January 2008 Performance Review

We are now into 2008 and the balls are rolling. We saw a lot of good things happen in January that moves our 2008 predictions forward for our trading styles. The foreign markets crashed including the stock markets of Japan, Europe, India, and China in January. This all happened over the Civil Rights Day weekend when the US Equity markets were closed. It was a sure bet that the US markets would crash too as the reason for the global crash was the fear of US recession and credit crisis. The Fed did something that it hasn’t done since right after September 11, 2001, they made an emergency rate change to the interest rates – 1 full percent. HUGE! This quick adjustment was just enough to keep the markets from experiencing another “Black” day and sending traders into a sell-off frenzy. What did that do to our trading? Due to the volatility, the On Target continued to experience the back and forth runs resulting in a losing month. The Premier also finished slightly lower after its double digit return month in December. However, with an additional ˝ percent drop the following week by the Fed, we are now looking at an agreed market direction. The name of the game for the market powers is to save the US from recession. In addition to the Fed rate drops, the government has jumped in with a stimulus package to put more money in the consumers hands to spend. This plan is like drinking a quick power drink full of sugar and caffeine right before the big wrestling match, it works great on the short term but we will pay for it over the long term. No one cares about the long term! The focus is here and now and that is what the markets want. With the rate decrease and more cash to spend for consumers we should see our long-term trends continue which means the US Dollar will continue its path lower.

February Outlook

So what can we expect in February? I said in the 2008 outlook that the On Target will be back on track most like at the end of February into the first part of March. With the events of January I believe that we will begin seeing the On Target back on track at the beginning of February. As of this writing we have already seen a couple of positive trades with no negative ones. The Premier will also perform very well as the market consensus now has a majority. The EurAsia strategy has been at a tug-of-war since December, the events mentioned above should open things up as well on this strategy.

Trader’s Tip – Long-term perspective

We have talked about this before, but it merits another run – Maintain a Long-Term Perspective. Trading the Forex is a marathon made up of small sprints here and there. In recent months we have seen some crazy markets that really haven’t taken us anywhere. Yet, over the long-term we will be able to look back and see our progress. If you maintain a long-term perspective you will stay in the game over the long term. Brief example: April 2007 was a bumpy ride in the Forex – nothing compared to what we have experience these last few months, however, a bumpy ride nevertheless. I had several students want to throw in the towel over two losing weeks. Unfortunately, some did. What did they miss? May was a good month and June was a spectacular month. I personally made 42% in the month of June – three of the four currencies I trade didn’t even have a losing trade in June. Keep to your game plan, use proper leverage, and stick for the long haul and you should have the account value that you are looking for in the end.*

To learn more about the managed forex accounts please call us directly at:

1-800-557-9776.