George Soros was a master at translating broad-brush economic trends into highly leveraged, killer plays in bonds and currencies. As an investor, Soros was a short-term speculator, making huge bets on the directions of financial markets. He believed that financial markets can best be described as chaotic. The prices of securities and currencies depend on human beings, or the traders - both professional and non-professional - who buy and sell these assets. These persons often act out based on emotion, rather than logical considerations. (For more insight, see Understanding Investor Behavior.)
He also believed that market participants influenced one another and moved in herds. He said that most of the time he moved with the herd, but always watched for an opportunity to get out in front and "make a killing." How could he tell when the time was right? Soros has said that he would have an instinctive physical reaction about when to buy and sell, making is strategy a difficult model to emulate.
When he fully retired in 2000, he had spent almost 20 years speculating with billions of other people's money, making him - and them - very wealthy through his highly successful Quantum Fund. He made some mistakes along the way, but his net results made him one of the world's wealthiest investors in history.
"The Alchemy Of Finance" by George Soros (1988)
"Soros On Soros: Staying Ahead Of The Curve" by George Soros(1995)
"Open Society: Reforming Global Capitalism" by George Soros(2001)
"The Bubble Of American Supremacy: Correcting The Misuse Of American Power"by George Soros(2003)
"Soros: The Life And Times Of A Messianic Billionaire" by Michael Kaufman(2002)
"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong."
"I rely a great deal on animal instincts."
"Playing by the rules, one does the best he can, irrespective of the
when things are going well and prices are high,investors rush to buy,forgetting all prudence.then when theres chaos all around and assets are on the bargain counter,they lose all willingness to bear risk and rush to sell.And it will ever be so