Outline – Things Traders Should Know

FOREX MARKET
-History and evolution of today’s FX market.
-History and evolution of foreign exchange rates.
-Personal experiences past 25 years in FX market.
-Description and evolution of FX brokers.
-Bank Traders
-Hedge Funds
-Financial Institutions
-Corporations
LONG TERM FUNDAMENTALS
Fundamentals that determine the long -term strength or weakness in the major
currencies include:
-Present and future government
-Economy and outlook
-Inflation and inflation target
-Current interest rates, anticipated changes
-Trade balance - is it a problem
-Current account - enough money flowing into the country
SHORT-TERM
Short-term currency movements are immediately impacted by:
-World events
-Comments, statements by government officials
-Unexpected changes in economic numbers
-Technical - charts
-Stock markets
-Bond markets
-Commodity markets
-Newspaper articles
-Interviews with influential individuals
-Rumors
TRADING BASICS
Trading in the direction of the prevailing trend.
Bar Charts
-Construction
-Identifying the trend
-Highs and lows
-Trend reversal
-Time
-Support and resistance
-Trend channels
-Sideways markets
-Limitations of bar charts
ON-LINE FX BROKER
-History of on-line brokers
-Resolving issues with on-line broker
-Basics of trading platform
-Entering orders
-Changing orders
-Using news service
-Using charts
-Advanced features
CANDLESTICK CHARTS
-History of candlestick charting
-Basics
-Formations
-Combining with western charting
-Combining with technical indicators
-Advanced concepts
TRADING SYSTEMS TOOLKIT
-Why use a trading system
-Basics of building a trading system
-Back testing a trading system
-Choosing a system that’s right for you
-Components of a trading system
-Other people’s trading systems
TRADING PSYCHOLOGY
-Trading with total confidence
-Staying calm and focused
-Remaining positive during losing streaks
-Goal setting
-Matching a trading style to your personality
-Visual Imagery – Rehearsing your moves
-The power to change
EVENT TRADING
-Profiting from release of monthly economic reports
-Placing stop entry, if done stop loss and take profit
-Capturing the move with little risk
-Holding periods
-Indicators go in and out of fashion
-Knowing what indicators are driving the FX market
-Combining technical analysis and events.
-Breakouts related to news event trades
TRADING RULES
-Amount and allocation of capital
-Stop loss orders
-Bucking the trend
-Closing trades without a good reason
-Averaging losses
-Patience
-Hedging
-Following others advice
-Reducing trading after loss
-Getting in wrong and out wrong
TECHNICAL ANALYSIS
-Entry signals
-Exit signals
-Trailing stops
-Retracements
-Market direction
-Momentum
-Combinations
-Price probes
-Sentiment
TRADING QUALIFICATIONS
-Knowledge
-Patience
-Nerve
-Good health
-Control over emotions
-Realistic
-Plan
CHART PATTERNS
-Mountain Top
-Head and Shoulders Top
-Double Top
-Triple Top
-Rounding Top
-Descending Triangle
-Broadeneing Formation
-Single Bottm
-Inverted Head and Sholders
-Double Bottom
-Triple Bottom
-Rounding Bottom
-Ascending Triangle