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"For many investors, an intense, 24-hour-a-day, $1.5 trillion roller-coaster of a market spells "danger"; for readers of Forex Revolution, the word is "opportunity."
—Michael J. Panzner, vice president, Rabo Securities USA, Inc., and author of The New Laws of the Stock Market Jungle
"The author possesses an uncommon ability to describe a difficult and rapidly changing marketplace as if seen through a beginner's eyes. A most useful book for anyone that might not have been paying attention these past five years as the market reinvented itself."
—Brentin C. Elam, director, Northcoast Asset Management, LLC
Foreign currency exchange—"Forex"—is today's #1 new investment opportunity. Revolutions in technology, regulation, and globalization have made Forex trading accessible to every active investor. Only one thing has been missing: An objective, clear "user's guide" to Forex trading. Now it's here—and it's in your hands.
Simply and clearly, Forex Revolution reveals everything you need to know to trade Forex hands-on—from fundamental and technical trading strategies to the unyielding discipline that's essential to success.
In this book, Peter Rosenstreich brings together insider techniques from all over the industry: Traders, banks, Forex firms, even the National Futures Association. You'll find expert guidance on everything from handling 24/7 markets to profiting from the emergence of China.
Unlike other books, Forex Revolution doesn't require you to subscribe to costly services or purchase expensive tools. Whether you're an individual investor or a money manager new to Forex, this book gives you all you need: Facts, techniques, resources and—above all—the insider's edge.
Foreign Exchange Trading: Today's #1 Opportunity for Explosive Profits!
Forex Isn't Just the World's Biggest Market—It's Your #1 Profit Opportunity!
Every day, more than $1.5 trillion in currency trades are executed. That dwarfs the daily volume of the NYSE, NASDAQ, FTSE, DAX, and Tokyo Nikkei—combined! Today's growing currency volatility has made Forex the place to earn huge profits. Think Forex is just for secretive financiers and central bankers? Not any more! The rules have changed, and this book shows you exactly how to get in on the action.
No other book offers as much unbiased, practical, how-to guidance for trading from Forex. Peter Rosenstreich doesn't just present his own techniques—he reveals never-before-published tips and techniques from traders throughout the industry. Above all, Mr. Rosenstreich tells you the whole truth: How currency markets work, how to trade, what the risks are, what to do about them...and what it really takes to win.
© Copyright Pearson Education. All rights reserved.
PrefacePreface
I love this market and it never stops amazing me. The foreign exchange market is the ultimate gauge of reality. In a world where it is impossible to quantify the actual significance of an event, the Forex market tries. In my view, just as in chaos theory, the Forex market is always moving from order into chaos and back to order again—and trading on the edge of chaos is the only place I want to be.
What makes foreign exchange trading existing are the underlying themes that drive the market. On the fundamental side, there are geopolitics, governments, societies, macroeconomics, and the behavior of the numerous market participants who vary greatly in objectives and approach. On the technical side, there is a market that seems to move in patterns and with endless liquidity. Life can become repetitive and slow, with some people even saying things like, "There is nothing new," or, "I've seen it all before." And I think, "Yeah, just you wait." As a Forex trader, you have a front-row seat to a world that never stops to amaze and produce the completely unexpected.
I wrote this book as an introduction to Forex trading in a simple and understandable format. It was not produced in response to some slick marketer screaming, "Make money in your sleep," or some academic with a mathematical model so complex that only four people in the world understand it. My intent is to provide a non-biased overview that will let the individual decide which approach to the market suits him or her best. With this knowledge, they can then choose their own advanced education and trading directions. I hope I can inspire aspiring Forexquants and instant traders alike.
To explain Forex trading, I use a blend of real trading experiences, definitions, and methodologies because you need all three to become a successful trader in any market. Trading is never about memorizing how someone else trades; one's strategy must be developed by the individual. Hopefully, with this book, you can take all of this information and begin crafting your own trading models. Good luck trading!
© Copyright Pearson Education. All rights reserved.
