I spend a good deal of time reading about what’s happening in the currency markets. Whether it’s the eurozone crisis, the US debt ceiling or individual countries and currencies, I am always curious as to what’s happening in the world and how it might affect particular currency pairs and my investments. In full disclosure, I’m not a professional currency trader. I have dabbled in the foreign exchange market as a trader, but quickly realized that my real skill lies less in being a great trader and more in being able to recognize the folks who are.
The blog made two assertions. First, that autotrading is something that only the professionals should undertake and that few firms know what they’re doing. Next, that if you don’t have the stomach for this market – or the heart as the author puts it – you should steer clear.
I’ll tackle the second part first because both points are intertwined. Right off the bat, it’s not my heart…or any savvy investor’s heart, that keeps them balanced and in the markets. It’s their brain. Semantics? Hardly. If you allow emotions to drive your investment decision in any industry, fund, exchange or financial area, you’re starting from a position of weakness.
As with practically anything in life, education is the key to a deeper understanding. I’m an avid boater. Part of being a good boater is knowing what you’re doing on a detailed level, whether it’s docking, handling bad weather or understanding how to use your GPS and radar. You can’t just say ‘this feels right’ or you’ll run aground or end up in a major storm. A recipe for disaster.
In Forex, the dangers are similar. If you don’t embark on your investment journey with goals, strategy, the proper attitude and a sound game plan, you might not achieve the gains you’re shooting for and is why most traders end up losing. This is where the second point comes in.
Autotrading is exactly the type of process and technology – when correctly configured and presented – that can mitigate risk, provide investors with a sound strategy and provide the opportunity for a successful Forex investment experience without having to know all the ins and outs of the market and when to place the trade. It puts those decisions in the hands of the professional trader.
In fact, the best autotrading programs keep the individual investor from pulling the trigger on specific transactions and currency trades himself. Most investors and traders are unsuccessful with autotrading programs when they given systems to follow that are not proven. Professional traders have a method to their madness and deferring to their expertise is what makes investors successful when using an autotrading program.
So, step back and be rational about any trading decision. The foreign currency market is a growing asset class and with volume quadrupling since 2001, it might be an interesting and positive way for you to enter another market segment.
But when you do so, don’t do it on gut instinct alone. Put in some research and spend some time understanding any program you’re evaluating.
Ultimately, Forex can be a viable investment and it can be a great way to diversify any portfolio. This article, and others, underscore the reality that the general public still has a lot to learn about the opportunity to invest in Forex.
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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.
A lot of folks like to share vacation news via social media. Updates on their latest pets, travels or even the food they eat. The things that excite me are business successes and news having to do with currency markets.
Specifically, I get excited about new opportunities for investors and how the world as a whole is becoming more accessible because of social tools and global communication. I want to look at the big picture today. And the biggest thing in my lens is China and Forex trading in that country.
In three years – April 2007 to April 2010 – according to the Bank of International Settlements, average daily Forex trading in China had increased 112.9 percent to $19.8 billion. What this tells me is that the savvy investor in China knows his currency market and pays attention to the economy. But the culture in China is a bit different from other countries when it comes to investment attitudes.
For example, a recent Reuters article suggested that many investors in China pay more attention to trusted advisors and information gleaned from trusted contacts. Within the article, Ding Yuan, a professor of accounting at the China Europe International Business School, said there’s actually a lot of trading in China based on privileged information…which borders on insider trading.
I see this as a great opportunity to bring a positive investment methodology to the country. Chinese retail investors are seeking qualified trading sources whose expertise provides an easy path to follow. I’m encouraged by the fact that three of our expert, elite traders in our program are Chinese – currency trading experts who are trusted, local and skilled.
Add to this the attitude Chinese government is taking toward its currency in allowing the Yuan forwards to rise to combat import inflation. This presents the Chinese people with positive economic news – or at least less negative news – and helps bolster the attitude of some currency investors.
Ultimately, the investment style in China is a clear validation that copying the trades of professional Forex traders is in demand. And it’s the way many investors approach their investments there – with expert advice from trusted contacts. Further, the strengthening of the Yuan underscores the increasing global attention to currency markets and the importance of stabilizing local and regional economies.
