Andrew Krieger currency trader

  • Andrew Krieger currency trader

    Andrew Krieger is a speculator who successfully made profits from black Monday, He specialized as a currency trader.

    In the forex business, even though this is a high-risk business, there are success stories of traders who inspire that in forex someone can successfully make extraordinary profits.

    One of the successful trades was Andrew Krieger, he was one of the figures who had extraordinary achievements in forex trading, he makes big money on Black Monday in 1987.

    Andrew J Kreiger or also known as Andy Kreiger is an aggressive trader who included one of the most infamous currency traders.

    Andrew Kreiger Currency Trading Carrer

    Andrew Kreiger studied at Wharton Business School, University of Pennsylvania.

    Since he graduates from school then joined the Solomon Brothers In 1986, Andrew then joined the Bankers' Trust which raised his name.

    Andrew Kreiger showed his expertise at Banker Trust, he succeeded in making his performance increase and pofit for the company.

    Because of his reliable performance, he was also entrusted with managing capital up to $ 700 million. The company's standard capital limit is only $ 50 million.

    By having such a large amount of capital and being supported by the ability to understand good market conditions, Andrew Krieger became one of the genius speculators when Black Monday took place in 1987.

    Krieger and Black Monday events

    If you remember about the events of black Monday, then you should also remember about the popularity and success of Andrew Kreiger

    His success story has always been linked to the chaos that occurred on Black Monday.

    The events of the Black Monday occurred on October 19, 1987, when stock markets all over the world collapsed. Krieger's actions that day made him one of the most influential financial figures.

    Black Monday or also known as The Crash of 1987. On that day, the stock supply suddenly far exceeded the demands of traders and investors.

    This caused prices to fall and caused worldwide panic. But the exact cause of Black Monday so that the price crashed is still controversial.

    Many believe it is a mixture of events. Some argue that it is caused by the action of the Expert Advisor, while others think market psychology is the main cause. Another factor is portfolio insurance.

    Then what is the influence of black Monday on the market?

    The stock market is falling so fast that traders don't know where the support point is. Some traders lost everything and their portfolios collapsed. Even so, there is hope for smart and observant traders.

    Andy Krieger sees a big opportunity that the majority of market players have overlooked.

    When traders and investors see the US dollar plummeting, they are looking for a safe place to deposit their funds until the crisis ends.

    Krieger analyzes that other, smaller currencies have suddenly become overvalued because of this.

    He believes that it is unlikely that small countries with economies much smaller than the US can sustain the currency's value in these dire conditions.

    At that time dai chose the New Zealand Dollar which was overvalued and prone to falling.

    For that reason, he boldly used his huge purchasing power in the Trust Banker to drive the NZD price.

    What happened next was that the New Zealand Dollar fell 5% after a few hours against the US dollar, and it fluctuated up to 10% during the day.

    Krieger exited the market with a profit of 220-300 million USD. Some have even stated that the transaction was worth 700 million USD or even 1 billion USD.

    Andrew Kreiger left Banker Trust

    The name Andrew Krieger is not as popular as George Soros or Bill Lipschutz. However, his name is identical to the 1987 Black Monday event.

    Black Monday is the day when the Hong Kong stock market falls, then spreads to Europe to the United States, causing a significant fall in the global stock market.

    As a result, the Dow Jones Industrial Average (DJIA) dropped exactly 508 points to 1,738.74 or by 22.61%. The fall in stock prices on Wall Street then had a significant effect on the US Dollar. Traders are selling off US Dollars, causing prices to tumble almost to all other major currencies.

    When other traders are busy selling US Dollars, Krieger sees potential in the New Zealand Dollar. He considers if the increase in the NZD/USD pair at that time was already on the fundamental and technical threshold, so it must be lowered.

    From the brief analysis, Krieger reportedly used very large funds to force the Kiwi down and out of the supply zone. Other market users welcomed this decline, so the NZD/USD slumped by almost 5%.

    Krieger sells NZD to USD using the leverage of 400: 1, or worth 600 million to 1 billion USD which exceeds the actual NZD supply circulation at that time.

    The reason Krieger dares to take high leverage is that he has done a fundamental analysis in depth of market panic. 

    Even though it produced very satisfying results, it`s trading caused a lot of controversy for the Central Bank of New Zealand.

