How To Win Like The Banks: Winning Forex Trading Strategies 2021

By Terence Bailey

Become a forex trading pro and master the market with this ultimate guide to trading success!
Have you always wanted to achieve financial independence? Do you dream of working from home, setting your own hours, and making money with the power of trading? Or are you already an aspiring forex trader, and you want to discover the top tips and strategies to supercharge your skills and start making more profit? Then this book is for you!
Packed with the latest Forex marked advice, this ultimate trading guide breaks down the world of forex trading in a way that even complete beginners can understand. Drawing on a mix of simple trading advice and cutting-edge strategies,How to Win Like The Banks - Winning Forex Trading Strategies 2021 arms you with the essential information you need to succeed in the forex market.
Detailing the best kinds of currency pairs, must-know terminology for getting started, step-by-step market analysis, and so much more, now you can level up your forex skills and begin your journey to financial independence. No matter your current trading knowledge, now you can go from somebody who has never traded before to a skilled trader in next to no time!
Don’t risk diving into forex without having a plan. If you want to avoid costly beginner pitfalls, grow your investment, and overcome the trading mistakes that often confuse beginners,How to Win Like The Banks - Winning Forex Trading Strategies 2021 is your go-to guide for mastering the world of forex and building an unstoppable trading strategy.
Here’s just a little of what you’ll discover inside:
A Complete Beginner’s Introduction To The Incredible World of Trading
6 Essential Trading Skills To Set You Up For Success
5 Must-Know Rules For Trading Divergences
Step-By-Step Plans For Mastering Fundamental and Technical Analysis
How To Make Jargon Like Bollinger Bands and Keltner Channels Sound Easy!
5 Handy Risk Management Strategies That You Need To Know
7 Important Tips To Become a Skilled Trader (and Avoid Costly Mistakes)
An Easy 5-Minute Trading Strategy That You Can Try Out Immediately
And So Much More!

• Language: English
• Publisher: Terence Bailey
• Release date: Jul 25, 2021
• ISBN: 9781005825881

Book preview

Table of Contents

Introduction

Why Have We Written This Book?

How to Read This Book

Understanding Financial Independence

What is an Investment?

What is Trading?

Different Financial Markets

Stock Market

Cryptocurrency Market

Derivatives Market

Forex Market

Things to Be Aware Of Before Starting Trading in the Forex Market

Six Essential Skills for Traders

Chapter 1: Basics of Forex Trading

What is Foreign Exchange Trading?

A Real-Life Example

How Did Forex Trading Emerge?

How Big Is the Forex Market?

Trading Forex Using Currency Pairs

A Brief History of Currency and Forex Trading

Basics Of Forex Trading

What Is Spot Trading?

How Are Currencies Traded?

What Are Pips, and Why Are They Essential?

What is Bid/Ask Price in a Forex Market?

Understanding How to Trade

Basic Tools of Forex Trading

Order Types in the Forex Market

Market Order

Limit Order

Stop Orders

Why Are Stop Orders Inconvenient Sometimes?

Order Cancels Other

Stop-Limit Order

Understanding Rollovers as a Forex Trader

Why are Rollover Times at 5 p.m. EST?

How to Understand the Rollover Charge

Advantages of Forex Trading

It Is Open for 24 Hours

Liquidity Is Not a Problem

Transaction Costs Are Very Low

You Can Use the Leverage

Disadvantages of Forex Trading

It is Less Transparent

Hard to Learn

Interest Rate Risks

Forex Market Timings

Difference Between Stock and Forex Markets

Why Do Governments Want to Control Foreign Exchange Rates?

Chapter 2: The Mechanics Of Forex Market

Who Are the Players in the Forex Market?

Private Banks

Central Banks

Multinational Companies

Speculators

Brokerage Firms

Forex Regulators

SFBC

IDAC

Federal Bank

Understanding Leverage as a Forex Trader

What Is the Problem With Leverage?

What Is the Initial Margin?

What Is A Margin Call?

Relation Between Leverage and Commissions

Derivatives in the Forex Market

Who Are the Different Players in the Market?

Understanding Forwards

Understanding Futures

Understanding Options

How Do Options Work?

What Is A Call Option?

What Is A Put Option?

Why are Options Used?