In allowing their people to explore a different, innovative and online investment option, China has given me hope that we live in a world where social media tools can bridge the gaps between communities, countries and people. Currensee is moving forward with their 2011 goal of international expansion, first came the UK and now…
We’re going to China! It’s gonna be a great journey. Making stops in Beijing, Shanghai, and HongKong – Read our press release here.
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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.
In a Wall Street Journal article published this weekend, author Stephen Bernard took the stance that currency trading might not be worth the risk that some investors face when getting involved in this market.
Some might agree, based on their trading experiences, that this investment segment can be a little more challenging than putting your eggs into treasury securities or other vehicle. And as any investor understands, with increased risk comes the possibility for a increased gains. By using just one example in his story, Bernard painted a dark picture of the Forex market as a whole. I beg to differ.
Don’t we all know that diversification has been the proven method to any long-term, successful investment strategy? In my experience, any investment requires a balanced, well-thought-out approach. This is as true for choosing mutual funds as it is for delving into the Forex.
Further, some investment opportunities require a wider view of the economy. In Forex, as Bernard points out, many forces are driving the boom from stock-market volatility to a rise in online programs that have made forex easier than ever to trade.
He’s on target. The $4T daily trade volume of the foreign exchange market is more accessible than ever. But, one of the biggest challenges in Forex is gaining the experience and expertise necessary to succeed. Some autotrading programs answer this challenge by allowing investors to follow trade leaders or experts.
Where Bernard and I really differ is on this point. While 70% of solo Forex traders fail or are unprofitable, I see autotrading as a way to mitigate that risk. Bernard says that you should beware of trading programs because they “may raise even greater risks for unsophisticated investors”.
But if you choose the right program – one that you’re comfortable with and one you understand – you can actually take positions and follow traders that help hedge what might be perceived as riskier investments. Additionally, and I’d tell anyone this, you’ve got to be sure that transparency and full control of YOUR investment account is guaranteed. That’s what makes a good autotrading program successful for many investors.
Looking at some of the other points in the article, Joshua Brown, vice president of investments at Fusion Analytics Investment Partners LLC, an asset-management firm in New York, says investors should avoid the currency markets. That’s like telling someone not to invest in technology or oil or a complete market segment.
If Brown’s point is that the market is too volatile in general, then it’s imprudent to ignore an entire asset class. As I said earlier, balance is important in any investment strategy. And the word diversification should always be on the mind of any smart investor.
I’m thrilled that the conversation about Forex opportunities and the currency market generally is taking place. The more we can learn about any investment asset, the better off we all are.
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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.
Last week, Forex analyst John Forman hosted a live webinar about autotrading. John provided his perspective on what should raise some red flags for investors when they’re leveraging automated tools and strategies.
In a nutshell, John talked about the seven perils this type of service. While you can hear the entire webinar here, I wanted to give my thoughts on how relying on automated systems can affect your outlook as a trader and what you want to consider as a potential customer of one of these systems.
My interest lies in how these risks relate to currency investment programs such as the Trade Leaders™ Investment Program. The moves of the Trade Leaders, some of the top currency traders in the world, provide trade signals that appear in your portfolio. But, being prudent in your decision-making requires that you understand the process and why some methods can help you succeed, while others warrant more examination.
Briefly, the seven perils John shared were:
1. Trading types (actual versus hypothetical)
2. Knowing your skills and vetting traders/systems
3. Managing risk
4. Identifying fees and expenses
5. Understanding presented performance and returns
6. Accepting transparency and measurement
7. Leveraging investor controls
In my opinion, the three most important of these are 2, 3 and 4. Ultimately, if you are comfortable in your abilities as an investor, are aware of the risks present in trades that might be executed automatically and can accurately understand how your returns and performance are measured, you’ll be well poised to take part in a system that offers you the benefits of autotrading. The biggest caution as you look to take advantage of an autotrading system is to know how the fees work. Are you paying on every roundturn? Is the “expert trader” getting paid on volume? Are you paying additional pips to add to the autotrading company’s bottom line? Buyer beware. Do your homework and know how much the service will cost you. Transparency is one of our key cornerstones of the Trade Leaders program. We made a conscious decision to keep our fee structure simple and straightforward and it’s clearly communicated in our marketing materials, on our website and by our team members who talk to new clients every day. You can see it for yourself here.
I welcome your thoughts on autotrading and the perils – or successes – you’ve experienced. What do you see as the most important consideration as you decide to try an autotrading system? I look forward to hearing from you.
