{"product_id":"the-sensible-guide-to-forex-safer-smarter-ways-to-survive-and-prosper-from-the-start-hardback-9781118158074","title":"The Sensible Guide to Forex; Safer, Smarter Ways to Survive and Prosper from the Start (Hardback) 9781118158074","description":"\u003cfont face=\"Georgia\"\u003e\r\n\u003cp\u003e\u003cfont size=\"6\"\u003eThe Sensible Guide to Forex\u003c\/font\u003e\u003cbr\u003e\r\n\u003cfont size=\"5\"\u003eSafer, Smarter Ways to Survive and Prosper from the Start\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cem\u003e\u003cp\u003e\"As governments sacrifice the value of national currencies to meet policy goals, currency diversification is no longer just an option. It is necessary for the prudent investor's financial survival. In \u003ci\u003eThe Sensible Guide to Forex\u003c\/i\u003e, Cliff Wachtel provides a road map to the confusing landscape of foreign exchange currency trading. He takes you from complete ignorance about forex trading to the competence necessary to profit from trading while protecting the hard earned capital required to enter the market. If you are serious about succeeding in forex, here is a sane conservative approach for individuals interested in gains either as traders or longer-term investors with no interest in directly trading currencies. A highly recommended read.\" \u003cbr\u003e\u003cb\u003e—\u003ci\u003eDICKSON YAP\u003c\/i\u003e\u003c\/b\u003e\u003ci\u003e, Publisher of The Trader's Journal and Forex Journal\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\"Possibly the best introduction to forex you can find, whether you're an aspiring trader or long-term investor who is interested in adding more diversification to your portfolio. It covers the fundamentals clearly and comprehensively, then applies them with detailed examples of how to identify, plan, and execute low-risk high-yield trades. It then provides a vast variety of ways to profit from forex markets that will appeal to a range of skill levels, risk tolerances, and personalities, even to long-term investors just seeking to identify the strongest forex trends and best assets to ride those trends. These include the first ever in-depth look at the innovations in forex trading, social trading, and binary options. Both simplify and shorten the path to lower risk and higher yield returns. The extensive coverage of risk management and the psychological dimension shows you how to survive the learning period with your capital and confidence intact.\"\u003cbr\u003e\u003cb\u003e—\u003ci\u003eJONATHAN ASSIA\u003c\/i\u003e\u003c\/b\u003e\u003ci\u003e, CEO of eToro\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\"Like a fine wine of investment wisdom, Wachtel's advice has been honed and improved over decades of learning and teaching, doing and inspecting, scrutinizing his own work and the work of the greats. Surely one of the best theorists around on forex—heck, on investing—Wachtel has delivered a whopper of value-packed, sage goodness in his \u003ci\u003eSensible Guide to Forex\u003c\/i\u003e, perfect for the beginner and more advanced value-oriented investor. Warning: once you read this book, you can't help but begin using forex as an integral part of your investment strategy. But don't worry, Cliff will shepherd you through, every step of the way.\"\u003cbr\u003e\u003cb\u003e—\u003ci\u003eZACK MILLER\u003c\/i\u003e\u003c\/b\u003e\u003ci\u003e, author of TradeStream Your Way to Profits: Building a Killer Portfolio in the Age of Social Media and founder of Tradestreaming.com\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\"If you want to be a successful forex trader or investor, Cliff Wachtel has written a book that you just can't afford to miss. The Sensible Guide to Forex delivers exactly what it promises, 'safer, smarter ways to prosper from the start.' Here you'll find an arsenal of trading tools to get an enormous advantage over your competition. But it's not just another trading book. It also shows long-term investors how to use currencies for effective diversification and potential profits. Cliff is a leading forex expert, he knows how to write, and this one's a home run.\"\u003cbr\u003e\u003cb\u003e—\u003ci\u003eJOHN NYARADI\u003c\/i\u003e\u003c\/b\u003e\u003ci\u003e, Publisher of Wall Street Sector Selector\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\"The must-own forex book for all of us, even those who will never trade forex. Uniquely designed for the mainstream conservative trader or investor, the book offers traders a clear and comprehensive foundation, then shows how to apply it in a variety of safer, less demanding approaches to suit a range of personalities, needs, and risk tolerances. It shows long-term investors how to identify the strongest long-term currency trends and build an investment portfolio that rides those trends for less currency risk and better overall returns. Better still, it's the only forex book with an exclusive in-depth look at the fastest growing ways to play forex, binary options and social trading, and objectively examine their pros and cons. Used properly, it offers risk control that will improve returns for traders and investors of all levels. It's forex for the 99 percent!