Forex Essentials in 15 Trades™ √PDF √eBook Download

330 Pages·2009·7.27 MB·English

Forex
Essentials in
15 Trades

P1:JYS
FM JWBT057-Bland January23,2009 13:3 Printer:Yettocome
Contents
Preface xv
HowThisBookIsOrganized xv
BeyondtheBook:TheGlobal-ViewWebSite xvii
ReadytoGo xviii
Introduction xix
OriginsofGlobal-View xix
GoalofGlobal-View xx
WhyanOpenFOREXForum? xxi
ForumRulesofBehavior xxii
HowtoUsetheForums xxiii
GVIForex:ASpecialForum xxiv
AdditionalTraderSupport xxv
AsYouGoForward xxv
PART ONE The Basics of FOREX 1
CHAPTER 1 An Introduction to FOREX 3
FOREXFirstSteps:WhatIsIt? 6
WhyTradeFOREX? 7
FOREXTerms 8
FOREXCalculations 11
MarketConventions 16
QuotingConventions 16
ElementsofaTradePlan 18
Summary 19
vii
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viii CONTENTS
CHAPTER 2 The Importance of Money Management 21
CFTCWarning 22
KeytoSuccessasaTrader:PreserveYourCapital 22
WhatIsLeverage? 23
ExampleofaHypotheticalTrade 24
MoneyManagementRules 25
UseStopLosses 27
HowMuchtoRiskonaTrade 28
ReadytoTrade? 29
Summary 31
CHAPTER 3 Technical Trading 33
WhatIsTechnicalAnalysis? 35
TechnicalAnalysisLandscape 35
Summary 47
CHAPTER 4 Fundamentals for FOREX Trading 49
WhatIsFundamentalAnalysis? 49
AllPriceMovesAreNotCreatedEqual 50
InterestRates 51
TypicalFundamentalMarketFrameworks 57
TradinginaCrisisEconomy 60
Summary 61
CHAPTER 5 Trading the News 63
CaveatEmptor(LettheBuyerBeware) 64
MarketOrders 65
TradingtheNews—ComplexandRisky 65
DoYourHomework 66
PopularReleasesforNewsTraders 67
Summary 71
CHAPTER 6 Trader Profiles 73
WhatIsYourTraderProfile? 73
GoodTraderversusBadTrader 75
Summary 77
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CHAPTER 7 Selecting a FOREX Broker 81
Broker-DealerDueDiligence 82
TheFirstDecision:MarketMakerorElectronic
CommunicationsNetwork? 82
Broker-DealerSpotlight 83
Third-PartyServices 92
AftertheDemoAccount 92
Summary 95
PART TWO 15 Trades and Their Stories 97
CHAPTER 8 Heuristic-Based Trading 99
TheSnowflakeTradingHeuristic 100
AKIS(KeepItSimple)System 105
Summary 106
CHAPTER 9 Trade #1: A Symphony of Numbers 111
TheSixComponentsofMoneyManagement 111
TheCampaignTradingMethod 113
AnalyzingtheTrade 114
Summary 115
CHAPTER 10 Trade #2: Know When to Hold Them ... 117
TheBounce 117
AnalyzingtheTrade 123
Summary 124
CHAPTER 11 Trade #3: Scaling the Wall 125
TheDagger 125
AnalyzingtheTrade 126
MarketThickness 128
Summary 128
CHAPTER 12 Trade #4: The Trend Is Your Friend 129
TrendComponents 130
TheMatrix 130
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HowDoYouDeterminetheMajorTrend? 131
MarketEnvironments 132
AnalyzingtheTrade 133
Summary 134
CHAPTER 13 Trade #5: Don’t Be a Flatlander 135
TheThreeChartSystem 135
TheImportanceofPerspective 137
AnalyzingtheTrade 137
Summary 138
CHAPTER 14 Trade #6: Sit On Your Hands 139
TradingversusHolding 140
AnalyzingtheTrade 141
Summary 142
CHAPTER 15 Trade #7: The Search for a Winning
Personality 145
TradingtoWin 145
UsingDemoAccountstoAchieveStability 146
MarketPersonalities 146
AnalyzingtheTrade 147
Summary 148
CHAPTER 16 Trade #8: The King Kong Syndrome 149
FearandGreed 149
DiscreteversusContinuousMarkets 151
AnalyzingtheTrade 152
Summary 153
CHAPTER 17 Trade #9: The Return of the Return 155
OriginsoftheReturnTrade 155
AnalyzingtheTrades 156
Summary 159
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CHAPTER 18 Trade #10: Double Your Pleasure
with Double Intersections 161
ClassicChartFormations 161
DoubleIntersectionComponents 162
AnalyzingtheTrade 162
Summary 164
CHAPTER 19 Trade #11: Riding the (Goodman) Wave 165
DefiningtheGoodmanWave 165
BathtubAnalysis 166
AnalyzingtheTrade 166
Summary 168
CHAPTER 20 Trade #12: I’ve Got Rhythm 171
TwoKindsofMarketRhythm 171
AnalyzingtheTrade 172
Summary 173
CHAPTER 21 Trade #13: A Simple System 175
HistoryofSimpleSystems 175
WhenaSimpleSystemBecomesComplex 176
AnalyzingtheTrade 178
Summary 179
CHAPTER 22 Trade #14: A News Trade 181
WhatIsTechnicalNewsTrading? 181
ChallengesofNewsTrading 182
ANewsTradingStrategy 183
AnalyzingtheTrade 184
Summary 185
CHAPTER 23 Trade #15: I Read about It on
Global-View 187
FOREXforFundamentalTraders 187
Econometrics 188
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TheMundo 188
AnalyzingtheTrade 190
Summary 192
PART THREE Selected Readings 193
CHAPTER 24 Currency Futures Trading Basics 195
HowDoFOREXFuturesTradingPricesRelatetoThoseinthe
CashFOREXMarket? 195
Where,Then,DotheForwardsComeFrom? 196
CHAPTER 25 FOREX Lessons from Shanghai BC 199
Trading:AMindGame 199
BC’sWordsofWisdom 201
TrendTrading:AccumulationandDistribution 202
TechnicalsandCharting 203
UsingCrossesandGold 205
UsingStops 206
USD/JPYHints 207
ReactingtoNews 208
FairValue 208
DifferentCenters 209
AWordforNewTraders 210
QuipsfromBC 210
CHAPTER 26 Introducing the Mundo—The
Synthetic Global Spot Currency 211
TransitivityandEquilibrium 213
Usage 215
FOREXBeta 216
Summary 219
CHAPTER 27 A New Introduction to the Goodman
Swing Count System 221
TheGSCSRules 226
GSCSPrinciples 242
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Contents xiii
CHAPTER 28 Market Environment (ME) Applications 247
PrimaryMarketEnvironmentElements 248
SecondaryMEElements 250
TertiaryMEElements 256
MEProfiles 257
MESystemDevelopment 259
OtherMEApplications 259
BathtubAnalysis 260
Summary 261
Appendix:SampleVisualBasicSourceCodeforDMandV 261
APPENDIX A Common Sense Guidelines for the
Average Trader 263
APPENDIX B Resources for the FOREX Trader 265
APPENDIX C World Currencies and Symbols 269
APPENDIX D Time Zones and Global Banking Hours 275
Glossary 277
About the Authors 289
Index 291