Description
Book SynopsisThe foreign-exchange market is often referred to as the Slaughterhouse where novice traders go to get ''chopped up''. It is one of egos and money, where millions of dollars are won and lost every day and phones are routinely thrown across hectic trading desks. This palpable excitement has led to the explosion of the retail FX market, which has unfortunately spawned a new breed of authors and gurus more than happy to provide misleading and often downright fraudulent information by promising traders riches while making forex trading ''easy''.
Well I''ll let you in on a little secret: there is nothing easy about trading currencies. If you don''t believe me then stop by Warren Buffet''s office and ask him how he could lose $850m betting on the dollar or ask George Soros why his short yen bets cost him $600m not once but twice in 1994. What''s wrong with these guys, don''t they read FX books?
In reality, the average client''s trading approach combined with the unsc
Trade Review"...could help novices avoid much of the pain...a brutall honest appraisal of how currency markets work." (Investors Chronicle, April 24th 2009)
Table of ContentsAcknowledgments ix
Introduction xi
Part I Through the Eyes of a Trader 1
1 On Markets 3
2 The Currency Market 9
3 A Rare Breed 13
4 FX Dealers 19
5 Today’s FX Market 23
6 The Players 27
Part II The Retail Side of Things 33
7 Card Stacking 35
8 Don’t Trust Your FCM 43
9 Third-Party Services 47
10 Fighting Back 51
Part III Joining the 10% 55
11 Becoming a Great Trader 57
12 Picking the Right Approach 63
Part IV FX Trading Tips 73
13 Adapting to the FX Market 75
14 Trading Thin Markets 83
15 Using the Crosses 87
16 All About Stops 93
17 Characteristics of FX Trends 97
18 Trading the FED 103
19 Fading News 109
20 FX Analysts: Who Cares? 113
Part V Dealer Trades 117
21 Trading Against Dealers 119
22 The Big Figure Trade 123
23 The Friday to Sunday Extension 131
24 Sticking it to Your Dealer 137
Part VI The Future 143
25 The End of the Beginning 145
Appendix Trading “How To’s” 149
How to Set Up Your Trading 151
How to Trade Price Action 157
How to Build a Position 163
How to Trade Out of a Losing Position 169
Notes 177
Speaking Like a Dealer 179
FX Glossary 181
Trading Maxims 189
Bibliography 191
CFTC Minimum Finance Requirement 193
Index 209
