Four Steps to Ensure Successful Navigation of Currency Markets



Jack Crooks advises on how to successfully navigate currency markets. Mr. Crooks takes a closer look at the U.S. economy and advises on how investors can manage the currency markets.

Recession is the operative word for the U.S. economy. The housing market is already there. And various other economic indicators are pointing straight down. Take a look at some recent data:

The ISM Manufacturing Index report showed that 10 straight months of expansion came to a halt in December. The measure contracted the most since 2003 and was much weaker than expected.

Then the U.S. unemployment rate hit 5%, the highest level in two years. The economy only added 18,000 jobs, down from 115,000 in November. Meanwhile, interest rates are also heading the wrong way.

Here are four steps to help successfully navigate currency markets:

1.    Develop a realistic approach: Don't expect the currency market to go the right direction all the time. The currency market can viciously change in an instant; become more flexible and prepare for anything. Operating in a volatile market requires a lot of focus.

2.    Separate the music from the noise. Do not allow emotions to drive currency trading decisions. Instead, use them as a guide and that could have a larger pay off. Filter out the short-term gyrations and understand the ideas that generate the larger, more important moves.

3.    Always be humble. Accept the fact that at any moment the market can prove completely and utterly wrong. This is can be hard for investors when egos stand in the way. Put the market first. There's no place for self importance. Confidence in trading is one thing, but certainty can prove wrong.

4.    Love the process. Learning more about trading currencies every day is a vital part of investing in them. This is critical because in order to maintain an edge, a lot of homework must be done.

"With a realistic approach, enough preparation and a touch of humility, sorting through the noise can lead to becoming a successful trader," Mr. Crooks states.

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About Jack Crooks & Money and Markets    

John (Jack) Crooks is the founder and president of Black Swan Capital, an independent advisory firm specializing in foreign exchange and currency markets investing for retail and institutional clients. A seasoned financial advisory with nearly 20 years of investment experience, Mr. Crooks uses both quantitative and qualitative approaches to determine the fundamental driving force(s) behind the movement of the currency, capital, and commodities markets. He is the editor of Weiss Research's latest investment offerings, World Currency Alert and World Currency Options, which were launched in August 2007.

Mr. Crooks also founded Ross International Asset Management, a discretionary money management firm specializing in global stock, bond, and currency asset management for retail clients. Previously, he was general manager of Plexus Trading, where he specialized in currency futures and commodities trading. During his successful career, Mr. Crooks served as chief currency and futures strategist of M2 Futures Inc., an investment boutique headquartered in Chicago, as well as vice president of Global Strategic Research for an international investment boutique, where he was responsible for providing daily advice and global strategy analysis.

Prior to entering the investment arena, Mr. Crooks held various corporate finance positions. He has written extensively on the subject of global currencies and international economics and has been published in Asian Times, Futures Magazine, Barron's, Bloomberg, Dow Jones Newswire, and across many financial websites. He has also appeared on Bloomberg TV and CNBC.

Mr. Crooks holds a bachelor's degree in finance from Florida State University and a master's in business administration from the University of North Texas.

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.





Four Steps to Ensure Successful Navigation of Currency Markets