1. The Truly Modern Market.
A Market for the 21st Century
Opportunity Is Knocking
Everybody’s Talking About It
Endnotes
2. The Currency of Trading in Everyday Life.
A Fact of Life
Keeping Up with the Rates
The Sun Never Sets on Forex
Noodles in the Morning
Laos for Lunch
Odessa at Dusk
Back in a 9-to-5 Market
3. The History of Forex (and Why You Should Care).
The Beautiful Market
Lessons of History
The Roots of Modern Currency
The Clash Between Governments and Markets
Trends That Rocked the Forex World
The Rise and Fall of the Modern Gold Standard
The Rise of the Euro
The Internet Trade Revolution: Banks Hated It, Speculators Loved It, and the Market Demanded It
Seeing the World Through Forex
Endnotes
4. The Basics of Foreign Exchange.
Spot
Quotes
Majors
Cross Rates
Pips
Bid/Ask
Lot
Mini Lot
Basic Tools of Training
Positions
Market Order
Limit Order
Stop Order
Order Cancels Other
Stop-Limit Order
Rollovers
Interest Rate Differentials, or Rollover Charge
Leverage
Controlling Leverage
Initial Margin
Margin Call
Commissions
Graphic: Calculations for the Spot Market
Forex Regulators
SFBC
IDAC
SFC
FSA
ASIC
CFTC and NFA
NFA
Forex Designations
Forex Dealer Members
Futures Commission Merchants
Introductory Brokers
Commodity Trading Advisers
Brokers
Managed Accounts
5. Forex Trading Vehicles.
Forwards and Futures
Options
Swaps
Derivatives and the Forex Market
The Interbank Market
Endnotes
6. Tools and Strategies to Get Started.
Gut Check: What It Takes to Be a Forex Investor
What Are My Investment Goals, and Are They Realistic?
What Is My Capacity for Risk?
Time Investment
Before You Trade
Doing a Test Run
Strategy: Creating an Approach Model
7. Forex from the Inside.
8. Inside a Forex Platform.
Searching for the Right Platform
Doing Your Homework
Retail Platforms
Trading Mechanisms
Hub and Spoke Trading
Request for Quote (RFQ)
Click and Deal
News
Charts
Research
Things to Look Out For
Requotes
Network Connection
Getting the Best Price
Safety
My Trading Room
Information Sources
Important Numbers
Forex Retail Platforms
Protecting Yourself
Avoiding Fraud
The Firm Promises a Free Lunch
The Trader Uses Terminology You Don’t Fully - Understand
The Firm Claims To Trade in the “Interbank Market”
The Firm is Using the Hard Sell via the Internet
The Firm is Vague and Little Information is Available
9. Trading Inside the 24-Hour Storm.
Working Around the Clock
Defining Your Trading Strategy
Contingency Plans
Cut Losers
Pigs Get Slaughtered
Overleveraging and Overtrading
Watch the Markets
Don’t Walk Away
Review the Market
Market Manipulation
Just Because You’re Not Paranoid Doesn’t Mean They Aren’t Out to Get You
Flatline Your Emotions
Trade with Your Personality
Filter Information
Avoid Bias
10. What Moves the Markets: Basic Fundamental and Technical Trading Strategies.
Watch Your Fundamentals
Old Versus Fresh News
Market Movers
Governments
Important Currencies
The U.S. Dollar
The Euro
The Yen
The British Pound
The Swiss Franc
Other Currencies
The Yuan
The Won
The Real
The Rand
The G7
Central Banks
The U.S. Federal Reserve
The European Central Bank
The Bank of England
The Bank of Japan
The International Monetary Fund
Private Financial Institutions
Corporations
Speculators
Monetary Policy and Interest Rates
Inflation
Gross Domestic Product
(Un)Employment
The Beige Book
Government Spending and Taxes
Government Attitude
Equilibrium: “Parity”
Trade Balance
Political and Social Environment
Currency Board or Peg
Subjectivity
Technical Analysis
Determing the Trend
Support and Resistance
Chart Patterns
Fibonacci Pattern
Elliot Wave Theory
Gann Angles
Andrews Pitchfork
Indicators 101
Moving Average
Moving Average Convergence/Divergence (MACD)
Relative Strength Index (RSI)
Stochastic Oscillator
Bollinger Bands (BB)
Parabolic Stop and Reversal (SAR)
Average Directional Index (ADX)
Starter Technical Model
Scalping
Technical or Fundamental?
