Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves (3rd Edition)
Format: PDF / Kindle (mobi) / ePub
Play the forex markets to win with this invaluable guide to strategy and analysis
Day Trading and Swing Trading the Currency Market gives forex traders the strategies and skills they need to approach this highly competitive arena on an equal footing with major institutions. Now in it's third edition, this invaluable guide provides the latest statistics, data, and analysis of recent events, giving you the most up-to-date picture of the state of the fast-moving foreign exchange markets. You'll learn how the interbank currency markets work, and how to borrow strategy from the biggest players to profit from trends. Clear and comprehensive, this book describes the technical and fundamental strategies that allow individual traders to compete with bank traders, and gives you comprehensive explanations of strategies involving intermarket relationships, interest rate differentials, option volatilities, news events, and more. The companion website gives you access to video seminars on how to be a better trader, providing another leg up in this competitive market.
The multi-billion-dollar foreign exchange market is the most actively traded market in the world. With online trading platforms now offering retail traders direct access to the interbank foreign exchange market, there's never been a better time for individuals to learn the ropes of this somewhat secretive area. This book is your complete guide to forex trading, equipping you to play with the big guys and win—on your own terms.
• Understand how the foreign currency markets work, and the forces that move them
• Analyze the market to profit from short-term swings using time-tested strategies
• Learn a variety of technical trades for navigating overbought or oversold markets
• Examine the unique characteristics of various currency pairs
Many of the world's most successful traders have made the bulk of their winnings in the currency market, and now it's your turn. Day Trading and Swing Trading the Currency Market is the must-have guide for all foreign exchange traders.
purposes. The asset market theory is basically the opposite of the balance of payments theory since it takes into account a nation's capital account instead of its current account. A Dollar-Driven Theory Throughout 1999, many experts argued that the dollar would fall against the euro on the grounds of the expanding U.S. current account deficit and an overvalued Wall Street. That was based on the rationale that non-U.S. investors would begin withdrawing their funds from U.S. stocks and bonds
For higher-probability trades, technical formations can be used in conjunction with the visual identification to place a higher weight on a specific direction of the breakout. For example, if the inside days are building and contracting toward the top of a recent range such as a bullish ascending triangle formation, the breakout has a higher likelihood of occurring to the upside. The opposite scenario is also true; if inside days are building and contracting toward the bottom of a recent range
highs. Strategy Rules Longs: Look for a currency pair that is making a 20-day high. Look for the pair to reverse the same day or next to make a two-day low. Buy the pair if it takes out the 20-day high within three days of making the two-day low. Place the initial stop a few pips below the two-day low. Take profit on half of the position when it moves by the amount risked; move stop on rest to breakeven. Trail stop on the remainder of the position. Shorts: Look for a currency pair that is
against the U.S. dollar. Due to the sharp slide, the European Central Bank (ECB) convinced the United States, Japan, the United Kingdom, and Canada to join them in coordinated intervention to prop up the euro for the first time ever. The Eurozone felt concerned that the market was lacking confidence in their new currency but also feared that the slide in their currency was increasing the cost of the region's oil imports. With energy prices hitting 10-year highs at the time, Europe's heavy
these currency pairs involve the U.S. dollar. In fact, 80% of all currency deals, which include currency conversion, hedging, and trade settlement, involve the U.S. dollar. This explains why U.S. data, the U.S. dollar, and U.S. fundamentals are so important to foreign exchange traders. Prior to the introduction of the euro and the growing utilization of the Chinese renminbi, the U.S. dollar was considered one the world's premier “safe-haven” reserve currencies. The U.S. dollar has long been one