The Calculating Trader

Here is where the rubber meets the road. Take your time with this information, as it is necessary knowledge for all FOREX traders. I recommend that you do not even paper trade until you are completely comfortable with pip values and calculating profit and loss for any pairs or crosses you intend to trade. Profit and Loss (P& L) for every open position is calculated in real-time on most brokers' trading platforms. The information in this chapter enables traders to track their own P& L tick...

Moving Average and Oscillator Battery

This would be a good noncomplementary tool. Almost all trading platforms offer moving averages and oscillators. A moving average typically works when a market is trending in one direction or another. An oscillator is most effective when a market is moving sideways. 1. A market is above the Moving Average line but the oscillator is falling sharply or below the zero line. This may indicate that a market is still in an up trend but in a buying range because it has lost some downward velocity, at...

The Goodman Swing Count System

The Goodman Swing Count System GSCS was developed by commodity trader Charles B. Goodman and used by him until his death in 1984. Michael D. Archer, whom he mentored, further developed the system. GSCS is a method for interpreting charts. You may use bar, swing, or point and figure bar charts are the easiest and most common. Like all chart interpretation techniques, it is not applicable to all charts all the time. Not every chart forms a pennant or a head and shoulders, and not every chart...

Peter Panholzer

One of the most respected names in the managed FOREX business is Peter Panholzer. Mr. Panholzer is the founder of Dynex Corp and commands the fees and account minimums that long-term success in the markets confer. See Figure 13.11. Source DynexCorp, Ltd, www.dynexcorp.com. A number of companies track individual and fund FOREX account performance.

Summary

Just one more chapter before you are ready to at least get your feet wet with a mini- or micro-account. You need to understand thoroughly how the various basic FOREX calculations are made. You will want to know them so that they are second nature. The time you spend at the computer should be directed 100 to trading decisions, not trying to figure out how many pips equals 100 or what your leverage factor will be on a trade. Your goal here is to open a mini- or micro-account and get your feet...