One thing that I've been paying attention to more and more is the Forex markets. Honestly, over the past few months my attention has landed pretty squarely on Forex and how Forex reacts with the ebb and flow of the general stock and futures markets. Now one guy that I've been paying a ton of attention to (other then Adam as he's the published author and successful Forex trader) is Bill Poulos from ProfitsRun. I've been following him for a while personally and professionally, and can say without a doubt that he is the second best resource I have for Forex related questions! Yes SECOND best!
Regardless of that, I asked him to do two things for me today. First I wanted him to give away (for free) the Forex kit I paid for a while back. I was able to glean a TON out of information and again I paid for the "Forex 4-Pack" pack that he's agreed to give away for free.
Second I wanted him to explain why Forex is so hot and how we can benefit from the huge flow of liquidity thats moving into Forex. Check out the article below and get the Forex 4-Pack.
Please feel free to comment as Bill will be responding to ALL questions and comments!
If you've followed the stock markets (and really, who hasn't?), you've likely wondered where the buyers are when stocks are now at their lowest levels in decades.
One place money has been flowing to has been the Foreign Exchange (or Forex) -- which has grown rapidly in the last several years and is fast gaining wide popularity among traders.
Forex alone now accounts for more than $3 TRILLION in average daily turnover and shows little sign of slowing down.
What does this mean to you, the trader?
It spells opportunity. This is one of the best times I can recall to learn to trade and to start trading the enormously popular and potentially profitable Forex markets.
Because with the world's financial markets in turmoil, mega trends in the Forex markets have seldom been better. The pressures causing disruption in the stock markets around the world are also causing awesome trading opportunities in the Forex markets.
Keep in mind that with Forex, you don't need to wonder when the market will stop going down or when it will recover, or how long it will take. With Forex, the six major pairs are almost always up or down in what I call mega-trends, providing trading opportunities right here, right now.
The problem I see is that too many traders aren't sure how to take advantage of those opportunities, or how to spot those trades they could be making. Or, if you have never traded the Forex markets, people are wonder how they can participate? Still others worry about controlling risk or being able to capture a 'free' trade situation when trading these markets.
As of this writing, the U.S. Dollar has rallied against most major currencies. The continued economic fallout from the housing, banking and credit crises, major unemployment explosion and the ongoing recession have forced the U.S. government into unprecedented spending. That spending creates incredible inflation risk for the dollar, and could well send the dollar into a significant reversal. Regardless, the Dollar will continue to provide great trading opportunities versus the other major currencies time and time again.
Simply put -- as governments across the globe scramble to provide liquidity to credit markets and inject cash into their money supplies to refloat their economies, they will directly impact the value of their respective currencies as they relate to one another. This then acts to drive the six major currency pairs up or down, in very recognizable and tradable trends.
At the end of the day, economists and media gurus are all predicting what will happen to the economy, when the recession will end, when the stock market will "bottom" and recover -- but here's the thing: Forex traders don't have to wait for a recovery. Nor do they care, necessarily, when a recovery will come.
And because of that, I believe we are seeing more capital flight to Forex, which in turn is creating longer, stronger trends and better trading opportunities.
So, if you're already a Forex trader, you should recognize the impact all of this has had on trading currencies and focus on key trading elements:
- Risk Management
- Trend Identification (beginning and ending)
- Optimal Profit Strategies
If you're interested in Forex, but not yet trading it, or, not yet succeeding in it, you should take this time to LEARN to trade Forex with a solid trading method that teaches you:
- Why Forex is different
- How to trade
- Entry and Exit rules
- Risk Management and Capital Preservation
I think right now is one of the best times to begin trading or to learn to trade in the Forex markets because of the trends being driven by the economic turmoil around the world.
And that turmoil creates trading opportunities every day. If you've been missing those market-moving opportunities, don't miss another one!
Get the FOREX 4 PACK as I told Adam I'd give it away!
4 thoughts on “Why the market rebound may be slower than the pros think.”
Eurodollar is the biggest market by far, bar none. Has been for a long while and will continue.
I play commodities primarily via options,futures and spreads. My next move is to get to selling commodity options. The biggest obstacle is knowing if the trend is down for the 1-2years or 1 month.
Forex has always fascinated me, but its and unregulated market with a lot of scammers as brokers. Nonetheless, its something you can do 24 hours a day( unlike emini futures on day trading) so a person can have his job and do Forex.
The main reason I have not go into it is because don't know who is a good purveyour of the Forex mkts. Its better to take calls when you are learning so you can make money as opposed to buying a course. When you take calls and the caller is good you are making money this way and it give you time to find a GOOD course seller..one that trades what he is teaching. Most sell courses and NEVER trade.
But since Bill stuff is free.....no harm.
Right on, guys. I guess the thing that perturbs me most about the stock market, from a trading perspective, is the overnight gap-ups & gap-downs at the open of the next trading day. You can have the greatest stop loss system ever devised in the history of mankind, but if you get a big gap the wrong way one morning, your stop could be leapfrogged like nuttin'. Guess that's why day trading is popular.
Since forex runs 24/5, it eliminates the overnight gaps during the week. Of course, it could happen over the weekend, but you can simply close your positions Friday eve if you wish, and reopen them Sunday night. And in some rare cases your stop could get overridden by a parabolic move, but it's not common. Still beats that daily uncertainty of stock trading for those of us who keep positions open overnight.
I think there is soooo much money sitting at the sidelines rhat when it comes back nto the market: WATCH out!!
The crude oil video confirmed my oil position
Keep up the good work Adam
Great article! Thank you both, Brad and Bill! I did a research and noticed that certain pairs correlate well with S&P and Gold, so trading forex may be a good substitute for those who can't afford having futures account. Also forex is better described technically which eliminates gaps except on Mondays.
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