Getting Started in Currency Trading: Winning in Today's Hottest Marketplace, 2nd Edition
by Michael D. ArcherEdition: 2nd
Format: Paperback
Pub. Date: 2008-06-01
Publisher(s): Wiley
Other versions by this Author
-
This Item Qualifies for Free Shipping!*
*Excludes marketplace orders.
List Price: $20.95
Rent Book
Select for Price
New Book
We're Sorry
Sold Out
Used Book
We're Sorry
Sold Out
eBook
We're Sorry
Not Available
How Marketplace Works:
- This item is offered by an independent seller and not shipped from our warehouse
- Item details like edition and cover design may differ from our description; see seller's comments before ordering.
- Sellers much confirm and ship within two business days; otherwise, the order will be cancelled and refunded.
- Marketplace purchases cannot be returned to eCampus.com. Contact the seller directly for inquiries; if no response within two days, contact customer service.
- Additional shipping costs apply to Marketplace purchases. Review shipping costs at checkout.
Summary
While the Foreign Exchange (FOREX) market can be a very profitable place, you must have a firm understanding of how to operate within this environment if you intend on achieving any success. That's why you need Getting Started in Currency Trading, Second Edition. This reliable resource-written for both newcomers and those with some FOREX experience-puts trading world currencies in perspective, and shows you exactly what it takes to make it in this field. Topics include: The rapidly expanding and evolving online trading marketplace for spot currencies, generally referred to as retail FOREX The process of initiating and liquidating a live market order The advantages and disadvantages of fundamental and technical analysis The wealth of FOREX products and services now available from third-party vendors The psychology of trading and the stresses that may accompany this endeavor Advanced strategies such as options, exotics, and arbitrage
Author Biography
Michael Duane Archer has been an active commodity futures and FOREX trader for over thirty years. He has worked in various advisory capacities, notably as a commodity trading advisor and an SEC-registered investment advisor. Archer operates www.fxpraxis.com and is a professional FOREX money manager. He is also the author of Getting Started in Forex Trading Strategies and coauthor of the first edition of Getting Started in Currency Trading, The Forex Chartist Companion, and Charting the Major Forex Pairs, all published by Wiley.
Table of Contents
| Acknowledgments | p. xv |
| Introduction | p. xvii |
| About This Book | p. xvii |
| How This Book is Organized | p. xvii |
| Disclaimer | p. xix |
| The Foreign Exchange markets | |
| The FOREX Landscape | p. 3 |
| Introduction-What Is FOREX? | p. 3 |
| What Is a Spot Market? | p. 3 |
| Which Currencies Are Traded? | p. 4 |
| Who Trades on the Foreign Exchange? | p. 4 |
| How Are Currency Prices Determined? | p. 5 |
| Why Trade Foreign Currencies? | p. 5 |
| What Tools Do I Need to Trade Currencies? | p. 8 |
| What Does It Cost to Trade Currencies? | p. 8 |
| FOREX versus Stocks | p. 8 |
| FOREX versus Futures | p. 9 |
| Summary | p. 10 |
| A Brief History of Currency Trading | p. 11 |
| Introduction | p. 11 |
| Ancient Times | p. 11 |
| The Gold Standard 1816-1933 | p. 12 |
| The Fed | p. 12 |
| Securities and Exchange Commission 1933-1934 | p. 14 |
| The Bretton Woods System, 1944-1973 | p. 14 |
| The End of Bretton Woods and Floating Exchange Rates | p. 15 |
| International Monetary Market | p. 15 |
| Current Perspective | p. 16 |
| Arrival of the Euro | p. 16 |
| Summary | p. 18 |
| Spot or Futures FOREX? | p. 19 |
| Introduction-Futures Contracts | p. 19 |
| Currency Futures | p. 20 |
| Contract Specifications | p. 20 |
| Currencies Trading Volume | p. 21 |
| U.S. Dollar Index | p. 22 |
| Summary | p. 22 |
| Getting Started | |
| The Regulatory Environment | p. 25 |
| Regulation Today | p. 25 |
| The Commodity Futures Trading Commission (CFTC) | p. 26 |
| National Futures Association | p. 26 |
| Commodity Futures Modernization Act of 2000 | p. 27 |
