The foreign-exchange market is often referred to as the Slaughterhouse where novice traders go to get ‘chopped up’. It is one of egos and money, where millions of dollars are won and lost every day and phones are routinely thrown across hectic trading desks. This palpable excitement has led to the explosion of the retail FX market, which has unfortunately spawned a new breed of authors and gurus more than happy to provide misleading and often downright fraudulent information by promising traders riches while making forex trading ‘easy’.
Well I’ll let you in on a little secret: there is nothing easy about trading currencies. If you don’t believe me then stop by Warren Buffet’s office and ask him how he could lose $850m betting on the dollar or ask George Soros why his short yen bets cost him $600m not once but twice in 1994. What’s wrong with these guys, don’t they read FX books?
In reality, the average client’s trading approach combined with the unscrupulous practices of some brokers make spot FX trading more akin to the games found on the Vegas strip than to anything seen on Wall St. The FX market is littered with the remains of day traders and genius ‘systems, ‘ and to survive in the long-run traders have to realize that they are playing a game where the cards are clearly stacked against them.
Have you ever had your stop hit at a price that turned out to be the low/high for the day? Bad luck perhaps? Maybe. What if it happens more than once? Do you ever feel like the market is out to get you? Well guess what, in this Zero Sum game it absolutely is.
Covering the day-to-day mechanics of the FX market and the unsavoury dealings going on, Beat the Forex Dealer offerstraders the market-proven trading techniques needed to side-step dealer traps and develop winning trading methods. Learn from an industry insider the truth behind dirty dealer practices including: stop-hunting, price shading, trading against clients and ‘no dealing desk’ realities.
Detailing the dealer-inspired trading techniques developed by MIGFX Inc, consistently ranked among the world’s leading currency trading firms, the book helps turn average traders into winning traders; and in a market with a 90% loss rate winning traders are in fact quite rare More than just a simple manual, Beat the Forex Dealer brings to life the excitement of the FX market by delivering insights into some of the greatest trading triumphs and highlighting legendary disasters; all written in an easy to read style.
Make no mistake about it there is a lot of money to be made in currency trading, you just have to know where to look. Sidestepping simple dealer traps is one way of improving your daily p&l, but it is surely not the only one. Successful trading comes down to taking care of the details, which means skipping the theoretical stuff and providing only up-to-date, real-life examples while sharing the FX trading tips that have proved so profitable over the years. By stripping away the theory and getting down to the core of trading, you too will find yourself on the way to beating the forex dealer

(more…)

What is forex trading? how does it differ from normal stock market trading?
Are the risk and strategies different? Can forex be more profitable?

Hello Richard,

Well Forex trading, is the simultaneous buying of one currency and selling of another at current prices. For example, buying Gbp/Usd means buying the pound and at the same time selling the dollar, a very simple concept indeed. Currencies as the above are traded in pairs mainly on the interbank (banks) and retail (private traders) market.

Common terms used:

- FX trading
- spot forex

The four major currencies are the Eur/Usd, Gbp/Usd, Usd/Jpy and Usd/Chf. You can easily find your trade among one of those currencies day in day out.

Here are the main differences:

- Market Performance. More volatility in the Currency market making market very liquid
- Low Transaction costs
- Market Transparency
- Trending Market
- No uptick rule
- No bear Market (when one currency goes down the other one is appreciating in value)

Also the leverage in forex is much higher and you need a very small start up capital to get a feel of the currency market. Stock market many a times has a major effect on some currency pairs such as USD and JPY. Using the data of some major stock can to some extent predict the moves in the USD and YEN pairs.

The strategies are the same in many cases. However due to the high liquidity and volatility of the currency pair, you will get far more action in the forex market than the stock market.

I hope that helps if you need any more info you may have a look at the following website www.forex-trading-domain.com

Best of luck

powered by Yahoo Answers