Last week, Currensee announced the launch of the Trade Leaders program, and has been presenting it as a kind of alternative investment class. This introduces an interesting discussion point because up to now the idea of "investing" in Forex was anathema to most market participants. Forex is a market you trade, not a market you invest in, most folks would tell you. Currency ETFs have certainly forced a rethinking of what it means to play the Forex market, and the type of opportunities it presents, but it is still mainly a trader's market rather than an investor's arena.
Is it investing?
So is the Trade Leaders program way to "invest" in the Forex market? I think it depends on how you want to look at it.
In the commodities market there have long been CTAs (Commodity Trading Advisors) who provided ways for those who wanted exposure that market to get it without having to take part directly themselves. Many asset management programs, like pension plans and endowments, have used CTAs in that fashion as an alternative investment vehicle which was not correlated with the stock market. In many ways, hedge funds have supplanted CTAs in terms of the public consciousness, but the idea is the same.
Are CTAs and hedge funds investments? Strictly speaking, maybe not - at least in terms of putting money to work in a specific instrument or something like that. You could, however, call them investments in terms of investing in a person or group – the CTA or fund manager(s).
By my way of thinking, the Trade Leaders program is like investing in a CTA or hedge fund. You are investing in the person and her/his ability to generate profits rather than in some kind of asset. More specifically, it's like putting money into a CTA or hedge fund where you know the person making the decision has their money at work there too – meaning they feel the same pain or gain you do. It makes the whole process that much more honest.
Just like when a pension fund decides to put part of its money with a hedge fund, though, if you're thinking about taking part in the Trade Leaders program there are some things to think about. The pension fund is looking to diversify its portfolio. Trade Leaders could let you do the same thing.
What I'm driving at here is that the different Leaders have different approaches to the market. Some take more risk, some take less. Some trade only specific pairs, while others are more diverse. Some trade short-term and some are more position oriented. And of course their specific systems and strategies are varied. That means you can mix and match to come up with your own "diversified" solution by combining different Leaders with each other, or with your own trading.
For example, if you're primarily a position trader you may want to select a short-term Trade Leader. That would give you the opportunity to benefit from the short-term swings in the market, moves that you may not have been able to take part in otherwise.
Then There's Education
Even if you don't really think you want to have someone else trading your money, there's another potential benefit to be had by taking part in the Trade Leaders program. That's using it as a way to learn from successful traders, in an indirect fashion, of course. It's a bit like using a subscription trading service where you can follow along with the trade ideas of someone experienced.
Now of course you won't be seeing the trade-by-trade analysis and strategizing from a Trade Leader in the same way you would via a subscription service, but you will still get to follow all the trades as they happen. If you select a Leader whose approach is similar to the way you want to trade, you could definitely learn quite a lot in seeing where and when they place their trades.
Give the Trade Leaders program a look. This week, Currensee is hosting two webinars where you can come and see CEO Dave Lemont's personal Trade Leaders portfolio and he'll tell you more about the program.
The webinar dates/times are:
If you want to learn more about the program before the webinar, you can click on the "Trade Leaders" tab in the blue bar at the top of your dashboard. There, you can watch a short video about the program, review the Trade Leaders profiles and sign-up.
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.