Foreign Exchange Trading: The Golden Rules

By Nikoly Pariev

I will try to include in it all the details of trade process, even the tiniest ones, which are often omitted but which are crucial for gaining stable and long-term profit month by month and day by day. The book shows the particularities which are absolutely ignored by those who are not practicing traders and very often even by those who have been practicing for quite a long time but keep sticking to wrong trading principles or have simply missed out these vitally important details. I want to tell you in the first place that everyone can learn to earn with the help of trading. This process resembles a process of learning to drive a car or rather a motorcycle. Every normal person can learn to do it.
If you start learning to drive a motorcycle at a very high speed, not wearing a helmet or a protective jacket, you have rather small chances to complete your learning process successfully. But you can start learning very carefully, at a low speed (that is to start trading with a small round lot) or rather use a computer simulator at first (a special trading tester). Then, despite the procedure being rather risky for the nonpros, you will quietly and steadily increase your speed of earning money in the foreign exchange market. The desire to earn quickly not only leads to frequent losses but it also breeds in trader a lot of vicious habits in the very beginning of their career.
So, ladies and gentlemen, we start our trip to the real world of financial markets. It is a high-speed world where, according to the statistics, about 90% of beginners fail because of their neglecting very simple rules. When learning to drive a motorcycle the similar rules would include fastening the seat belts or putting on protective helmets. And sometimes we just overspeed and that leads to the loss of control over the situation and the loss of a capital.

• Language: English
• Publisher: PROJECT - EDEN, Ent.
• Release date: Sep 6, 2011
• ISBN: 9781465732163

Nikoly Pariev

I was born in 1986, in Donetsk, Ukraine. In 2001 graduated from Donetsk Polytechnic College as a building technician. The same year became a third-year student of Donbass National Academy of Construction and Architecture which I graduated from as civil engineer. Within seven years changed five different jobs; worked as general laborer with working party in the Academy, real estate agent, road construction expert, geodesist in Donetsk General Plan Bureau and Structures Inspection Engineer in a design institute. Simultaneously mastered trading basics attending numerous seminars and having taken distant "Forex Club" course in Moscow International Academy of Foreign Exchange Trading. I am currently a trader with four-year trading experience. Apart from higher education in construction engineering I got extended education in financial market analysis and assets management. My job implies mainly investor fund trust management. This is the way I earn my living. I also wrote a book called Foreign Exchange Trading: The golden Rules basing on my personal hands-on experience. It contains valuable recommendations which can help beginning traders improve their trading results. ======================= На русском / In russian ======================= Родился в г.Донецк Украина в 1986 году. Окончил Донецкий политехнический техникум в 2001 году, получив специальность техник-строитель. После техникума, в том же 2001г., поступил сразу на 3 курс, в Строительную академию ДонНАСА (Донбасская Национальная Академия Строительства и Архитектуры). Окончив академию, получил специальность инженера-строителя. Работал на 5-ти различных работах в течение 7лет: разнорабочим в академии (рабочая группа), агентом по недвижимости, мастером в дорожно-строительной фирме, геодезистом в Управлении Генплана города Донецка, и инженером по обследованию зданий и сооружений в проектном институте. Параллельно всем этим официальным работам, самостоятельно осваивал профессию трейдер посещая огромное количество семинаров, закончив дополнительные дистанционные курсы в Международной академии биржевой торговли «Форекс Клуб», г. Москва. В данный момент я работаю трейдером, мой опыт работы на финансовых рынках 4 года. Образование высшее инженер-строитель + дополнительное "Анализ финансовых рынков и торговля финансовыми активами". Работа моя, заключается в управлении средствами инвесторов (Доверительное управление). Зарабатываю этим себе на жизнь. На основе полученного практического опыта торговли на бирже мной написана книга "Золотые правила победы на бирже". В ней собраны лучшие правила и советы способные помочь начинающим и практикующим трейдерам улучшить свои результаты работы.

Book preview

FOREIGN EXCHANGE TRADING: The Golden Rules

by Nikolay Pariev

published by PROEKT – EDEM with the help of Smashwords

© Copyright 2011 Nikolay Pariev

© Translated by Anna Belokonova

© Cover design by Alexander Shevchuk

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PROEKT – EDEM & Smashwords Edition, License Notes

This ebook is licensed for your personal enjoyment only. This ebook may not be re-sold or given away to other people. If you would like to share this book with another person, please purchase an additional copy for each recipient. If you’re reading this book and did not purchase it, or it was not purchased for your use only, then please return to Smashwords.com and purchase your own copy. Thank you for respecting the hard work of this author.

