Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets is an outstanding resource that is both easy to read and easy to understand, regardless of how much or how little experience the reader has in the foreign currency exchange market. The authors, Keith Long and Kurt Walter, have the experience and knowledge necessary to provide clear, concise lessons in successfully participating in the foreign currency exchange market. Regardless of whether you are an experienced Forex trader or are learning about it for the first time, you will find a wealth of helpful and insightful information in this book.
While the content is thorough and detailed, the layout and structure are not at all intimidating or confusing. On the contrary, Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets is set up specifically for the ease of understanding and the straightforward presentation of vital facts, formulas, and trading methodologies. Some might argue the foreign currency exchange market has changed so significantly since this book was published in 2001 that a more current resource would be better for learning and understanding the Forex market, but that is not the case. The underlying principles and foundations of the foreign currency exchange market remain the same, making the information contained in this book as useful today as it was upon its initial publication.
Setting the framework for understanding Forex
Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets sets a strong and functional framework for understanding the Forex market and everything the reader needs to know for successful and profitable trading activities. The authors do a particularly good job of providing an overview of the foreign currency exchange market strengths, weaknesses, and vast, vast size. This is not done to frighten or scare off the novice trader, but rather to ensure every reader fully understands the nature of Forex and enters the trading arena with eyes wide open and realistic expectations. Few other books accomplish this as clearly and skillfully as it is accomplished in Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets.
As part of this framework for understanding, Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets discusses a number of critical topics, such as:
Risks and rewards – No other investment market offers as much potential reward as the foreign currency exchange market, but along with that potential for reward there is also significant risk. Many resources point this out, but few do it with as much candor, clarity, and insight as Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets.
Data analysis – Data analysis is critical to successful trading on the foreign currency exchange market, as any knowledgeable author or trader will tell you. Actually understanding how to collect and correctly use the vast amount of data available, however, is something entirely different. Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets does an excellent job of discussing the nature of both fundamental data and technical data, as well as how to properly analyze and interpret these two areas of vital information.
The online world – There has been no more transformational occurrence than the rise of the internet and the influence of online access on the foreign currency exchange market. Truly, without the internet and the wealth of online tools available, the foreign currency exchange market would still be the sole territory of large corporations, institutions, and governments. Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets includes a thorough discussion of how the internet has opened up the foreign currency exchange market to individual traders around the world, as well as clear explanations of how, when, and why to trade on the spot market, the futures market, and the options market portions of the Forex.
Brokers – There are many, many different brokers out there on the web, all of whom want you to use their services to trade on the foreign currency exchange market. It’s easy to become confused by the different tools, options, services, and the sheer variety of brokerage options on the web, so determining the best option for your needs can be difficult. Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets does an excellent job of talking about the many variations in brokerage services and offering key considerations to keep in mind when making your choice.
All day and all night – The foreign currency exchange market it unique in that you can actively trade literally around the clock, because at any given time there is nearly always a Forex market open somewhere around the world. Thanks to the internet and the online explosion, individual and independent traders have unprecedented access to these international markets. Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets provides a solid discussion of the different Forex markets in different places around the world, helping you to better understand how to trade on them if you so wish.
Software choices – The huge growth in online trading in the foreign currency exchange market has led to an explosion in the number and types of software available to independent and individual traders. From stand alone software you must purchase yourself to the proprietary software offered for free from various online brokerages, you have many features and tools to consider. Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets examines the importance of choosing the right software and describes the issues and considerations to keep in mind when making your decision.
A broad array of topics included
Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets covers a broad array of topics, such that the best way to help you understand the full scope of the book is to take a look at the table of contents. The book is divided into four distinct sections, each with a specific focus:
Section One – This section serves as a broad introduction to the foreign currency exchange market. Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets includes a good discussion of the history and development of the markets, as well as a detailed look at the current status and operation of the Forex market in the modern world of electronic and online transactions. The authors also introduce two important conceptual discussions of what it takes to generate maximum profits, both in the current spot market and the exchange futures market.
Section Two – This section provides a strategically focused framework for the reader that lays out methods and techniques for generating the maximum amount of profits possible. The areas covered in this part of Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets include trading strategies for the Forex in general as well as trading strategies for options and exchange futures. It also discusses the central role played by the primary goal, that is, to make a profit. The authors make the point that it’s easy to become caught up in the frenzy to make a profit, which inevitably leads to mistakes and loss. It is only by using a well thought out structure and framework that the individual trader can maximize profits without taking unreasonable risks.
Section Three – This section is focused on the key role played by technical and fundamental analysis, with a particular emphasis on technical analysis. The authors of Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets take this approach because for the individual trader, fundamental analysis is important but technical analysis is critical. Good, solid technical analysis is irreplaceable and foundational to trading profit and success. The discussions in this section include an advanced look at using charts to conduct trading activities on the foreign currency exchange market; close examination of how and why technical analysis is vital to trading in futures and currency options; and recommendations for the best and most effective ways to blend technical analysis with fundamental analysis for the purpose of maximizing success.
Section Four – This final section is particularly useful because it takes a look at some real world examples and cases studies that illustrate key points made throughout the book. It covers some of the basic rules and steps to follow when completing order entry and trading, with a special emphasis on the critical importance of being careful. Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets stresses getting into the habit of checking and double checking yourself before finalizing any trade. What’s more, there are twenty case studies in this section that offer real world information and examples of what to do (and what not to do) when trading on the foreign currency exchange markets. These cases studies cover both general Forex trading as well as options and exchange futures trading.
Resources, glossary, and index – Like other books of its type, Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets includes several pages of additional resources on the foreign currency exchange market, as well as a detailed glossary of terms and index of the book’s contents. While some books try to keep these sections short, to the point of being nearly useless, the authors of this book have included a good variety and detail of information in these last important sections. They are not overly detailed or complex, but rather fully formed and very useful to the reader.
Final thoughts about this book
With the many, many choices of books and resources on trading in the foreign currency exchange markets, it is difficult to pick out the very good ones from the not so good ones. We definitely view Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets as one of the very good books available, as it is easy to read, easy to understand, and yet very thorough in its discussions of the foreign currency exchange market. It is one of the few resources out there that is appropriate for both novice traders and experienced traders alike, as the information it contains is useful regardless of how often or how long the reader has participated in the foreign currency exchange market.
Some books that claim to offer this kind of balanced approach actually veer too far to the simplistic side or too far to the complicated side, depending on the viewpoint and content structure established by the author. Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets actually fulfills this balanced approached in a way that most other books of this type simply cannot and do not. Authors Keith Long and Kurt Walter do an excellent job of bringing their many years of experience and vast pool of knowledge together in a way that is perfectly balanced between the information needs of the novice trader and the information needs of the more experienced trader. This book truly takes the mystery and confusion out of trading on the foreign currency exchange markets.
There are of course more detailed and more technical books available, which have their place and fulfill an important function. No trader should be without at least one or two of these more complex resources close at hand to provide very specific guidance to very detailed trading choices. However, Electronic Currency Trading for Maximum Profit: Manage Risk and Reward in the Forex and Currency Future Markets strikes an excellent balance between a technical discussion and a more informational discussion. It is an excellent choice of a resource to add to your home or office library.