\"\u003cbr\u003e\u003cb\u003e—\u003ci\u003eJACK (KOBI) SHAFRIR\u003c\/i\u003e\u003c\/b\u003e\u003ci\u003e, CMO of anyoption.com\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e“This is the one forex book aimed at conservative mainstream investors who might never otherwise consider forex, but should because we all need currency diversification. Even those who never plan to trade will find a wealth of information that will make them better investors. This step-by-step guide to less demanding and lower-risk ways to trade or build a currency-diversified investment portfolio offers a less intimidating path to forex profits.”\u003cbr\u003e—\u003ci\u003e\u003cb\u003eYohay Elam\u003c\/b\u003e, Founder of Forex Crunch\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e“Cliff Wachtel’s book provides pragmatic counsel and guidance. A must read for serious investors seeking to diversify beyond stocks, bonds, and gold.”\u003cbr\u003e—\u003ci\u003e\u003cb\u003eDave Lemont\u003c\/b\u003e, CEO, Currensee\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e“A must read for \u003ci\u003eany\u003c\/i\u003e informed investor or trader that deserves to become \u003ci\u003ethe\u003c\/i\u003e classic introduction to forex. This book is the ideal shortcut to simpler, safer forex trading or investing. As Cliff succinctly puts it, ‘The need for currency diversification is one of the most important lessons of the Great Financial Crisis.’ This book details—with genuine respect for his readers’ money and intelligence—a range of solutions, offering something for readers of every skill level and risk tolerance. Wachtel provides full details and illustrations to show you how to actually make money, without overloading you with secondary details or information you can find elsewhere.”\u003cbr\u003e—\u003ci\u003e\u003cb\u003eEric Harbor\u003c\/b\u003e, CEO, Caesartrade.com\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e“One of the best starting points I have read about forex. Understanding both the big picture and the essential, practical details of how to identify, plan, and execute a profitable trade is the manna of successful traders. Cliff delivers both. He explains what e. e. cummings called ‘the root of the root and the bud of the bud and the sky of the sky of a tree called life,’ but applied to the forex world. A really good tool, whether you’re a newbie forex trader or a long-term traditional investor trying to build a diversified portfolio. Read it and you will get ‘forexpertise.”’\u003cbr\u003e—\u003ci\u003e\u003cb\u003eMauricio Carrillo\u003c\/b\u003e, FXstreet.com U.S. Manager, @MCarrilloFX\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e“This book is an insightful introduction to the world of forex. Wachtel leads the novice trader on a journey of discovery from the most basic concepts in the forex market to more sophisticated trading strategies. What stands out is his honesty. Wachtel doesn’t sugarcoat the FX market; instead he shares the idiosyncrasies of this market and debunks a few FX myths along the way. He also introduces some of the latest developments in the retail forex market, from social trading to binary options. Wachtel’s broad knowledge of this market makes this book an interesting read for those who want a thorough insight into the world of FX.”\u003cbr\u003e—\u003ci\u003e\u003cb\u003eKathleen Brooks\u003c\/b\u003e, Research Director, Forex.com\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e“In an ever-evolving field, it’s rare to find a guidebook so helpful and timeless as Cliff Wachtel’s \u003ci\u003eSensible Guide to Forex\u003c\/i\u003e. This book gives both current traders and new traders the perspective they need to take their forex trading to the next level.”\u003cbr\u003e—\u003ci\u003e\u003cb\u003eTal Holtzer\u003c\/b\u003e, CEO, http:\/\/www.dailyforex.com\/\u003cbr\u003e\u003cbr\u003e\u003c\/i\u003e“This is a fantastic, comprehensive, and up-to-date overview and practical guide to succeeding in the foreign exchange market, with an insightful, qualitative, and non-intimidating approach. Whether you are a novice considering a move into the foreign exchange market or an experienced trader looking for a deeper understanding of various concepts or some new approaches, Cliff’s book does a stellar job of covering all the bases.”