Forex Essentials in 15 Trades: The Global-View.com Guide to Successful Currency Trading

346 Pages·2009·4.03 MB·English

by  John Bland

Table of Contents

Title Page
Copyright Page
Dedication
Preface
HOW THIS BOOK IS ORGANIZED
BEYOND THE BOOK: THE GLOBAL-VIEW WEB SITE
READY TO GO
Introduction
ORIGINS OF GLOBAL-VIEW
GOAL OF GLOBAL-VIEW
WHY AN OPEN FOREX FORUM?
FORUM RULES OF BEHAVIOR
HOW TO USE THE FORUMS
GVI FOREX: A SPECIAL FORUM
ADDITIONAL TRADER SUPPORT
AS YOU GO FORWARD

PART ONE - The Basics of FOREX

CHAPTER 1 - An Introduction to FOREX

FOREX FIRST STEPS: WHAT IS IT?
WHY TRADE FOREX?
FOREX TERMS
FOREX CALCULATIONS
MARKET CONVENTIONS
QUOTING CONVENTIONS
ELEMENTS OF A TRADE PLAN
SUMMARY
CHAPTER 2 - The Importance of Money Management

CFTC WARNING
KEY TO SUCCESS AS A TRADER: PRESERVE YOUR CAPITAL
WHAT IS LEVERAGE?
EXAMPLE OF A HYPOTHETICAL TRADE
MONEY MANAGEMENT RULES
USE STOP LOSSES
HOW MUCH TO RISK ON A TRADE
READY TO TRADE?
SUMMARY

CHAPTER 3 - Technical Trading

WHAT IS TECHNICAL ANALYSIS?
TECHNICAL ANALYSIS LANDSCAPE
SUMMARY

CHAPTER 4 - Fundamentals for FOREX Trading

WHAT IS FUNDAMENTAL ANALYSIS?
ALL PRICE MOVES ARE NOT CREATED EQUAL
INTEREST RATES
TYPICAL FUNDAMENTAL MARKET FRAMEWORKS
TRADING IN A CRISIS ECONOMY
SUMMARY

CHAPTER 5 - Trading the News

CAVEAT EMPTOR (LET THE BUYER BEWARE)
MARKET ORDERS
TRADING THE NEWS—COMPLEX AND RISKY
DO YOUR HOMEWORK
POPULAR RELEASES FOR NEWS TRADERS
SUMMARY
CHAPTER 6 - Trader Profiles Good Traders, Bad Traders

WHAT IS YOUR TRADER PROFILE?
GOOD TRADER VERSUS BAD TRADER
SUMMARY

CHAPTER 7 - Selecting a FOREX Broker

BROKER-DEALER DUE DILIGENCE
THE FIRST DECISION: MARKET MAKER OR ELECTRONIC
COMMUNICATIONS NETWORK?
BROKER-DEALER SPOTLIGHT
THIRD-PARTY SERVICES
AFTER THE DEMO ACCOUNT
SUMMARY

