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

by John Bland; Jay M. Meisler; Michael D. Archer

• ISBN13: 9780470471272
• ISBN10: 0470471271
• Format: eBook
• Copyright: 2009-03-01
• Publisher: Wiley

Summary

Traders are constantly learning their craft. Those who do not share information, discuss tactics and review prior trades are doomed for failure. Global-View.com knows this. It is the leading destination for Forex traders looking to learn and discuss trading. With over 33,000 registered users from 125 countries, Global-View.com exposes its users to an incredible base of knowledge.In this book, the authors dissect each of 15 chosen trades, using the material to expose some of the best (and worst) practices of a Forex trader. The book weaves a plethora of Global-View.com information into the detailed dissection. Each description will include how the trade was selected and why it was made, as well as money management and psychological aspects of the trade. Entertaining anecdotal stories are interspersed throughout each trade story.

Table of Contents

Preface

How This Book Is Organized

Beyond the Book: The GVI Forums

Ready to Go

Introduction

Origins of Global-View

The Goals of Global-View

Why an Open FOREX Forum?

Forum Rules of Behavior

How to Use the Forums

GVI Professional: A Special Forum

Additional Trader Support

As You Go Forward

The Basics of FOREX

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

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

Technical Trading

What is Technical Analysis?

The Technical Analysis Landscape

Summary

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

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

Trader Profiles Good Traders, Bad Traders

What Is Your Trader Profile?

Good Trader versus Bad Trader

Summary

Selecting a FOREX Broker

Broker-Dealer Due Diligence

The First Decision: Market-Maker or Electronic Communications Network (ECN)?

Broker-Dealer Spotlight

Third-Party Services

After the Demo Account

Summary

15 Trades and Their Stories

Heuristic-Based Trading

The Snowflake Trading Heuristic

A KIS (Keep It Simple) System

Summary

Trade #1: A Symphony of Numbers Money Management

The Six Components of Money Management

The Campaign Trading Method

Analyzing the Trade

Summary

Trade #2: Know When to Hold ThemàMoney Management

The Bounce

Analyzing the Trade

Summary

Trade #3: Scaling the Wall Money Management

The Dagger

Analyzing the Trade

Market Thickness

Summary

Trade #4: The Trend is Your Friend Money Management

Trend Components

The Matrix

How Do You Determine the Major Trend?

Market Environments

Analyzing the Trade

Summary

Trade #5: Don't be a Flatlander Money Management

The Three Chart System

The Importance of Perspective

Analyzing the Trade

Summary

Trade #6: Sit on Your Hands Psychology

Trading Versus Holding

Analyzing the Trades

Summary

Trade #7: The Search for a Winning Personality Psychology

Trading to Win

Using Demo Accounts to Achieve Stability

Market Personalities

Analyzing the Trade

Summary

Trade #8: The King Kong Syndrome Psychology

Fear and Greed

Discrete versus Continuous Markets

Analyzing the Trade

Summary

Trade #9: The Return of the Return Technical Analysis

The Origins of the Return Trade

Analyzing the Trade

Summary

Trade #10: Double Your Pleasure with Double Intersections Technical Analysis

Classic Chart Formations

The Double Intersection Components

Analyzing the Trade

Summary

Trade #11: Riding the (Goodman) Wave Technical Analysis

Defining the Goodman Wave

Bath Tub Analysis

Analyzing the Trade

Summary

Trade #12: I've Got Rhythm Technical Analysis

Two Kinds of Market Rhythm

Analyzing the Trade

Summary

Trade #13: A Simple System Technical Analysis

The History of Simple Systems

When a Simple System Becomes Complex

Analyzing the Trade

Summary

Trade #14: A News Trade Fundamental Analysis

What is Technical News Trading?

The Challenges of News Trading

A News Trading Strategy

Analyzing the Trade

Summary

Trade #15: I Read About it on Global-View Fundamental Analysis

Forex for Fundamental Traders

Econometrics

The Mundo

Analyzing the Trade

Summary

Selected Readings

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?

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

Introducing the Mundo-The Synthetic Global Spot Currency

Transitivity and Equilibrium

Usage

FOREX Beta

Summary

A New Introduction to GSCS The Goodman Swing Count System

The GSCS Rules

GSCS Principles

Market Environment (ME) Applications

Primary ME 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

Common Sense for Traders Checklist

Resources for the FOREX Trader

List of World Currencies and Symbols

Time Zones and Global Banking Hours

Glossary

About the Authors

Index

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