An introduction to the forex market and why it’s all about money flow and sentiment, which can only be seen by taking a three dimensional approach. And why there are only two risks in trading. Chapter One : Assessing Market Sentiment Market sentiment is one of the keys to understanding money flow as traders and investors move between fear and greed and back again. This is revealed in the four capital markets and their relationships with the forex market at their heart. In this chapter discover how to interpret money flow for yourself, quickly and easily. Chapter Two : Bonds & Bond Yields Bonds are the least understood by forex traders and rarely, if ever watched. Yet the bond market underpins the cost of money and consequent risk appetite and is therefore vital to understanding market mood. Here you will learn about the power of bond yields and the clear message they are sending you, as a forex trader. Chapter Three : Commodity Markets Explained Why the commodity market is the fulcrum of the financial markets. The place where real currencies are converted into real goods. It is where money meets the real world of economic supply and demand. It’s a market full of clues for forex traders if you know where to look. This chapter will teach you how and where. Chapter Four : Equity Markets Explained Just like commodities, equities signal risk, return and money flow. It is where changes in the broader economic cycle and risk sentiment are reflected in specific currencies. As one of the few cash markets it also provides a real insight into money flow and volume. Chapter Five : The Forex Market Revealed This is the market where global politics and money collide creating a market of intrigue and political chicanery played out at the highest levels. Here you will be discover what few forex traders ever realize. This chapter alone will surprise you. Chapter Six : The Bond & Commodity Relationship One of the most complex of relationships which most traders ignore. Multi-faceted and constantly changing according to the economic cycle, this relationship reveals where we are in the economic cycle and, as a consequence, the likelihood of impending interest rate changes. Changes which will ultimately reflect interest rate differentials in currency pairs with consequent strength and weakness. Chapter Seven : Bond & Equities A non linear relationship, connected to the economic cycle. But one which is also heavily influenced by sudden and unexpected market shocks. This is a pivotal relationship and one that few forex traders ever appreciate. Chapter Eight : Bonds & Currencies A key money to money relationship. Differential bond yields can and do cause huge shifts in money flow as central banks also indulge in the carry trade. This can result in great trends which retail forex traders can also exploit. Chapter Nine : The US Dollar The king of currencies, and still the currency of first reserve. The US dollar remains the lynchpin of the global economy. It underpins every capital market. As forex traders this is the one currency we need to understand and track. This chapter will tell you all you need to know about the US dollar. Chapter Ten : Indices & Market Internals Cross market and relational analysis can provide forex traders with some powerful insights into market sentiment, risk and money flow. The key is to know which indices and markets to follow. The price action on these instruments can help support and validate trading decisions in all time frames. Chapter Eleven : Secondary Perspectives This chapter considers aspects of relational analysis with associated analytical techniques, such as ratio analysis. This chapter also explains how to interpret the Commitment of Traders Report (COT), the Gold Oil Ratio, and how they can be used in forex trading. Chapter Twelve : The Fundamentals of Global Economies If you don’t understand the economic powerhouses of the world you cannot trade forex with any degree of confidence. This chapter takes a detailed look at countries and their economies which currently dominate the forex markets and why. Chapter Thirteen : The Next Generation The economic powerhouses in waiting. The emerging powers and their associated currencies are explained in detail. After all, it’s not always the majors that offer the best trading opportunities. Chapter Fourteen : Asia Pacific Economies Whilst Western economies continue to struggle, Asia Pacific booms. Once again this offers forex traders some unique opportunities, provided you understand the economies of these countries. Chapter Fifteen : Economic Cycles & Their Drivers This is the world of global market cycles, interest rates, inflation and deflation, and is the business of forecasting and managing economies around the world. Understanding the economic cycle can give some great perspectives on where and why currencies are moving. Chapter Sixteen : Economic Indicators Explained Whether we like it or not, economic releases are a fact of life and can blind side even the best technical trader. This chapter covers the most important economic indicators and fundamental news releases which drive the markets. It also explains their significance, their impact and their relevance which all depend on where we are in the economic cycle. This chapter also explains why the Rating Agencies are losing their power. Chapter Seventeen : An Introduction to Technical Analysis The third element of market analysis. This final element completes the three dimensional approach. Technical analysis is an art, not a science and in this chapter you will discover why. Chapter Eighteen : Technical Indicators One of the problems many traders face is knowing which indicators to use and when. With hundreds to choose from it can be a very difficult decision. Here we cover some of the more popular, and also explain why volume and price are the most powerful. The methods revealed will revolutionize your trading. Chapter Nineteen : Technical Analysis Techniques The most useful technical analysis techniques explained in detail and how they can be used to determine market direction. Chapter Twenty : In The Currency Jungle In the final chapter of the book, I explain the characteristics of each currency, as well as a variety of major, cross and exotic currency pairs. Just as in the jungle, there are hidden dangers awaiting, and in today’s forex world, even more so. Here you will discover which currencies to consider and why, and how their personalties change, once they become a pair. In addition you will also discover the power of the currency matrix. You will now have the skills and knowledge to become a master forex trader in your own right. Please keep in touch and let me know how you you get on. Acknowledgments & Trader Resources List of the chart providers used in this book along with details of free resources for forex traders.

File: