Editor’s Note: Today, we have another currency insight from colleague Imre Gams. As Imre shows below, his readers had the chance to secure incredible trading returns in as little as six days.
If you’ve enjoyed Imre’s currency insights, we encourage you to join him tonight at 8 p.m. ET for a special briefing. Tonight, he’ll reveal his strategy for finding these trades and how subscribers can add currency trading to their arsenal of wealth building strategies. Reserve your spot by clicking right here.
How I Gave Beta Testers the Chance to Make $3,450 in Six Days
By Imre Gams, analyst, Market Minute
Last year was one of the worst bear markets in history.
The S&P 500 fell 19%… The tech-heavy Nasdaq plunged 32%… And bitcoin plummeted 65%.
If you’re like most folks, you’re licking your wounds.
So, you may be wondering if it’s even possible to profit at a time like this.
Today, I’ll answer that question…
And to prove that it is possible, I’ll show you how the trades I recommended allowed a small group of regular investors to make as much as $3,450 in just six days…
A Big Win in Six Days
Last October, I shared a trade alert with a small group of beta testers.
Folks who acted on it had the chance to book a win in just six days… in the middle of a bear market in stocks.
Depending on their account size, it was worth anywhere from a few hundred dollars to $3,450.
But here’s the thing. It wasn’t in stocks, bonds, crypto, options… or any other market you may be familiar with.
This gain came from a currency trade.
More specifically, it was a bet that the U.S. dollar (USD) would strengthen relative to the Canadian dollar (CAD).
You see, currencies trade relative to one another. That’s why we trade them in pairs.
As one currency in the pair weakens, the other gets stronger. This allows traders to profit from that move.
And the reason I entered the USD/CAD trade was based on a chart setup that stacks the odds in our favor.
There Are Two Market Phases
But how did I know which way to trade this currency pair?
(By the way, it took me thousands of hours of study and practice. But you don’t need to do that. I’ll show you how you can benefit from what I learned in a moment.)
All you need to know when trading currency pairs is that they have two phases of behavior: the trending phase and the corrective phase.
When the pair is trending the moves are strong, and it makes new highs or lows with ease.
But once the trending phase is over, the pair enters the corrective phase. It pulls back and retraces some of the big move that preceded it.
An important distinction between these two phases is that when a pair is in a corrective phase, it won’t make new highs or lows.
You can see this in the chart below of the U.S. Dollar Index. It tracks the exchange value of the dollar versus a basket of six major trading partner currencies.
And although it’s not a currency pair, it’s a great example of what I’m talking about. Take a look…
The green arrows show the trending phases. The red arrows show the corrective phases.
Notice how every time a corrective phase came to an end, the dollar surged. Those are the inflection points I aim to catch with my trades.
Now, look at the USD/CAD trade I recommended…
The first green arrow is the strong trending movement I was tracking in this pair. The red arrow is the corrective phase that followed.
When I sent out the trade alert (Entry), I was positioning subscribers for the next trending phase (second green arrow).
Making the Cash Register Ring
You’ll notice I didn’t end up picking the bottom of the red corrective phase for my entry point.
But that’s OK…
Over my 14 years as a trader, I’ve learned that trying to perfectly time these phases is impossible. Sometimes, I’ll get lucky and pick the exact top or bottom in a market. Most of the time, I’ll be early… like I was here.
But as you can see, exact timing doesn’t matter too much. I was still able to make the cash register ring for my subscribers.s
That’s part of what makes trading forex so great… You don’t need to capture the whole move. You just want a piece of it.
With $7.4 trillion changing hands every day in the forex market, a piece is plenty. And you get to decide how much you want to risk.
I suggest starting at a level you’re comfortable with and working your way up. Because of this, forex is a great market for beginner and experienced traders alike.
I’ll be sharing all the details on my beta strategy tonight at 8 p.m. ET. You’ll even get the chance to see my next live trade recommendation…
And it’s free to attend. You just need to reserve your spot, which you can do by clicking right here.
I look forward to seeing you there.
Happy trading,
Imre Gams
Analyst, Market Minute