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by Nikolay Pariev, published by PROEKT – EDEM at Smashwords

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Contents

1. Introduction

2. My career in trading

3. Why Forex?

4. Seven steps towards professionalism

5. 45 reasons why traders cannot earn money

6. Essential

7. Example of a system with positive assembly average

8. Successful trading algorithm

9. Psychological difficulties you should overcome

10. How to manage the funds properly?

11. How much time does a deal require?

12. The difference between successful and unsuccessful traders

13. Aggressive or conservative approach? Which one is better?

14. 40 more successful trading rules

15. Trading robots

16. Casino lessons

17. Professionals training before trading

18. Further advice for improving trading discipline

19. Does The Holu Grail exist?

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Introduction

The goal of this book is to help an ordinary person to earn money in the foreign exchange market using not theoretical but practical knowledge. Nowadays books and magazines on exchange trade contain a vast number of various methods, approaches and theories relating to the subject in question. But the majority of them present rather fragmented information and describe just a single, separately taken trading aspect. These are fundamental, technical or psychological trading aspects of financial markets. I barely know the sources which would contain everything that the trader should know and be able to use in order to earn real money in the real market. Very often having read a book on trade the trader (including myself) tries hard to put all the advice given in it into practice but in fact for some reason the result turns out to be quite different if there is a result at all. Being a practicing trader and at the same time earning my living by trading, I will try to do my utmost so that this book represented the complete truthful view of the real trade life without embellishments and unverified approaches. I will try to include in it all the details of trade process, even the tiniest ones, which are often omitted but which are crucial for gaining stable and long-term profit month by month and day by day. The book shows the particularities which are absolutely ignored by those who are not practicing traders and very often even by those who have been practicing for quite a long time but keep sticking to wrong trading principles or have simply missed out these vitally important details. I want to tell you in the first place that everyone can learn to earn with the help of trading. This process resembles a process of learning to drive a car or rather a motorcycle. Every normal person can learn to do it.

If you start learning to drive a motorcycle at a very high speed, not wearing a helmet or a protective jacket, you have rather small chances to complete your learning process successfully. But you can start learning very carefully, at a low speed (that is to start trading with a small round lot) or rather use a computer simulator at first (a special trading tester). Then, despite the procedure being rather risky for the nonpros, you will quietly and steadily increase your speed of earning money in the foreign exchange market. The desire to earn quickly not only leads to frequent losses but it also breeds in trader a lot of vicious habits in the very beginning of their career.

So, ladies and gentlemen, we start our trip to the real world of financial markets. It is a high-speed world where, according to the statistics, about 90% of beginners fail because of their neglecting very simple rules. When learning to drive a motorcycle the similar rules would include fastening the seat belts or putting on protective helmets. And sometimes we just overspeed and that leads to the loss of control over the situation and the loss of a capital.

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My career in trading

Four years ago I worked as an engineer in a design institute engaged in construction arrangement. This job, as well as all the previous ones (I had five jobs all of which concerned construction), used to give me the feeling of discomfort, absence of the possibilities for self-realization and a suppressed desire to feel free. I always wanted to do self-planned things, to earn the money I really deserved, I wanted my job not to be restricted by anyone and to depend only on myself. By that time I had never heard of such a profession as trader and I had been completely unaware that such a business could bring money. Later I found out that this profession does not require having bosses, getting up at 6.30 a.m. and all the other things that people often consider obligatory. Traders themselves sometimes call trading the last free profession. Many times I came across Internet articles on trading which described it as one of the most prestigious and well-paid jobs apart from illegal businesses. But the most important thing was that such a job was available for everyone notwithstanding your educational level or financial background. The older generation who lived in the Soviet Union consider trading to be a mere lottery, full of risk and uncontrolled. In fact it is not true. If you know all the rules of this profession and if you have a trained mind and substantial hands-on experience, then you will find out that trading is the same as riding a bicycle.

You could spend a lot of time explaining to a person who never in their life rode a bike that it is not dangerous. In this activity the risk simply does not exist if you practice regularly, if you don’t show off and take special safety measures (for example, little children mostly learn to a ride a two-wheel bike using spare wheels at first). But all the same, this person would find a great number of reasons why it is impossible to avoid falls and why he would not be able to manage it etc. It is common knowledge that you can learn to drive a car only through constant practicing. In trading as well just theoretical knowledge is not enough. It is crucial to have a daily practice with the help of special trade trainers called testers. You can also use demo-accounts but such a method is about ten times as time-consuming as testers.

One day having returned from work in the design institute I came across an interesting web advertisement. It was saying about earning rather substantial amounts through foreign exchange trading. That advertisement was placed by one of broker companies and contained an invitation to come to a free seminar in the company’s office located in the city centre. Something subconscious made me enrol in the seminar immediately, especially when such seminars were