Editor’s Note: On Saturday, we introduced readers to colleague Imre Gams. Imre is a professional currency trader. And as he showed over the weekend, currency markets are seeing almost unbelievable moves.
This week, we’re sharing more currency insights from Imre to show readers how incredible trades are possible outside of stocks, bonds, and digital assets.
Read on…
On Monday, October 19, 1987, the Dow crashed 22.6%…
To this day, it’s the biggest one-day crash for the Dow in percentage terms.
The press dubbed it Black Monday.
In 1987, one trader made millions for the firm he worked for, Bankers Trust, on a single trade.
And he took in this haul in one of the worst environments ever for stock market investors.
But here’s the thing, this trader made that monumental return without touching stocks or bonds.
Instead, he turned to a market approximately 32 times larger than the U.S. stock market.
Yet, few investors have ever heard about it…
Hello again. My name is Imre Gams. And as I shared on Saturday, I’m a professional currency trader.
As I shared over the weekend, while stocks, bonds and cryptos are struggling, currency traders are cheering.
The movements we’ve seen in currency markets—and the trading opportunities—are unlike anything else I’ve seen in my career.
But the truth is, most folks have never heard of currency markets… let alone considered trading it.
That’s surprising considering the foreign-exchange – or forex – market has daily trading volumes of about $7.4 trillion.
Like I mentioned above, that’s 32 times larger than the U.S. stock market.
It’s no wonder some of the biggest trades of all time have taken place in forex.
These are trades that have netted hundreds of millions of dollars in profit.
One famous currency trade even hauled in more than $1 billion. (More on that below…)
And there’s something interesting about these forex trading wins that you should know about.
Some of these trades took place when stocks were in a bear market, like they are today.
That’s because the currency market and the stock market tend to move independently from each other.
As you’ll see today, it’s why forex trading is the perfect “escape hatch” for investors sick of losing money in stocks.
And that brings me back to the story at the top…
The trader I mentioned was Andy Krieger, a friend and mentor.
The carnage of Black Monday 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.”
So, he placed a monumental trade against it. His sell orders are rumored to have exceeded the entire money supply of New Zealand.
And it paid off…
He bet so heavily against it; the kiwi fell 10% in a day. That’s a huge move for a currency.
And according to Wall Street lore, New Zealand’s finance minister called Krieger’s boss, telling him to “get off our currency!”
Krieger hauled in $300 million for Bankers Trust – an unheard-of win at the time – right around the time that stock market investors were losing their shirts.
But even that gain paled in comparison to the one George Soros earned by betting on a falling British pound five years later…
In 1979, what’s now the European Union, introduced a new currency system.
At the time, European currencies floated freely against each other. But to encourage trade, it created a managed system to reduce exchange-rate volatility.
This meant the British central bank had to artificially prop up the value of the pound to keep up with the strongest currency in Europe, Germany’s deutschmark.
This meant raising interest rates to attract capital into the pound. And Soros saw this was causing too much pain for the British economy.
And in 1992, he pounced.
He bet heavily against the British pound, taking on the Bank of England in the process.
He figured the pound would tumble against the German currency if he applied enough pressure.
That’s 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 this trade.
Each of 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.
And none of it mattered to currency traders. The currency 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 going to be an opportunity in forex.
And with everything the world’s central banks are doing right now, it also means this is the best time to trade forex in 15 years…
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.
And the best thing (from a trader’s perspective) is that 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.
That’s why I’m hosting an urgent breakout session with master trader Jeff Clark on February 9 at 8 p.m. ET.
We’ve put our decades of experience together to develop a unique strategy to capitalize on this opportunity.
The results so far have been spectacular. So far, out of the 21 currency trades I’ve recommended, 20 of them have been winners.
That’s translated into thousands of dollars in profits for my readers.
To find out how the strategy works… and how you can use it to profit… sign up right here for free to join our breakout session.
Keep in mind, this can work for all traders… regardless of skill level, experience, or even account size. So, if you want to see how trading forex can work for you, reserve your spot with one click right here.
Happy trading.
Imre
P.S. Jeff Clark has agreed to give away exclusive bonuses totaling $4,000 to those who join us on the first night, Thursday, February 9 at 8 p.m.
These bonuses are only available to folks who join our breakout session. So, make sure you’re there on February 9 for your chance to claim them.
P.P.S. I’m grateful to share these insights with readers of The Bleeding Edge. I hope you find them useful. I’ll be back tomorrow morning with my top three rules for trading the currency markets.
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
