How to Make a Living Trading Foreign Exchange: A Guaranteed Income for Life (Wiley Trading)
Solid Forex strategies for capturing profits in today’s volatile marketsHow to Make a Living Trading Foreign Exchange puts the world of Forex at your fingertips. Author Courtney Smith begins with an introduction to the Forex market-what it is and how it works. He then delves into six moneymaking techniques for trading Forex, including his unique Rejection Rule that doubles the profit of basic channel breakout systems. In addition to two specific methods for exiting positions at critical levels,
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Good book for people who already have money,
This is an interesting read with some solid methods for trading forex. My biggest complaint is that it only talks about positon (long term) trading based on the daily charts, and has almost nothing about day trading. Position trading is fine if you have a large amout of capitol and can withstand some major drawdowns, but the majority of traders are starting with much less money. The author has been a professional trader for many years, and at least this is a book written by someone who actually does make money consistently and has a long term track record of success. The methods presented are successful in the long run if your account can withstand losing hundreds of pips 45% of the time.
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|Paid for itself on the 1st trade,
If you are looking to investment in the Forex market then this is a good starting point.
WHAT THIS BOOK IS:
1) A complete set of trading strategies with entry and exit points laid out clearly. Although you have to pay some attention to what is being said because there are a couple of ‘mis-statements’ that won’t make sense until you realize they are editting errors and/or typos.
2) A long-term way of investing your money in a reasonably conservative fashion.
3) A good way of earning 5+% return per month on your capital.
WHAT THIS BOOK IS NOT:
1) A day trader’s bible. All strategies are based on daily and weekly price movements.
2) A get rich quick scheme. Face the facts, making 5+% per month is pretty darn good. Anyone who promises more is full of what we hauled out of the calf pens when I was growing up.
Yes, all the strategies are probably available for free ‘somewhere’ on the internet. But for a couple of bucks you get it all in one spot.
I have 1+ years experience trading Forex and in the months of September and October 2010 I made 5+% per month using only the strategies in this book.
Would I recommend this to a friend – Yes
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|Ideas Worth Testing,
What the author shares are ideas worth testing. For example, while the inside lemonade trade works well on some markets, it doesn’t work at all on others. This is typical of any strategy, and my point is you need to back test these ideas. To further my point, Inside Days works on some currency pairs, and Inside Lemonade works on some currency pairs … not necessarily the same currency pairs. Inside Days might work on one pair, but the lemonade trade doesn’t work on the same pair. You should program each trade individually and give each trade a test on each pair to find what works and where it works.
Surprisingly, I didn’t find the Reversal Day setup to be profitable on any pairs. The Reversal Lemonade works on a few.
Channel Breakout, using the typical 55/20 that Courtney also suggests in the book, doesn’t work on a single currency pair. I see the potential of this trade though, with a better stop … I’ll be reprogramming it to exit on fractals using a shorter time frame than the time frame on which I entered on a channel breakout. I did find 90/90 works on some pairs with 30 minute bars.
Regardless of whether one of Courtney’s specific trade setups work, the best thing to take away from this book are his ways of thinking:
1. His approach to psychology is great and can be summed up quickly: Consider yourself to be a casino, with the market as the gambler at your card table, and your trade setup as your card game. You lose some, win some, and overall you take home a profit. No need to freak out and yell at the monitor when a trade isn’t making money. Play your hand and then play the next hand.
2. Program numerous trade setups that are based on a fundamentally sound idea. For example, inside days and reversal days, as well as reversal lemonade and inside lemonade, are all fundamentally sound, although they are not all profitable on all pairs. Start with something that works fundamentally. Program it, backtest it, throw out the ones that don’t work, and forward test the trades that do work. Don’t expect any trade to work on every pair. Trade it where it works.
3. Once you see it works even in forward testing, such as with a demo account or a small live account using micro pips, then open a larger live account and let it work for you.
Personally, I wouldn’t get caught up in paying anyone to coach you to trade, which seems to be the end goal of this book. There are also a lot of typos that can seriously confuse you if you don’t pay a lot of attention to what you’re reading. I found them while highlighting and working through sections. Courtney says at the end of the book you can go to his website to ask a question, but I’ve never received a single answer. Lack of follow through and some trades that don’t even work = 4 stars.
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