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Getting Started in Currency Trading, + Companion Website: Winning in Today's Market, 4th Edition

Book Description

The definitive introduction to FOREX trading

Getting Started in Currency Trading, Fourth Edition is both an introduction and a reference manual for beginning and intermediate traders. Starting with a description of the Foreign Exchange (FOREX) market and a brief history, the book includes an invaluable section made up of relevant FOREX terms clearly defined using examples. The FOREX market has grown substantially and evolved dramatically in recent years, and this new edition is designed to help the reader to adapt and take advantage of these changes.

Including coverage of how to open a trading account, a step-by-step walk through the physical processes of placing and liquidating currency orders, and information on trading strategy and tactics complete with fundamental and technical analysis, the book has everything needed to assist the trader in the decision making process.

  • New edition is revised and expanded to take into account all of the recent changes in the currency market

  • Now includes a step-by-step introduction for the new trader and additional material on regulation

  • FOREX arithmetic calculations are presented in a clear, easy to understand way

  • Recommendations, guidelines, and caveats appear throughout the book

This new edition of Getting Started in Currency Trading contains significant new information, including a chapter on computers and FOREX, managed FOREX, and new information about regulation, alongside the author's successful trading plan, designed to help the reader put it all together.

Table of Contents

  1. Cover
  2. Series
  3. Title Page
  4. Copyright
  5. Dedication
  6. Acknowledgments
  7. Introduction
    1. About This Book
    2. The Fourth Edition
    3. How This Book Is Organized
    4. You Are Here
    5. Website
    6. Disclaimer
  8. Part 1: The Foreign Exchange Markets
    1. Chapter 1: The World of FOREX
      1. Introduction—What Is FOREX?
      2. What Is a Spot Market?
      3. Which Currencies Are Traded?
      4. Who Trades on the Foreign Exchange?
      5. How Are Currency Prices Determined?
      6. When Do Currencies Trade?
      7. How Is Money Made in FOREX?
      8. Why Trade Foreign Currencies?
      9. What Tools Do I Need to Trade Currencies?
      10. What Does It Cost to Trade Currencies?
      11. FOREX versus Equities
      12. FOREX versus Futures
      13. Summary
    2. Chapter 2: A Brief History of Currency Trading
      1. Introduction
      2. Ancient Times
      3. The Gold Standard, 1816 to 1933
      4. The Federal Reserve
      5. Securities and Exchange Commission, 1933 to 1934
      6. The Bretton Woods System, 1944 to 1973
      7. The End of Bretton Woods and the Advent of Floating Exchange Rates
      8. International Monetary Market
      9. Into the Millennium
      10. Arrival of the Euro
      11. The CFTC and the NFA
      12. Summary
    3. Chapter 3: Five FOREX Markets
      1. Introduction—Spot, Futures, Forwards, Options, Spread Betting
      2. Currency Futures
      3. Contract Specifications
      4. Currencies Trading Volume
      5. U.S. Dollar Index
      6. Volume and Open Interest
      7. Where to Trade Currency Futures
      8. FOREX Futures
      9. Summary
    4. Chapter 4: Regulation: Past, Present, and Future
      1. Introduction
      2. Regulation in the FOREX Market
      3. Regulation Past
      4. Regulation Present
      5. Regulation Future
      6. Summary
  9. Part 2: Getting Started
    1. Chapter 5: The Language of FOREX
      1. Introduction
      2. Currency Pairs
      3. Major and Minor Currencies
      4. Cross Currency
      5. Exotic Currency
      6. Base Currency
      7. Quote Currency
      8. Pips
      9. Ticks
      10. Margin
      11. Leverage
      12. Bid Price
      13. Ask Price
      14. Bid-Ask Spread
      15. Quote Convention
      16. Market Maker and ECN
      17. Transaction Cost
      18. Rollovers
      19. Correlation
      20. Summary
    2. Chapter 6: FOREX by the Numbers
      1. Introduction
      2. Pips
      3. Profit and Loss
      4. Margin
      5. Leverage
      6. The Bid-Ask Spread
      7. Profit Threshold
      8. For Futures Traders
      9. Summary
    3. Chapter 7: A Guide to FOREX Trading Platforms
      1. Introduction
      2. Trading Platform Features
      3. More Trading Platforms
      4. Professional FX Platforms
      5. Trading Platform Checklist
      6. A Kid in the Candy Store
      7. Summary
    4. Chapter 8: Selecting a FOREX Broker
      1. Introduction
      2. Broker-Dealer Due Diligence
      3. Demo Accounts
      4. Market Maker or ECN?
      5. Costs
      6. Liquidity Providers
      7. Customer Service
      8. Trading Pair Palette
      9. Financial Stability
      10. Complaint and Error Resolution
      11. Account Options
      12. Games Brokers Play
      13. Top Broker-Dealers
      14. Popular Broker-Dealers
      15. The Big Four Broker-Dealers
      16. For the Professional and Non-U.S. Trader
      17. Spread Betting
      18. Fraud, Scams, and Off-Exchange
      19. Broker-Dealer Checklist
      20. Summary
    5. Chapter 9: How to Open a FOREX Account
      1. Introduction
      2. The Demo Account
      3. The Live Account
      4. Redundancy
      5. Summary
    6. Chapter 10: Making the Trade