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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.
The CFTC has brought charges against a Northern California Forex money manager for committing fraud against his clients. The money manager claims he had never had a losing year, when his actual trading records revealed consistent losses year over year. He also seems to have mysteriously misplaced a majority of customers’ deposits, taking a page out of the Bernie Madoff method of creative money management. You can read about it on Forex Magnates.
I hate to be self-serving here, but I must. If his clients required him to register on Currensee (as a free service, I might add), these customers would have seen his real results, including win/loss P&L, trade-by-trade recaps, etc. on a daily basis, along with a detailed comparison of his business against the other traders on the Currensee platform.
This charlatan would have been exposed and some of the $4.3 million might not have been lost. It is time to demand transparency in Forex from all people that offer to manage your money!!
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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.
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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.
Remember last week when some guy made the news because the airline allegedly threw him off the plane because he was too fat to fit in a single coach seat? Well, whichever side of that story you believe, it’s another clear example that one size does not fit all. Sadly, they don’t make airplanes with a wide variety of different seats to fit different people, but online and in financial services, it’s a lot easier to give people choices and customize offerings.
At least it’s easier when the regulators let you do it. The Commodities and Futures Trading Commission (CFTC), the government body that regulates the US Forex industry, is proposing a bunch of new rules that we at Currensee think are not good for retail traders or introducing brokers in this country. On the other hand, if approved, these rules would probably be a boon to overseas Forex businesses as US traders take their business elsewhere. That amounts to less choice and we don’t like it.
In short, the CFTC wants to reduce the maximum trading leverage to 10:1 and they want to force all Introducing Brokers (IBs) to associate themselves with one and only one broker. Traders will lose the benefit of an IB helping them choose the best broker for their own needs. A lot of people will end up sitting in the wrong size airline seats, if you know what I mean.
Don’t take our word for it. Read the CFTC’s proposed rules, and if you don’t like them, tell the CFTC what you think. Here’s a PDF of the rules change, and here’s how to contact the CFTC:
Email your comments on this rule change to secretary@ftc.gov with the subject line “Regulation of Retail Forex” and the ID number RIN 3038-AC61 in the body of the message
Fax them at (202) 418-5521
Send paper mail to David Stawick, Secretary, Commodity Futures Trading Commission, 1155 21st Street NW, Washington, DC 20581
Note that all the comments the CFTC receives will be posted to their website, including any personal information you provide them.
The CFTC is part of the government, and they should be working for us, the people and businesses of this country. We all have a voice and need to share it.
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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.
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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.
2009 has been an amazing year for Currensee and our community. We started the year with a handful of employees, a great vision, funding from our investment partner North Bridge and not much else. We’re entering 2010 with over 20 employees and over 2,000 members of our social trading network many of whom are logging into the platform every week and every day. Hundreds of our members have now made purchases in our new marketplace helping Currensee to continue the support and development of our free collaborative platform.
We’d like to thank you all for being part of what we celebrate as this year closes. From those early adopters who struggled through our first “dashboard” to those who have recently joined and quickly become part of our community – you are all part of our success. We’ve enjoyed speaking with you, listening to you, and integrating your suggestions along the way. We look at the Currensee site today, and although it largely looks like our original vision, we’re excited that it’s incorporated the vision of so many of you as well.
As we look forward to 2010 we’re excited report that we are just at the beginning! So many innovative new developments are in the works; from collaborative charting tools, to creating your own special interest groups inside of Currensee, to the ability to see who the top traders are and follow their trades.
Please keep sharing your feedback with us, telling us what you like, telling us what you’d like to see and helping us to spread the word about Currensee. We are steadfast to our vision to build the largest global social trading network where real traders can meet and collaborate on real trades.
Together we can continue to change the Forex trading world with transparency, authentic information and the fun of trading together!
Happy New Year!
Dave and the whole Currensee team
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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.
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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.
Today we announced Forex expert, author and mentor, Shaun Downey, is joining the Currensee trading social network team as our Chief Market Analyst. Shaun brings a wealth of Forex trading experience to us and our trader network and, in addition to being an active member on the Currensee platform including sharing his strategies, discussions and polls, he will be writing market commentaries, trend topics and blog posts to bring Currensee social analysis and data to the outside world.
