What is Forex?
The Forex or FX market is the foreign exchange market, the largest financial market in the world. Every day about $2 trillion is traded. The interesting thing about forex is that there is no physical exchange such as the CME or CBOT. Everything is done in the over-the-counter market. Forex traders include governments, financial institutions, corporations, and speculators. Don't be intimidated by the fact that governments can take action in the Forex market. The daily turnover makes it difficult even for governments to have a major impact on the market. Forex trades around the clock.
Why should you trade Forex?
You probably shouldn't. Something like 90% of Forex traders end up losing money. That statistic is not really as scary as it seems at first glance. Many in that group are those who want to get rich quick and are enticed by forex brokers who offer minimum account sizes on the order of a hundred dollars. The good news is if you are in the 10% that makes money, you can do quite well. Since you are reading this lens you probably think that you have the potential to be in that 10%. You CAN do it, but you must have a well thought out plan and the ability to execute it without allowing emotions to get involved. It definitely won't be as easy as some of the promoters make it sound. Even if you find or develop a winning system, there will be losing streaks you have to deal with.
Forex information on the Internet
There are over 33 million web sites on the Internet devoted to forex trading and at least 90% of them are worthless. Even worse, if you followed the advice offered on most of them you will end up decreasing instead of increasing your net worth. There are also thousands of e-books on forex trading with about the same ratio of useful information. Then there are forex forums where the most frequent posters seem to be people who are losing money trading forex. Most forex brokers offer to teach beginners how to trade forex, but you have to remember their motivation is to get you to trade as much as possible so their profit is as high as possible.
Bird Watching in Lion Country
Forex Trading Explained
Bird Watching in Lion Country is certainly different from most of the other forex e-books out there. Instead of slick promises about how much money you will rake in trading forex, this is a cautionary tale of a forex newbie named Joe. Joe starts off losing money as most forex traders do, but as he truly learns how forex works, he ends up in the black.
The author, Dirk du Toit, doesn't pull any punches in the book but instead tells it like it is. He said a lot of things I agree with. These include:
This 236 page e-book is more about forex trading philosophy than a specific trading plan, but its in-depth treatment of the forex market is critical to the success of the beginning forex trader.
Dirk also offers a mentoring program. Although I have not personally used this service, the reviews that I have seen for it are generally very favorable.
The author, Dirk du Toit, doesn't pull any punches in the book but instead tells it like it is. He said a lot of things I agree with. These include:
- the shorter your trading timeframe, the more likely that you are just trading in the noise
- a lot of technical analysis techniques which work very well in the stock market do not work as well, if at all, in the forex market
- you can learn from others but the only way to true success is to put it all together yourself
- currency traders must familiarize themselves with both technical and fundamental analysis
- trading is not an exact science, but the trader who knows how to stack the odds in his favor will succeed in the long run
- just because you can trade forex with 400:1 leverage doesn't mean you should
This 236 page e-book is more about forex trading philosophy than a specific trading plan, but its in-depth treatment of the forex market is critical to the success of the beginning forex trader.
Dirk also offers a mentoring program. Although I have not personally used this service, the reviews that I have seen for it are generally very favorable.
Surefire Forex Trading
In Sure-Fire Forex Trading, Mark McRae, starts off with the typical introduction to the forex market and what he refers to as forex trading 101. He then introduces the various pieces of the sure fire method: the basic theory of the method, multiple time periods, trend with moving averages, trend indicator, Fibonacci, and money management. I don't want to say too much more because I do not want to give away his whole method. I am a big fan of using multiple time periods when trading. I believe that it provides a significant edge. The way that Mark uses Fibonacci analysis to determine entry points is brilliant. It gets you into trades earlier and significantly lowers the amount you must risk. If you purchase the Sure-Fire Forex Trading package, Mark will include a Risk Probability Calculator which you can use to determine profit targets and risk/reward ratios. There are also some great bonuses such as numerous trading articles and techniques and eight trading e-books.
The Bottom Line
For the beginning forex trader or even the more experienced forex trader who is not consistently making money, Bird Watching in Lion Country is a must read. For someone who already has some forex trading experience, Sure-Fire Forex Trading provides a sound method for extracting profits from the competitive forex market. Anyone who orders a forex product through my link will also receive Power Forex Profit Principles by Bill Poulos. If you do not receive your bonus e-book within 3 days, please e-mail me at forex at info-guy dot com.
Reader Comments
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Adrie
Hi Posted November 25, 2007 |
Trading Forex on YouTube
Fibonacci Forex Trading
How to make money in Foreign Currencies using Fibonacci Retracements and Fibonacci Profit Targets. Brought to you by www.LeverageFX.com
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