    The bank and the New Zealand government asked the Chairman of the Bankers' Trust to dismiss  Andrew Krieger. So, he was only given a commission of $ 3 million from his trading results on the NZD/USD pair.

    Disappointed with the commission the company gave him, Krieger then decided to leave the Bankers' Trust and join the company owned by George Soros.

    On June 30, 1988 Andrew Kreiger decided to leave forex until September 1990.

    Andrew Krieger left Banker Trust in early December 1987 but not later than February 1988. He is a Wall Street celebrity who has gained popularity by making huge profits from the New Zealand currency.

    After leaving the Banking Trust he worked for George Soros as senior manager between March and April, but left the job in June 1988.

    An interview with him in September 1990 revealed that he did not trade in the Foreign Exchange business outside of a very limited number of trades carried out solely for himself.

    Andrew Krieger strategy

    From the story of how to trade Andrew Kreiger above, the strategy applied requires several requirements.

    • The first is that it knows exactly when to enter and exit the market. This is the key to his best strategy, he knows the best point to enter and exit the market properly.

    • Secondly, he has the skills for foresight. He knows that the NZD currency is too high and it is time to lower it.

    • The third Andrew Krieger has a strong mentality. He traded in large amounts, but remarkably Krieger remained calm and found profitable opportunities he could seize.

    • The fourth is that Kreiger knows about risk management. Carrying out a very large volume of trading action would never happen without analyzing the type of risk. Andrew Kreiger has a scenario for this risk management.

    • The fifth is that Andrew Krieger knows when to use leverage. When performing the action he uses 1: 400 Leverage.

    Indeed, leverage carries a very high risk and ideally, leverage is only used with absolutely known trends.

    What lesson we can learn from Andrew Kreiger?

    In simple terms, Krieger is like knowing the right moment to open a position, so the profit he earns is also fantastic. Is that all?

    The following are things we can learn from Andrew Krieger:

    • You can use the Dollar Index as a benchmark for general market sentiment; does the Greenback move Ranging or Breakout. In addition to using the Dollar Index as a tool, you can also add other technical indicators to confirm possible price movements.

    • Without deep and tested analysis, do not take high-risk steps. Andrew Krieger decided to open a position with large leverage because as an expert trader, he knew that the analysis he did was likely to be proven. As a smart trader, he also applies risk management to anticipate the worst.

    • Have the ability to "detect" when the currency value is Overbought. However, you should also consider whether your capital and risk tolerance limits are enough to "fight the market" by taking a reversal position. Andrew Krieger dared to go against the flow because he had a large capital and full trust from the company that sheltered him. If you still have limited capital as a retail trader, you should tighten risk management so that trading positions are not trapped by false reversal signals.

    Andy Krieger's biggest lesson

    Kreiger does not only rely on moving averages in its actions, he has access to information for various currencies around the world.

    He has proven himself to be a smart currency trader and a successful trader with the guts to make risky ventures and earn big returns.

    The current state of falling stocks on Wall Street and the current collapse of the world economy looks similar to the situation in 1987, leading some economists to predict something like Black Monday could likely happen again.

    Maybe you have now studied and will become Andrew Krieger 2020 who can take advantage of the global conditions of world currencies in times of recession due to the pandemic.

    Being a successful merchant he then co-authored a book with co-author Edward Claflin and published it in 1992.

    In book tittle The Money Bazaar: Inside the Trillion-Dollar World of Currency Trading.

    What content does the book contain? He explained how big global business players try to manipulate and control the value of world currencies.

    Apart from being a successful currency trader, Krieger was also a generous man. He donated $ 350,000 for victims of the 2004 tsunami that devastated Indonesia.

    Krieger also founded the Karma Foundation with his wife to fund educational projects and help those with disabilities.

    Every year he donates 10% of the profits to the foundation.

    Bottom line

    Andrew Kreiger is a successful currency trader, although not as rich as a warren buffet or Soros, he has listed himself as one of the world's top traders with huge profits.

    What should be exemplified is his generous attitude, contributing to the benefit of other human beings through the foundation he builds.

    And the story of Andrew Kreiger is a true story of the success of forex traders. Where there are still many people who believe that the forex business is mere speculation and even think of it as gambling.

    This story will motivate you to learn and be successful.