You’re Being Watched…

Creepy, but true... maybe you can use this to your advantage!

Every time you go shopping, surf the Internet, or share an online news story with a friend, someone is watching.

In fact, there is an enormous, multibillion-dollar industry based on collecting personal data.

What books you buy...

What search terms you type into Google...

Even what charities you donate to.

It’s called “data mining.”

Retailers like Wal-Mart and Target use this technique to analyze local buying patterns.

Websites like Amazon and Netflix “data mine” your purchase and movie rental history in order to recommend products or films you might enjoy.

And the Central Intelligence Agency (CIA) is constantly “data mining” blogs, forums and wi-fi networks to identify terrorist “chatter.”

It’s a little creepy.

But it’s perfectly legal...

And what most people don’t know is, Wall Street banks and hedge funds are doing the same thing.

Now, individual investors can use this strategy to time the market.

Let me explain.

Twitter Predicts the Market?

Last year, a former U.S. Government Scientist named Johan Bollen published an eye-opening study called “Twitter mood predicts the stock market.”

In short, he analyzed the daily content of millions of online data feeds by using a pair of mood tracking tools.

And he found that by tracking American “mood states,” he could predict whether the stock market would rise or fall, with 87% accuracy - up to four days in advance.

Needless to say, this discovery caught Wall Street off-guard.

And now, some very powerful interests are scrambling to make it their own:

One former Goldman Sachs insider has funneled over $30 million into this “data mining” phenomenon.

Google and the CIA have invested millions of dollars together and now claim they’re using this technology to predict the future.

And U.K.-based Derwent Capital launched a $40 million computerized hedge fund to exploit the discovery. But they received so many investor phone calls, they’ve been forced to open a waiting list.

Over the past 12 months, I’ve been experimenting with a similar “data mining” strategy to win or breakeven on seven out of every 10 trades - without violating anyone’s privacy.

Instead of stocks, I’ve targeted the $4 trillion forex market. I’m using conservative leverage that gives me the ability to earn 10 to 20 times more than I ever could buy on the S&P 500.

Truth is, most traders don’t bother with currencies. But it’s simple to track the trend of any major or exotic currency and pounce when the moment is right.

Here’s how...

I’ve developed a basic, two-step strategy to minimize risk and maximize returns in the forex market.

The first part smoothes out the crazy gyrations so you can tell where the price of a currency is heading - higher or lower.

The second part - what I call “data mining” the forex market - can tip you off to a major breakout point.

It starts with knowing the direction of the trend...

Tip #1: Don’t Trade Against the Trend

One of the best ways to determine the overall trend is, drop a 50-period simple moving average on a currency pair’s daily chart. Check out an example of this below:

If the trend line is pointing down, you know that you have a better shot of playing against this currency pair. If the trend line is pointing up, you will have better odds if you go long.

Do this and you will gain a significant edge over other traders who waste time and money fighting the trend.

Tip #2: “Data Mine” the Market to Know
What the Masses Will Buy or Sell Next

Most people think it’s impossible to know when an established trend will reverse course. For good reason. Few traders (outside Wall Street hedge funds) possess the right technology to spot these subtle movements before it’s too late.

But over the past 12 months, I have been experimenting with a “data mining” strategy - similar to Dr. Bollen’s.

It tells me when to hop into a trade, hop out, or simply wait on the sidelines.

And though it’s not right 100% of the time, it’s helped me gauge with high confidence whether a currency pair will explode higher or lower - by letting me know if the masses are likely to pile into (or out of) a currency.

I’ve found this technique works very well on major currencies like the Euro and Australian dollar. But it works even better on a tiny corner of the forex market, made up of emerging market currencies.

My Exotic FX Alert subscribers have had the opportunity to benefit from this strategy for months. And we’ve used it to see currencies erupt anywhere from 7% to 132% higher... in as little as two weeks.

If you’d like to hear the full story on how this works, and whether it’s appropriate for you, we’ve recorded a brief tutorial video that explains everything.

I’ll be releasing it later this week. Until then...