      1. Introduction
      2. Orders
      3. Market Orders
      4. Limit Orders
      5. Stop Orders
      6. Combination Orders
      7. Specialty Orders
      8. Order Placement
      9. Order Execution
      10. Order Confirmation
      11. Open Orders
      12. Open a Demo Account
      13. Summary
  10. Part 3: The Trader’s Arsenal
    1. Chapter 11: The FOREX Marketplace
      1. Introduction
      2. Portals and Forums
      3. Broker-Dealer Reviews
      4. Educational Resources
      5. News and Calendars
      6. Management Tools
      7. System Development Tools
      8. Data Services
      9. Programming Services
      10. Advisory Services
      11. References, Periodicals, and Books
      12. Fun Stuff
      13. Summary
    2. Chapter 12: Technical Analysis
      1. Introduction
      2. Bar Charts
      3. Trendlines
      4. Support and Resistance
      5. Recognizing Chart Patterns
      6. Reversal Patterns
      7. Continuation Patterns
      8. Candlestick Charts
      9. Point and Figure Charts
      10. Charting Caveat—Prediction versus Description
      11. Indicators and Oscillators
      12. Relative Strength Indicator
      13. Momentum Analysis
      14. Moving Averages
      15. Bollinger Bands
      16. Indicator Caveat—Curve-Fit Data
      17. Wave and Swing Analysis
      18. Cycle Analysis
      19. Trading Systems
      20. The Technician’s Creed
      21. The Technician’s Caveat
      22. Summary
    3. Chapter 13: News Trading
      1. Introduction
      2. Fundamental Analysis
      3. Fundamental Problems
      4. Fundamental Factors
      5. A Fundamental Discussion
      6. Forex News
      7. Key News Releases
      8. Reality versus Expectation
      9. News Trading
      10. Shockwave Analysis
      11. Strategy and Tactics of News Trading
      12. Summary
  11. Part 4: Winning Is the Name of the Game
    1. Chapter 14: Trading Spaces
      1. Introduction
      2. Charts, Bars, and Trading Spaces
      3. Trading Profiles
      4. Selecting a Trading Profile
      5. The Market as a Process
      6. Summary
    2. Chapter 15: Setting Up Shop
      1. Introduction
      2. The Plan Components
      3. The Trading Platform Plan
      4. Pre-Trade Plan
      5. Trading Session Plan
      6. Pulling the Trigger
      7. Post-Trade Plan
      8. Summary
    3. Chapter 16: A Simple System
      1. Introduction
      2. General Principles
      3. A KIS Toolbox
      4. A Simple System
      5. Not So Simple
      6. Pairs to Trade
      7. Summary
  12. Part 5: The Goodman Method of Trading
    1. Chapter 17: Goodman Wave Theory
      1. Introduction
      2. The Basic Market Paradigm
      3. Goodman Wave Theory
      4. The Basic Goodman Setup
      5. Summary
    2. Chapter 18: The Propagation Trade Setup
      1. Introduction
      2. The PTS
      3. Summary
    3. Chapter 19: The Dagger, the Waltz, and the Line
      1. Introduction
      2. The Belgian Dentist
      3. Enter the Dagger
      4. Waltzing the Trade
      5. The Line! The Line!
      6. Summary
    4. Chapter 20: The Proactive Trader
      1. Introduction
      2. Laydowns
      3. Bathtub Analysis
      4. The Propagation Lens
      5. Looking Inward and Outward
      6. Multiple 3-C Counts
      7. Stations
      8. Ghost Trading
      9. Sitting On Your Hands
      10. Summary
    5. Chapter 21: The 30-Trade Campaign Program
      1. Introduction
      2. Capital Allocation
      3. The Tracks of Your Trades
      4. Pre-Trade Checklist
      5. Diagnostics
      6. Characteristics of Successful Traders
      7. Summary
    6. Chapter 22: Goodmanisms
      1. Goodmanisms
      2. Summary
  13. Part 6: Over the FOREX Rainbow
    1. Chapter 23: Tools for Traders
      1. Introduction
      2. Techniques
      3. Time Studies
      4. Fear and Greed, Greed and Fear
      5. Summary
    2. Chapter 24: Options and Exotics
      1. Introduction
      2. Options
      3. A Primer on Options
      4. Basic Options Terms
      5. Options: Pros and Cons
      6. The Four Basic Options Strategies
      7. Purchase or Write Options?
      8. Advanced Options Strategies
      9. The Greeks
      10. The Retail FOREX Options Landscape
      11. Options or Spot FOREX?
      12. Risk Management with Options
      13. Exotics
      14. Trading Exotics
      15. Summary
    3. Chapter 25: Managed FOREX
      1. Introduction
      2. Why Managed FOREX?
      3. Pros and Cons
      4. Types of Managers
      5. Types of Managed Accounts
      6. Trading Methods
      7. Performance Analysis
      8. Two Methods of Performance Analysis
      9. The Due Diligence Process
      10. Costs and Fees
      11. Spotlight on Managers
      12. Research and Resources
      13. Summary
    4. Chapter 26: Computer Trading
      1. Introduction
      2. Technical Analysis
      3. Expert Advisors
      4. Automated Trading, Agents, and BOTS
      5. Get On My Cloud
      6. High-Frequency and Ultra-High-Frequency Trading
      7. Into the Future of FOREX
      8. The Trend Machine
      9. Grid and Pac Man Programs
      10. Arbitrage
      11. Pros and Cons of Arbitrage
      12. Summary
  14. Appendix A: List of World Currencies and Symbols
  15. Appendix B: Time Zones and Global FX Trading Hours
  16. Appendix C: Central Banks and Regulatory Agencies
  17. Appendix D: Resources
    1. Periodicals
    2. Books
    3. Websites
    4. Online FOREX Tour
  18. Glossary
  19. About the Author
  20. Index