The Sensible Guide to Forex: Safer, Smarter Ways to Survive and Prosper from the Start is written for the risk averse, mainstream retail investor or trader seeking a more effective way to tap forex markets to improve returns and hedge currency risk. As the most widely held currencies are being devalued, they're taking your portfolio down with them—unless you're prepared.
For traders, the book focuses on reducing the high risk, complexity, and time demands normally associated with forex trading.
For long-term investors, it concentrates on how to hedge currency risk by diversifying portfolios into the strongest currencies for lower risk and higher capital gains and income.
The usual forex materials don't provide practical answers for most retail traders or longer term investors. Virtually all forex trading materials focus on time-consuming, high-leverage, high-risk methods at which most traders fail. Materials about long-term investing in foreign assets rarely take into account the prospects of the related currency. A falling currency can turn an otherwise good investment into a bad one.
Throughout the book, the emphasis is on planning and executing only low risk, high potential yield trades or investments and avoiding serious losses at all costs. Packed with richly illustrated examples every step of the way and including additional appendices and references to online resources, the book is the ultimate guide to forex for retail traders and investors seeking to tap forex markets for better currency diversification and income.
Provides traders with safer, smarter, less complex and time-consuming ways to trade forex with higher odds of success. These include the use of such increasingly popular new instruments like forex binary options and social trading accounts that mimic expert traders.
Shows investors how to identify the currencies most likely to hold or increase their value, and provides a wealth of ideas about how to apply that knowledge to a long-term, low-maintenance portfolio for both income and capital appreciation.
Helps anyone seeking an asset class with low correlation to other markets by explaining how the very nature of forex markets means that regardless of market conditions there's always a playable trend somewhere, regardless of what other asset markets are doing, and how to find and exploit it for a short-term trade or a long-term investment in a currency pair, stock, bond, or other asset
The Sensible Guide to Forex is only book that teaches mainstream risk averse investors and traders how to build a portfolio that's diversified by currency exposure as well as by asset class and sector, via a variety of safer, simpler methods to suit different needs, risk tolerances, and levels of expertise.
Written by Cliff Wachtel, a 30+ year financial market writer, advisor, and analyst, The Sensible Guide to Forex offers practical solutions to the above dilemmas faced by every serious, prudent investor.
A must own for any informed investor-but don't take out word for it - see advanced reviews at:
Table of Contents
- More Praise for The Sensible Guide to Forex
- Title Page
- Read This First
- Chapter 1: Three Must-Know Forex Facts
Chapter 2: Forex Basics
- BASICS OF CURRENCIES AND CURRENCY PAIRS
- CURRENCIES TRADE IN PAIRS AND WHY THAT MATTERS
- SIZE MATTERS: TYPES OF CURRENCY PAIRS
- PIPS: THE UNIVERSAL CURRENCY OF CURRENCIES
- LEVERAGE AND MARGIN: THEIR RELATIONSHIP AND IMPACT ON RISK
- THE THREE FACETS OF RISK AND RISK CONTROL
- THE CORE FOUR: THE MOST IMPORTANT SKILLS FOR SUCCESS
- Chapter 3: Technical Analysis (TA) Basics
- Chapter 4: Technical Analysis
Chapter 5: Trader Psychology and Risk and Money Management (RAMM)
- RAMM: PRESERVING CAPITAL IS YOUR TOP PRIORITY
- THE INNER GAME: TRADER PSYCHOLOGY BASICS
- WHY TRADE LONGER TIME FRAMES
- THE ESSENCE OF GOOD RAMM
- THE THREE PILLARS OF RAMM
- ACCOUNT SIZE AND AFFORDABLE LOSS PER TRADE
- SETTING STOP LOSSES: BASIC TECHNIQUE AND PSYCHOLOGY
- LEVERAGE AND MARGIN
- POSITION SIZING
- AVOID HAVING TOO MANY OPEN POSITIONS
- ENTRIES NEAR STRONG SUPPORT, EXITS NEAR STRONG RESISTANCE
- ENTRIES AND EXITS: SINGLE VERSUS MULTIPLE
- RISK-REWARD RATIOS (RRRS)
- IF YOU FAIL TO PLAN, YOU PLAN TO FAIL
- WHAT CONDITIONS DO YOU NEED FOR SUCCESS?
- SAFETY IN NUMBERS: BUILD A TEAM
Chapter 6: Essentials of Fundamental Analysis
- USING FUNDAMENTAL ANALYSIS (FA) AND TECHNICAL ANALYSIS (TA) TOGETHER
- AN OVERVIEW OF FA: MAIN FUNDAMENTAL DRIVERS OF FOREX TRENDS
- MACROECONOMIC DATA AND INDICATORS
- NEWS TRADING: DAY TRADING BASED ON SHORT-TERM FUNDAMENTALS
- FA BASICS: EASY TO UNDERSTAND AND HARD TO APPLY
- THEREFORE, GET THEE TO AN ANALYST
- COMBINING FA AND TA: AN EXAMPLE
- Chapter 7: Pulling It All Together with Trade Examples
- Chapter 8: Technical Analysis
Chapter 9: Technical Analysis
- CATCH A WAVE: TIMING OR CYCLE INDICATORS
- COMBINING TECHNICAL INDICATORS: WHICH ONES AND HOW MANY?
- BACK TESTING: LEARNING FROM THE PAST
- INTERMARKET ANALYSIS: READING INTERMARKET CORRELATIONS AND DIVERGENCES
- WHY THESE RELATIONSHIPS MATTER
- CURRENCIES VERSUS COMMODITIES
- THINKING LIKE A PRO, ONE STEP BEYOND TECHNICAL ANALYSIS
- Chapter 10: Alternatives to Traditional Methods
- Chapter 11: Newer, Smarter Methods
- Chapter 12: Forex for Income
- Chapter 13: Now What? Next Steps
- Appendix A: Recommended Free Online Resources
- Appendix B: How to Calculate Pip Values and Examples
- Appendix C: Forex Trading Time Zones, Liquidity, and Why These Matter
- Appendix D: More on Leverage and Margin
- Appendix E: How the Mathematics of Loss Demands Keeping Losses Per Trade Low
- Appendix F: Choosing a Forex Broker
- Appendix G: Low Correlations to Other Markets via Social Trading Means There's Always a Bull Market Somewhere
- About the Author
- Title: The Sensible Guide to Forex: Safer, Smarter Ways to Survive and Prosper from the Start
- Release date: September 2012
- Publisher(s): Wiley
- ISBN: 9781118237458