I was sipping on Frappé, watching the Forex market on Thompson's Bay beach.
I watched the USD Dollar against the Swiss Franc fall a massive 1,451 pips right before my eyes. I didn't even notice my iced-coffee spill onto the sand.
I thought about all of the Forex traders and companies that took a big beating.
It's events like these that prove that the Forex market is a dangerous place and these unexpected moves in the currencies do happen. And yes, you can blow your entire trading account if, you don't know what you're doing.
So today, I'm going to give you two powerful tips you can use, which can save you from ever breaking your Forex account when these currency anomalies happen again!
Listen carefully!
I watched the USD Dollar against the Swiss Franc fall a massive 1,451 pips right before my eyes. I didn't even notice my iced-coffee spill onto the sand.
I thought about all of the Forex traders and companies that took a big beating.
It's events like these that prove that the Forex market is a dangerous place and these unexpected moves in the currencies do happen. And yes, you can blow your entire trading account if, you don't know what you're doing.
So today, I'm going to give you two powerful tips you can use, which can save you from ever breaking your Forex account when these currency anomalies happen again!
Listen carefully!
Here’s what spooked the Swiss Franc!
In a press announcement, the Swiss Bank removed the cap on the Swiss Franc at 1.200. This resulted in huge strength in the currency.
In fact, this announcement caused a massive panic attack in the market, which resulted in the biggest move in the Forex market in over a century.
If you were on the wrong side, you could have lost thousands and thousands. But don’t just take my word for it, look at the USD/CHF (US Dollar to the Swiss Franc)!
Just an ordinary chart showing the USD/CHF on its way up
You can clearly see in the above 30 minute chart of the USD/CHF, that the US Dollar was on a clear uptrend against the Swiss Franc.
It looked like the US Dollar was going to continue up. In fact, millions of traders bought the USD/CHF around these levels, looking at the high liquidity!
Until...
(Brace yourself!).
Look at how the USD/CHF fell off a cliff after the announcement!
In just one hour, the USD/CHF dropped a whopping 1,451 pips from 1.0222 down to 0.8771.
This is looking at the spot price of the USD/CHF. If you looked at other market makers, you would’ve see even bigger drops in the currency.
In fact, my colleague Mark Riskowitz saw a 2,000 pip drop in a matter of seconds! And the spread between the bid and offer was ginormous!
Let’s say you bought the USD/CHF and you only looked to risk R1,000 for the trade, if the trade went against you 50 pips…
Once you were in your trade and the USD/CHF dropped 1,451 pips, you would’ve missed your stop loss completely. Instead of losing R1,000, you would’ve lost a an insane R50,000 in this one trade.
But I would never want that to happen to you and that’s why, I’m now going to reveal two powerful tips to stop you from ever breaking your account.
Powerful Tip #1: The Guaranteed Stop loss will get you out where you want out!
You must find a broker that offers Guaranteed Stop Losses.
This is where you won’t have to worry about market gaps, freak anomalies, press conferences or even 1,451 pip drops ever again!
Next time when you want to take on a Forex trade, make sure your Forex broker has the option of a Guaranteed Stop loss.
Basically, you’ll pay a small premium of around 5 pips, and with the Guaranteed Stop loss, you’ll be GUARANTEED to get out at the price you want if it hits your risk level.
You can sleep easy knowing you’re safe from ever having to endure, one of these vicious currency events.
And besides, what’s five pips, compared to a 1,451 pip move? Nothing!
So before you take on your next trade, call your broker and make sure he has the Guaranteed Stop loss tool available…
But what if you’re like me and not willing to change your broker that doesn’t offer Guaranteed Stop Losses?
Don’t worry because then tip two is definitely for you and me!
Powerful Tip #2: Know when not to trade and you’ll save an absolute fortune!
The beauty about the Forex market is that, it’s transparent. You can read and watch every FX announcement, meeting and decision.
These press announcements can have a huge impact on your Forex trading.
This is where presidents of the banks can announce unexpected changes to the interest rates, monetary policy, the country’s outlook and anything else that can send panic to Forex traders where the currencies can crumple!