PART TWO - 15 Trades and Their Stories
CHAPTER 8 - Heuristic-Based Trading

THE SNOWFLAKE TRADING HEURISTIC
A KIS (KEEP IT SIMPLE) SYSTEM
SUMMARY

CHAPTER 9 - Trade #1: A Symphony of Numbers

THE SIX COMPONENTS OF MONEY MANAGEMENT
THE CAMPAIGN TRADING METHOD
ANALYZING THE TRADE
SUMMARY

CHAPTER 10 - Trade #2: Know When to Hold Them

THE BOUNCE
ANALYZING THE TRADE
SUMMARY

CHAPTER 11 - Trade #3: Scaling the Wall

THE DAGGER
ANALYZING THE TRADE
MARKET THICKNESS
SUMMARY

CHAPTER 12 - Trade #4: The Trend Is Your Friend

TREND COMPONENTS
THE MATRIX
HOW DO YOU DETERMINE THE MAJOR TREND?
MARKET ENVIRONMENTS
ANALYZING THE TRADE
SUMMARY

CHAPTER 13 - Trade #5: Don’t Be a Flatlander

THE THREE CHART SYSTEM
THE IMPORTANCE OF PERSPECTIVE
ANALYZING THE TRADE
SUMMARY

CHAPTER 14 - Trade #6: Sit On Your Hands

TRADING VERSUS HOLDING
ANALYZING THE TRADE
SUMMARY

CHAPTER 15 - Trade #7: The Search for a Winning Personality

TRADING TO WIN
USING DEMO ACCOUNTS TO ACHIEVE STABILITY
MARKET PERSONALITIES
ANALYZING THE TRADE
SUMMARY

CHAPTER 16 - Trade #8: The King Kong Syndrome

FEAR AND GREED
DISCRETE VERSUS CONTINUOUS MARKETS
ANALYZING THE TRADE
SUMMARY

CHAPTER 17 - Trade #9: The Return of the Return

ORIGINS OF THE RETURN TRADE
ANALYZING THE TRADES
SUMMARY

CHAPTER 18 - Trade #10: Double Your Pleasure with Double Intersections

CLASSIC CHART FORMATIONS
DOUBLE INTERSECTION COMPONENTS
ANALYZING THE TRADE
SUMMARY

CHAPTER 19 - Trade #11: Riding the (Goodman) Wave

DEFINING THE GOODMAN WAVE
BATHTUB ANALYSIS
ANALYZING THE TRADE
SUMMARY

CHAPTER 20 - Trade #12: I’ve Got Rhythm

TWO KINDS OF MARKET RHYTHM
ANALYZING THE TRADE
SUMMARY

CHAPTER 21 - Trade #13: A Simple System
HISTORY OF SIMPLE SYSTEMS
WHEN A SIMPLE SYSTEM BECOMES COMPLEX
ANALYZING THE TRADE
SUMMARY

CHAPTER 22 - Trade #14: A News Trade

WHAT IS TECHNICAL NEWS TRADING?
CHALLENGES OF NEWS TRADING
A NEWS TRADING STRATEGY
ANALYZING THE TRADE
SUMMARY

CHAPTER 23 - Trade #15: I Read about It on Global-View

FOREX FOR FUNDAMENTAL TRADERS
ECONOMETRICS
THE MUNDO
ANALYZING THE TRADE
SUMMARY

PART THREE - Selected Readings
CHAPTER 24 - Currency Futures Trading Basics

HOW DO FOREX FUTURES TRADING PRICES RELATE TO
THOSE IN THE CASH FOREX MARKET?
WHERE, THEN, DO THE FORWARDS COME FROM?

CHAPTER 25 - FOREX Lessons from Shanghai BC

TRADING: A MIND GAME
BC’S WORDS OF WISDOM
TREND TRADING: ACCUMULATION AND DISTRIBUTION
TECHNICALS AND CHARTING
USING CROSSES AND GOLD
USING STOPS
USD/JPY HINTS
REACTING TO NEWS
FAIR VALUE
DIFFERENT CENTERS
A WORD FOR NEW TRADERS
QUIPS FROM BC

CHAPTER 26 - Introducing the Mundo—The Synthetic Global Spot Currency

TRANSITIVITY AND EQUILIBRIUM
USAGE
FOREX BETA
SUMMARY

CHAPTER 27 - A New Introduction to the Goodman Swing Count System

THE GSCS RULES
GSCS PRINCIPLES

CHAPTER 28 - Market Environment (ME) Applications

PRIMARY MARKET ENVIRONMENT ELEMENTS
SECONDARY ME ELEMENTS
TERTIARY ME ELEMENTS
ME PROFILES
ME SYSTEM DEVELOPMENT
OTHER ME APPLICATIONS
BATHTUB ANALYSIS
SUMMARY
APPENDIX: SAMPLE VISUAL BASIC SOURCE CODE FOR DM
AND V
APPENDIX A - Common Sense Guidelines for the Average Trader
APPENDIX B - Resources for the FOREX Trader
APPENDIX C - World Currencies and Symbols
APPENDIX D - Time Zones and Global Banking Hours
Glossary
About the Authors
Index
Founded in 1807, John Wiley & Sons is the oldest independent publishing
company in the United States. With offices in North America, Europe, Australia
and Asia, Wiley is globally committed to developing and marketing 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 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.
For a list of available titles, visit our Web site at www.WileyFinance.com.