Mario Singh - 17 Proven Currency Trading Strategies, + Website: How to Profit in the Forex Market

Contents

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The Wiley Trading series features books by traders who have survived the markets ever-changing temperament and have prosperedsome by reinventing systems, others by getting back to basics. Whether you are a novice trader, professional, or somewhere in between, these books will provide the advice and strategies needed to prosper today and well into the future.

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To my three angels :

Shalyn, my beautiful soul mate

Chantelle, my vivacious daughter

Elliot, my bubbly son

Thank you for showing me every day that while the forex market holds the key to abundant wealth, my true treasure is found in the three of you .

I love you with all my heart .

Preface

You cant afford to ignore forex anymore.

This is an urgent message I carry everywhere I go. It really doesnt matter who we are or what stage in life were at. You could be in school and you cant seem to figure out the rules of global finance. You could be holding down a job but you desire to make a decent second income in your spare time.

You could already be involved in the financial markets as a retail trader or investor, but with low yields and depressed growth all around the world, you are searching for an asset class that offers unparalleled returns. You might even be a fund manager who holds an international portfolio in different asset classes, such as equities, bonds, and commodities.

However, with central banks lowering rates and injecting record amounts of liquidity into the financial system, you realize the importance of protecting your entire portfolio against currency risks.

Finally, you might be someone running a multinational company. You could be based in one country, but your offices span across many countries all around the world. Expenses for salaries, infrastructure, machinery, and supplies are paid out in different currencies every single month. As the business gets larger, you cant turn a blind eye to the currency fluctuations, which have a significant impact to the companys bottom line every month.

If you find yourself in any one of these categories, this book is for you. The sooner we all understand the forex game, the better it is going to be for us. Forex is a game for three reasons. First, playing it must be fun. Second, we play it with an intention to win. Finally, it has rules. If you break the rules, the rules will break you.

I had a painful start to forex trading because I broke a cardinal rule. Allow me to share my story with you. Ill be the first to admit that Im not a smart guy. I dont have a finance degree or an economics degree.

I studied chemical engineering in school but graduated with third-class honors, dashing my mothers hopes of my becoming a top chief executive for a Fortune 500 company. After graduation, I proceeded to apply for a job at petroleum giant Shell, but I havent heard from them yet.

Sometimes I console myself by thinking that my resume lost its way in the mail. I didnt have much materially then, but what I had was the burning desire to achieve success in life. It was this desire to succeed that led me to my first experience with forex trading.

Six years ago, I was with a friend in a local coffee shop when he suddenly flipped open his laptop to reveal a screen full of charts. Through the charts and jumping numbers on the screen, I asked him, Whats this?

He coolly replied, Forex trading.

Thinking it was some hobby he recently picked up, I asked again, Real cash?

Yes. He nodded smugly. Real cash.

That began to draw me in, slowly but surely. Looking back, it wasnt the fact that forex was the biggest financial market in the world that drew me in. What drew me in was the fact that all you needed was an Internet connection and a laptop to make money from this market anywhere in the world.

Fascinated, I started to ask my trader friend some questions. When he shared with me the story of how George Soros broke the Bank of England on September 16, 1992, and made $1 billion in a day, I was hooked.

Im the kind of guy who only needs one live example of someone who has done something to convince me that I can do it too. Excited about this new discovery called forex trading, I went off and started to do my own reading on free websites.

Soon I started my first account with USD3,000.

My first trade was on the GBP/USD. It was on an uptrend, and the price had reached a new high. This is it, I thought, rubbing my hands gleefully. Im going to be a millionaire by next Friday. Seeing that the price had reached a new high, I was convinced that gravity would pull it right down.

I clicked sell. That poignant moment was the start of my painful lesson. After I clicked sell, the price continued to creep up. Thats not supposed to happen, I thought.

As prices continued climbing, I decided to hit the sell button again, only this time with double the lot size (and double the intensity) as my first trade. I reasoned that if I clicked twice the number of lots, all that needed to happen was for prices to fall a little before I could see some nice profits.