Attacking Currency Trends: How to Anticipate and Trade Big Moves in the Forex Market (Wiley Trading)

303 Pages·2011·6.15 MB·English

by  Greg Michalowski

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Attacking
Currency
Trends
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Foundedin1807,JohnWiley&Sonsistheoldestindependentpublishing
companyintheUnitedStates.WithofficesinNorthAmerica,Europe,Aus-
tralia, and Asia, Wiley is globally committed to developing and marketing
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the market’s ever-changing temperament and have prospered—some by
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providetheadviceandstrategiesneededtoprospertodayandwellintothe
future.
For a list of available titles, visit our web site at www.WileyFinance.com.
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Attacking
Currency
Trends
How to Anticipate and Trade
Big Moves in the Forex Market
GREG MICHALOWSKI
JohnWiley&Sons,Inc.
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Copyright(cid:2)C 2011byGregMichalowski.Allrightsreserved.
PublishedbyJohnWiley&Sons,Inc.,Hoboken,NewJersey.
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LibraryofCongressCataloging-in-PublicationData:
Michalowski,Greg.
Attackingcurrencytrends:howtoanticipateandtradebigmovesintheforexmarket/
GregMichalowski.
p.cm.–(Wileytrading;487)
Includesindex.
ISBN978-0-470-87438-7(hardback);ISBN978-1-118-02349-5(ebk);
ISBN978-1-118-02350-1(ebk);ISBN978-1-118-02351(ebk)
1.Foreignexchangemarket–Handbooks,manuals,etc. 2.Investments–Handbooks,
manuals,etc. 3.Foreignexchange–Handbooks,manuals,etc. I.Title.
HG3851.M4932011
332.4(cid:3)5–dc22
2010051235
PrintedintheUnitedStatesofAmerica
10 9 8 7 6 5 4 3 2 1
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ToDeb,Matt,Brian,andBobbyMichalowski
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Contents
Acknowledgments xi
Introduction 1
PART I The Foundation for Success 19
CHAPTER 1 Stereotyping the Retail
Currency Trader 21
TheyThinkTradingCurrenciesIsEasy 22
TheyHaveTooMuchFear 27
TheyLoseMoney 29
TheyAreTooFundamental(NotTechnicalEnough) 31
TheyDon’tKnowEnoughaboutKeyFundamental
Requirements 34
TheyFailtoAnticipateTrends 45
Don’tBeLiketheRest...Change! 46
CHAPTER 2 The Six Attributes of a Successful
Currency Trader 47
WhatAreYouGoodatDoing? 47
ThereWillAlwaysBePeaksandValleys 49
1.SkillorAptitude 49
2.Practice,Practice,Practice 52
3.KnowYourRisk 54
4.CreateandExecuteaPlan 58
5.ControlYourFear 61
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viii CONTENTS
6.BeGreedyEnough 63
AFoundationforSuccess 66
CHAPTER 3 The Mission Statement 67
ATeamofOne 68
ATwo-PartMissionStatement 70
FindingTradesThatSatisfyYourMissionStatement 76
TheImportanceofStayingonTrend 80
CHAPTER 4 What’s Your Game Plan? 85
EveryMissionStatementNeedsaGamePlan 86
TradetheTrends 86
KeepFeartoaMinimum 91
NeverUnderestimateaStrongFoundation 97
CHAPTER 5 Rules for Attacking the Trend 99
Rule1:KeepItSimple(butStayPositive) 100
Rule2:HaveaReasontoPlaceaTrade 105
Rule3:BePickyaboutYourTools 107
Rule4:The“If...Should”Rule 115
Rule5:LookAhead,butNotTooFarAhead 117
RulesRule 120
CHAPTER 6 The Trader’s Toolbox 121
RulesfortheTools 122
HowtoUseFundamentalAnalysis 122
TheOneThingWeCanAgreeOn:Price 125
TheTools 131
IfIHadaHammer 146
PART II Tools and Strategies 147
CHAPTER 7 Moving Averages 149
WhatIsaMovingAverage? 150
HowtoUseMovingAverages 151