\u003cbr\u003e—\u003ci\u003e\u003cb\u003eJoel Kruger\u003c\/b\u003e, Currency Strategist, FXCM\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e“Cliff’s book is a must-read, cogent, cohesive compendium of the realities of forex. I’ve been in the trading business for 35+ years and believe that success is all about intelligent risk management. The book’s relentless emphasis on risk and money management is the reason that this is the first investment book I’ve bothered to finish in the past 20 years. For the novice, first he arms you with the relevant information to keep you from immediately losing your shirt, so that you survive the learning process with most of your cash and confidence intact. Then he takes you step-by-step through a number of paths to profitability. For the professional, he reminds us of the rules we all strive not to violate every day because we’re human. He also provides the first in-depth coverage of two new and potentially very useful ways to tap forex—social trading and binary options. This book is the only source I’ve found for in-depth and objective coverage of either of these intriguing new ways to trade forex markets with potentially less effort and better returns.”\u003cbr\u003e—\u003ci\u003e\u003cb\u003eDavid Israel\u003c\/b\u003e, Chief Market Strategist, White Wave Trading Strategies, Ltd. http:\/\/www.whitewavetradingstrategies.com\/\u003c\/i\u003e\u003c\/p\u003e\u003c\/em\u003e\u003c\/p\u003e\r\n\r\n\r\n\u003cp\u003e\u003cfont size=\"4\"\u003eCliff Wachtel (Author)\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e9781118158074, Wiley\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eHardback, published 2 October 2012\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e448 pages\u003cbr\u003e23.6 x 16.3 x 3.8 cm, 0.671 kg\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\r\n\r\n\r\n\u003cp align=\"justify\"\u003e\u003cstrong\u003e\u003cfont size=\"3\"\u003e\u003cp\u003e\u003cb\u003eFXstreet.Com’s 2013 Best Book Award!\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eThe Sensible Guide to Forex: Safer, Smarter Ways to Survive and Prosper from the Start\u003c\/i\u003e 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.\u003c\/p\u003e \u003cp\u003eFor traders, the book focuses on reducing the high risk, complexity, and time demands normally associated with forex trading.\u003c\/p\u003e \u003cp\u003eFor 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.\u003c\/p\u003e \u003cp\u003eThe usual forex materials don't provide practical answers for most retail traders or longer term investors. Virtually all forex \u003ci\u003etrading\u003c\/i\u003e materials focus on time-consuming, high-leverage, high-risk methods at which most traders fail. Materials about \u003ci\u003elong-term investing\u003c\/i\u003e 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.\u003c\/p\u003e \u003cp\u003eThroughout 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.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eProvides 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.\u003c\/li\u003e \u003cli\u003eShows 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.\u003c\/li\u003e \u003cli\u003eHelps 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\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003e\u003ci\u003eThe Sensible Guide to Forex\u003c\/i\u003e 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.\u003c\/p\u003e \u003cp\u003eWritten by Cliff Wachtel, a 30+ year financial market writer, advisor, and analyst, \u003ci\u003eThe Sensible Guide to Forex\u003c\/i\u003e offers practical solutions to the above dilemmas faced by every serious, prudent investor.\u003c\/p\u003e \u003cp\u003eA must own for any informed investor-but don’t take out word for it - see advanced reviews at: http:\/\/thesensibleguidetoforex.com\/review\/\"\u003c\/p\u003e\u003c\/font\u003e\u003c\/strong\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e\u003cp\u003eRead This First xix\u003c\/p\u003e \u003cp\u003eCurrency Risk: Every Investor’s Dilemma xix\u003c\/p\u003e \u003cp\u003eCurrency Risk and How to Fight It xx\u003c\/p\u003e \u003cp\u003eThe Solution xx\u003c\/p\u003e \u003cp\u003eSome Background xxi\u003c\/p\u003e \u003cp\u003eWhy Any Trader or Investor Needs This Book xxii\u003c\/p\u003e \u003cp\u003eWhat This Book Offers xxiv\u003c\/p\u003e \u003cp\u003eWhy Listen to You, Cliff? xxv\u003c\/p\u003e \u003cp\u003eVisit thesensibleguidetoforex.com for Additional\u003c\/p\u003e \u003cp\u003eOnline Content xxviii\u003c\/p\u003e \u003cp\u003eAcknowledgments xxxi\u003c\/p\u003e \u003cp\u003eCHAPTER 1 Three Must-Know Forex Facts 1\u003c\/p\u003e \u003cp\u003eFact 1: Everyone Needs Forex Diversification Even if You\u003c\/p\u003e \u003cp\u003eDon’t Trade Actively 2\u003c\/p\u003e \u003cp\u003eYou’re Exposed: Cover