TRADING A TREND UNTIL IT BENDS
Currency trading is very different than trading stocks. Companies can
file bankruptcy, like Enron, or go completely out of business, taking their
share value down to zero. On the other hand, with currency trading, there is
no threat of a country going bankrupt. The country is not going to go
bankrupt and turn the currency worthless. What can happen is that severe
economic changes take place between countries, creating dramatic changes
in the currency value of one country versus another. When that happens, it
can create an incredible financial return for savvy, educated currency
traders.
Study the four charts of Figure 6-2. In Figure 6-2A, the euro trended
down 1,300 pips in four months, creating a $13,000 return trading one lot,
or investing $1,000. How would you like to learn how to make this type of
passive income trading long-term positions in currencies? A $10,000
investment would have brought a return of $130,000