The Current State of the Forex Market

Forex is more popular than ever. Let’s take a look at the average daily turnover in the Forex markets over the past 20 years. $3.2 TRILLION a day in 2007, with no signs of slowing down. This spells opportunity for you as a Forex trader, and 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.
Why? Most of the major Forex pairs have been consolidating in a sideways, nontrending fashion for several weeks now, which is setting the stage for potential mega-trend breakouts which can create significant trading opportunities. The problem, though, 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. As of this writing, the U.S. Dollar remains weak against most major currencies, and the continued economic fallout from the recent housing, banking and credit crises, continued weak growth of the economy, and the risk of continued inflation hasmade a dollar rally tough to sustain. But as those problems lessen, the dollar will strengthen at some point and someone will be riding a long run of hundreds, or even thousands of pips when it does.

Why? Because the difficulties with the U.S. economy along with the record high prices of oil are beginning to strain other economies. Europe and Asia now face similar inflationary fears as in the U.S. and a report from established central banks expects continued pressures on currencies as economies around the globe suffer.
Economists and other media gurus are predicting that the global economic pressures of high oil prices, inflation, weak growth (and even possibly recession)
could continue into 2009. At first glance, you might take such gloomy reporting and ask, “Why would I want to trade in this market?”
Here’s why: Those economic difficulties around the world create trading
opportunities almost daily. And, as I said before, the sideways trending of currency pairs means sooner or later, those pairs are going to break out and run (up OR down, either way gives you some huge profit potential). Which means this is the best time to begin trading Forex because you could have the opportunity to
catch a huge run. This is also the best time to LEARN to trade Forex because you can take your trading method as you learn it and apply it to the markets to watch those breakouts happen. Plus, you’ll be able to get a real hands-on experience understanding how those breakouts form, where you would enter and exit the market and how you would protect yourself with proper risk management. So, if you’ve been sitting on the sidelines waiting to trade Forex, I think now is one of the best times to begin or to learn to trade Forex because many of the “surprises” of last year are now behind us and are already factored into the market.

The Forex markets are creating trading opportunities right now. If you’ve been missing those market-moving opportunities, don’t miss another one. I think it’s important to say, though, that as Forex trading continues to gain popularity one of the underlying problems you may face is the idea that you must trade Forex ‘to-the-minute’ (or day trade) – this drives you out of the picture if you can’t commit that kind of time, and it creates inevitable losses if you’re illprepared
for the demands of day trading. I believe this talk about having to day trade Forex is wrong; that it is, in part, driven by brokers, who earn the difference in the spread on every trade, and who would naturally want the constant flow of spread profits.

Are You Dependent… or Independent?

When it comes to trading Forex (or any market), I find there are two types of traders. And the type of trader you are could drastically impact the amount of money you make in the markets… it could even forever determine, in part, what the rest of your life looks like, how much longer you work a regular job, where you go on vacation (and how often), where you live, and even your overall health. That may sound like an exaggeration, but if you plan on supplementing or replacing your current income with trading Forex, then I think you’ll find those
statements above are quite accurate. Here’s why…

You’re probably well aware at this stage in your life that anything that requires almost little or no effort produces limited, temporary, or nonexistent results. And that anything that requires you to think for yourself produces lasting, ongoing, and perhaps even permanent results. This is especially true when it comes to trading the Forex markets. Over the years, I’ve observed that there are two types of “traders”. Now, I realize these are generalizations, but they illustrate two very common mindsets. Which one are you?

The Dependent Trader: This type of person is usually looking for the easy way out, looking to make a quick buck, or wants to strike it rich. They think it’s possible to “follow the crowd”, blindly place trades pumped out by a system that “can’t lose”, and quit their job. The bottom line is that this type of trader is dependent on someone else for their financial success – forever, for life. Yes, The Dependent Trader can be successful with this attitude, but I believe the odds of
success are low (probably around 5%).The Independent Trader: This type of person wants to have as much control of their financial destiny as possible. They understand that when they know how the markets work, they’re empowered to place informed trades without having to rely on someone else. Someone who is an Independent Trader knows they are
maximizing their odds of success in the markets, which can make their financial and lifelong dreams come true that much more quickly. The bottom line is that this type of trader holds the keys to the kingdom, and has control of their financial future for their entire life, no matter what happens. If you think you might have a little of the Dependent Trader mentality in you, that’s OK. I understand, because you are not alone. It’s only natural. But when you learn to break out of that mindset and move toward becoming an Independent Trader, everything can begin to change. That’s why one of my goals with this report is to help make you an Independent Trader. Will this report alone do it? No, of course not. However, it should give you a “fast track” toward discovering the right way to trade the Forex markets for you. I want you to understand and feel the power, peace of mind, and excitement that come with placing a trade independently. Everything makes sense. Everything is done for a reason. You know what to do, no matter what the market does. Every single time.
It’s awesome…