| The Patriot Act | p. 27 |
| The CFTC Reauthorization Act of 2005 | p. 27 |
| Summary | p. 28 |
| The FOREX Lexicon | p. 29 |
| Currency Pairs | p. 29 |
| Major and Minor Currencies | p. 29 |
| Cross Currency | p. 30 |
| Exotic Currency | p. 30 |
| Base Currency | p. 30 |
| Quote Currency | p. 30 |
| Pips | p. 30 |
| Ticks | p. 31 |
| Margin | p. 31 |
| Leverage | p. 32 |
| Bid Price | p. 32 |
| Ask Price | p. 32 |
| Bid/Ask Spread | p. 32 |
| Quote Convention | p. 32 |
| Transaction Cost | p. 33 |
| Rollover | p. 33 |
| The Trader's Nemesis | p. 33 |
| Summary | p. 34 |
| The Calculating Trader | p. 35 |
| Leverage and Margin Percent | p. 36 |
| Pip Values | p. 36 |
| Calculating Profit and Loss | p. 37 |
| Calculating Units Available | p. 44 |
| Calculating Margin Requirements | p. 46 |
| Calculating Transaction Cost | p. 47 |
| Calculating Account Summary Balance | p. 50 |
| For Futures Traders | p. 52 |
| Summary | p. 53 |
| Selecting the Right FOREX Broker for You | p. 55 |
| Broker-Dealer Due Diligence | p. 55 |
| Demo Accounts | p. 56 |
| Market Maker, ECN, or IB? | p. 56 |
| Introducing Brokers | p. 57 |
| Platform Capabilities | p. 58 |
| Trading Tools | p. 58 |
| Order Execution and Accounting | p. 60 |
| News | p. 60 |
| Chat | p. 60 |
| Platform Stability and Backbone | p. 62 |
| Historical Data | p. 62 |
| Data Feed | p. 63 |
| Third-Party Offerings | p. 63 |
| Orders | p. 63 |
| Margin Requirements | p. 64 |
| Order Backup | p. 64 |
| Account Minimums | p. 64 |
| Pairs, Crosses, and Exotics | p. 65 |
| Deposits and Withdrawals | p. 65 |
| Transaction Costs | p. 65 |
| Trading Hours | p. 66 |
| Customer Service | p. 66 |
| Documentation | p. 68 |
| Requoting | p. 68 |
| Financials | p. 68 |
| Rollovers and Interest | p. 69 |
| FOREX Broker-Dealers | p. 69 |
| Popular Broker-Dealers | p. 70 |
| The Big Three | p. 73 |
| For the Professional | p. 74 |
| Fraud, Scams, and Off-Exchange | p. 74 |
| Summary | p. 76 |
| Opening a FOREX Account | p. 77 |
| Account Types | p. 78 |
| Opening the Account: Steps | p. 78 |
| Summary | p. 81 |
| Pulling the Trigger | p. 83 |
| Orders | p. 83 |
| Market Orders | p. 84 |
| Limit Orders | p. 84 |
| Stop Orders | p. 85 |
| Combination Orders | p. 86 |
| Specialty Orders | p. 86 |
| Order Placement Walk-Through | p. 86 |
| Order Execution | p. 86 |
| Order Confirmation | p. 87 |
| Transaction Exposure | p. 87 |
| Summary | p. 88 |
| The Tools of the Trade | |
| Fundamental Analysis | p. 93 |
| Supply and Demand | p. 93 |
| Interest Rates | p. 94 |
| Balance of Trade | p. 94 |
| Purchasing Power Parity | p. 97 |
| Gross Domestic Product | p. 98 |
| Intervention | p. 100 |
| Other Economic Indicators | p. 100 |
| Forecasting | p. 102 |
| Technical Analysis | p. 107 |
| Overview | p. 107 |
| Bar Charts | p. 108 |
| Trend Lines | p. 110 |
| Support and Resistance | p. 111 |
| Recognizing Chart Patterns | p. 111 |
| Reversal Patterns | p. 112 |
| Continuation Patterns | p. 113 |
| Candlestick Charts | p. 115 |
| Point and Figure Charts | p. 117 |
| Charting Caveat-Prediction versus Description | p. 119 |
| Indicators and Oscillators | p. 120 |
| Relative Strength Indicator | p. 120 |
| Momentum Analysis | p. 121 |
| Moving Averages | p. 123 |
| Bollinger Bands | p. 123 |
| Indicator Caveat-Curve-Fit Data | p. 126 |
| Swing Analysis | p. 126 |
| Cycle Analysis | p. 128 |
| Advanced Studies | p. 128 |
| The Technician's Creed | p. 129 |
| Summary | p. 130 |
| The Toolbox Approach | p. 131 |
| General Principles | p. 131 |
| A KIS Toolbox | p. 132 |
| The Goodman Swing Count System | p. 133 |
| GSCS Rules | p. 133 |
| "3C" Stands for Carryover, Compensation, and Cancellation | p. 136 |
| The Nofri Congestion Phase Method | p. 138 |
| Pugh Swing Chart Formations | p. 139 |
| A Moving Average and Oscillator Battery | p. 140 |
| Contrary Opinion | p. 142 |
| Volume | p. 142 |
| Open Interest | p. 142 |
| Heuristics | p. 143 |
| Summary | p. 144 |
| The FOREX Marketplace | p. 145 |
| Organizing Your Bookmarks | p. 146 |
| Cross-Category Services | p. 147 |
| Portals, Forums, Reviews | p. 147 |
