Chris’ note: Most folks think there’s no alternative to tanking stocks. But there’s an “escape hatch” you can use. And it leads to one of the world’s most profitable markets.
That’s the message from currency trading expert Imre Gams. He works with our master trader, Jeff Clark. And together, they’ve been trialing a breakthrough way of extracting profits from this market.
So far, 20 out of 21 of Imre’s recommended trades have been winners. This has given beta testers the chance to collect gains of $1,694, $2,239, and $3,560 in as little as a day… even while the stock market has been tanking.
To learn more about how to participate, you can automatically sign up for Jeff and Imre’s breakout session by clicking here. It kicks off next Thursday, February 9, at 8 p.m. ET.
Then read on for more from Imre on how you can use currency trading to escape the bear market in stocks.
What’s the world’s largest market?
If you answered stocks or bonds, you’re not alone.
But the answer is the international currency market.
It’s also known as the foreign-exchange – or forex – market. And it has daily trading volumes of about $7.4 trillion.
That’s 32 times larger than the U.S. stock market.
It’s no wonder some of the biggest trades of all time have been forex trades.
I’m talking about trades that netted hundreds of millions of dollars in profit. One infamous one even hauled in more than $1 billion. (More on that below…)
And there’s something interesting about forex trading you should know…
Some of these trades took place when stocks were in a bear market, like they are today.
That’s because the forex market tends to move independently from stocks and vice versa.
As you’ll see today, it’s why forex trading is the perfect “escape hatch” for folks sick of losing money in stocks.
The first forex trade I want to bring to your attention was by a friend and mentor of mine, Andy Krieger.
In 1987, he made millions for the firm he worked for, Bankers Trust, on a single currency trade.
And he took in this haul in one of the worst environments ever for stock market investors.
On Monday, October 19, 1987, the Dow crashed 22.6%. To this day, it’s the biggest one-day plunge for the Dow in percentage terms.
The press dubbed it Black Monday. And it caused investors to flee the U.S. dollar and seek refuge in alternative currencies such as the New Zealand dollar – aka the kiwi.
At the time, the kiwi carried a relatively high yield. So, investors kept piling in. And it kept going up versus the U.S. dollar.
But my mentor could see a boom-bust scenario developing.
He said to himself, “This is a stupid situation. I don’t believe the kiwi should be this strong.” And he placed a monumental trade against it. His sell orders are rumored to have exceeded the entire money supply of New Zealand.
It paid off… The kiwi plunged 10% versus the dollar. And Krieger made $300 million in profit for Bankers Trust.
That was an unheard-of win at the time. But it paled in comparison to the haul George Soros pulled out of the currency market betting on a falling British pound five years later…
At the time, European currencies – including the pound – were part of a managed system. The idea was to encourage trade by reducing exchange-rate volatility.
This meant the British pound had to keep up with the strongest currency in Europe at the time, Germany’s deutschmark.
To do this, the Bank of England had to raise interest rates to attract capital into the pound and boost its exchange rate. But rising rates were also choking off British economic growth.
Soros saw this was causing too much pain. And in 1992, he pounced.
He bet heavily against the British pound, taking on the British central bank in the process.
He figured the pound would tumble against the German currency if he applied enough pressure.
And that’s exactly what happened. Following what’s known in Britain as Black Wednesday, the pound fell as much as 30%.
Soros banked more than $1 billion on his trade.
These trades happened in completely different conditions.
Stocks crashed in epic fashion in 1987. By contrast, 1992 was a relatively good year for stock market investors.
But none of it mattered to Krieger or Soros.
The exchange-rate moves they traded didn’t depend on what stocks were doing.
That’s why forex is my favorite market to trade. No matter what’s going on with the stock market, there’s always an opportunity in forex.
I call it an escape hatch. It allows you profit, even when stocks are in a bear market, like they are today.
And with everything the world’s central banks are doing right now, this is the best time to trade forex in 15 years…
As you know, central banks around the world are desperately fighting inflation. The key element in this fight involves raising interest rates.
And because capital rushes into currencies with higher rates… and out of currencies with lower rates… this is causing dramatic swings in currency values.
Since 2008, when central banks all dropped rates to zero at once, not much has happened in the forex market.
Sure, there were still trading opportunities… and you could still make money regardless of what happened to stocks. But because all central banks were doing the same thing, there were few opportunities to make big, game-changing trades.
But that’s changed. With central banks jacking up rates, and each economy facing its own problems with inflation and economic growth, the forex market is showing again that it’s a great market to trade.
And the best thing (from a trader’s perspective) is this fight won’t end soon. So, the opportunities to profit in forex trading are here to stay.
If you’d like to learn how to profit in forex, there’s no better time than now.
It’s why I’m hosting an urgent breakout session with master trader Jeff Clark on Thursday, February 9, at 8 p.m. ET.
We’ve put our decades of experience together to roll out a breakthrough trading strategy to capitalize on this opportunity.
So far, out of the 21 currency trades I’ve recommended, 20 of them have been winners.
That’s a 95% win rate. And it’s translated into thousands of dollars in profits for my readers.
This strategy works for all traders… regardless of your existing skill level, your experience, or your account size. You can get going with as little as $200.
To find out how the strategy works… and how you can use it to profit… sign up with one click here to join our breakout session.
It’s free to join us. And we’ll be getting into the opportunity ahead in more detail.
I’ll even show you how to add your name to a private distribution list so you can get my recommendations from the next trade alert I send out.
Happy trading.
Imre Gams
Editor, Currency Trader
P.S. Jeff has agreed to give away bonuses totaling $4,000 to those who join us at our breakout session next Thursday. So, make sure you’re there on February 9 to claim them. Here’s that link again to automatically sign up.