You’ve probably traded foreign exchange (forex) before, and didn’t even realize it.
But if you’ve ever traveled abroad and had to exchange your domestic currency for the local currency, then you’re a forex trader.
At its core, forex is all about converting one currency for another. It’s estimated that $6.6 trillion changes hands in the forex market every single day.
So, in addition to tourists exchanging currencies, there are much bigger players involved as well.
You have huge international corporations simultaneously generating revenue in multiple currencies… pension funds that are making investments abroad… And hedge funds and other large institutional traders that are looking for the next big forex trade.
All of this activity makes forex about 32 times bigger than all the U.S. stock markets put together.
And I’d be thrilled to take home even the smallest slice of pie of that $6.6 trillion market.
Free Trading Resources
Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just click here to check it out.
The Difference Between Trading Stocks and Currencies
But how does trading forex really work? And how are those gains calculated?
Well, you can think of trading forex like buying and selling shares in the economy of a country, just like you would buy and sell shares of a corporation in the stock market.
For instance, if you’re buying U.S. dollars because you think the USD is going to be stronger than its peers, then you’re essentially buying shares in the economy of the U.S.
But here’s the big difference between trading stocks and currencies – valuations.
Currency valuations are always relative to one another.
You can’t put an absolute value on any one currency the way you can with a stock. That’s why forex trades are always done in pairs.
Whenever you place a forex trade, you’re effectively buying one currency while being short another currency at the same time.
Trading a currency pair is like one big game of tug-of-war, with each currency on one side of the rope.
Different factors like trade balances, inflationary readings, employment reports, and central bank decisions will have an impact on who’s winning the game.
A smart forex trader will be there to join in when one side or the other clearly has the upper hand… and they’ll be out of their position before the game of tug-of-war starts going the other way.
The Best Way to Get Started With Forex
Right now, the doors to my forex trading advisory service, Currency Trader, are open.
We’ve just recently closed a successful trade in the U.S. dollar (USD) and Japanese yen (JPY) currency pair. You could’ve made as much as $3,550 on that trade.
I recommended paid-up subscribers to short the dollar in anticipation of a vicious sell-off. That’s exactly what happened after last week’s consumer price index (CPI) report.
That brings our track record for this service to 15 winning trades out of a total 16.
Apart from trade recommendations, Currency Trader subscribers also receive frequent educational video updates. That’s because it’s important to me that my subscribers learn exactly how and why I approach markets the way I do.
There are great opportunities in the forex market almost every week. I hope you join me for the next recommendation. (You can become a member right here.)
Analyst, Market Minute
In today’s mailbag, Currency Trader member Tafhim shares his thoughts on forex… and Forever Portfolio member Omar shares his experience with a recent trade recommendation…
Hi Imre, I’m loving Currency Trader. The step-by-step instructions and explanations are great for someone like me and many others who may be new to forex, or for those who need a refresher.
The regular updates help to build a picture of forex and the ideas behind it. As you mentioned, it’s not just about entering/exiting a trade, but it’s also about the thinking behind it and the education.
Even the psychology and mindset behind trading is useful, such as the “do’s and don’ts” which you have highlighted in your guides. This is key to being in the trading game for the long run.
It helps with accepting that a losing trade is not an issu, as losses are cut. Then it’s a matter of moving onto the next trade looking for a win without putting our lifestyles at risk.
– Tafhim N.
I’m a recent member of The Forever Portfolio. I’ve subscribed to many portfolio services over the years and have done well. But I’ve never paid this much for an annual subscription. And honestly, I was skeptical.
But I’ve certainly made my money back following each recommendation. In just one month, I’m up 36% – just a hair under $43K.
I particularly appreciate the additional info on the HBI trade, regarding the expected earnings announcement. I waited an extra day to make the trade and was able to pick HBI up for $6.55/share, well below the recommendation.
I’m looking forward to trading with you in the coming months.
– Omar B.
Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming at [email protected].