Table Of Content

ffffiirrss..iinndddd ii 0066//1122//1122 1111::5522 AAMM 17 Proven Currency Trading Strategies ffffiirrss..iinndddd ii 0066//1122//1122 1111::5522 AAMM Founded in 1807, John Wiley & Sons is the oldest independent publish- ing company in the United States. With offi ces in North America, Europe, Australia, and Asia, Wiley is globally committed to developing and mar- keting print and electronic products and services for our customers ’ professional and personal knowledge and understanding. The Wiley Trading series features books by traders who have survived the market’ s ever-changing temperament and have prospered— some by reinventing systems, others by getting back to basics. Whether you are a novice trader, professional, or somewhere in between, these books will provide the advice and strategies needed to prosper today and well into the future. F or a list of available titles, visit our website at www.WileyFinance.com. ffffiirrss..iinndddd iiii 0066//1122//1122 1111::5522 AAMM 17 Proven Currency Trading Strategies How to Profit in the Forex Market MARIO SINGH John Wiley & Sons Singapore Pte. Ltd. ffffiirrss..iinndddd iiiiii 0066//1122//1122 1111::5522 AAMM Copyright © 2013 by John Wiley & Sons Singapore Pte. Ltd. Published by John Wiley & Sons Singapore Pte. Ltd. 1 Fusionopolis Walk, #07-01, Solaris South Tower, Singapore 138628 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as expressly permitted by law, without either the prior written permission of the Publisher, or authorization through payment of the appropriate photocopy fee to the Copyright Clearance Center. Requests for permission should be addressed to the Publisher, John Wiley & Sons Singapore Pte. Ltd., 1 Fusionopolis Walk, #07–01, Solaris South Tower, Singapore 138628, tel: 65–6643–8000, fax: 65–6643–8008, e-mail: [email protected]. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. Other Wiley Editorial Offices John Wiley & Sons, 111 River Street, Hoboken, NJ 07030, USA John Wiley & Sons, The Atrium, Southern Gate, Chichester, West Sussex, P019 8SQ, United Kingdom John Wiley & Sons (Canada) Ltd., 5353 Dundas Street West, Suite 400, Toronto, Ontario, M9B 6HB, Canada John Wiley & Sons Australia Ltd., 42 McDougall Street, Milton, Queensland 4064, Australia Wiley-VCH, Boschstrasse 12, D-69469 Weinheim, Germany ISBN 978–1–118–38551–7 (Cloth) ISBN 978–1–118–38553–1 (ePDF) ISBN 978–1–118–38554–8 (Mobi) ISBN 978–1–118–38552–4 (ePub) Typeset in 10/12 pt, ITC Century by MPS Limited, Chennai, India. Printed in Singapore by Ho Printing Pte. Ltd. 10 9 8 7 6 5 4 3 2 1 ffffiirrss..iinndddd iivv 0066//1122//1122 1111::5522 AAMM To my three angels: Shalyn, my beautiful soul mate Chantelle, my vivacious daughter Elliot, my bubbly son Thank you for showing me every day that while the forex market holds the key to abundant wealth, my true treasure is found in the three of you. I love you with all my heart. ffffiirrss..iinndddd vv 0066//1122//1122 1111::5522 AAMM ffffiirrss..iinndddd vvii 0066//1122//1122 1111::5522 AAMM Contents Preface xi Acknowledgments xix PART ONE Forex Is a Game 1 CHAPTER 1 How to Play the Game 3 The Forex Game 3 Forex and the Seven Majors 5 Leverage 11 Summary 14 CHAPTER 2 How Money Is Made in the Game 15 Buy Low, Sell High 15 Three Points in Every Trade 17 Bid/Ask Spread 23 What Causes the Price of Currencies to Fluctuate? 25 Fraction Theory 30 Reading the Charts 31 Market Structure 37 Summary 48 CHAPTER 3 The Six Major Players 51 Central Banks 51 Commercial and Investment Banks 58 vii ffttoocc..iinndddd vviiii 1122//33//1122 77::0022 PPMM viii CONTENTS Multinational Corporations 62 Institutional Traders 68 Retail Forex Brokers 69 Retail Traders 70 Summary 70 CHAPTER 4 Why You Must Play the Game 73 Top 17 Reasons to Trade Forex 73 Summary 84 CHAPTER 5 Play It Your Way: Understanding Your Profile 87 The Experiment 88 Five Categories of Forex Traders 92 Your Perfect Strategy 98 Summary 107 PART TWO Strategies to Win the Game 109 Includes details on the FXPRIMUS 100% bonus trading credit CHAPTER 6 Strategies for Scalpers 111 Strategy 1: Rapid-Fire Strategy 111 Strategy 2: Piranha Strategy 118 CHAPTER 7 Strategies for Day Traders 125 Strategy 3: Fade the Break 126 Strategy 4: Trade the Break 131 Trading the News 138 Strategy 5: Gawk the Talk 143 Strategy 6: Balk the Talk 148 ffttoocc..iinndddd vviiiiii 1122//33//1122 77::0022 PPMM