The sensible guide to Forex safer, smarter ways to survive and prosper from the start
"The traders' guide to making the most of one the hottest areas in finance: Forex tradingStart Trading Forex Right Now is the accessible introduction to one of today's most convenient way to make money written by a trader for traders. Forex offers some of the best reward/risk opportun...
| Autor principal: | |
|---|---|
| Formato: | Libro electrónico |
| Idioma: | Inglés |
| Publicado: |
Hoboken, New Jersey :
Wiley
2012.
|
| Colección: | Wiley ebooks.
Wiley trading series. |
| Acceso en línea: | Conectar con la versión electrónica |
| Ver en Universidad de Navarra: | https://innopac.unav.es/record=b46117842*spi |
Tabla de Contenidos:
- The Sensible Guide to Forex
- Contents
- Read This First
- Currency Risk: Every Investor's Dilemma
- Currency Risk and How to Fight It
- The Solution
- Some Background
- Why Any Trader or Investor Needs This Book
- What This Book Offers
- Why Listen to You, Cliff?
- Visit thesensibleguidetoforex.com for Additional Online Content
- Acknowledgments
- CHAPTER 1 Three Must-Know Forex Facts
- Fact 1: Everyone Needs Forex Diversification Even if You Don't Trade Actively
- You're Exposed: Cover Your Assets
- Even Long-Term Buy-and-Hold Investors Need Forex Diversification
- Fact 2: Potential for Better Risk-Adjusted Returns
- Forex Markets Often Provide Advanced Warnings of Changes in Other Markets
- Forex Needn't Be Any Riskier Than Other Markets
- No Uptick Rule: Just as Easy to Profit in a Falling Market as in a Rising One
- Low Correlation to Other Financial Markets
- The Most Flexible Hours
- Forex Markets Offer the Best Liquidity
- No Centralized Exchange with Specialists Holding Monopoly Power to Regulate Prices
- Less Slippage
- The Best Risk/Reward Potential
- The Lowest Startup and Trading Costs
- Fact 3: You Can Do This
- How Can I Compete against the Pros and Big Institutions?
- How David Beats Goliath: More on What This Book Will and Won't Do
- What's the Catch?
- Most Traders Fail within Their First Two Years
- CHAPTER 2 Forex Basics
- Basics of Currencies and Currency Pairs
- Trade Only the Most Liquid Currencies
- The Major Currencies
- Risk versus Safe Haven Currencies: Definition and Ranking
- Currencies Trade in Pairs and Why That Matters
- Price Movements Are Always Relative to Another Currency
- It's Just as Easy to Profit in Bear Markets as in Bull Markets
- How to Read a Forex Pair Price Quote
- Summary of Currency Pair Basics
- Why It's Just as Easy to Profit from Falling Prices.
- Size Matters: Types of Currency Pairs
- The Major Currency Pairs: The Most Liquid
- More on Risk and Safe Haven Currencies
- The Signs of the Crosses: Divine Revelations about Currency Strength
- Walk on the Wild Side: The Exotics
- Pips: The Universal Currency of Currencies
- Calculating Pip Values
- Three Ways to Limit Risk: Lot Size Usually the Easiest
- Leverage and Margin: Their Relationship and Impact on Risk
- Leverage: Greater Risk and Reward
- Permitted Leverage Varies with Place and Time
- How Margin, Lot Size, and Leverage Interact
- The Importance of Adequate Capital
- Margin Calls: Your account's Circuit Breaker
- Order Types
- Exit Orders: Ways to Close a Position
- The Three Facets of Risk and Risk Control
- Example
- The Core Four: The Most Important Skills for Success
- Trader Psychology
- Risk and Money Management (RAMM)
- Technical and Fundamental Analysis
- CHAPTER 3 Technical Analysis (TA) Basics
- Candle Chart Basics
- Candle Anatomy and Meaning
- Relationship between Body, Wick, and Its Significance
- Support and Resistance (S/R) Basics
- Candle Chart Time Frames: Length Matters
- Different Time Frames, Different Trading Techniques, and Styles
- Different Time Frames, Different Trends
- Identifying Support and Resistance (S/R) to Buy Low, Sell High, or Vice Versa
- Definitions of S/R Are Reversed for Long and Short Positions
- The General Rule for Identifying Low-Risk High-Yield Trades
- Finding S/R Is Key to Identifying and Executing Low-Risk High-Yield Trades
- Good Risk Management Requires Good TA
- Think of S/R as Zones or Areas
- So Stick to Trading Longer Time Frames-They're Safer
- Reasons to Consider Using Multiple Entry and Exit Points
- Once Broken, Resistance Becomes Support and Vice Versa
- Don't "OD" on TA
- Why Specialize in a Few Currency Pairs and Time Frames?
- What Determines Whether a Currency Is a Risk or a Safe Haven?
- CHAPTER 4 Technical Analysis: Types of Support and Resistance (S/R)
- Price Levels
- For Lowest Risk, Enter Near Strong Support
- What Makes Some S/R Points Stronger Than Others?