If you haven’t read Shaun’s bio, it’s pretty impressive. He started trading at the age of 16, accomplished a litany of impressive positions with top-tier firms and shares my passion for boating, which I couldn’t appreciate more.
If you’re a member of Currensee, go ahead and send Shaun an invitation to be trading friends. Not a member of Currensee? What are you waiting for? Go ahead and join the Currensee trader network.
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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.
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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.
Today, we officially launched the Currensee Forex trader Rewards Program and Marketplace to the world.
It’s another exciting step for us here at Currensee world headquarters in Boston. We announced our public beta last month and, at the same time, released the rewards program and Marketplace in private beta to members-only. We’ve been testing new features, products and services and gaining valuable feedback from our members and we’re now ready to let all of you Forex traders out there know about this rewarding, members-only program.
First off, we are giving back to our members in the form of Currensee Bucks. Think of it as our way to say “thank you” to our members. You can earn Bucks by referring friends, creating discussions and polls and participating in the Currensee trader network. You can also earn recurring Bucks by making Currensee your Introducing Broker and receiving Bucks every time you trade. Now that’s a gift that keeps on giving. The great thing about Currensee Bucks is that you can use them right away to purchase a variety of great Forex products and services in the Currensee Marketplace.
Now, let me tell you a bit about the Currensee Marketplace. I’ve heard from traders on a pretty regular basis that they want a trusted source for Forex products and services. They ask me and other members for recommendations on education, training and are looking for reputable people to buy from. We built the Marketplace to meet this need. Think of it as the one place you can go for unique products and services, discounted pricing and, above all, trustworthy experts in the industry who have great products to sell. Even better, you can use your earned Bucks to buy everything from a trading set-ups newsletter to one-on-one coaching.
As a special promotion for our launch, we are offering any traders who join today through November 30, 2009, 30 Bonus Bucks when they join. You can use your Bonus Bucks to buy a variety of products in the Marketplace – our gift to you for joining the Currensee trader network. Tell your friends and get an additional 25 Bucks when they join! Here’s the link to the special promotion: www.currensee.com/bonusbucks.
We’ll be adding a steady stream of new products and services to the Marketplace. Have ideas or suggestions? Would love to hear from you.
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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.
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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.
There has been much discussion in forums lately suggesting that Currensee should support demo accounts and we certainly understand why people are asking for this. Let me explain why we do not have any short-term plans to do this.
First off, we recognize the value of demo accounts as a valuable tool for learning, experimentation and for testing trading systems and new approaches. However there is nothing like real trading. When real money is on the line, what people may really be willing to do may be quite different. This is one reason why I personally would never take seriously the performance of a trading system that has no real performance, just back-tested performance in a demo account. You cannot assume that the leverage used or the distance on the stops would reflect the level of drawdown that the trader would be willing to take with his or her real money.
On the other hand we truly want to keep Currensee about real-time trade collaboration. This is a guiding principle of our Forex Social Trading Network. And today the best way to ensure this is to make sure that our members have real trading accounts and the trades they are sharing are real trades. This creates a very powerful social dynamic that cannot exist in traditional forums and chat rooms. As a trader in Currensee when I make a suggestion to the community that there is an opportunity to go long on the GDP/JPY and I never make the trade then I lose social credibility in the community. But when I do make that trade – whether I win or lose – my trading friends can rely on the fact that I truly believe with my wallet that this is a valid trading idea. And when I close my position my trading friends can rely on the fact that I believe that my winnings are sufficient or I cannot tolerate any more loss. Additionally, our social indicators are based on the actual real trading activity of the Currensee community. These indicators are growing more interesting by the day as the community grows rapidly, and we want to ensure that our members know that the social indicators are based entirely on real trades.
So if you do have a demo account, we suggest you take your time to prepare yourself for real trading and when you are ready just open your real account and securely link it to Currensee. Our network is ready to welcome you!
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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.
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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.
Currensee is the first social network for forex traders. We bring Forex traders from around the world together to make trading decisions in real time using live trading data.
Bucks by referring friends, creating discussions and polls and participating in the Currensee trader network. You can also earn recurring Bucks by making Currensee your Introducing Broker and receiving Bucks every time you trade. Now that’s a gift that keeps on giving. The great thing about Currensee Bucks is that you can use them right away to purchase a variety of great Forex products and services in the Currensee Marketplace.
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