How to Make $1,000 Over the Next Few Days (or maybe a week)
You’re going to love this and it works.
I wrote a book about it too (on Amazon).
I watched as four guys tapped away on their keyboards…with graphs and numbers whizzing across their screens in a small, back office in Rockport Maine.
What were they doing?
They were doing what millions of other entrepreneurs are doing….but with an unusual twist.
I’ve never seen anything like it before.
I was invited to watch these guys by a family friend. They were trading the FOREX market…currencies.
You’re probably thinking……”Forget it man, that’s risky stuff”.
But hear me out.
I thought it was super risky too, and I’m no rookie!
I traded currency futures as a fulltime and as a money manager for eight years.
But I was completely clueless about the FOREX market….until this little pow wow in Rockport.
$3 Trillion Raging Torrent of Cash
The FOREX market is a $3 trillion raging torrent of cash. You can research the numbers.
It’s different (and not as risky) as trading currency futures.
I’ll show you how you can make money in the FOREX market just like these guys in the back office.
But first, I’ll give you some background so we’re on the same page.
Make no mistake about it….this business can be run from anywhere in the world.
The guys I mentioned work in back office in a beautiful historic building in the village of Rockport Maine.
But that’s not all….
You can run this business from almost anywhere!
I know of entrepreneurs trading FOREX from luxury tents in the middle of the desert.
I’m not kidding.
I also know a woman that trades from an empty warehouse. There’s also guy working this market from a house boat on the Ohio River. The list goes on and on…I even read about a retired schoolteacher trading from a VIP box at a major league baseball game!
Simply put….FOREX is the largest electronic marketplace in the world.
FOREX is used by banks, governments, drug cartels, ex-patriots, international corporations, sheiks, kings, and tiny speculators like you and I.
The best part is you can start trading with less than $2500. I know entrepreneurs who started with less than $1000!
Granted…you can lose money in the FOREX market too. Don’t kid yourself.
But I’ll show you how professional traders limit their losses. You can copy their strategies.
When I talk about “limiting your losses” here’s what I mean…
A professional currency trader once told me, “Managing losses is more important than making money in this business”.
He added, “Making money is the easy part”.
For this trader managing losing trades became the focal point of his strategy.
There’s an old adage in the FOREX and currency trading markets which states:
“Cut the losers and let the winners run”
Sometimes it’s easier said than done.
I’ll show you one strategy for limiting losses in this week’s issue.
FOREX – or “FX” – stands for Foreign Exchange. It is the largest and most liquid financial market in the world – 30 times larger than all the U.S. equity markets combined.
“Foreign exchange” is the simultaneous buying of one currency and selling of another.
About 5 percent of the daily volume in this market is from companies and governments which buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency.
The remaining 95 percent is produced by individual traders who participate in the market for profit.
For most entrepreneurs, the best trading opportunities are with the most commonly traded (and therefore most liquid) currencies, called “the Majors.”
Today, more than 90 percent of all daily transactions involve trading “the Majors”.
The Forex Currency “Majors” are:
· The U.S. Dollar
· The Japanese Yen
· The Euro
· The British Pound
· The Swiss Franc
· The Canadian Dollar
· The Australian Dollar
In fact, the FOREX begins trading each day in Sydney and moves around the globe as the business day unfolds in each financial center – first to Tokyo, then to London, and then on to New York.
Unlike other financial markets, investors can respond to currency fluctuations caused by economic, social, and political events at the time they occur – day or night.
The “FX” market is considered an Over the Counter (OTC) or “interbank” market, because transactions are conducted between two counterparts over the telephone or via an electronic network.
And get this…..
FX trading is not centralized on an exchange, as it is with the stock and futures markets.
The most significant difference between the FX market and the currency futures market is participants in the FX market deal on a principal-to-principal basis.
In the currency futures market, participants deal, instead, through brokers in an “open outcry” exchange.
Okay here’s the good news…..
Internet brokerages now give individuals access to this market.