| Charting and Technical Services | p. 150 |
| FOREX Education | p. 152 |
| Trading Signals and Software | p. 153 |
| News, Announcement Services, and Calendars | p. 154 |
| Live Data Streams | p. 157 |
| Historical Data | p. 157 |
| System Development Tools | p. 159 |
| FOREX Managed Accounts | p. 161 |
| Peter Panholzer | p. 163 |
| Odds and Ends | p. 164 |
| Summary | p. 166 |
| The Complete Forex Trader | |
| Psychology of Trading | p. 169 |
| The Trading Pyramid | p. 169 |
| Fear and Greed, Greed and Fear | p. 170 |
| Profiling | p. 171 |
| The Attitude Heuristic | p. 171 |
| Characteristics of Successful Traders | p. 172 |
| Summary | p. 173 |
| Money Management Made Simple | p. 175 |
| Breaking Even-The Belgian Dentist | p. 175 |
| Expectations | p. 176 |
| Trader Profiles | p. 176 |
| Parameters for Trader Profiles | p. 178 |
| The Trade Campaign Method (TCM) | p. 179 |
| Calculating TCM Profit and Loss | p. 179 |
| Stop-Loss Orders-A Brief Discussion | p. 181 |
| Selecting Markets | p. 181 |
| Summary | p. 182 |
| Tactics and Strategy | p. 183 |
| Trending and Trading Markets | p. 183 |
| Market Environments (ME) | p. 184 |
| Directional Movement (DM) and Volatility (V) | p. 185 |
| Price and Time Rhythm (PR and TR) | p. 185 |
| Thickness (T) | p. 188 |
| Shape (S) | p. 190 |
| Pretzels (PZ) | p. 190 |
| ME Applications | p. 190 |
| The Three Chart System | p. 193 |
| The Dagger Entry Principle | p. 193 |
| Sitting on Your Hands | p. 194 |
| Time Filters | p. 195 |
| Trading the News | p. 196 |
| Going Against the Crowd | p. 196 |
| Trading Methods | p. 197 |
| The Flyer | p. 197 |
| Bathtub Analysis | p. 198 |
| Summary | p. 198 |
| When and How to Regroup | p. 199 |
| Common Trading Errors | p. 199 |
| Performance Review | p. 201 |
| Heuristics Review | p. 202 |
| When to Say Uncle | p. 202 |
| Summary | p. 202 |
| For the Record | p. 203 |
| Type of Records | p. 203 |
| The Rogers Method | p. 205 |
| The Snaglt Tool | p. 205 |
| Planning Records | p. 206 |
| Summary | p. 206 |
| Extra for Experts | |
| Options and Exotics | p. 209 |
| Options | p. 210 |
| An Options Primer | p. 210 |
| Basic Options Terms | p. 211 |
| The Pros and Cons of Options | p. 212 |
| The Four Basic Options Strategies | p. 213 |
| Purchasing and Writing Options | p. 214 |
| Advanced Options Strategies | p. 214 |
| The Retail FOREX Options Landscape | p. 214 |
| Options for Trading | p. 216 |
| Options for Money Management | p. 216 |
| Exotics | p. 218 |
| Trading Exotics | p. 219 |
| Summary | p. 220 |
| The Final Frontiers | p. 221 |
| Rollovers | p. 221 |
| Hedging | p. 222 |
| Arbitrage | p. 223 |
| Pros and Cons of Arbitrage | p. 227 |
| Artificial Intelligence | p. 228 |
| Complexity Theory Models | p. 228 |
| The Trend Machine | p. 229 |
| Automated Trading and Robots | p. 229 |
| A Last Word | p. 231 |
| How the FOREX Game Is Played | p. 233 |
| Retail FOREX Regulations-CFTC Reauthorization Act of 2005 | p. 237 |
| List of World Currencies and Symbols | p. 243 |
| Major Currency Cross Rates | p. 249 |
| Euro Currency Unit | p. 251 |
| Time Zones and Global Banking Hours | p. 253 |
| Central Banks and Regulatory Agencies | p. 255 |
| Resources | p. 259 |
| Glossary | p. 265 |
| Index | p. 277 |
| Table of Contents provided by Ingram. All Rights Reserved. |
An electronic version of this book is available through VitalSource.
This book is viewable on PC, Mac, iPhone, iPad, iPod Touch, and most smartphones.
By purchasing, you will be able to view this book online, as well as download it, for the chosen number of days.
Digital License
You are licensing a digital product for a set duration. Durations are set forth in the product description, with "Lifetime" typically meaning five (5) years of online access and permanent download to a supported device. All licenses are non-transferable.
More details can be found here.
A downloadable version of this book is available through the eCampus Reader or compatible Adobe readers.
Applications are available on iOS, Android, PC, Mac, and Windows Mobile platforms.
Please view the compatibility matrix prior to purchase.