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One trade makes more money than keeping your savings at the bank for a year.

In This Video:
00:34 The Anatomy of the Trade
01:09 The Latest Development on the Swiss Bank Scene
02:51 So much potential in the Forex market

In today’s video and podcast, I want to share with you how I made more money in just one trade, this week, than you’ll get paid by most banks around the world in an entire year. So, let’s share more details about that right now.

Hi Forex traders, it’s Andrew Mitchem here, The Forex Trading Coach and this is my first weekly video for 2015 and as you can tell, it’s absolutely glorious weather here, in the middle of summer, in New Zealand. Today is Friday, the 16th of January, and I want to share some details with you regarding a trade that I took this week.

The Anatomy of the Trade

It was a trade that I took on the US/Japanese Yen (USD/JPY); it was taken on Monday, on the first day of the week, on the weekly chart. That trade made a 3.2 to 1 return which is a fairly good trade for a weekly chart trade but its hit profit target in only three days.

Now, I risk half of one percent on that trade, 0.5% of my account on that one trade, with a 3.2 risk to reward on that trade. That means, I made a 1.6% gain on my account just on that one trade.

The Latest Development on the Swiss Bank Scene

And so, you’d be aware by now that overnight, today, we’ve had the Swiss National Bank has, they’ve stopped trying to intervene with the Swiss Franc and so, the Franc, for the last three years, has been held above the 1.2000 level against the Euro and they’ve suddenly decided to stop that.

And so we’ve had massive, massive gains on the Swiss Franc. And the Euro/Swiss Franc doesn’t really move a great deal – normally it moves 20, 30 pips a day, tops – and overnight it’s moved 2,300 pips, so almost 100-times its average daily range since that news’ announcement, so massive news announcement. And now we might, sort of, see the Euro/Franc or a lot of other Franc pairs moving a lot over the next few days.

The Interest Rate Environment in Swiss Banks

But the interesting thing that I’ve got here is I’ve just printed off some bank interest rates out of Switzerland. Now, these are printed, sort of, live as of today. The savings bank rates – 0.01% and if you have over 500,000 Swiss Francs, they’re going to pay you an amazing 0.025%. So, when you look at that, now I’m sure that there’s other banks that may be paying a touch more depending on the actual investment but this is what I’ve just printed off the Internet here.

So, the highest that I can find on a savings account over half a million Swiss Francs is 0.025%. So that’s, obviously, not particularly exciting. The point I’m making though is that the Forex market offers you so much potential. In the one trade just taken four days ago made me 1.6% – just one trade!

So, when you look at the interest rates of the traditional way of investing, the bank saving rates, Forex – once you understand it, once you have an understanding of how to analyze the market, the gains are massive.

The other thing I want to mention also is because of course we’ve started 2015, make sure you have yourself a trading plan. You know, have a plan, write it down, stick to it! If you didn’t get a copy of the plan that I offered at the end of 2014, I’ve got a copy here, I’m happy to email you a PDF version of the trading plan outline that I use.

So if you’d like that, just enter your details on the form below this video. So that’s it for now, as you can see it’s nice and sunny, nice and glary. I’m off for a dip behind here in the pool – it’s too hot otherwise, so look forward to talking to you this time, next week.

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