Forex: Using Fundamental Analysis & Fundamental Trading Book Review

Forex Buy on Amazon


My rating: 3 Stars

Forex Review:

This book is about Forex trading, and I have to say that this is finally the first book that I’ve read on Forex that actually talks about what moves the market, and not only focusing on Technical Analysis of the charts. Book is relatively short, and it won’t take much of your time – but it does offer decent content from which you can learn basics, and start to learn more about market.

This book is good for beginners to start with, because it does offer content that it’s important. There’s also links to various different sites where you can keep track on news related to countries and their economies in which currencies you are interested in trading.

Author has stated, and I agree, this book is not sufficient to go into market and start trading; but it’s a good book to start with. Like I’ve already mentioned, this is the first book that talks about what it’s important about trading, and not only focusing on chart analysis. Not that the analysis is not important, later on author is talking about TA as a method on when you should enter the trade, and in which direction.

Trading method presented in this book it’s oriented more towards Swing Trading, rather than Day Trading. And seems like, of course in my opinion, that this method it’s much better that Day Trading; because day trading it’s not something easy to do, and especially it’s not something good for beginner traders.

All in all, I would suggest others to read this book, because it does offer good content when it comes to Forex, and if you are a beginner trade who already had some losses in Forex (I did) and you are looking for a way to learn more, change things that you were doing so far, and improve to better – than you should went through this book.

If you like, you can read my other reviews of Investing Books

Also, check out my Best Business Books List

Forex Book Summary:

Introduction

I wrote this book in a non-conventional way more like an info-guide rather than in a boring academic way. As a matter of fact, I wrote it as a reference guide for myself, in case I start deviating from my trading processes. I also thought it would be a good idea to get feedback from other readers and traders as well.

Some Fundamental Trading Myths to dispel

  • Trading Forex is No different than any other Markets.
  • I can’t make any money from Forex because it is rigged and controlled by the Central Banks.
  • You should be an expert economist to trade forex.

The Four pillars of Trading – the Four pieces of the puzzle

Bottom line: these are the four pieces of the puzzle – Fundamentals; Technicals; Trade Management; Money Management.

  • Which one should you choose, Fundamentals or Technicals?

Skinny on Fundamentals

  • Macro-Fundamental Analysis – The Top Down Approach.
    • Macro events
    • Fiscal policies
    • Monetary Policies
    • Downgrades
    • Elections
    • Bond Yield Auctions
    • Central Bank Interventions
  • Micro Fundamental Analysis – The Bottom Up Approach.
    • Micro events
    • Economic releases
    • News Headlines
    • Commentary from Gov. officials
    • Mergers and Acquisitions
    • Option Expirations (monthly and quarterly)
    • Geo–Political events

Basic Economic concepts, every Trader should know.

  • Expansion – Recession
  • Inflation – Deflation
  • GDP – Measuring the Economy
  • Balance of Payments
  • Trade & Capital Flows in relation to FX Market
  • Budget Deficits

Global Market FLOWS and Important Trading concepts.

  • Grading the Currencies in “risk-on & risk-off” environments.

Currencies and Bonds.

  • What are bonds?
  • Bond Prices vs. Bond Yields
  • Bond Yields and Currencies
  • Bond Spreads and Currencies

Macro Trading.

  • The Why?
  • The Who?
  • The How?
    • Check Your Charts – Watch the Price Action
    • Do the Research – Find the reasons “Why” the currency is moving
    • Check the Macro
    • Check the Micro
    • Get the Entry
    • Manage open trades

Tips & Guidelines


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Product details

  • File Size: 5618 KB
  • Print Length: 61 pages
  • Simultaneous Device Usage: Unlimited
  • Publication Date: March 9, 2016
  • Sold by: Amazon Digital Services LLC
  • Language: English
  • ASIN: B01CSKD9AW