The first plain-English introduction to foreign currency exchange trading-one
of today's hottest profit opportunities
The foreign currency market is the largest financial market in the world, and foreign
exchange trading is quickly becoming one of today's most high-profile, potentially
lucrative markets. One problem is that books on the topic are complex, technically dense,
and difficult for Forex novices to grasp.
FOREX Made Easy is the first book to approach the topic in a detailed
yet accessible style, gradually and deliberately moving from simple to complex in easy and
natural language. Author James Dicks - founder of the popular trading software 4X Made
Easy - draws upon his trading knowledge to give readers only the information they need,
from setting up a workstation to trading electronically.
This Forex guidebook provides traders with:
An easy-to-follow, six-step process for FOREX trading
Methods for gaining an advantage using technical analysis
Dozens of examples to illustrate key points
James Dicks is president and CEO of PremiereTrade. One of today's
leading authorities on trading the foreign currency exchange market as an innovative means
of diversification, Dicks speaks to more than 60,000 traders each year through his popular
training sessions. He lives in Orlando, Florida.
Table of Contents:
Preface
Acknowledgments
1 What Is the FOREX?
Introduction
FOREX Defined
A Brief History of the FOREX
Free-Floating FOREX Market
Major FOREX Participants
2 More FOREX
Currency Pairs
Recommended Currency Pairs
Why Trade the FOREX
Volume in the FOREX
Analyzing the FOREX
How Profits Are Made
The FOREX as a Two-Way Market
3 Forecasting the Market
Fundamental Analysis
Technical Analysis
Fundamental versus Technical Analysis
4 Currency Options
Currency Options Introduction
Options Pricing
Advantages of Trading Options
European and American Options
Exotic Options
Lock in Profits
Accelerate Your Profits
5 Creating a Workstation for Trading
Workstation Location
Trading Computer and Accessories
Internet Connection
Trading Software Programs
Continuing Education
6 Fundamentals of Trading
Introduction to Trading Theory
Trends Defined
Trend Cycles
High-Probability Trading
Sideways, Nontrend Strategy: Wait for Strong Trends
Uptrend Trading Strategy: But at Dip Bottoms
Downtrend Trading Strategy: Sell at Rally Tops
Symmetrical Triangle
Ascending Triangle: A Bullish Continuation Pattern
Descending Triangle
The Falling Broadening Formation
Support Breakdown or Resistance Breakout
The Double Bottom
Head and Shoulders (Crown)
7 Economic Fundamentals
Introduction
Economic Indicators
Inflation Indicators
Employment Indicators
Consumer Spending Indicators
Leading Indicators
8 Introduction to Technical Analysis
Technical Analysis Defined
Technical Analysis Assumptions
Bar and Candlestick Charts
Technical Analysis Terms
Market Patterns: Uptrends, Downtrends, and Sideways Trends
Support and Resistance
Moving Averages
9 Advanced Trading Charts and Indicators
Tools for Technical Analysis
Bollinger Bands
Directional Movement Index (DMI)
Stochastic Indicator
Moving Averages (Simple, Weighted, and Exponential)
Moving Average Convergence/Divergence (MAC/D)
Momentum
Relative Strength Index (RSI)
Rate of Change (ROC)
Volume
10 Fibonacci Numerical Sequences and Elliot Waves
Introduction
Fibonacci Rectangles and Shell Spirals
Fibonacci Retracements
Fibonacci Extensions
Fibonacci Time
Fibonacci Circles
Elliot Waves
11 Money Management Principles
Trade with Sufficient Capital
Exercise Discipline
Be Patient and Persistent
Employ Risk-to-Reward Ratios
Follow Trading Rules
Accept Losses
Always, Always Use Stops
When In Doubt, Stay Out
Never Overleverage Your Account
Make Realistic Goals That Can Be Achieved within Reason
Always Trade with Money You Can Afford to Lose
Protecting Your Profits
Keep a Trading Log
12 Six Steps to Success
Identify Current Long- and Short-Term Trends and Which Trend to Trade
Check News and Market Announcements 0
Identify Support and Resistance Levels
Use Studies and Indicators for Entry
Buy at Dip Bottoms (Uptrends) or Sell on Rally Tops (Downtrends)
Use Proper Money Management
13 Getting Started with a Trading Station
Access the PremiereTrade Web Site
Install and Run the Dealing Software
Open a Demo Trading Account
Dealing Rates Window
Open Positions Window
Accounts Window
Multiple-Accounts Window
Orders Window
Placing a Market Order
Placing a Stop/Limit on an Open Position
Change Price on a Stop/Limit (Open Position)
Delete Stop/Limit (Open Position)
Close an Open Position
Placing an Entry Order
Change an Entry Order
Canceling an Entry Order
Reports
Customizing the Trading Screen
Trading Station Options
14 Corporations in the FOREX
Introduction
Forward Transactions
Examples of Strategies
Portfolio Management and Currency Risk
15 The Business of Trading
Staring your Business
The Tax Code
How to Become a Trader
What If I Don't Make Enough Money to Use Those Deductions?
How to Make the Win/Win Better
What Kind of Corporation Should You Use?
Let's Take a Look at Some Examples
Appendix: Bretton Woods System and Post-Bretton Woods System
Glossary
Bibliography
Charts, Figures and Credits
Index
Hardback, 256 pages
