If you were to make a list of financial topics that have grabbed the interest of the wider public over recent years then spread betting and foreign exchange trading would surely be near the top. These have both been around for decades, but developments in technology and financial markets in the past five to ten years have made them extremely hot topics right now.
This book starts by covering the basics of spread betting and explains why it has become such a popular method for trading a whole host of markets. Next the forex markets are explained - cutting through the jargon to help you understand how they work, what makes currency prices move second by second, 24 hours a day, and how you can trade forex using spread betting.
Finally, some trading strategies are examined - approaches that you can put into practise straightaway using spread betting, and at a level of risk that suits your own particular circumstances.
If you are looking to trade forex then this book provides an expert introduction - helping you to succeed by avoiding the most common pitfalls of this highly volatile but fascinating market.
Part One - The Basics
Spread Betting
- The spread bet price
- Time frames for trading
- Trading in terms of pounds per point
- The different contracts available and margin trading
- Example of a trade
Forex Explained
- Background of the forex market
- What is a currency pair?
- The most traded currencies
- Quoting conventions and terminology
- Strength and weakness in forex
- What moves the forex market?
- The mechanics of trading forex
- Why forex has become such a popular market
Managing Risk
- Position Sizing
- Stop losses - managing the risk of being wrong
- Risk versus reward - is the trade really worth doing?
Technical Analysis
Part Two - Trading Strategies
Support and Resistance
- Support and resistance - Example 1
- Support and resistance - Example 2
- Support and resistance - Example 3
- When support/resistance levels are broken...
Trends and Trend Following
- Examples of trending markets in forex
- How to draw trend lines
- Trend following - Example 1
- Trend following - Example 2
Indicators - A More Mathematical Approach to Trading
- Relative Strength Index (RSI)
- A twist on RSI - spotting divergences
...And Finally
Index
About David Jones
David Jones first became involved with forex and spread betting in 1995, going on to work as a currency technical analyst in the late 1990s covering a wide range of currency pairs. He has worked in the spread betting industry for the past six years, for the two leading companies in this sector.
He is currently Chief Market Strategist at IG Index and is a regular interviewee on the BBC, CNN and CNBC. He has always been involved in client education and over recent years he has been involved in creating and running a wide range of educational programmes for both private and institutional investors.
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