- Longer Time Frames Offer More Reliable S/R Indicators
- Check Shorter Time Frames to Detect Interim S/R Levels
- Trends and Trend Lines
- Trends Vary with Time Frame
- Defining Trends, and Constructing Trend Lines
- Types of Trend Lines
- Single Uptrend or Downtrend Lines
- Channels: Better Than Single Trend Lines
- Moving Averages (MAs)
- Fibonacci Retracements (Fibs): These Fibs Don't Lie
- Applying Fibs to Your Charts
- Fibs within Fibs
- Bollinger Bands (BBs): Use as S/R in Range-Bound Markets
- Support/Resistance (S/R) for Flat or Gently Sloping Trends: The Bollinger Bounce
- Bollinger Bands Don't Provide Meaningful S/R with Strong Trends
- Introduction to Japanese Candle Chart Patterns
- More Key Points about Japanese Candle Patterns
- Context and Timing Matter
- Introduction to Western Chart Patterns
- Classic Western Reversal Patterns
- Beware False Breakouts, Shake Outs, and Other Fake Outs
- Other Reversal Patterns to Know
- Classic Western Continuation Patterns
- We Repeat: False Breakouts Happen
- Other Continuation Patterns
- Patterns That Can Be Continuation or Reversal
- The Underlying Logic of Chart Patterns
- The More S/R Indicators, the Better
- Multiple Mutually Reinforcing S/R Indicators: An Example
- CHAPTER 5 Trader Psychology and Risk and Money Management (RAMM)
- RAMM: Preserving Capital Is Your Top Priority
- The Inner Game: Trader Psychology Basics
- Lesson 1: Seek Trading Styles and Methods That Fit You
- Lesson 2: Basics of the Trader's Mindset-Minimizing and Accepting Risk
- Lesson 3: Dealing with Losing and Winning Streaks.
- Why Trade Longer Time Frames
- Seek Safer Trading Styles
- As with Driving, Speed Kills
- A More Level Playing Field
- More and Better Information Means Better Trade Decisions
- Trends Are More Reliable in Longer Time Frames
- Ideal Trends For Long-Term Investors
- Other Technical Indicators Are Better in Longer Time Frames
- Publicly Available Fundamental Data and Analysis Matters in Longer Time Frames
- Lower Trading Costs
- Start Out with Longer Duration Trades
- Content Quality: The Sign of a Quality Broker
- The Essence of Good RAMM
- The Three Pillars of RAMM
- Account Size and Affordable Loss per Trade
- Setting Stop Losses: Basic Technique and Psychology
- Where to Set Stop Losses: Two Criteria
- More Capital Allows Wider Stop Losses and a Wider Choice of Low-Risk Trade Opportunities
- Balancing Risk versus the Need to Win
- Method 1: Recent Range
- Method 2: Average True Range (ATR)
- So How Much Capital Is Enough?
- Leverage and Margin
- Position Sizing
- Avoid Having Too Many Open Positions
- Entries Near Strong Support, Exits Near Strong Resistance
- Entries
- Exits: Use Trailing Stops to Protect and Maximize Gains
- Entries and Exits: Single versus Multiple
- Risk-Reward Ratios (RRRs)
- Example: How 1:3 RRRs Make Winners Out of Losers
- Example: How 1:2 Risk-Reward Ratios Make Winners Out of Losers
- Applying 1:3 RRR: An Example
- Acceptable RRR Can Vary with Market Conditions
- More on Stop Loss Orders: An Example of Using ATR to Gauge Volatility and Place a Fixed or Trailing Stop Loss Order
- If You Fail to Plan, You Plan to Fail
- What's Your Rationale for Taking This Trade?
- No. 1: Plan Every Trade and Record It in a Journal
- Sample Trade Rationale as Recorded in Journal
- No. 2: Your Overall Business Plan
- What Conditions Do You Need for Success?
- Safety in Numbers: Build a Team.
- CHAPTER 6 Essentials of Fundamental Analysis
- Using Fundamental Analysis (FA) and Technical Analysis (TA) Together
- An Overview of FA: Main Fundamental Drivers of Forex Trends
- Overall Risk Appetite
- Short-Term Interest Rates
- Macroeconomic Data and Indicators
- Example: EURUSD Uptrend Reverses in Late 2009 as Data Show Europe Slows, U.S. Grows
- Geopolitics
- Capital and Trade Flows
- Merger and Acquisition (M & A) Activity
- Short-Term Illiquidity: A Lack of Buyers and Sellers
- Government and Central Bank Special Interventions in Times of Crisis
- News Trading: Day Trading Based on Short-Term Fundamentals
- What News Traders Watch
- FA Basics: Easy to Understand and Hard to Apply
- Therefore, Get Thee to an Analyst
- Combining FA and TA: An Example
- CHAPTER 7 Pulling It All Together with Trade Examples
- Identifying and Executing Low-Risk, High Potential Yield Trades
- Begin Your Search On Longer Time Frame Charts, Then Zoom In
- Consider the Fundamental Context
- Initial Screening on Longer Time Frame Charts
- Second Screening
- Third Screening to Monitor Trade Progress
- Types of Trades
- Trade Example 1: A Swing Trade
- Initial Screening
- Second Screening
- RRR Evaluation
- Conclusion: We Take the Trade
- Trade Postmortem: What Happened
- Trade Example 2: A Breakout Trade
- First Screening
- Second Screening
- RRR Evaluation
- Conclusion: Know When to Walk Away
- Trade Postmortem: Was I Right?
- More Key Trader Psychology: Distinguishing between Good Trades and Winning Trades
- CHAPTER 8 Technical Analysis: Basic Momentum Indicators
- Double Bollinger Bands (DBBs)-Use as Momentum Indicators
- DBB Basics
- The Four Rules for Using Double Bollinger Bands
- Combine DBBs with a Leading Indicator
- DBBs: Conclusion and Summary
- Moving Average Crossovers
- Price Crosses Over or Under a Moving Average.