Your Assets 2\u003c\/p\u003e \u003cp\u003eEven Long-Term Buy-and-Hold Investors Need Forex Diversification 3\u003c\/p\u003e \u003cp\u003eFact 2: Potential for Better Risk-Adjusted Returns 4\u003c\/p\u003e \u003cp\u003eForex Markets Often Provide Advanced Warnings of Changes in Other Markets 4\u003c\/p\u003e \u003cp\u003eForex Needn’t Be Any Riskier Than Other Markets 4\u003c\/p\u003e \u003cp\u003eNo Uptick Rule: Just as Easy to Profit in a Falling Market as in a Rising One 5\u003c\/p\u003e \u003cp\u003eLow Correlation to Other Financial Markets 7\u003c\/p\u003e \u003cp\u003eThe Most Flexible Hours 7\u003c\/p\u003e \u003cp\u003eForex Markets Offer the Best Liquidity 8\u003c\/p\u003e \u003cp\u003eNo Centralized Exchange with Specialists Holding Monopoly Power to Regulate Prices 9\u003c\/p\u003e \u003cp\u003eLess Slippage 9\u003c\/p\u003e \u003cp\u003eThe Best Risk\/Reward Potential 9\u003c\/p\u003e \u003cp\u003eThe Lowest Startup and Trading Costs 10\u003c\/p\u003e \u003cp\u003eFact 3: You Can Do This 11\u003c\/p\u003e \u003cp\u003eHow Can I Compete against the Pros and Big Institutions? 11\u003c\/p\u003e \u003cp\u003eHow David Beats Goliath: More on What This Book Will and Won’t Do 12\u003c\/p\u003e \u003cp\u003eWhat’s the Catch? 14\u003c\/p\u003e \u003cp\u003eMost Traders Fail within Their First Two Years 14\u003c\/p\u003e \u003cp\u003eCHAPTER 2 Forex Basics 17\u003c\/p\u003e \u003cp\u003eBasics of Currencies and Currency Pairs 17\u003c\/p\u003e \u003cp\u003eTrade Only the Most Liquid Currencies 18\u003c\/p\u003e \u003cp\u003eThe Major Currencies 18\u003c\/p\u003e \u003cp\u003eRisk versus Safe Haven Currencies: Definition and Ranking 19\u003c\/p\u003e \u003cp\u003eCurrencies Trade in Pairs and Why That Matters 20\u003c\/p\u003e \u003cp\u003ePrice Movements Are Always Relative to Another Currency 20\u003c\/p\u003e \u003cp\u003eIt’s Just as Easy to Profit in Bear Markets as in Bull Markets 21\u003c\/p\u003e \u003cp\u003eHow to Read a Forex Pair Price Quote 22\u003c\/p\u003e \u003cp\u003eSummary of Currency Pair Basics 24\u003c\/p\u003e \u003cp\u003eWhy It’s Just as Easy to Profit from Falling Prices 25\u003c\/p\u003e \u003cp\u003eSize Matters: Types of Currency Pairs 29\u003c\/p\u003e \u003cp\u003eThe Major Currency Pairs: The Most Liquid 29\u003c\/p\u003e \u003cp\u003eMore on Risk and Safe Haven Currencies 29\u003c\/p\u003e \u003cp\u003eThe Signs of the Crosses: Divine Revelations about Currency Strength 30\u003c\/p\u003e \u003cp\u003eWalk on the Wild Side: The Exotics 32\u003c\/p\u003e \u003cp\u003ePips: The Universal Currency of Currencies 32\u003c\/p\u003e \u003cp\u003eCalculating Pip Values 33\u003c\/p\u003e \u003cp\u003eThree Ways to Limit Risk: Lot Size Usually the Easiest 33\u003c\/p\u003e \u003cp\u003eLeverage and Margin: Their Relationship and Impact on Risk 35\u003c\/p\u003e \u003cp\u003eLeverage: Greater Risk and Reward 35\u003c\/p\u003e \u003cp\u003ePermitted Leverage Varies with Place and Time 35\u003c\/p\u003e \u003cp\u003eHow Margin, Lot Size, and Leverage Interact 36\u003c\/p\u003e \u003cp\u003eThe Importance of Adequate Capital 36\u003c\/p\u003e \u003cp\u003eMargin Calls: Your account’s Circuit Breaker 37\u003c\/p\u003e \u003cp\u003eOrder Types 38\u003c\/p\u003e \u003cp\u003eExit Orders: Ways to Close a Position 42\u003c\/p\u003e \u003cp\u003eThe Three Facets of Risk and Risk Control 44\u003c\/p\u003e \u003cp\u003eThe Core Four: The Most Important Skills for Success 45\u003c\/p\u003e \u003cp\u003eTrader Psychology 46\u003c\/p\u003e \u003cp\u003eRisk and Money Management (RAMM) 48\u003c\/p\u003e \u003cp\u003eTechnical and Fundamental Analysis 48\u003c\/p\u003e \u003cp\u003eCHAPTER 3 Technical Analysis (TA) Basics 49\u003c\/p\u003e \u003cp\u003eCandle Chart Basics 50\u003c\/p\u003e \u003cp\u003eCandle Anatomy and Meaning 50\u003c\/p\u003e \u003cp\u003eRelationship between Body, Wick, and Its Significance 52\u003c\/p\u003e \u003cp\u003eSupport and Resistance (S\/R) Basics 54\u003c\/p\u003e \u003cp\u003eCandle Chart Time Frames: Length Matters 59\u003c\/p\u003e \u003cp\u003eDifferent Time Frames, Different Trading Techniques, and Styles 59\u003c\/p\u003e \u003cp\u003eDifferent Time Frames, Different Trends 60\u003c\/p\u003e \u003cp\u003eIdentifying Support and Resistance (S\/R) to Buy Low, Sell\u003c\/p\u003e \u003cp\u003eHigh, or Vice Versa 62\u003c\/p\u003e \u003cp\u003eDefinitions of S\/R Are Reversed for Long and Short Positions 63\u003c\/p\u003e \u003cp\u003eThe General Rule for Identifying Low-Risk High-Yield Trades 64\u003c\/p\u003e \u003cp\u003eFinding S\/R Is Key to Identifying and Executing Low-Risk High-Yield Trades 64\u003c\/p\u003e \u003cp\u003eGood Risk Management Requires Good TA 66\u003c\/p\u003e \u003cp\u003eThink of S\/R as Zones or Areas 66\u003c\/p\u003e \u003cp\u003eSo Stick to Trading Longer Time Frames—They’re Safer 67\u003c\/p\u003e \u003cp\u003eReasons to Consider Using Multiple Entry and Exit Points 68\u003c\/p\u003e \u003cp\u003eOnce Broken, Resistance Becomes Support and Vice Versa 68\u003c\/p\u003e \u003cp\u003eDon’t “OD” on TA 69\u003c\/p\u003e \u003cp\u003eWhy Specialize in a Few Currency Pairs and Time Frames? 