Currency Options Offer Huge Profits
The Dynamic Wealth Report
October 8, 2008
Rate Cuts Around The Globe - Did You Make Money?
Are you sick of the stock market? Are you staying up late worrying about
your retirement account? Is your stomach permanently tied in knots
because of volatility. Are you dizzy from the markets being up 300, down
800, up 100, down 700. Are you looking at your statements just wondering
why all your money is disappearing?
Is it time to try something new?
Let me tell you, many investors believe buy and hold is dead.
What do I mean? Just look at the stock market over the last 10 years.
Back in early 1999 the Dow Jones Industrial Average crossed 10,000.
Today, almost 10 years later the market’s in exactly the same spot. No
joke.
So if the equity markets aren’t the place to be what’s left?
Have you thought about trading currencies? Think about it. These days
currencies are easy to trade. You can do it right from your own
brokerage account. No need to open new accounts or learn a new trading
language.
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Another reason to look at currencies.
If you remember my article from Monday,
How To Profit In A Global
Recession, I talked about a global recession. This is serious stuff
folks. We are on the edge of a recession, not only in the United States
but around the world as well. And I’m not the only one who sees this
happening.
Apparently the major central banks around the world feel the same way –
they all cut rates in emergency sessions last night. Our own Federal
Reserve cut rates 50 basis points. Major investors the world over see
the risks to the global economy. In order to preserve investment dollars
they’re moving to safe investments.
The safest investment in the world is the US Dollar.
I know what you’re thinking. “My money is already in US Dollars.” That’s
great! This gives you an even better opportunity to profit. And here’s
how to do it.
Currencies trade in pairs. Let me give you an example.
Global investors had moved a good deal of money into Australia over the
last few years. The economy was humming along and their money was
earning high levels of interest (in excess of 7%). This means they owned
a great deal of Australian Dollars (The local currency).
A few months ago the Australian economy started to weaken. Consumer
spending slowed, and as commodity prices fell, the economy’s growth
slowed. At the same time the US Dollar was getting stronger. The risk in
Australia seemed big, so money flowed from the Aussie Dollar to the US
Dollar.
As a result the value of the Aussie Dollar fell. Just look at this
chart.

Just yesterday, the Reserve Bank of Australia cut interest rates by 1%.
This was a huge move. Consider most rate cuts are 0.25% or 0.50% at the
most. The reserve bank went a full percentage point. This weakened the
Aussie Dollar even more.
Profiting from the fall.
As you probably know I’m the editor of Currency Options Insider. Yes, what you’re about to read is a shameless plug. Over a month ago I
told my subscribers to short the Australian Dollar. We went short by
purchasing carefully selected put options. These options spiked in
value over the last few weeks and now show a gain of more than 492%.
But that wasn’t the most exciting trade.
In July, a trade in the British Pound produced a return of 1,027%. Imagine that . . . ten times your money in less than 2 months.
In the last two months, we’ve made six rifle shot trades. A Euro trade
returned over 300%. The Australian dollar we talked about above. Our
Swiss Franc trade is up 109%. Unfortunately I’m not perfect. Two other
trades maxed out gains at 10% and 20%.
The most recent trade we made is doing really well. I wish I could tell
you what it is, but that wouldn’t be fair to our paying subscribers.
Let’s just say the trade’s moving in the right direction. As I write
this, we’re showing gains of 75% in less than 5 days.
You might consider adding currencies to your portfolio. Long term trends
are setting up in the US Dollar. The macro-economic environment and
recent stock market volatility might make now a good time to research
currencies further. Remember, they’re easy to trade and the profits can
be substantial.
I’m researching a new trade for Monday or Tuesday of next week. I think
we’ll have another big winner on our hands. To learn more about
the global currency markets and Currency Options Insider follow this
link.
• Soybeans (below $10 per bushel)
Soybeans traded below $10 per bushel this week. They’re now trading at
new 52-week lows. The concern continues to be global economic slowing. The futures are down more than 35% in the last 3 months alone.
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