real and actionable techniques for profiting from the currency markets /
Grace Cheng.
Petersfield, Hampshire :
Harriman House,
2007.
1 online resource (260 pages) :
illustrations
Includes index.
About The Author Preface Introduction PART I -- TRADING FOREX 1. Getting started Unique Characteristics of the Forex Market Investing vs Trading Trading Time Frames Warming Up -- Opening an account -- Currency codes -- Currencies are traded in pairs -- Trade size -- Pips -- Reading forex rates -- Understanding rollover -- What sort of leverage can I get? -- Trading -- Volatility -- Common types of order How to Choose a Broker Forex Trading Is A Serious Business A Day in the Life of a Full-Time Forex Trader 2. Spot Forex Market Structure Market Players -- Banks -- Large companies -- Central banks -- Institutional investors/speculators -- Forex brokers How the OTC Structure Affects Self-Directed Traders Summary 3. How To Overcome The Odds Of Trading Forex Mind -- Do You Have the Mental Strength? -- Fear and Greed -- Face And Control Your Fears -- Focus On the Big Picture Money -- Preserve Your Capital -- Be Well-Capitalized -- Cap Your Losses and Get Your Profits Method -- The old question: technicals or fundamentals? -- Method is malleable Summary 4. The Ten Rules of Trading Forex PART II -- STRATEGIES Strategy 1 -- Market Sentiment What Is Market Sentiment? What Factors Influence Market Sentiment? -- Interest rates -- Economic growth -- Geopolitical risks Ways of Measuring Market Sentiment 1. Commitment Of Traders (COT) report 2. Market's reactions to news Summary Strategy 2 -- Trend Riding Time Frames of Trends Trend Directions Stages of a Trend Using Currency Price Charts -- Trendlines -- Measuring trend strength Technical Execution Of The Strategy Summary Strategy 3 -- Breakout Fading The Crowd Likes to Trade Breakouts Why Most Breakouts Fail Tricks of Institutional Dealers and Traders -- Lack of fresh blood Identifying The Opportunities -- Where potential fakeouts occur -- Chart patterns -- Best market condition to fade breakouts Summary Strategy 4 -- Breakout Trading Types of Breakouts Measuring Reversal Breakouts Identifying the Opportunities -- Where potential breakouts occur -- Chart patterns Filtering False Breakouts Summary Strategy 5 -- Decreased Volatility Breakout The Volatility Rollercoaster Ways of Measuring Volatility 1. Moving average 2. Bollinger bands Triangles -- Identifying the particular type of triangle -- Technical execution of the strategy -- Further strategy enhancement Summary Strategy 6 -- Carry Trade What Is A Carry Trade? More Money Will Follow The Money Factors Supportive Of Carry Trades Risks Involved In Carry Trade Points of Entry Summary Strategy 7 -- News Straddling The Importance of News Market's Reaction to News Identifying the Opportunities Single out market-moving news Note the schedule of news releases Which currency pair to trade for this strategy? Technical considerations Summary Appendices Forex Glossary Currency Codes Major Regulatory Agencies
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Many traders go around searching for that one perfect trading strategy that works all the time in the global FOREX (foreign exchange/currency) market. Frequently, they will complain that a strategy doesn't work. Few people understand that successful trading of the FOREX market entails the application of the right strategy for the right market condition.