Getting Started in Currency Trading: Winning in Today's Forex Market, 3rd Edition
While the Foreign Exchange (Forex) market can be a very profitable place, you must have a firm understanding of how to operate within this environment if you intend on achieving any success.
That's why you need Getting Started in Currency Trading, Third Edition. This reliable resource-written for both newcomers and those with some Forex experience-puts trading world currencies in perspective, and shows you exactly what it takes to make it in this field.
- Guides you through the process of opening your own account as well as the actual placing and managing of currency orders
- Offers specific trading strategies and tactics
- A companion Web site will provide updates on brokers and FOREX services; an author's Blog will answer your questions about all aspects of trading
- Includes a new chapter on Forex trading platforms
- The often confusing FOREX calculations are reduced to handy computer-side tables
On the heels of the recent market crash, this fully revised Third Edition is filled with in-depth insights and practical advice that takes into account all of the recent changes in the currency market and shows you how to profit from them.
About This Book.
How This Book Is Organized.
Companion Web Site.
PART 1: THE FOREIGN EXCHANGE MARKETS.
Chapter 1: The FOREX Landscape.
Introduction—What Is FOREX?
What Is a Spot Market?
Which Currencies Are Traded?
Who Trades on the Foreign Exchange?
How Are Currency Prices Determined?
Why Trade Foreign Currencies?
What Tools Do I Need to Trade Currencies?
What Does It Cost to Trade Currencies?
FOREX versus Stocks.
FOREX versus Futures.
Chapter 2: A Brief History of Currency Trading.
The Gold Standard, 1816–1933.
Securities and Exchange Commission, 1933–1934.
The Bretton Woods System, 1944–1973.
The End of Bretton Woods and the Advent of Floating Exchange Rates.
International Monetary Market.
Into the Millennium.
Arrival of the Euro.
The CFTC and the NFA.
Chapter 3: Two Ways to Trade FOREX.
Currencies Trading Volume.
U.S. Dollar Index.
Volume and Open Interest.
Where to Trade.
PART 2: GETTING STARTED.
Chapter 4: Regulation: Past,Present, and Future.
Regulation in the FOREX Market.
Chapter 5: The FOREX Lexicon.
Major and Minor Currencies.
Market Maker and ECN.
Chapter 6: Trading Tables.
Profit and Loss.
The Bid-Ask Spread.
For Futures Traders.
Chapter 7: A Guide to FOREX Brokers.
Broker-Dealer Due Diligence.
Market Maker or ECN?
FCM or IB?
The Trader’s Desktop.
Platform Stability and Backbone.
Pairs, Crosses, and Exotics.
Deposits and Withdrawals.
Rollovers and Interest.
The Big Three.
For the Professional.
Fraud, Scams, and Off-Exchange.
Broker-Dealer Due Diligence Form.
Chapter 8: Opening a FOREX Account.
Opening the Account: Steps.
Chapter 9: Making the Trade.
PART 3: THE TOOLS OF THE TRADE.
Chapter 10: Fundamental Analysis.
Supply and Demand.
Balance of Trade.
Purchasing Power Parity.
Gross Domestic Product.
Other Economic Indicators.
Chapter 11: Technical Analysis.
Support and Resistance.
Recognizing Chart Patterns.
Point and Figure Charts.
Charting Caveat—Prediction versus Description.
Indicators and Oscillators.
Relative Strength Indicator.
Indicator Caveat—Curve-Fit Data.
Wave and Swing Analysis.
The Technician’s Creed.
Chapter 12: A Trader’s Toolbox.
A KIS Toolbox.
A Chart Interpretation Technique.
The Nofri Congestion Phase Method.
Pugh Swing Chart Formations.
A Moving Average and Oscillator Battery.
Volume and Open Interest.
Chapter 13: The FOREX Marketplace.
Organizing Your Bookmarks.
Portals and Forums.
Charting and Technical Services.
News and Calendars.
Live Data and APIs.
System Development Tools.
FOREX Managed Accounts.
Online Reference Guides.
Spread and Binary Betting.
Periodicals—In Print and Online.
Chapter 14: Retail FX Platforms.
Professional FX Platforms.
Trading Platform Features.
PART 4: THE COMPLETE FOREX TRADER.
Chapter 15: The Plan! The Plan!
Parts of the Plan.
Mission-Critical Information Sheet.
The Snowflake Method.
Trade Heuristic Worksheet.
30 Trade Campaign Worksheet.
When Things Go Wrong.
Chapter 16: Money Management Simplified.
Breaking Even—The Belgian Dentist.
Parameters for Trader Profiles.
The Trade Campaign Method (CTM).
Calculating CTM Profit and Loss.
Stop-Loss Orders—Physical or Mental?
Selecting Currency Pairs to Trade.
Chapter 17: Psychology of Trading.
The Trading Pyramid.
Fear and Greed,Greed and Fear.
The Attitude Heuristic.
Characteristics of Successful Traders.
Chapter 18: Improving Your Trading Skills.
Trading the News.
PART 5: EXTRA FOR EXPERTS.
Chapter 19: Options and Exotics.
An Options Primer.
Basic Options Terms.
The Pros and Cons of Options.
The Four Basic Options Strategies.
Purchasing and Writing Options.
Advanced Options Strategies.
The Retail FOREX Options Landscape.
Options for Trading.
Options for Money Management.
Chapter 20: Computers and FOREX.
Automated Trading and BOTS.
High-Frequency and Ultra-High-Frequency Trading.
Into the Future of FOREX.
The Trend Machine.
Pros and Cons of Arbitrage.
Appendix A: How the FOREX Game Is Played.
Market Makers and ECNs.
A Peek under the Hood.
Appendix B: List of World Currencies and Symbols.
Appendix C: Euro Currency Unit.
Appendix D: Time Zones and Global FX Trading Hours.
Appendix E: Central Banks and Regulatory Agencies.
Appendix F: Resources.
Online FOREX Tour.
Appendix G: FX Calculation Scenarios.
Calculating Profit and Loss.
Calculating Units Available.
Calculating Margin Requirements.
Calculating Transaction Cost.
Calculating Account Summary Balance.