Sure Fire Forex Trading

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RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT.................................................. 2
INTRODUCTION TO THE FOREX MARKET ...................................................................................... 6
THE PLAYERS ............................................................................................................................................ 8
Customers............................................................................................................................................ 8
Banks................................................................................................................................................... 9
Brokers ...............................................................................................................................................10
DIFFERENT SECTION OF THE FOREX MARKET ...........................................................................11
THE SPOT MARKET...................................................................................................................................11
FORWARDS ...............................................................................................................................................12
SWAPS ......................................................................................................................................................13
CURRENCY FUTURES ................................................................................................................................13
CURRENCY OPTIONS.................................................................................................................................14
INTERVENTION..........................................................................................................................................14
CURRENCY DESIGNATIONS.......................................................................................................................15
Crosses ...............................................................................................................................................20
Exotics ................................................................................................................................................20
MAJOR CURRENCIES TRADED...................................................................................................................21
LEVERAGE ................................................................................................................................................21
MARGIN CALL ..........................................................................................................................................24
ROLLOVERS ..............................................................................................................................................24
WHICH CURRENCY IS YOUR PROFIT/LOSS IN?.........................................................................................26
REGULATION ............................................................................................................................................27
FOREX TRADING 101 ..............................................................................................................................29
TECHNICAL ANALYSIS..............................................................................................................................29
THE DOW THEORY ...................................................................................................................................30
TERMINOLOGY’S ......................................................................................................................................32
BULL MARKET..................................................................................................................................32
BEAR MARKET..................................................................................................................................33
LAMB MARKET.................................................................................................................................33
VISUAL TRADING......................................................................................................................................34
The Bar Chart.....................................................................................................................................34
Candlesticks Chart .............................................................................................................................36
Support And Resistance......................................................................................................................37
Trend Lines.........................................................................................................................................39
Channels.............................................................................................................................................40
Time Periods ......................................................................................................................................41
Paper Trading ....................................................................................................................................42
COMPONENTS OF THE METHOD .......................................................................................................44
Theory Of The Method .......................................................................................................................44
Multiple Time Periods ........................................................................................................................44
Trend With Moving Averages.............................................................................................................44
Trend Indictor ....................................................................................................................................44
Fibonacci............................................................................................................................................44
Money Management ...........................................................................................................................44
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THEORY OF THE METHOD...................................................................................................................44
MULTIPLE TIME FRAMES..........................................................................................................................45
TREND IDENTIFICATION............................................................................................................................48
TREND INDICTOR......................................................................................................................................51
SWING POINTS ..........................................................................................................................................51
TREND INDICTOR CHANGE .......................................................................................................................53
FIBONACCI ................................................................................................................................................55
FIRST SOME HISTORY OF FIBONACCI .......................................................................................................55
TARGETS...................................................................................................................................................58
MONEY MANAGEMENT.........................................................................................................................61
Dependent events................................................................................................................................63
TRADING AND PROBABILITY..............................................................................................................65
Drawdown ..........................................................................................................................................67
Maximum Drawdown .........................................................................................................................67
Measuring Drawdown Recovery ........................................................................................................68
Risk Reward Ratio..............................................................................................................................71
RISK PROBABILITY CALCULATOR ...................................................................................................72
TRADING RULES......................................................................................................................................75
ADVANCED TECHNIQUES.....................................................................................................................96
THINGS TO CONSIDER.........................................................................................................................111
TRADERS RESOURCE...........................................................................................................................112