69\u003c\/p\u003e \u003cp\u003eWhat Determines Whether a Currency Is a Risk or a Safe Haven? 70\u003c\/p\u003e \u003cp\u003eCHAPTER 4 Technical Analysis: Types of Support and Resistance (S\/R) 73\u003c\/p\u003e \u003cp\u003ePrice Levels 74\u003c\/p\u003e \u003cp\u003eFor Lowest Risk, Enter Near Strong Support 75\u003c\/p\u003e \u003cp\u003eWhat Makes Some S\/R Points Stronger Than Others? 76\u003c\/p\u003e \u003cp\u003eLonger Time Frames Offer More Reliable S\/R Indicators 77\u003c\/p\u003e \u003cp\u003eCheck Shorter Time Frames to Detect Interim S\/R Levels 77\u003c\/p\u003e \u003cp\u003eTrends and Trend Lines 80\u003c\/p\u003e \u003cp\u003eTrends Vary with Time Frame 80\u003c\/p\u003e \u003cp\u003eDefining Trends, and Constructing Trend Lines 80\u003c\/p\u003e \u003cp\u003eTypes of Trend Lines 81\u003c\/p\u003e \u003cp\u003eSingle Uptrend or Downtrend Lines 82\u003c\/p\u003e \u003cp\u003eChannels: Better Than Single Trend Lines 83\u003c\/p\u003e \u003cp\u003eMoving Averages (MAs) 87\u003c\/p\u003e \u003cp\u003eFibonacci Retracements (Fibs): These Fibs Don’t Lie 93\u003c\/p\u003e \u003cp\u003eApplying Fibs to Your Charts 94\u003c\/p\u003e \u003cp\u003eFibs within Fibs 96\u003c\/p\u003e \u003cp\u003eBollinger Bands (BBs): Use as S\/R in Range-Bound Markets 98\u003c\/p\u003e \u003cp\u003eSupport\/Resistance (S\/R) for Flat or Gently Sloping Trends: The Bollinger Bounce 99\u003c\/p\u003e \u003cp\u003eBollinger Bands Don’t Provide Meaningful S\/R with Strong Trends 100\u003c\/p\u003e \u003cp\u003eIntroduction to Japanese Candle Chart Patterns 101\u003c\/p\u003e \u003cp\u003eMore Key Points about Japanese Candle Patterns 107\u003c\/p\u003e \u003cp\u003eContext and Timing Matter 107\u003c\/p\u003e \u003cp\u003eIntroduction to Western Chart Patterns 108\u003c\/p\u003e \u003cp\u003eClassic Western Reversal Patterns 108\u003c\/p\u003e \u003cp\u003eBeware False Breakouts, Shake Outs, and Other Fake Outs 111\u003c\/p\u003e \u003cp\u003eOther Reversal Patterns to Know 112\u003c\/p\u003e \u003cp\u003eClassic Western Continuation Patterns 113\u003c\/p\u003e \u003cp\u003eWe Repeat: False Breakouts Happen 115\u003c\/p\u003e \u003cp\u003eOther Continuation Patterns 116\u003c\/p\u003e \u003cp\u003ePatterns That Can Be Continuation or Reversal 116\u003c\/p\u003e \u003cp\u003eThe Underlying Logic of Chart Patterns 116\u003c\/p\u003e \u003cp\u003eThe More S\/R Indicators, the Better 119\u003c\/p\u003e \u003cp\u003eMultiple Mutually Reinforcing S\/R Indicators: An Example 119\u003c\/p\u003e \u003cp\u003eCHAPTER 5 Trader Psychology and Risk and Money Management (RAMM) 123\u003c\/p\u003e \u003cp\u003eRAMM: Preserving Capital Is Your Top Priority 124\u003c\/p\u003e \u003cp\u003eThe Inner Game: Trader Psychology Basics 125\u003c\/p\u003e \u003cp\u003eLesson 1: Seek Trading Styles and Methods That Fit You 126\u003c\/p\u003e \u003cp\u003eLesson 2: Basics of the Trader’s Mindset—Minimizing and Accepting Risk 128\u003c\/p\u003e \u003cp\u003eLesson 3: Dealing with Losing and Winning Streaks 129\u003c\/p\u003e \u003cp\u003eWhy Trade Longer Time Frames 130\u003c\/p\u003e \u003cp\u003eSeek Safer Trading Styles 130\u003c\/p\u003e \u003cp\u003eAs with Driving, Speed Kills 131\u003c\/p\u003e \u003cp\u003eA More Level Playing Field 132\u003c\/p\u003e \u003cp\u003eMore and Better Information Means Better Trade Decisions 134\u003c\/p\u003e \u003cp\u003eTrends Are More Reliable in Longer Time Frames 134\u003c\/p\u003e \u003cp\u003eIdeal Trends For Long-Term Investors 136\u003c\/p\u003e \u003cp\u003eOther Technical Indicators Are Better in Longer Time Frames 137\u003c\/p\u003e \u003cp\u003ePublicly Available Fundamental Data and Analysis Matters in Longer Time Frames 137\u003c\/p\u003e \u003cp\u003eLower Trading Costs 138\u003c\/p\u003e \u003cp\u003eStart Out with Longer Duration Trades 138\u003c\/p\u003e \u003cp\u003eContent Quality: The Sign of a Quality Broker 139\u003c\/p\u003e \u003cp\u003eThe Essence of Good RAMM 140\u003c\/p\u003e \u003cp\u003eThe Three Pillars of RAMM 141\u003c\/p\u003e \u003cp\u003eAccount Size and Affordable Loss per Trade 142\u003c\/p\u003e \u003cp\u003eSetting Stop Losses: Basic Technique and Psychology 142\u003c\/p\u003e \u003cp\u003eWhere to Set Stop Losses: Two Criteria 142\u003c\/p\u003e \u003cp\u003eMore Capital Allows Wider Stop Losses and a Wider Choice of Low-Risk Trade Opportunities 143\u003c\/p\u003e \u003cp\u003eBalancing Risk versus the Need to Win 144\u003c\/p\u003e \u003cp\u003eMethod 1: Recent Range 145\u003c\/p\u003e \u003cp\u003eMethod 2: Average True Range (ATR) 145\u003c\/p\u003e \u003cp\u003eSo How Much Capital Is Enough? 