Exotic Currencies
The Secret Behind Big-Game Hunters’ 150% Profits in the Forex Market
Right now, the biggest opportunities by far are in the emerging market currencies (also known in the business as “exotic currencies”). These are the currencies of countries like Poland, the Czech Republic, Thailand, South Korea and South Africa, to name just a few.
These countries are a generation or so behind the major economies in development. But they are growing much faster and making up for lost time with a vengeance.
However, with those growth spurts comes volatility. Emerging economies are very dependent on the economic health of their main trading partners and foreign investors, the developed economies. And as the developed countries of Europe, Japan and the U.S. start to falter, these emerging economies could become “submerging economies” very quickly.
This is where you get the biggest moves up in bull markets. And it’s where you get the sharpest moves down in bear markets. And those more dramatic moves tend to translate into far greater profits.
For instance, while the euro appreciated 50% against the U.S. Dollar from 2002 to 2006, Hungary’s forint rose over 150%. For traders, this could mean profits in the thousands of percent. For more recent examples, look at the first six trades we’ve put on for Exotic FX Alert, our new trading service focusing on emerging markets. All six of those trades have been profitable so far and the average return per trade has been 775%!