Forex Made Easy: 6 Ways To Trade the Dollar by James DicksForex Made Easy: 6 Ways To Trade the Dollar by James Dicks

Forex Made Easy: 6 Ways To Trade the Dollar

byJames Dicks

Hardcover | April 5, 2004

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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.
Title:Forex Made Easy: 6 Ways To Trade the DollarFormat:HardcoverDimensions:256 pages, 9.3 × 6.4 × 0.87 inPublished:April 5, 2004Publisher:McGraw-Hill EducationLanguage:English

The following ISBNs are associated with this title:

ISBN - 10:0071438947

ISBN - 13:9780071438940

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Rated 1 out of 5 by from Nothing but a sales pitch... This book DOES contain some good information about the FOREX, but that information is hard to find buried beneath the sales pitch. This book revolves around convincing you to check out the author's software which he charges $3000 for (there is better software on the Internet for free). Also there are quite a few blatant errors (both spelling and other) in this book and if you applied these errors to your trading they would cost you money. Please do yourself a favor and get any other FOREX book from Indigo - they have a great selection to choose from, but "Forex Made Easy: 6 Ways To Trade the Dollar" is not one of them.
Date published: 2007-03-09

Table of Contents

Preface xiii

Acknowledgments xv

1 What Is the FOREX? 1

Introduction 1
FOREX Defined 12
A Brief History of the FOREX 13
Free-Floating FOREX Market 13
Major FOREX Participants 14

2 More FOREX 15

Currency Pairs 15
Recommended Currency Pairs 16
Why Trade the FOREX 19
Volume in the FOREX 19
Analyzing the FOREX 23
How Profits Are Made 23
The FOREX as a Two-Way Market 25

3 Forecasting the Market 29

Fundamental Analysis 29
Technical Analysis 32
Fundamental versus Technical Analysis 33

4 Currency Options 35

Currency Options Introduction 35
Options Pricing 36
Advantages of Trading Options 37
European and American Options 37
Exotic Options 38
Lock in Profits 40
Accelerate Your Profits 41

5 Creating a Workstation for Trading 43

Workstation Location 43
Trading Computer and Accessories 44
Internet Connection 45
Trading Software Programs 45
Continuing Education 48

6 Fundamentals of Trading 51

Introduction to Trading Theory 52
Trends Defined 53
Trend Cycles 53
High-Probability Trading 55
Sideways, Nontrend Strategy: Wait for Strong Trends 55
Uptrend Trading Strategy: But at Dip Bottoms 55
Downtrend Trading Strategy: Sell at Rally Tops 58
Symmetrical Triangle 58
Ascending Triangle: A Bullish Continuation Pattern 63
Descending Triangle 65
The Falling Broadening Formation 67
Support Breakdown or Resistance Breakout 67
The Double Bottom 68
Head and Shoulders (Crown) 70

7 Economic Fundamentals 73

Introduction 73
Economic Indicators 74
Inflation Indicators 76
Employment Indicators 78
Consumer Spending Indicators 78
Leading Indicators 79

8 Introduction to Technical Analysis 81

Technical Analysis Defined 81
Technical Analysis Assumptions 82
Bar and Candlestick Charts 83
Technical Analysis Terms 86
Market Patterns: Uptrends, Downtrends,and Sideways Trends 87
Support and Resistance 95
Moving Averages 95

9 Advanced Trading Charts and Indicators 103

Tools for Technical Analysis 104
Bollinger Bands 104
Directional Movement Index (DMI) 107
Stochastic Indicator 107
Moving Averages (Simple, Weighted, and Exponential) 110
Moving Average Convergence/Divergence (MAC/D) 116
Momentum 119
Relative Strength Index (RSI) 119
Rate of Change (ROC) 122
Volume 122

10 Fibonacci Numerical Sequences and Elliot Waves 125

Introduction 125
Fibonacci Rectangles and Shell Spirals 127
Fibonacci Retracements 128
Fibonacci Extensions 128
Fibonacci Time 129
Fibonacci Circles 130
Elliot Waves 135

11 Money Management Principles 139

Trade with Sufficient Capital 140
Exercise Discipline 140
Be Patient and Persistent 141
Employ Risk-to-Reward Ratios 141
Follow Trading Rules 143
Accept Losses 144
Always, Always Use Stops 144
When In Doubt, Stay Out 145
Never Overleverage Your Account 145
Make Realistic Goals That Can Be Achieved within Reason 146
Always Trade with Money You Can Afford to Lose 147
Protecting Your Profits 147
Keep a Trading Log 147

12 Six Steps to Success 149

Identify Current Long- and Short-Term Trendsand Which Trend to Trade 149
Check News and Market Announcements 150
Identify Support and Resistance Levels 151
Use Studies and Indicators for Entry 151
Buy at Dip Bottoms (Uptrends) or Sell on RallyTops (Downtrends) 151
Use Proper Money Management 152

13 Getting Started with a Trading Station 155

Access the PremiereTrade Web Site 156
Install and Run the Dealing Software 156
Open a Demo Trading Account 156
Dealing Rates Window 157
Open Positions Window 159
Accounts Window 161
Multiple-Accounts Window 163
Orders Window 163
Placing a Market Order 164
Placing a Stop/Limit on an Open Position 167
Change Price on a Stop/Limit (Open Position) 168
Delete Stop/Limit (Open Position) 168
Close an Open Position 169
Placing an Entry Order 170
Change an Entry Order 171
Canceling an Entry Order 173
Reports 173
Customizing the Trading Screen 173
Trading Station Options 175

14 Corporations in the FOREX 179

Introduction 179
Forward Transactions 180
Examples of Strategies 181
Portfolio Management and Currency Risk 183

15 The Business of Trading 185

Staring your Business 185
The Tax Code 186
How to Become a Trader 187
What If I Don't Make Enough Money to Use
Those Deductions? 188
How to Make the Win/Win Better 188
What Kind of Corporation Should You Use? 189
Let's Take a Look at Some Examples 190

Appendix: Bretton Woods System and Post-BrettonWoods System 193

Glossary 199

Bibliography 207

Charts, Figures and Credits 207

Index 209