Chris’ note: Tonight’s the big night… If you’ve been following along this week in the Cut, you’ll know that top traders Jeff Clark and Imre Gams are holding a free online event to share their newest strategy. And it airs tonight at 8 p.m. ET.
They say the most profitable market for traders in 2023 has nothing to do with stocks, cryptos, or commodities. Instead, thanks to rising interest rates around the world, it will be the currency market.
And contrary to what you may think, you don’t need to risk a lot to make a lot. You can get started with as little as $200.
To automatically reserve your spot for tonight’s event, follow this link. Then read on for my Q&A with Jeff. He reveals why he’s so excited about this opportunity… what’s driving it… and how it’s led to some of the best returns he’s seen in his nearly four-decade career as a trader.
Chris Lowe: You’re getting ready to launch your first currency trading advisory. You’re known here at Legacy Research as an options trader. So, why launch this kind of advisory now?
Jeff: The most profitable market for traders in 2023 won’t be stocks. It won’t be crypto, oil, precious metals, or agricultural commodities.
Sure, those markets will have their moments. We’ll get spurts of volatility. This will give traders some opportunities to profit. But the real action will be in currencies.
That’s a new phenomenon. The currency market has been a very dull market to trade for more than a decade. But last year, it shifted up a gear. This has unleashed some of the best trading opportunities I’ve seen in my nearly 40 years as a professional trader.
Chris: What’s behind this gear shift?
Jeff: It’s down to what central banks have been doing with interest rates over the past year…
You’ll recall that central banks around the world dropped interest rates to zero after the 2008 financial crisis. That stimulated their economies and their stock markets. But differences in interest rates around the world are the main driver of profits in the currency market. So, the era of zero interest rates was terrible news for currency traders.
That changed in March 2022. That’s when the Fed finally got the message that inflation wasn’t “transitory.” And it started jacking up interest rates.
This sucked capital into the U.S. dollar and out of currencies with lower rates. And the U.S. dollar soared against the euro, the British pound, the yen… and a bunch of other currencies.
So, central banks in Europe, Britain, and around the world, had to raise rates to protect their currencies. Remember, these nations buy oil, natural gas, and other commodities in U.S. dollars. If their currencies fall too much against the dollar, their energy costs skyrocket.
But each economy is different. Some central banks are aggressively tightening. Others are raising rates at a more measured pace. Others are leaving rates alone. And some are even on the verge of lowering rates.
This is driving a surge in volatility in the currency market. That means a lot of opportunities to trade… and a lot of opportunities to profit.
Chris: You’ve teamed up with a top trader named Imre Gams. You’ve met hundreds of traders over the course of your career. What made you sit up and pay attention to Imre?
Jeff: Imre has been trading currencies profitably for years. And he’s worked with some of the best traders on the planet – including Andy Krieger. That’s the Wall Street legend who made $300 million for his employer on a single currency trade.
Last summer, Imre told me the currency market was heating up. He encouraged me to take a small portion of my trading account and use it to follow his currency trades.
I was reluctant at first. My only experience with currency trading was in the early 1980s. It didn’t work out. So, I wasn’t enthusiastic about trying it again.
But the currency market is different today than it was back then. It’s much easier to trade. And Imre insisted…
To prove his point, he invited me to be part of a beta testing group for a new currency trading service. That was last July. Since then, I’ve been getting his currency trade alerts. I’ve followed them. And I’ve seen how easy it is to move in and out of positions.
After what I’ve seen, I’m convinced that the most tradable market of 2023 is going to be in currencies. In fact, it’s likely going to be most tradable market for the next several years.
Chris: Imre’s beta test trades have gotten the attention of everyone at Legacy Research. I can’t remember a better start to a trading service. Can you give readers an overview of how he’s performed so far?
Jeff: Imre has sent 23 trade alerts in total. And 22 of them were winners. That’s a 95.6% win rate.
And between July 7 and September 2 last year, members of the initial beta test group could have made a total profit of $19,557 on a $4,000 stake. That’s a 488% return in 76 days.
Now, with currency trading, you can choose the amount of risk you take. You can also choose your account size. But that will give you an idea of how profitable it’s been so far.
Chris: I was blown away by these results. It’s why I’ve spent so much time highlighting this opportunity at the Cut. What about Imre made you decide to join forces with him?
Jeff: His risk management philosophy matches mine. As my readers will know, I’m a conservative guy. I put about 80% of my portfolio into safe assets – stocks, bonds, gold… that kind of thing. Then I trade with the other 20%.
And when I have positions on as a trader, I tend to be active in managing my risk.
Imre is also obsessive about keeping his downside risk low. And for a currency trader, that’s rare. They’re known for taking big risks. These risks either pay off, and you read all the headlines about them. Or the trader takes a bath and is never heard from again.
I don’t want my subscribers to take a bath. I’d much rather manage that risk. This is especially important in the currency market because it’s highly volatile. Imre is one of the few traders I’ve met who’s able to manage that risk.
I also love that he is hands-on with his readers. He spends a lot of time communicating his positions… the rationale behind them… and how he’s managing his risk.
Chris: Going 22 for 23 over seven months of trading is remarkable. Are you surprised by that kind of win rate?
Jeff: Yeah, I am. If you let your winners run, and ruthlessly manage your risk, you can make money as a trader with a 51% win rate. Really, really good traders might notch a 60% win rate. Imre has a 95% win rate. That’s not unheard of. But it’s almost unheard of.
I don’t think he’s going to maintain a win rate that high. But he’s excellent at managing the risk on his trades. So, if conditions change, and a trade goes against him, he’s quick to take a smaller profit than he’d hoped for… and get out.
Traders often struggle with this. I know I do. We get into a trade with the idea we can make “X” percent on it. The trade moves against us. But we’re still looking for that “X” percent. So, we hold for it… stay too long in the trade… and take a loss.
Imre doesn’t fall into that trap. When conditions change, he changes his view and takes profits. He’s not so worried about leaving money on the table. He’s more concerned about making sure every trade is profitable.
That’s the attitude you need to have when you have a fast-moving market like we have in currencies. And it’s the attitude you need to rack up the kind of track record Imre has achieved.
It’s why I asked him to sit down with me for a special strategy session. We’ll show folks what we see in currencies in 2023… and the ins-and-outs of how to trade that market.
We’ll be airing that strategy session tonight at 8 p.m. ET. It will likely be the most important presentation I take part in this year. So, I encourage your readers to join. [To automatically secure your spot, here’s that link again.]
Chris: Thanks, Jeff. I hope it goes well tonight.
Jeff: Thanks, Chris. If your readers have any interest in trading, they won’t want to miss it.