So what do you do?
Well simple really….
You don’t trade Forex during these announcements:
Announcement #1: ECB (European Central Bank) – Mario Draghi
Announcement #2: US Fed – Janet Yellen
Announcements #3: Bank of England – Mark Carney
Announcement #4: Bank of Japan – Haruhiko Kuroda
Announcement #5: Swiss National Bank – Thomas Jordan
Announcements #6: Bank of Australia – Glenn Stevens
Save your account by using this powerful FREE Forex tool!
If you want to know exactly when these announcements will take place, you can simply go to theForex Economic Calendar which will tell you real time.
I’ve been using it for over a decade and it’s stopped me every time from trading currencies during these huge events.
You never know, this tool could prevent you from a 1,451 pip drop!
You can clearly see in the above 30 minute chart of the USD/CHF, that the US Dollar was on a clear uptrend against the Swiss Franc.
It looked like the US Dollar was going to continue up. In fact, millions of traders bought the USD/CHF around these levels, looking at the high liquidity!
Until...
(Brace yourself!).
Look at how the USD/CHF fell off a cliff after the announcement!
In just one hour, the USD/CHF dropped a whopping 1,451 pips from 1.0222 down to 0.8771.
This is looking at the spot price of the USD/CHF. If you looked at other market makers, you would’ve see even bigger drops in the currency.
In fact, my colleague Mark Riskowitz saw a 2,000 pip drop in a matter of seconds! And the spread between the bid and offer was ginormous!
Let’s say you bought the USD/CHF and you only looked to risk R1,000 for the trade, if the trade went against you 50 pips…
Once you were in your trade and the USD/CHF dropped 1,451 pips, you would’ve missed your stop loss completely. Instead of losing R1,000, you would’ve lost a an insane R50,000 in this one trade.
But I would never want that to happen to you and that’s why, I’m now going to reveal two powerful tips to stop you from ever breaking your account.
Powerful Tip #1: The Guaranteed Stop loss will get you out where you want out!
You must find a broker that offers Guaranteed Stop Losses.
This is where you won’t have to worry about market gaps, freak anomalies, press conferences or even 1,451 pip drops ever again!
Next time when you want to take on a Forex trade, make sure your Forex broker has the option of a Guaranteed Stop loss.
Basically, you’ll pay a small premium of around 5 pips, and with the Guaranteed Stop loss, you’ll be GUARANTEED to get out at the price you want if it hits your risk level.
You can sleep easy knowing you’re safe from ever having to endure, one of these vicious currency events.
And besides, what’s five pips, compared to a 1,451 pip move? Nothing!
So before you take on your next trade, call your broker and make sure he has the Guaranteed Stop loss tool available…
But what if you’re like me and not willing to change your broker that doesn’t offer Guaranteed Stop Losses?
Don’t worry because then tip two is definitely for you and me!
Powerful Tip #2: Know when not to trade and you’ll save an absolute fortune!
The beauty about the Forex market is that, it’s transparent. You can read and watch every FX announcement, meeting and decision.
These press announcements can have a huge impact on your Forex trading.
This is where presidents of the banks can announce unexpected changes to the interest rates, monetary policy, the country’s outlook and anything else that can send panic to Forex traders where the currencies can crumple!
So what do you do?
Well simple really….
You don’t trade Forex during these announcements:
Announcement #1: ECB (European Central Bank) – Mario Draghi
Announcement #2: US Fed – Janet Yellen
Announcements #3: Bank of England – Mark Carney
Announcement #4: Bank of Japan – Haruhiko Kuroda
Announcement #5: Swiss National Bank – Thomas Jordan
Announcements #6: Bank of Australia – Glenn Stevens
Save your account by using this powerful FREE Forex tool!
If you want to know exactly when these announcements will take place, you can simply go to theForex Economic Calendar which will tell you real time.
I’ve been using it for over a decade and it’s stopped me every time from trading currencies during these huge events.
You never know, this tool could prevent you from a 1,451 pip drop!
Always remember,
“Wisdom yields Wealth”
“Wisdom yields Wealth”
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