146\u003c\/p\u003e \u003cp\u003eLeverage and Margin 147\u003c\/p\u003e \u003cp\u003ePosition Sizing 147\u003c\/p\u003e \u003cp\u003eAvoid Having Too Many Open Positions 148\u003c\/p\u003e \u003cp\u003eEntries Near Strong Support, Exits Near Strong Resistance 148\u003c\/p\u003e \u003cp\u003eEntries 148\u003c\/p\u003e \u003cp\u003eExits: Use Trailing Stops to Protect and Maximize Gains 149\u003c\/p\u003e \u003cp\u003eEntries and Exits: Single versus Multiple 149\u003c\/p\u003e \u003cp\u003eRisk-Reward Ratios (RRRs) 150\u003c\/p\u003e \u003cp\u003eExample: How 1:3 RRRs Make Winners Out of Losers 150\u003c\/p\u003e \u003cp\u003eExample: How 1:2 Risk-Reward Ratios Make Winners Out of Losers 152\u003c\/p\u003e \u003cp\u003eApplying 1:3 RRR: An Example 154\u003c\/p\u003e \u003cp\u003eAcceptable RRR Can Vary with Market Conditions 155\u003c\/p\u003e \u003cp\u003eMore on Stop Loss Orders: An Example of Using ATR to Gauge Volatility and Place a Fixed or Trailing Stop Loss Order 156\u003c\/p\u003e \u003cp\u003eIf You Fail to Plan, You Plan to Fail 158\u003c\/p\u003e \u003cp\u003eWhat’s Your Rationale for Taking This Trade? 158\u003c\/p\u003e \u003cp\u003eNo. 1: Plan Every Trade and Record It in a Journal 160\u003c\/p\u003e \u003cp\u003eSample Trade Rationale as Recorded in Journal 162\u003c\/p\u003e \u003cp\u003eNo. 2: Your Overall Business Plan 165\u003c\/p\u003e \u003cp\u003eWhat Conditions Do You Need for Success? 166\u003c\/p\u003e \u003cp\u003eSafety in Numbers: Build a Team 166\u003c\/p\u003e \u003cp\u003eCHAPTER 6 Essentials of Fundamental Analysis 169\u003c\/p\u003e \u003cp\u003eUsing Fundamental Analysis (FA) and Technical Analysis (TA) Together 171\u003c\/p\u003e \u003cp\u003eAn Overview of FA: Main Fundamental Drivers of Forex Trends 175\u003c\/p\u003e \u003cp\u003eOverall Risk Appetite 176\u003c\/p\u003e \u003cp\u003eShort-Term Interest Rates 183\u003c\/p\u003e \u003cp\u003eMacroeconomic Data and Indicators 189\u003c\/p\u003e \u003cp\u003eExample: EURUSD Uptrend Reverses in Late 2009 as Data Show Europe Slows, U.S. Grows 189\u003c\/p\u003e \u003cp\u003eGeopolitics 193\u003c\/p\u003e \u003cp\u003eCapital and Trade Flows 193\u003c\/p\u003e \u003cp\u003eMerger and Acquisition (M\u0026amp;A) Activity 194\u003c\/p\u003e \u003cp\u003eShort-Term Illiquidity: A Lack of Buyers and Sellers 195\u003c\/p\u003e \u003cp\u003eGovernment and Central Bank Special Interventions in Times of Crisis 196\u003c\/p\u003e \u003cp\u003eNews Trading: Day Trading Based on Short-Term Fundamentals 197\u003c\/p\u003e \u003cp\u003eWhat News Traders Watch 197\u003c\/p\u003e \u003cp\u003eFA Basics: Easy to Understand and Hard to Apply 199\u003c\/p\u003e \u003cp\u003eTherefore, Get Thee to an Analyst 200\u003c\/p\u003e \u003cp\u003eCombining FA and TA: An Example 200\u003c\/p\u003e \u003cp\u003eCHAPTER 7 Pulling It All Together with Trade Examples 205\u003c\/p\u003e \u003cp\u003eIdentifying and Executing Low-Risk, High Potential\u003c\/p\u003e \u003cp\u003eYield Trades 205\u003c\/p\u003e \u003cp\u003eBegin Your Search On Longer Time Frame Charts, Then Zoom In 205\u003c\/p\u003e \u003cp\u003eConsider the Fundamental Context 206\u003c\/p\u003e \u003cp\u003eInitial Screening on Longer Time Frame Charts 206\u003c\/p\u003e \u003cp\u003eSecond Screening 208\u003c\/p\u003e \u003cp\u003eThird Screening to Monitor Trade Progress 209\u003c\/p\u003e \u003cp\u003eTypes of Trades 210\u003c\/p\u003e \u003cp\u003eTrade Example 1: A Swing Trade 211\u003c\/p\u003e \u003cp\u003eInitial Screening 211\u003c\/p\u003e \u003cp\u003eSecond Screening 213\u003c\/p\u003e \u003cp\u003eRRR Evaluation 214\u003c\/p\u003e \u003cp\u003eConclusion: We Take the Trade 216\u003c\/p\u003e \u003cp\u003eTrade Postmortem: What Happened 217\u003c\/p\u003e \u003cp\u003eTrade Example 2: A Breakout Trade 218\u003c\/p\u003e \u003cp\u003eFirst Screening 218\u003c\/p\u003e \u003cp\u003eSecond Screening 220\u003c\/p\u003e \u003cp\u003eRRR Evaluation 221\u003c\/p\u003e \u003cp\u003eConclusion: Know When to Walk Away 222\u003c\/p\u003e \u003cp\u003eTrade Postmortem: Was I Right? 