Endnotes
11. Black Swans and Rogue Traders.
The Inherent Instability in the Forex Market
The Tequila Crisis
The Asian Crisis
Breaking the Bank of England
Interventions
Scams and Rogue Traders
Russia Devalues the Ruble
12. Trends and the Yuan.
Forex Will Not Just Get Bigger; It Will Get More Respect
Globalization and the War on Terror
The Chinese Dragon and the Indian Tiger
ASEAN
The Euro: Can It Hold?
The Growth of Free-Trade Blocks
The U.S. Dollar
Endnotes
Appendix.
Index.
Anonymous
Posted November 9, 2006
This is a HISTORY book, not a how to book. If your a technical trader...DON'T WASTE YOUR MONEY!
1 out of 1 people found this review helpful.
Was this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.Anonymous
Posted September 10, 2007
This book is exactly what I hoped it would be. NOT an 'easy trading success' book 'in fact the author accurately admits that trading month after month is not easy' or a strategy book 'although some basic strategy is mentioned', but rather a book explaining the 'who, what, and why' of the foreign exchange markets, including spot, options, futures, and forwards. There was a bit of confusion in several of the diagrams in the book, and the book is a little repetitive at times, but not often 'which I enjoyed, since I read to learn'. I think this book really is one of a kind knowledge in the realm of mass-market books.
Was this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.Anonymous
Posted February 23, 2006
This was a pretty decent book on forex the author gave a good overview of the forex market,had a section covering interviews with some of the major players in the forex market and how they view the forex market and he also gave about 3 good strategies for trading the forex, one in particular a scalping technique for trading the forex. Overall a decent book and a recommended read.
Was this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.Anonymous
Posted January 16, 2006
Author Peter Rosenstreich¿s short, concise guide is a neophyte¿s introduction to the world of foreign exchange trading. Its chief virtue is that it warns against trading if you don¿t have a strategy and some level of technology. Its chief vice is the suggestion that it is realistic for individual investors to expect to make money in the foreign exchange markets. The author cautions against the risks of the market (and gives good advice on spotting the most egregious frauds), but even to suggest that an individual retail trader equipped with an Internet connection, a news feed, a research source and a charting service can hope to succeed in Forex investing is a bit misleading. Perhaps, it would have been more enlightening if the author had discussed the competition that confronts the potentially foolhardy neophyte, in terms of equipment, technology and expertise. That said, readers will gain an elementary - but not really an insider¿s - acquaintance with the ABCs of the Forex markets and will learn the names of key agencies and approaches. We find that the book¿s most useful attributes include references to further reading that should deter novices from attempting to trade their own money in the foreign exchange markets. For solid basics, read on - but zip your wallet.
Was this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.Anonymous
Posted August 16, 2005
I really like this book. It gave an nice unbiased overview of this market. Other books on the subject seemed to push their personal agenda and that turned me off. In additional the easy to understand writing style, language, and personal stories made it enjoyable to read.
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Overview
"For many investors, an intense, 24-hour-a-day, $1.5 trillion roller-coaster of a market spells "danger"; for readers of Forex Revolution, the word is "opportunity."
—Michael J. Panzner, vice president, Rabo Securities USA, Inc., and author of The New Laws of the Stock Market Jungle
"The author possesses an uncommon ability to describe a difficult and rapidly changing marketplace as if seen through a beginner's eyes. A most useful book for anyone that might not have been paying attention these past five years as the market reinvented itself."