opening of the day) opened, Andy entered the market and dumped 60 million US dollars. At that time, this was not a small amount for New Zealand. Many banks are not sure about the impact of the summit meeting. There is almost no trading volume in the market. The bid-ask spread reaches 200 points (about 10 points under normal circumstances). click away. Lipschutz simply connected a 24-hour telephone line, contacted Andy and the exchange directly, and made a large number of foreign exchange options. On that day, the foreign exchange department of Solomon Company had a bumper harvest, with a net profit of 5 million US dollars, equivalent to 25% of the annual income of the foreign exchange department.

　　Lipschutz nearly capsized once. In the autumn of 1988, the foreign exchange market was originally calm. One day, Soviet leader Mikhail Gorbachev came to the United Nations General Assembly to talk about disarmament. The market understood that the United States could also reduce its armaments and reduce its deficit, which was beneficial to the dollar. The dollar started to rise in New York trading and was quickly up 1%. At this time, Solomon had a $3 billion sell order in hand, and the situation was critical. A 1% gain equals a $30 million loss. That day happened to be Friday, and the market trading volume was not large, so it was very difficult for him to cut the order and exit the market. He decided to sell another 300 million U.S. dollars, trying to suppress the rise of the U.S. dollar, and waited until the Japanese market opened on Monday before entering the market with a flat order. Unexpectedly, foreign exchange still soared, and soon Solomon’s loss reached 90 million US dollars. Lipschutz hurriedly reported to the president. After asking about the situation, the president encouraged him to be calm and follow the plan. When the Japanese market opened on Monday, the U.S. dollar really began to fall. He waited patiently until the European market went flat, and finally escaped death with only a loss of 18 million U.S. dollars. Afterwards, Lipschutz deeply introspected, believing that he had miscalculated the liquidity of the New York market and made the situation out of control. Fortunately, it was handled properly later to avoid greater losses. YSHX

　　Lipschutz himself had a private account, which was a legacy left by his grandmother, totaling $12,000. He earned 250,000 yuan within 4 years of doing options, but lost it all by accident. It was September 1982. He made a lot of money by taking advantage of the stock market’s fall to overturn the pyramid, but when the stock market bottomed out on September 23, it rebounded sharply. Due to the large amount of incoming orders, he was wiped out within 3 days. That lesson first made him realize the importance of risk control, and second, made him distinguish between public and private, and concentrate on making money for the company, which led to his subsequent achievements. 　　Regarding the interbank market (foreign exchange spot), Lipschutz has unique insights. .

He believes that banks mainly rely on buying and selling spreads to make money. Citibank of the United States is the most successful in foreign exchange, with an annual profit of about 300 to 400 million US dollars. If you place an order, you can earn 600 million US dollars. Citibank itself does not admit this estimate. There is another way for the bank to make money: every time a big customer enters an order, it follows behind and can make a profit immediately. This is true in the futures industry is illegal, but allowed in the spot market. yunshfx

　　Lipschutz believes that a master trader must be both smart and hardworking. In other businesses, smart people may be opportunistic, and stupid people can hide their clumsiness with diligence, but foreign exchange requires both talent and hard work. People often ask him when he should go to work and when he should leave work when he comes to the company? In Lipschutz’s house, there is even a TV monitor next to the bed, so that he can observe the price at any time and understand the market. In addition, intuition is also very important. Lipschutz never forgets the foreign exchange market in his dreams. Once he dreamed that the trade deficit figures announced the next day were favorable to the dollar, and the dollar rose sharply. Yun Shang Hui Xin

He first dreamed of the new foreign trade figures, then the revised figures of last month, and then he dreamed that he entered the market to buy US dollars, and the price continued to rise. He bought a batch, and after breaking through the third level, he was going to play, but decided to buy another batch. The next day the foreign trade figures were exactly the same as those in his dream, and the trend of the foreign exchange market was also exactly the same as in his dream. The only difference is that he didn’t enter a single order. Afterwards, he explained that the real feeling is that it should be based on market analysis, and it is unreliable to rely on dreams to make orders. Yun Shang Hui Xin Limited