How Are Options Traded in the Forex Market?

Understanding Swaps

Should I Trade Derivatives?

Different Trading Strategies in the Forex Market

Understanding Position Trading

Understanding Swing Trading

Understanding Day Trading

What Will Intraday Traders Do?

Understanding Reverse Trading

What Will Reverse Traders Do?

Understanding News Traders

Understanding Carry Trading

Why is Carry Trade Better?

Risks in Carry Trading

Understanding Trend Trading

What are Trends?

Chapter 3: Currency Pairs And Outlook

What Are The Types of Currency Pairs?

Major Currency Pairs

Cross Currency Pairs

Why Do Forex Investors Need to be Aware of Currency Crosses?

What to Remember Before Trading Cross Currencies:

How to Use Cross Currencies to Trade Majors

Major Currencies Outlook

United States Dollar (USD)

Importance of Federal Reserve

Why Should You Care About USD?

Euro (EUR)

Importance of European Central Bank

Why Should You Care About the EUR?

British Pound (GBP)

Why Should You Consider GBP?

Swiss Franc (CHF)

Japanese Yen (JPY)

Australian Dollar (AUD)

New Zealand Dollar (NZD)

Canadian Dollar (CAD)

Chinese Yuan (CNY)

What Next?

Chapter 4: Fundamental Analysis

What is Fundamental Analysis?

How Fundamental Analysis Works

What to do as a Fundamental Analyst

The Economic Situation of a Country

How to Judge the Economic Situation of a Country

The Economic Development of a Country

What Does Economic Development Mean?

What to Do when Faced with Inflation

Impact of Government on Currency Prices

Fiscal Policy and Monetary Policy

What to Do

Control of Central Bank

What to Do

How to Analyse Economic Data as a Fundamental Analyst

What is Economic Data?

Gross Domestic Product (GDP)

Who Will Publish GDP Reports?

Purchasing Managers Index (PMI)

What to Know

Durable Goods Orders

Equipment Utilisation Rate

Employment and Unemployment Rates

What to Do

Leading Index

Retail Sales

Consumer Price Index (CPI)

Producer Price Index (PPI)

Industrial Production Report

Employment Cost Index

Housing Operation Rate/Existing Home Sales Rate

Trade Balance

Personal Income and Expenditure

Interest Rate

Current Account

Budget Deficit

How to Analyze Market Factors

Speculation

Market Risk Appetite

Market Forecast

Understanding Psychological Factors

Political Events

Black Swan Events

Hot Spot Effect

Chapter 5: Technical Analysis

What is Technical Analysis?

Why Do Traders Use Technical Analysis?

Different Types of Charts

Line Charts

Histogram

What Does Each Line Represent?

Candlestick Charts

How are charts represented?

What Colors Are Used?

Why are Candlestick Charts Extensively Used?

Understanding Candlesticks Anatomy

Candlestick Chart Patterns

Spinning Tops

How to Use Spinning Tops

Marubozu

White Marubozu

Black Marubozu

Doji

What to observe?

Understanding Support Line and Resistance Line

What is the Support Line?

What is the Resistance Line?

Understanding Moving Averages

How is the Simple Moving Average Calculated?

How are Exponential Moving Averages Calculated?

How Does Moving Averages Determine Trends?

Bollinger Bands

Keltner Channels

Moving Average Convergence Divergence Indicator

What Can We Do With a MACD?

How to Trade Using MACD

Parabolic SAR

Stochastic Indicator

How to Determine

Relative Strength Index (RSI)

How can we use RSI to determine various conditions?

Williams Percent Range (Williams %R)

How to Determine:

Average Directional Index (ADX)

What Are Lagging and Leading Indicators?

Chart Patterns

What Are the Advantages of Chart Patterns?

Double Top

Double Bottom

Head and Shoulders

Bearish Rectangle

Bullish Rectangle

Bearish Pennant

Bullish Pennant

Chapter 6: Divergence

What is Divergence?

When Can We Observe A Divergence?

Types of Divergence

Understanding Regular Divergence

Regular Bullish Divergence

Regular Bearish Divergence

What is the Purpose of Regular Divergences?

Understanding Hidden Divergence

What is a Hidden Bullish Divergence?

What is a Hidden Bearish Divergence?