The low entry costs (sometimes as low as $500 as I said) have drawn thousands of small investors, traders, and speculators into the market.
But that’s not all…..
New “Mini” FX Accounts for Small Position Traders and Investors
The new “mini” FX accounts are a great way for small traders, investors, and speculators to make money too.
Most of the new “mini” FX accounts can be opened with less than $1000. The contracts are about a third of the size of a standard FX contract.
Here are some top brokerages which offer both regular and “mini” FX accounts:
Most FOREX brokerages offer step-by-step practice tutorials too.
Listen to this…
The sheer number of currencies traded in the FX market serves to ensure extreme volatility on a day-to-day basis.
There will always be currencies which are moving up or down, offering opportunities for profit (and commensurate risk) to traders.
Believe it or not, extreme volatility is actually a good thing!
It means a market is moving like wildfire. If you’re on the winning side of a trade you’ll make money much faster!
How to Make $1,000 with FOREX
In order to make $1,000 in one week on FOREX you’ll need to generate 1000 “pips”.
I’m simplifying here …but stay with me.
Let's assume we only have winning trades 50 percent of the time.
In this case we will need to shoot for 200 “winning” pips each day. This could be done by taking more trades.
I recommend keeping it simple and only using 6 currency pairs.
I would track the currency pairs on a four hour chart (easy on any FOREX site or with charting software).
Okay…..I would place a 200 bar moving average, and a 50 bar moving average on the chart.
If the 50 bar moving average crosses the 200 bar moving average, then you could take a FOREX long trade.
It would be the exact opposite for a sell trade.
Keep your stops in the neighborhood of 50 pips, and use your take profit order in the 90-125 pip area.
At $1 per “pip” you would make $1,000 in five trading days.The FOREX offers a ton of ways to lower risk and enable traders to profit in both rising and falling markets.
FOREX also makes it possible leverage positions (the most attractive aspect of currency futures), with low margin requirements.
Best of all, FOREX charges zero dealing commissions!
Marc’s FOREX Basics – Easier Than You Think!1. Buying and Selling Currencies
Currencies are always priced in pairs. All trades result in the simultaneous purchase of one currency and sale of another.
While trading on FOREX, you would execute a trade only at a time when you expect the currencies you are buying to increase in value relative to the one you are selling.
If the currency you are buying does increase in value, you must sell the other currency in order to lock in a profit.
An open trade (or open position), therefore, is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.
2. How Base Currencies Are Quoted
The first currency in the pair is considered the base currency; the second is the counter or quote currency.
Most of the time, the U.S. Dollar is the base currency, and quotes are expressed in units of 1 USD per counter currency (for example, USD/JPY or USD/CAD).
The only exceptions to this convention are with the Euro, the Pound Sterling, and the Australian Dollar, which are quoted as dollars per foreign currency.
FOREX quotes always include a bid and an ask price. The “bid” is the price at which the market maker is willing to buy the base currency in exchange for the counter currency.
The “ask” is the price at which the market maker is willing to sell the base currency in exchange for the counter currency. The difference between the bid and the ask prices is referred to as the “spread.”
The cost of establishing a position is determined by the spread, and prices are always quoted using five numbers (for example, 134.85), the final digit of which is referred to as a point or a “pip.”
For example, if USD/CAD is quoted with a bid of 134.85 and ask of 134.90, the five-pip spread is the cost of trading this position.
From the start, therefore, the trader must recover the five-pip cost from his profits, necessitating a favorable move in his position in order to simply break even.
3. The Rollover Transaction
In the spot FOREX market, trades must be settled within two business days. For example, if a trader sells a certain number of currency units on Wednesday, he must deliver an equivalent number of units on Friday. Some currency-trading systems may allow for a “rollover,” with which open positions can be swapped forward to the next settlement date (giving an extension of two additional business days).
The interest rate for such a swap is predetermined – and, in fact, these swaps are actually financial instruments that can be traded on the currency market.
