Du kanske gillar. Ladda ned. Spara som favorit. Forex Secrets - From a 25 Year Currency Trading Veteran - Successful Scalping Strategies from the Dark Side; has been written from the comprehensive standpoint of a quarter century of trials, errors and successes. Every trader is different and while the book is directed at a very broad based audience it tries to force the reader to develop their own scalping strategies using the many tested methods put forth by the author. Forex Secrets places a strong emphasis on self risk assessment as well as strict money management techniques.
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By Timothy LuCarelli. If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability. This book is designed for people who already have a basic knowledge of technical analysis, as well as some background in fundamental analysis and economics. It assumes that you have experience with charting basics and economic dissemination, and that you have done some investing. Forex Secrets goes into practical depth on many issues that relate to scalping and trading.
You will benefit more if you have some trading experience, either in a real or demonstration environment, paper trading, or demo account with exposure to technical analysis. The concepts of scalping require a deep understanding of how the currency markets work in relation to global economics and technical analysis.
This does not mean that the material covered in this book cannot be learned without that experience; it just means you may need to spend extra time learning some of the more difficult concepts. You will not learn it all overnight.
If it were that easy, everyone would be scalping successfully. Also, as an introduction, I want to emphasize that while this book is designed to teach you many scalping concepts as they relate to the Forex markets, the concepts can be used in just about any market that has volatility. Examples in the book will refer to the Forex markets, and most of our discussions will be on Forex, but the principles can be applied to any volatile market.
The book should be considered nothing more than education. I am not here advocating any kind of personal recommendations or stating this is the Holy Grail of trading. You can use everything in this book literally word for word, or you may incorporate certain parts into your current trading plan. It is not meant as a learn-all, do-all, guru-type of trading system. This is a book that teaches about scalping the markets through a set of proven processes.
There are no shortcuts to successful trading. Forex Secrets is detailed and does not provide one easy answer. It is a culmination of my experiences and trading style that has been laid out for you to use. The principles that I discuss in Forex Secrets are ones that I have developed over many years and have employed in various trading programs in real life.
They have worked well for me over the years, but they are constantly being tweaked. Even though I have been trading for over twenty years, these principles change, the markets change, situations change, and I learn new things, so nothing is carved in stone. What works well for me now may need to be tweaked next year or may not work well for your personality. Some of these concepts may be difficult to grasp, and because of that, I will repeat them several different ways.
Average adults need to hear or see a concept five to seven times before they fully remember and can apply the knowledge.
There will be times when you read something in this book and think it makes sense, but then it will be repeated in a different way, and that is when the light bulb goes on and you get that aha moment. All of a sudden it becomes more than intellect; it becomes clear and usable. At that moment the knowledge has become a powerful tool for you to implement in your trading. There are a few items we need to touch on before we get into the real meat of scalping.
We need to talk about certain fundamental items and market conditions. When we need to fix a physical item, we may reach for a hammer or screwdriver. If we have to write a letter or analyze lots of data, we may use a computer.
All of these are tools that make the task successful. Everything we discuss in this book is nothing more than a tool to utilize to become a successful scalper. Cycles, or waves, play a big role in the markets, and it is these market waves that can help us become more accurate traders. When we look at a chart, we can see patterns.
If we look at the chart in a bigger or longer time frame, we will see even more patterns or waves. It is these market waves that are not all that prevalent unless we are looking for them. They are just another tool for us to use to be successful.
Some of you may have studied theories like Elliott Waves, Fibonacci, or Gann numbers. These all have a lot to do with cycles or patterns in the markets. There is some truth to these theories, and they do play a significant role in trading. Learning to recognize cycles or waves can increase the odds in our favor.
They can cause a direction change in the market. Cycle times can last for very short or very long periods. We have top points and bottom points in cycles and waves. It is these up and down, top points and bottom points that we are concerned with.
On longer-term trends the points in between those high and low spots are significant, as they determine tradable trends. As markets change direction, cycles change; this can also be considered a visual for a change in sentiment.
Sometimes sentiment changes within hours. Sometimes it takes years. The market sentiment, or the tone of the market, can be set by many events. Sometimes they are technical in nature, but more than likely it is because of fundamental events. It is fundamental events such as economic reports, political events, or various unexpected disasters that can change the sentiment of a market. Sentiment can sometimes change very quickly, and it can change on a short-term or long-term basis.
Many times the markets are moving in one direction, and all the market players feel comfortable with that direction. The market is moving up and everybody feels confident; everybody is buying, so the market continues to move higher.
Buyers are willing to pay a higher price than sellers are asking. As sentiment increases there comes an almost frenzied buying. Then all of a sudden something happens that changes market sentiment. An economic report comes out. We have hundreds of them every day, all over the world. Maybe retail sales in Japan, maybe unemployment in Europe, or maybe a rate decision in Brazil.
We have become a global economy. What happens in Indonesia influences markets in Vancouver, Canada. We cannot avoid the globalization of our economy; we can only accept it. We have to learn how all this information influences everything else, especially when we are trading currencies.
Market sentiment is an interesting concept, and many times it seems almost unpredictable. When the market has been going up, everybody has been on board, believing the good times will never end.
Then an economic report is released, and all of a sudden everybody starts thinking that this is not such a good market to be in at this time. Thus, a change in sentiment has just occurred.
The market now starts to go down. There are more sellers than buyers. The tone of the market has changed. The cycle has peaked; direction has changed.
There has been an event that has switched the thinking of market participants. Here is a trick question. What makes up markets? All markets are made up of human participants. It is the psychological factors of all these human participants that make markets move either up or down.
Market participants are humans, and humans are fickle. They are going to change their minds many times in an hour, many times in a day, many times in a year, based on information that is fed to them. It is similar to computers. We type information into them, and they change. The difference is that humans are reactionary. Computers are non-emotional. Humans react to the information, and it is this reaction that creates markets and makes them move. We may think, Things are not as good as they were an hour ago, and I no longer want to hold this particular investment - stock, futures, currency cross, whatever it may be.
There are a lot of psychological events that drive markets. If we can understand this psychology, not necessarily understand why, but understand that it happens, and understand when perceptions are going to change, then we will be able to be more successful in our entries. There may be a cycle top, which is a timing event as well as a measurable distance on a chart. Because time is distance we can almost plan where that market will be next, regardless of any report.
It may not be that bad a report, but, again, markets are driven by human emotions. So when the market peaks in a wave or cycle, it is telling us that at that particular moment the psychology of the market is vulnerable to a reversal. We are going to talk a little more in depth about fundamental events in the coming chapters, and then we are going to learn to apply solutions in our trading to neutralize the risk of these events.
It really is very important, and many traders, especially amateurs, do not want to deal with all these factors because it is complicated, convoluted, and abstract.
But the more we understand about human emotions, the more we understand the driving forces behind the markets, and the better traders we are going to become.
ISBN 13: 9781626208650
Every trader is different and while Forex Secrets is directed at a very broad based audience it tries to force the reader to develop their own scalping strategies using the many tested methods put forth by the author. The book places a strong emphasis on self risk assessment as well as strict money management techniques. If anything this is really more a book about developing proper risk tools that relate to money management principles through the use of well thought out organizational skills directed at developing a trading algorithm. Even though the discussions throughout the book are geared towards Forex scalping, all strategies can be applied to other investments and time frames that will enhance the reader's overall short-term investing abilities. Forex Secrets forces the reader into a soul search that can develop and enrich their own style of day trading investment.