How to Avoid Trading Early with Divergences

What to Look Out For:

Rules for Trading Divergences

Rule 1:

Rule 2:

Rule 3:

Rule 4:

Rule 5:

Chapter 7: Binary Options

What are Binary Options?

Where to Trade Binary Options

Binary Options Strategies

What do we need before starting?

Technical Analysis:

Fundamental Analysis:

Why is Having a Strategy Important?

Popular Binary Options Strategies

The Best Strategy For Binary Options Traders

You Need to Find the Right Indicators

You Need to Find the Right Time

Finding the Right Trade Type

One-Touch Options

Ladder Options

Boundary Options

One-Minute Binary Options Strategy

How Do We Effectively Place Trends for a 60-second Time Frame?

Momentum Strategy

What to Do in a Momentum Strategy:

5-Minute Trading Strategy

Understanding Rainbow Strategy

What to Do

End of the Day Strategy

Which Timings Should Forex Traders Use?

Understanding Robot Strategy

Long Term Binary Strategy

What Should You Do?

Understanding Volume Strategy

What to Observe:

Understanding Breakout Strategy

What to Confirm

Chapter 8: Success In Forex Trading

Why Do People Enjoy Trading?

Why Is Trading Tough?

Why Do Forex Traders Lose Money?

Revenge Trading

Greed and Fear

Lack of Knowledge

Not Knowing How to Utilize the Capital

How to Succeed in Forex Trading

Master Yourself for the Race

Differentiate Yourself Between Risk and Discipline

Independent Decision Making

Will Try to Know Their Negatives

Deciding the Time to Trade

Gut Versus Head

Importance of Having a Trading Plan

The Best Approach for Forex Trading

Brokers in Forex Trading

Who Are Brokers?

How to Choose Your Broker

High Reliability and 100% Uptime

Security

Regulatory Compliance

Leverage and Margin

Commissions

Deposit and Withdrawal Features

Beautiful User Interface

Customer Service

Availability of Currency Pairs

Derivatives

What is Required to Open a Forex Account?

Chapter 9: Risk Management For A Forex Trader

What is Forex Risk Management?

What Are the Risks Associated With Forex Trading?

Five Risk Management Strategies For A Forex Trader

Strategy 1: Learn Everything You Can

Strategy 2: Do Not Misuse leverage

Strategy 3: Effectively Using Stops and Limits

Strategy 4: Use Risk - Reward Ratio

Strategy 5: Learn with Paper Trading

Understanding Position Sizing

What Is Position Sizing?

How to Determine Your Position Size

Using Stop Losses Effectively

Use Stop Loss Based on a Percentage

Using Support Resistance Level

What to Do:

Using Market Volatility

Stop-Loss Based on Time Limits

Understanding Currency Correlation

How to Measure the Correlation Between Currencies

How to Not Fall Prey to Correlation:

Conclusion

Seven Important Tips to Remember as a Forex Trader

Do Not Trade Out of Boredom

Problems with Overtrading

Facing with Slumps

Happiness

Do Not Constantly Check Out the Market

Eat and Exercise

Enjoy Trading

Importance of Trading Journal

What Should I Write in My Trade Journal?

Motivation for the Trade

Market Views and Philosophy

Observations

Mistakes

Statistics of Performance

Forex Trading Scams

How to Identify Scams

Final Words

References

Introduction

Choosing a financial market to trade is always a tough choice for a beginner. Many wannabe traders started their trading journey with the stock market because it is both popular and easy to start with. Both knowledge and resources are available in excess for the stock market, and this makes beginners interested in investing try out their luck in the open stock market.

If an amateur is asked about the largest financial market in the world, they would say that it is the stock market. The stock market receives a lot of press and social media attention, making it popular among financial illiterates. However, despite its popularity, the stock market is not the largest financial market in the world. The largest financial market in the world is the forex market, which had a daily trading volume of close to 6 trillion US dollars in 2020. Foreign exchange trading can be a hard trading style to get into because of its overwhelming nature. Since it is hard for beginners to grasp the underlying concepts, we have written this book in an easy language.

Why Have We Written This Book?

There are many resources in the market about forex trading, but only a few teach the basics critical for a beginner. Most of the popular books that teach forex trading are