223\u003c\/p\u003e \u003cp\u003eMore Key Trader Psychology: Distinguishing between Good Trades and Winning Trades 224\u003c\/p\u003e \u003cp\u003eCHAPTER 8 Technical Analysis: Basic Momentum Indicators 227\u003c\/p\u003e \u003cp\u003eDouble Bollinger Bands (DBBs )—Use as Momentum Indicators 229\u003c\/p\u003e \u003cp\u003eDBB Basics 231\u003c\/p\u003e \u003cp\u003eThe Four Rules for Using Double Bollinger Bands 232\u003c\/p\u003e \u003cp\u003eCombine DBBs with a Leading Indicator 236\u003c\/p\u003e \u003cp\u003eDBBs: Conclusion and Summary 237\u003c\/p\u003e \u003cp\u003eMoving Average Crossovers 237\u003c\/p\u003e \u003cp\u003ePrice Crosses Over or Under a Moving Average 238\u003c\/p\u003e \u003cp\u003eThe More Indicators in Our Favor, the Better 239\u003c\/p\u003e \u003cp\u003eHow Many Indicators Should You Use? 240\u003c\/p\u003e \u003cp\u003eBut RAMM Is Key 240\u003c\/p\u003e \u003cp\u003eMoving Averages Cross Each Other 241\u003c\/p\u003e \u003cp\u003eExamples of Simple Trading Systems Using MA Crossovers 242\u003c\/p\u003e \u003cp\u003eWelcome to Back Testing 244\u003c\/p\u003e \u003cp\u003eOscillators 244\u003c\/p\u003e \u003cp\u003eHow They’re Used to Generate Buy\/Sell Signals 246\u003c\/p\u003e \u003cp\u003eWhen to Use Oscillators 248\u003c\/p\u003e \u003cp\u003eOther Oscillators to Consider 248\u003c\/p\u003e \u003cp\u003eDesigner Genes 249\u003c\/p\u003e \u003cp\u003eMoving Average Layering Indicates Trend Strength 249\u003c\/p\u003e \u003cp\u003eThe Stronger the Trend, the Clearer the MA Layering 249\u003c\/p\u003e \u003cp\u003eCHAPTER 9 Technical Analysis: Future Study 255\u003c\/p\u003e \u003cp\u003eCatch a Wave: Timing or Cycle Indicators 255\u003c\/p\u003e \u003cp\u003eMeet the Fibonaccis 256\u003c\/p\u003e \u003cp\u003e. . . And the Ganns 256\u003c\/p\u003e \u003cp\u003eCatch the Most Popular Wave: Elliott Wave Theory and More 256\u003c\/p\u003e \u003cp\u003eCombining Technical Indicators: Which Ones and How Many? 257\u003c\/p\u003e \u003cp\u003eYour Tool Kit Needs a Gang of Four 258\u003c\/p\u003e \u003cp\u003eApply Indicators to Each Time Frame When Screening Trades 259\u003c\/p\u003e \u003cp\u003eBack Testing: Learning from the Past 260\u003c\/p\u003e \u003cp\u003eBack Testing Software: Play It Again, Sam 260\u003c\/p\u003e \u003cp\u003eA Manual Back Testing Example 261\u003c\/p\u003e \u003cp\u003eBack Testing Is a Tool, Not a Solution 265\u003c\/p\u003e \u003cp\u003eIntermarket Analysis: Reading Intermarket Correlations and Divergences 265\u003c\/p\u003e \u003cp\u003eBackground 266\u003c\/p\u003e \u003cp\u003eCurrencies versus Equities: The S\u0026amp;P 500 as Forex Indicator 267\u003c\/p\u003e \u003cp\u003eRisk Currencies versus Safe Haven Currencies 268\u003c\/p\u003e \u003cp\u003eWhy These Relationships Matter 268\u003c\/p\u003e \u003cp\u003eThey Give You a Fast, Big Picture 269\u003c\/p\u003e \u003cp\u003eDivergences from Normal Correlations Can Be Significant 269\u003c\/p\u003e \u003cp\u003eThe USD versus Equities 271\u003c\/p\u003e \u003cp\u003eThe USD and Stocks: Correlation, but Not Causation 272\u003c\/p\u003e \u003cp\u003eCurrencies versus Currencies: How They Correlate 273\u003c\/p\u003e \u003cp\u003eWarning: The U.S. Dollar Index Isn’t a Substitute for Studying Charts 275\u003c\/p\u003e \u003cp\u003eCurrencies versus Commodities 277\u003c\/p\u003e \u003cp\u003eGold as a Barometer of the USD or EUR 277\u003c\/p\u003e \u003cp\u003eOther Currency versus Commodity Correlations 282\u003c\/p\u003e \u003cp\u003eThinking Like a Pro, One Step Beyond Technical Analysis 284\u003c\/p\u003e \u003cp\u003eMind Games 284\u003c\/p\u003e \u003cp\u003eLearn to Think Like These Pros 285\u003c\/p\u003e \u003cp\u003eCHAPTER 10 Alternatives to Traditional Methods 287\u003c\/p\u003e \u003cp\u003eAuto-Trading Systems: Welcome to the Machine 287\u003c\/p\u003e \u003cp\u003eCurrency Funds: Forex ETFs, ETNs, and More 289\u003c\/p\u003e \u003cp\u003eManaged Accounts: Should You Seek Professional Help? 291\u003c\/p\u003e \u003cp\u003eCHAPTER 11 Newer, Smarter Methods 295\u003c\/p\u003e \u003cp\u003eFollow the Leaders: Forex Social Networks and Trading 295\u003c\/p\u003e \u003cp\u003eWhat Are Forex Social Networks? 296\u003c\/p\u003e \u003cp\u003eWhat Is Social Trading? 297\u003c\/p\u003e \u003cp\u003eHow It Works: The Highest Form of Flattery 297\u003c\/p\u003e \u003cp\u003eRisks of Social Trading 298\u003c\/p\u003e \u003cp\u003eRewards of Social Trading 305\u003c\/p\u003e \u003cp\u003eThe Growth of Social Trading 307\u003c\/p\u003e \u003cp\u003eHow eToro and Currensee Compare 307\u003c\/p\u003e \u003cp\u003eGreat Tool, but Requires Skill to Use 311\u003c\/p\u003e \u003cp\u003eAn Auspicious Start 312\u003c\/p\u003e \u003cp\u003eDo Your Homework Before You Decide Which to Use 312\u003c\/p\u003e \u003cp\u003eConsider Market Conditions in Choosing Strategy and Risk Tolerance 313\u003c\/p\u003e \u003cp\u003eBinary Options: Trading Made Easier 316\u003c\/p\u003e \u003cp\u003eBackground 318\u003c\/p\u003e \u003cp\u003eHow They Work 319\u003c\/p\u003e \u003cp\u003ePros and Cons 320\u003c\/p\u003e \u003cp\u003eCHAPTER 12 Forex for Income: The Smartest Oxymoron 323\u003c\/p\u003e \u003cp\u003eRide Long-Term Forex Trends for Lower Risk, Higher Income 324\u003c\/p\u003e \u003cp\u003eWhy Income Investors Neglect Currency Diversification 325\u003c\/p\u003e \u003cp\u003eLong-Term Trends