So how could someone take his or her trading account from $100,000 to $518,849?
One way is to do it exactly the way one of the traders from HGT (Holland Global Trading, an asset manager in Michigan) did during an international trading competition held annually at MIG Bank in Switzerland during the month of October. MIG Bank is an investment bank in Switzerland specializing in forex (currency) and futures transactions. Out of approximately 5000 traders, the top 10 were followed on the bank’s competition website to see who could create the most profit in just 28 days (with markets closed Friday through Sunday evenings). The winner of the competition gets an all expense paid trip to Abu Dhabi for a Formula One race, which MIG Bank sponsors. HGT’s co-founder, trading principal and chief technology officer Tom was the only trader from the United States to finish in the top 10 of the competition.
Tom and his partners manage offshore client funds at MIG Bank, so when MIG Bank’s client services team realized they knew the only trader from the US to finish in the top 10, they were very excited to congratulate him and Holland Global Trading for a job well done, and stated they will promote HGT to prospective clients looking for a currency asset manager who is in the US. Although Tom did not get the trip to Abu Dhabi to see some Formula One action, promotion from MIG Bank is a respectable runner up prize along with some official Formula One Gear sent from MIG Bank.
Some questions about the currency market that readers are probably wondering are questions like, how can you create that much profit in such a short amount of time without being at a casino, is this practice legal, is he psychic or a gifted genius, etc? We will get to that but first want to give an overview of the Forex market, which has really been emerging since the start of the new millennia. The futures and commodities market, more specifically, the currency or Forex market is what will be discussed here because it is such a unique market in several ways.
The Forex market is the international market for trading currencies. It is the largest market in the world, the most liquid, and is open for trading more than any other market. This is the market that never sleeps, except for Saturdays, when its many traders around the world also take a breath of fresh air and prepare to go into battle the following 6 days and 5 nights. We say battle, because trading is like a battle, it is also like hunting for the skilled patient trader. The Forex market offers an abyss of opportunities for different trading strategies, indicators, leverage possibilities and more opportunity than any other market due to its global 24 hour nature. When you prepare to trade forex, it is best to formulate a plan, like a battle plan, of when you will attack for your pips (points in percentage) because you are up against millions of other forex traders looking at the same battlefield, or chart. Each pip, which typically represents a tick, can be worth anywhere from $.10 to $1000 or more, depending on your account size and what kind of leverage you are trading. This is the part that works a little like a casino, because you can highly leverage your account and have ample opportunities to win back monies that are lost in trading. You are in a zero sum game, just like a blackjack dealer and a guy at the high stakes table at the Bellagio. If the dealer throws down a Jack and Ace, it is like the trader hitting his stop loss, someone else is winning. And yes, trading currency in the forex market is 100% legal and is a quickly growing asset class for money management, especially in a time when alternative investments are becoming a must in all portfolios. You ask why? In 2008 when the market had its biggest crash since 1987, CTA’s trading alternative investments in futures averaged a 14% return while the rest and vast majority of the 99% lost 40-60 percent of their entire portfolios in a matter of weeks. The fact is, currency trading does not need a bull market to make money or positive returns. The trader can perform in any market condition and be profitable. It comes down to the strength of a currency. If the USD is projected to be strong, the currencies most affected are those that the USD index is weighted on such as the Euro, the Swiss Franc, The British Pound, the Yen and the Canadian dollar. So you could sell all of those other currencies against the USD, which would be a simultaneous buying of the USD against any one of those currencies. Of course there are many factors that create fluctuations in the value of currencies such as global business transactions, interest rates, natural disasters, and most importantly, technical levels where simple charting can be a huge advantage for a trader who understands supply and demand.
Lastly, Tom is not psychic, although he often predicts market moves accurately. He also does not claim to be a genius, but fairly intelligent. What he does claim is having experience and a lot of time researching and practicing his talent of trading. He understands what it takes to make money in the world of forex, which is discipline, emotional detachment, and having little to no fear of making a trade. These are the qualities that traders around the world understand to be essential tools for success in trading any market, but especially the challenging market of forex.
We would like to thank Secret Entourage for this opportunity to provide readers with content in regards to investing. Whether it is the industry of Forex where we specialize or investing in general, we hope to give valid and up to date information that readers can use to potentially better their portfolios. The content provided will be exclusive to readers of Secret Entourage and will cover a broad range of investment classes. Though our expertise is the Forex industry, there are a lot of similarities when it pertains to day trading. We look forward to providing a steady flow of articles and potential trade plans throughout the year. If you have any questions, feel free to ask us in the Secret Entourage forums.
About Holland Global Trading: Holland Global Trading is a registered commodity-trading advisor (CTA) with a client base that includes a unique blend of both seasoned Forex veterans and people who are completely new to Forex. Our trading team is dedicated to providing research and technical excellence.
As with any investments we MUST state: Disclaimers and Disclosures – Forex trading carries a high level of risk and may not be suitable for all investors. Trading on leverage magnifies the potential for profit and loss. Before deciding to trade forex, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that this website is not rendering investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. The information and opinions found on this website are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this website are subject to change without notice. The reports within the website have been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.