How to Trade Forex and Currency Markets: A Beginner's Guide to Professional Forex Trading: Understanding the Psychology and Strategies of Big Banks and Institutions - Softcover

Zarr, Zack

9781980450726: How to Trade Forex and Currency Markets: A Beginner's Guide to Professional Forex Trading: Understanding the Psychology and Strategies of Big Banks and Institutions

Softcover

ISBN 10: 1980450722 ISBN 13: 9781980450726

Publisher: Independently published, 2018

“How to Trade Forex and Currency Markets: A Beginner’s Guide to Professional Forex Trading” is a practical and easy-to-follow workbook for people interested in forex (foreign exchange) trading. Geared for newcomers to currency trading, the book takes its readers through the fundamentals of the market and provides easily-understood explanations of basic principles and terminology.One particularly interesting feature that distinguishes Zac Zarr’s book from other publications on forex trading is that it provides its readers with a novel way of gaining insight into market developments. As Zarr points out early in the book, forex trading is the playground of two basic types of traders: individuals like Zarr (and presumably his readers), and what he terms the “big players.” It’s a dramatically uneven playing field, pitting relatively inexperienced amateurs trading alone with their own limited funds against corporate professionals trading with the advice and copious budgets of their employers. The ability of these solitary traders to influence the directions of markets is negligible, while the big players have the money and the volume to place their collective hands on the steering wheel.So, Zarr concluded early in his ten-year trading career, if you can’t beat them, join them – not by applying for a job with your corporate competitors, but by getting inside their heads and figuring out how they think. That way, you can not only understand their moves, you can also anticipate them.Unlike some of his counterparts, Zac Zarr is no snake oil salesman. He offers no wild promises of amazing profits for just following a few simple directions. Zarr does, however, establish a warm and empathetic relationship with his readers as he provides straightforward step-by-step explanations with hundreds of examples based on his own real-life forex trading experiences. Although “How to Trade Forex and Currency Markets: A Beginner’s Guide to Professional Forex Trading” was written primarily for beginners, it’s a book that many veteran traders will also want to read to gain new insights into the workings of currency markets.

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Review:

The currency market is the largest financial sector in the world, with a daily transaction volume of over $4 trillion and no central location. The market is open around the clock from 20:15 GMT on Sundays to 22:00 GMT on Fridays, closing only on weekends. Commissions are low, trading volume and liquidity are never a problem, and brokerage houses offer leverages as high as 100:1, or even 400:1. A trader with only a $1,000 stake can potentially control a position worth $100,000.Costs for the software and platforms required for forex trading are negligible,and market data is available for free. All of these factors should make the forex market a great asset class for retail traders, yet, according to the Wall Street Journal, the average individual forex trader loses about $15,000. Why is such a promising market so difficult to trade?
The answer is that many traders try to trade the forex market from their own perspective and analyses, failing to realize that in that market they are not actually players. Unless individuals are institutional traders moving billions of dollars, their orders are not even a drop in the ocean. In that kind of market, they need to identify the big players and bet on their moves. Unlike the stock market, where retail traders can potentially move the price, the forex market is almost immune to the activities of small traders. The market is so large that even the central banks of major countries cannot control the prices easily unless they make significant changes to their macroeconomic policies. In such a market, traders can make money only if they understand who the big players are, where their money is going and what they are anticipating about price. They are then in a position to profit from big moves in the market by piggybacking on the big market players.
In this book, Zack explains how to trade the market by observing how big players and banks move their positions. He shows you what price levels are important, how to find them, and most importantly, how to plan a successful trade based on that information. He walks you through examples of his own past trading and thought processes. I recommend his book because I know first-hand how he investigated the market. I was a witness when he was going through the filings of institutional traders and hedge funds on their positions weekly and trying to make correlations between their positions and the currency prices. As a result, he has been successful in developing a simple yet effective system for the forex market. I am confident you will enjoy reading this book, and you might even want to practice some of what it teaches you in the market. Andrew Aziz, Ph.D.Author of the best seller "How to Day Trade for a Living"

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