In any spot-rollover transaction, the difference between the interest rates of the base and counter currencies is reflected as an overnight loan. If the trader holds a long position in the currency with the higher interest rate, he would gain on the spot rollover.
The amount of such a gain would fluctuate day to day according to the precise interest-rate differential between the base and the counter currencies.
Rollover rates are quoted in dollars and are shown in the interest column of the FOREX trading system. Rollovers do not affect traders who never hold a position overnight, since the rollover is exclusively a day-to-day phenomenon.
What is Margin?Trading in the currency markets requires a trader to think in a slightly different way about margin.
Margin on the FOREX is not a down payment on a future purchase of equity. It’s a deposit to the trader’s account which will cover any currency-trading losses in the future.
A typical currency-trading system will allow for a very high degree of leverage in its margin requirements, up to 100:1.
The system will automatically calculate the funds necessary for current positions and will check for margin availability before executing any trade.
The FOREX Learning CurveThe learning curve is substantial, especially if you’ve never traded currency futures, options, or equity markets. Therefore, in order to accelerate your understanding of this market, you’ll need to read as much about it as you can.
I’ve listed a few books below that will help. There are also dozens of FOREX trading seminars available. But, as always….buyer beware.
The best FOREX trading seminar would be one conducted by someone who is a successful trader but is also a skillful teacher. Not everyone can teach.
A quick search on Google for “FOREX Training” or “FOREX Seminars” will produce a slew if results. The best resources are usually based on other people’s recommendations….so read the testimonials.
You’ll find hundreds of books (and reviews) on Amazon.com and AbeBooks.com (used books) too.
$50,000 Practice Account Absolutely Risk Free!At Forex.com you can sign up for a $50,000 FOREX practice account absolutely free. That’s right. A “practice” account. This enables you to try the FOREX waters without risking a dime!
On top of that, Forex.com is packed with free tutorials, webinars and live instructive classes. It’s a great resource for beginning FOREX traders.
Another way to get up to speed in this market would be to work as an intern or apprentice at a FOREX trading firm. That’s how I learned! You’d be amazed by how much you can learn about the FOREX markets by assisting experienced traders.
Because of the opportunity for large profits the FOREX markets are hard to resist.
So it’s a good idea to understand and manage the “risk” potential too.
A Sound Strategy for Limiting LossesOne of the greatest aspects of the FOREX market is the ability to place “stop loss orders”.
A “stop loss order” is an order to buy or sell when the price of a FOREX contract drops or rises to a designated level.
For example, let’s say you buy the Japanese Yen and sell the US Dollar at a certain price point. But the market moves against you….in this example the Yen falls in value in relation to the US Dollar.
You can place a “stop loss order” BEFORE you enter this trade to protect yourself and limit downside losses.
When the “stop loss order” is triggered (automatically and electronically) you would be removed from the trade, and your position would be liquidated.
I always trade using “stop loss orders”….even when seasoned traders tell me I don’t need them!
If you trade the FOREX markets it’ll be a good idea to familiarize yourself with the various methods of risk management, like stop loss orders.
This is a great business opportunity for startup entrepreneurs.
Have fun and trade wisely.
“The King of Business Opportunities”
**** Action Strategy ****
Sign up for a $50,000 FOREX.com practice account absolutely risk free today.
You don’t have to risk a dime!
It’s that simple!
But you need to move on the information in this week’s issue if you want to make money.
IMPORTANT NOTE: FOREX trading involves significant risk of loss and is not suitable for all investors.
****Valuable Resources ****
Trading Global Currency Markets, by Cornelius Luca
An Introduction to Foreign Exchange and Money Markets, by Reuters Financial
Currency Markets: How to Access and Trade the World’s Biggest Market, by Phillip Gotthelf
FOREX Mentoring and Training Programs
Concorde Forex Group, Inc
The Ultimate FX Predictor
Opening a FOREX trading account
Global Forex Trading
FX Solutions, LLC