Table of Contents

1. The Truly Modern Market.

    A Market for the 21st Century 

    Opportunity Is Knocking

    Everybody’s Talking About It

    Endnotes

2. The Currency of Trading in Everyday Life.

    A Fact of Life

    Keeping Up with the Rates

    The Sun Never Sets on Forex

    Noodles in the Morning

    Laos for Lunch

    Odessa at Dusk 

    Back in a 9-to-5 Market

3. The History of Forex (and Why You Should Care).

    The Beautiful Market

    Lessons of History

    The Roots of Modern Currency

    The Clash Between Governments and Markets

    Trends That Rocked the Forex World

    The Rise and Fall of the Modern Gold Standard

    The Rise of the Euro

    The Internet Trade Revolution: Banks Hated It, Speculators Loved It, and the Market Demanded It

    Seeing the World Through Forex 

    Endnotes

4. The Basics of Foreign Exchange.

    Spot

    Quotes

    Majors

    Cross Rates

    Pips

    Bid/Ask 

    Lot

    Mini Lot

    Basic Tools of Training

    Positions

    Market Order

    Limit Order

    Stop Order

    Order Cancels Other

    Stop-Limit Order

    Rollovers

    Interest Rate Differentials, or Rollover Charge

    Leverage

    Controlling Leverage

    Initial Margin

    Margin Call

    Commissions

    Graphic: Calculations for the Spot Market

    Forex Regulators

    SFBC

    IDAC

    SFC

    FSA

    ASIC

    CFTC and NFA

    NFA

    Forex Designations

    Forex Dealer Members

    Futures Commission Merchants

    Introductory Brokers

    Commodity Trading Advisers

    Brokers

    Managed Accounts

5. Forex Trading Vehicles.

    Forwards and Futures

    Options

    Swaps

    Derivatives and the Forex Market

    The Interbank Market

    Endnotes

6. Tools and Strategies to Get Started.

    Gut Check: What It Takes to Be a Forex Investor

    What Are My Investment Goals, and Are They Realistic?

    What Is My Capacity for Risk?

    Time Investment

    Before You Trade

    Doing a Test Run 

    Strategy: Creating an Approach Model

7. Forex from the Inside.

8. Inside a Forex Platform.

    Searching for the Right Platform

    Doing Your Homework 

    Retail Platforms 

    Trading Mechanisms

      Hub and Spoke Trading

    Request for Quote (RFQ)

    Click and Deal

    News

    Charts

    Research

    Things to Look Out For 

    Requotes

    Network Connection

    Getting the Best Price

    Safety

    My Trading Room

    Information Sources

    Important Numbers

    Forex Retail Platforms

    Protecting Yourself

    Avoiding Fraud

      The Firm Promises a Free Lunch

      The Trader Uses Terminology You Don’t Fully  - Understand

      The Firm Claims To Trade in the “Interbank Market”

      The Firm is Using the Hard Sell via the Internet

      The Firm is Vague and Little Information is Available

9. Trading Inside the 24-Hour Storm.

    Working Around the Clock

    Defining Your Trading Strategy

    Contingency Plans

    Cut Losers

    Pigs Get Slaughtered

    Overleveraging and Overtrading

    Watch the Markets

    Don’t Walk Away

    Review the Market

    Market Manipulation

    Just Because You’re Not Paranoid Doesn’t Mean They Aren’t Out to Get You

    Flatline Your Emotions

    Trade with Your Personality

    Filter Information

    Avoid Bias

10. What Moves the Markets: Basic Fundamental and Technical Trading Strategies.

    Watch Your Fundamentals

    Old Versus Fresh News

    Market Movers

    Governments

    Important Currencies

    The U.S. Dollar

    The Euro

    The Yen

    The British Pound

    The Swiss Franc

    Other Currencies

    The Yuan

    The Won

    The Real

    The Rand

    The G7

    Central Banks

    The U.S. Federal Reserve

    The European Central Bank

    The Bank of England

    The Bank of Japan

    The International Monetary Fund

    Private Financial Institutions

    Corporations

    Speculators

    Monetary Policy and Interest Rates

    Inflation

    Gross Domestic Product

     (Un)Employment

    The Beige Book

    Government Spending and Taxes

    Government Attitude

    Equilibrium: “Parity”

    Trade Balance

    Political and Social Environment

    Currency Board or Peg

    Subjectivity

    Technical Analysis

    Determing the Trend

    Support and Resistance

    Chart Patterns

    Fibonacci Pattern

    Elliot Wave Theory

    Gann Angles

    Andrews Pitchfork

    Indicators 101

    Moving Average

    Moving Average Convergence/Divergence (MACD)

    Relative Strength Index (RSI)

    Stochastic Oscillator

    Bollinger Bands (BB)

    Parabolic Stop and Reversal (SAR)

    Average Directional Index (ADX)

    Starter Technical Model

    Scalping

    Technical or Fundamental?

    Endnotes

11. Black Swans and Rogue Traders.

    The Inherent Instability in the Forex Market

    The Tequila Crisis

    The Asian Crisis

    Breaking the Bank of England

    Interventions

    Scams and Rogue Traders

    Russia Devalues the Ruble

12. Trends and the Yuan.

    Forex Will Not Just Get Bigger; It Will Get More Respect

    Globalization and the War on Terror

    The Chinese Dragon and the Indian Tiger

    ASEAN

    The Euro: Can It Hold?

    The Growth of Free-Trade Blocks

    The U.S. Dollar

    Endnotes

Appendix.

Index.

About the Author

Peter Rosenstreich is a principle and foreign exchange trader for Rose Stevons & Company, a boutique New York alternative investment firm specializing in providing retail clients with innovative, structured products. Mr. Rosenstreich has extensive experience in the retail Forex sector. He is licensed with a series 3, 7, and 63, and is registered with the NASD and National Futures Association as a Commodity Trading Advisor (CTA). Mr. Rosenstreich holds a BA in History from Clark University and an MBA from the City University of New York, Zicklin School of Business.

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