for Long-Term Investors 327\u003c\/p\u003e \u003cp\u003eCase Study: Canada 2000–2011: Applying Forex Trends to Equities Investing 328\u003c\/p\u003e \u003cp\u003eThe USD versus the CAD: Guess Which Has No Debt\/GDP Problem 328\u003c\/p\u003e \u003cp\u003eEquities: Canada Is Not Japan 329\u003c\/p\u003e \u003cp\u003eBe Aware of Tax Withholdings and Credits 332\u003c\/p\u003e \u003cp\u003eFor Further Investigation: Online Resources 332\u003c\/p\u003e \u003cp\u003eThe Carry Trade: Using Direct Forex Trades as an Income Vehicle 333\u003c\/p\u003e \u003cp\u003eDifferences between Forex Carry Trade and Traditional Long-Term Buy-and-Hold Instruments 334\u003c\/p\u003e \u003cp\u003eThe Key to Carry Trading 336\u003c\/p\u003e \u003cp\u003eCarry Trade Steps 338\u003c\/p\u003e \u003cp\u003eCHAPTER 13 Now What? Next Steps 341\u003c\/p\u003e \u003cp\u003eWhere You’ve Been 341\u003c\/p\u003e \u003cp\u003eWhere You’re Going 342\u003c\/p\u003e \u003cp\u003eAPPENDIX A Recommended Free Online\u003c\/p\u003e \u003cp\u003eResources 347\u003c\/p\u003e \u003cp\u003eForex Sites 347\u003c\/p\u003e \u003cp\u003eThesensibleguidetoforex.com 347\u003c\/p\u003e \u003cp\u003eBabyPips.com 347\u003c\/p\u003e \u003cp\u003eDailyForex.com 348\u003c\/p\u003e \u003cp\u003eDailyFX.com 348\u003c\/p\u003e \u003cp\u003eForex.com 349\u003c\/p\u003e \u003cp\u003eForexCrunch.com 350\u003c\/p\u003e \u003cp\u003eForexFactory.com 350\u003c\/p\u003e \u003cp\u003eForexMagnates.com 350\u003c\/p\u003e \u003cp\u003eForexpros.com 350\u003c\/p\u003e \u003cp\u003eFXstreet.com 350\u003c\/p\u003e \u003cp\u003eBkassetmanagement.com 351\u003c\/p\u003e \u003cp\u003eOther Favorite Financial Sites 351\u003c\/p\u003e \u003cp\u003eBusinessInsider.com 351\u003c\/p\u003e \u003cp\u003eInvestopedia.com 351\u003c\/p\u003e \u003cp\u003eSeekingAlpha.com 352\u003c\/p\u003e \u003cp\u003eWall Street Sector Selector (wallstreetsectorselector.com) 353\u003c\/p\u003e \u003cp\u003eIndividual Analysts 353\u003c\/p\u003e \u003cp\u003eFundamental Analysis 353\u003c\/p\u003e \u003cp\u003eTechnical Analysis 354\u003c\/p\u003e \u003cp\u003eAPPENDIX B How to Calculate Pip Values and Examples 355\u003c\/p\u003e \u003cp\u003eDefinition 355\u003c\/p\u003e \u003cp\u003eCalculation 355\u003c\/p\u003e \u003cp\u003eExample: EURUSD 356\u003c\/p\u003e \u003cp\u003eHandy Rule of Tens 357\u003c\/p\u003e \u003cp\u003eExample USDCAD 357\u003c\/p\u003e \u003cp\u003eExample USDJPY: Rule of Tens Doesn’t Apply with the JPY 358\u003c\/p\u003e \u003cp\u003eAPPENDIX C Forex Trading Time Zones, Liquidity, and Why These Matter 359\u003c\/p\u003e \u003cp\u003eThree Major Trading Sessions and Why They Matter 359\u003c\/p\u003e \u003cp\u003eMarkets Tend to Follow Each Other 362\u003c\/p\u003e \u003cp\u003eWhat Stops the Follow-Through? 363\u003c\/p\u003e \u003cp\u003e1. News or How It’s Interpreted 363\u003c\/p\u003e \u003cp\u003e2. Technical Resistance: The News Is Already Priced In 363\u003c\/p\u003e \u003cp\u003eThe Prior Session Is Most Influential 363\u003c\/p\u003e \u003cp\u003eBeware Holiday Catch-Up Sessions 364\u003c\/p\u003e \u003cp\u003eAPPENDIX D More on Leverage and Margin 365\u003c\/p\u003e \u003cp\u003eAPPENDIX E How the Mathematics of Loss Demands Keeping Losses Per Trade Low 367\u003c\/p\u003e \u003cp\u003eAPPENDIX F Choosing a Forex Broker 371\u003c\/p\u003e \u003cp\u003eSuggested Search Terms to Find Broker Reviews 371\u003c\/p\u003e \u003cp\u003eCriteria to Consider 371\u003c\/p\u003e \u003cp\u003eAPPENDIX G Low Correlations to Other Markets via Social Trading Means There’s Always a Bull Market Somewhere 375\u003c\/p\u003e \u003cp\u003eTrade Leader Noncorrelations to the Markets 376\u003c\/p\u003e \u003cp\u003eMarket Correlations 376\u003c\/p\u003e \u003cp\u003eLooking at the Trade Leaders 377\u003c\/p\u003e \u003cp\u003eDiversification of Approach 378\u003c\/p\u003e \u003cp\u003eNotes 379\u003c\/p\u003e \u003cp\u003eAbout the Author 385\u003c\/p\u003e \u003cp\u003eIndex 387\u003c\/p\u003e\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eSubject Areas: Finance \u0026amp; accounting [\u003ca title=\"See our other books on Finance \u0026amp; accounting\" href=\"https:\/\/freshlyprintedbooks.co.uk\/search?q=%22Finance%20\u0026amp;%20accounting%20%5BKF%5D%22\"\u003eKF\u003c\/a\u003e]\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\u003c\/font\u003e","brand":"Wiley","offers":[{"title":"Brand New","offer_id":52174363722008,"sku":"9781118158074","price":34.99,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0730\/2037\/5320\/files\/9781118158074_258845.jpg?v=1781174052","url":"https:\/\/freshlyprintedbooks.co.uk\/products\/the-sensible-guide-to-forex-safer-smarter-ways-to-survive-and-prosper-from-the-start-hardback-9781118158074","provider":"Freshly Printed Books","version":"1.0","type":"link"}