Chaka’s Note: If you read the Daily last week, you know we’ve shared a few essays from analyst Imre Gams over at Jeff Clark’s Market Minute… all leading up to a special event where Imre and Jeff revealed their exciting breakthrough trading strategy for 2023 and beyond.
So if you missed the event, we’ve got a free replay available… and you’ll want to watch it as soon as possible.
Because this strategy offers a way to conservatively collect profits better than stocks and bonds… and it’s absolutely on fire right now.
To explain more, today we’re sharing an interview between Jeff and our colleague Chris Lowe over at the Daily Cut.
You’ll learn why Jeff decided to give this asset class a chance… how profitable it can be… and how you can use it to profit from the rising interest rates we’re seeing today.
Chris Lowe: So Jeff, I understand for the first time in your career – after spending four decades on stocks and options – you’ve spent the past few months looking at currency trading… Why?
Jeff Clark: Currency markets have been quite dull for more than a decade. But last year, it kicked up a gear.
This has unleashed some of the best opportunities I’ve seen to extract consistent gains from the currency markets in my four-decade career.
Chris: What’s behind this gear shift?
Jeff: It’s got to do with what central banks have been doing with interest rates.
After the 2008 financial crisis, central banks around the world dropped interest rates to zero. That may have stimulated the economy and sent stocks to the moon.
But differences in interest rates are the main drivers of profits in the currency market. So, it was terrible news for currency traders.
That all changed in 2022. Central bankers finally got the message that inflation wasn’t “transitory.” And starting with the Fed last March, they started jacking up interest rates for the first time in 15 years.
But this time, it’s not all happening at once. Each economy is different. So central banks are raising rates by different degrees… and at different paces.
Hedge funds, money managers, corporations, currency traders – even governments – are yanking capital out of low-yielding currencies. And they’re piling into currencies with higher yields.
This is making the currency market much more volatile. And it’s creating more opportunities to trade currencies than at any time over the past 15 years.
Chris: For anyone who hasn’t been following the story or the remarkable results, this doesn’t have anything to do with you or your research services.
You’ve actually been following the recommendations of your research analyst, Imre Gams. What made you listen to Imre on this?
Jeff: Well, at first, I wasn’t all that interested. I basically agreed to check out what he was doing to be polite.
And I was prepared to be disappointed…
I’ll tell you, in the four decades I’ve been trading professionally, I’ve seen almost every kind of system and strategy there is.
And I’m often disappointed when someone claims to have something “new” to share in the trading world.
Most of the things I see are complete garbage.
But Imre’s been trading currencies for 14 years. And he’s worked with some of the top currency traders out there. So, I decided to humor him.
And over the past seven months, he’s been sending out live trade recommendations to our beta group… and 20 out of 21 of the trades he’s recommended have been winners.
Chris: Were you surprised?
Jeff: I was. But Imre’s track record speaks for itself.
Beyond that, Imre’s risk-management philosophy melded well with mine.
As my readers will know, I’m a very conservative guy. I put about 80% of my investible funds into safe assets – blue-chip stocks, gold, and bonds mainly. Then I trade with the other 20%.
And when I have positions as a trader, I tend to be active in managing my risk.
Imre is also obsessed about keeping his downside risk low. And for a currency trader, that’s uncommon.
They’re known for taking big risks. These risks either pay off, and you hear all the headlines about it – or the trader takes a bath and is never heard from again.
I don’t want my subscribers to take a bath. I’d much rather manage that risk. And in the currency market – because it’s high-volatility – this is especially important. Imre is one of the few traders I’ve met who’s able to manage that risk.
I also love that he is hands-on with his readers. He spends a lot of time communicating his positions… the rationale behind them… and how he’s managing his risk.
Chris: As you say, his track record speaks volumes. Going 20 for 21 over seven months of trading is remarkable. Are you surprised by that kind of win rate?
Jeff: Yeah, I am. If you let your winners run… and ruthlessly manage your downside risk… you make money as a trader with a 51%-win rate. Really good traders might notch a 60%-win rate.
Imre has a 95%-win rate. That’s not unheard of. But it’s almost unheard of.
I don’t think he’s going to continue a win rate that high. But like I said, he’s excellent at managing the risk on his trades. He gets in. And if conditions change, he’s quick to take a smaller profit than he’d hoped for.
That’s one of the things that traders often struggle with. I know I do. We get into a trade with the idea we can make “X” percent on it. The trade moves against us. But we’re still looking for that “X” percent. So, we hold out for that and wind up taking a loss.
Imre doesn’t fall into that trap. When conditions change, he’ll change his view and take profits. He’s not so worried about leaving money on the table. He’s more concerned about making sure every trade is profitable.
That’s the attitude you need to have when you have a fast-moving market like we have in currencies. And it’s the attitude you need to rack up the kind of track record Imre has achieved.
Chris: So, what can people do if they want to know more?
Jeff: Unfortunately, our beta test is currently closed. We shut it down weeks ago, and right now there’s no way for anyone to get in.
That said, the results have been so astounding that I’m making a big shift to our trading strategy this year – and recommending everyone seriously consider currencies.
And that’s why I shared my Strategic Update last night… To show everyone what we’re doing… why it’s working so well… the full results from the beta test… Everything.
I cannot stress how important it is that you see this.
P.S. I hope you enjoyed this interview. If you missed Jeff and Imre’s forex briefing on Thursday, there’s still some time left to watch the replay before it goes offline.