FxLifeStyle - Forex Frontiers "The Essentials of Currency Trading"

by Ivan Cavric

Chapter 1: Introducing Forex
1.1 - Scope and Purpose
This book is the first of a trilogy. The full set comprises the following titles:
Book 1: FOREX Frontiers: The Essentials of Currency Trading
Book 2: FOREX Frontiers: Proven Strategies for Success
Book 3: FOREX Frontiers: What the Pros Won't Tell You
Book 1: FOREX Frontiers: The Essentials of Currency Trading is basicaly aimed a Forex novices and introduces all the main concepts of this subject in an easy-to-follow style.
Book 2: FOREX Frontiers: Proven Strategies for Success will then progress your knowledge further by introducing intermediary concepts. In particular, it will discuss the pros and cons of a number of Forex trading strategies in depth.
Book 3: FOREX Frontiers: What the Pros Won't Tell You is intended to help you develop your mindset to that of professional traders by expanding the concepts presented in the first two books. In particular, you will be introduced to Forex ideas and strategies that will enable you to maximize your Forex earnings.
Forex is the common abbreviation for the FOReign EXchange Market which is used by its participants to trade different currency pairs, e.g. EUR/USD and USD/YEN. You can readily access this vibrant market by employing the facilities and services of one of the many existing Forex brokers.
You may also be aware that Forex is heavily promoted by extensive marketing campaigns emphasizing how easy it will be for you to make a living, if not a fortune, from trading Forex. However, you must realize from the outset that Forex is a complex subject and trading it successfully is by no means a forgone conclusion.
Special Note: As you proceed through this book, you will encounter some specialized terms preceding numbers in square brackets. Refer to the reference section at the end of this book for further reading.

Genres: Nonfiction

228 pages, Hardcover

First published January 1, 2011

Reviews

[Peter Scholtens · Rating 4 out of 5]

I am no expert on investing in foreign exchange markets. However, I do have some experience in teaching and training, and a little experience with investment psychology. It is from that perspective that I recommend Ivan Cavric’s book Forex Frontiers: The Essentials of Currency Trading, the first in a trilogy, as a gem in the making. It has the potential to be a successful how-to book, jumpstarting the abilities of anyone desiring to explore the world of forex, while helping the budding forex trader avoid the pitfalls that most forex traders fall into.

As a how-to book, it fulfills the following standards for success:

First, it is information-rich, giving a good sense of the parameters of what is involved with getting into foreign exchange trading. Second, it gets to the point quickly, filling in the details on what it takes to be a successful forex investor. Third and last, it provides a plan of action to become a successful forex investor, as well as the promise of further reading to help master the subject.

Forex Frontiers: The Essentials of Currency Trading covers the basics of forex investing, starting right from square one. The first half of the book includes an introduction to the markets, a discussion of the possibilities of failure, and the potential for success. An entire chapter is devoted to the necessity to develop a proper investment psychology. There are discussions of introductory issues such as selecting a strategy, an introduction to technical indicators, selecting a broker, and other challenges.

The second half of the book begins with a discussion of risk and money management, including managing losses and profits. Chapters introducing fundamental analysis and discussing technical analysis in more detail form the core of the second half of the book. The book ends with an important discussion about designing a forex strategy, and a case study of a sample forex strategy.

What I especially appreciate about Cavric’s book is its measured, cautious, and deliberate approach to forex investing. Rather than promising great riches and gain in short periods of time, it stresses the need to be disciplined, to develop a strong investment psychology, and to cultivate and follow a trading strategy, rather than playing around and changing strategies often, or worse, to have no strategy at all.

As such, Forex Frontiers: The Essentials of Currency Trading is a an excellent introduction to the discipline of forex investing. It does not promise too much, but pointing out to its readers the opportunities that exist if the right approach is taken. I am looking forward to the next installment in the series.

[Heather · Rating 4 out of 5]

I'm a middle of the road investor, but have never spent time learning about or participating in currency trading. I greatly enjoyed this book and learned a significant amount from the clear and well presented material. Section 5.5 is greatly appreciated - a reality check that this is a non-trivial area to gain expertise in, and patience, persistance and practice will be needed to be a successful investor. If you are looking for a late-night TV hawked money miracle, this book is not for you. If you are serious about learning about investing and are disciplined, this is great resource.

[Gary Butler · Rating 1 out of 5]

22nd book read in 2013.

Number 311 out of 313 on my all time book list.

Follow the link below to see my video review:

http://youtu.be/394ccXSuTh0

[John · Rating 4 out of 5]

This was one of books I found at the the beginning of my studying. I was not disappointed with the content, and would consider reading this one again.

[Jennifer (JC-S) · Rating 1 out of 5]

‘Beginners should never be deceived by thinking that FOREX is relatively simple to master.’

The foreign exchange market (forex) is a global, decentralised financial market for trading currencies thus determining the relative values of different currencies. The primary purpose of the foreign exchange market is to enable international trade and investment by allowing businesses to convert from one currency to another. However, it also enables direct speculation in the value of currencies as well as the carry trade - speculation on the change in interest rates in two currencies.

The foreign exchange market is both complex and unique. Some of its characteristics include:
• A huge trading volume (between 2 and 4 trillion US dollars per day); and
• Continuous 24 hour per day operation, except for weekends
There are a number of factors that affect exchange rates and the margins of relative profit are low.

Foreign exchange trading was once the exclusive domain of professional traders, but as a consequence of various factors (including internet connectivity) almost anyone can participate. But should they? And what do they need to know in order to participate effectively?

In this book, author Ivan Cadric sets out to provide the information a novice would need in order to be successful in the forex market. According to the book cover, Ivan Cadric is a fully registered Investment Advisor and ‘a licensed Specialist in trading securities, opions [sic], commodities and futures.’ ‘Ivan has successfully traded Forex since 2002 using proven trading strategies that he has personally developed along the way. In particular, he has designed a number of financial management systems which he considers to be the cornerstone of his Forex success.’

I have worked with exchange rates but not as a currency trader. I am familiar with the volatility of the market and am aware of some of the factors that impact on exchange rates. In short, I know a little about this particular market and was interested in learning more. I found some interesting and useful information in this book, and the author’s enthusiasm is readily apparent.

Unfortunately, I have a number of issues with the presentation. Consider this sentence: ‘For example, if a trader has an ego, this will likely result in difficulties coping with losses.’ (Page 55) or ‘Be aware that traders often have a habit of responding immediately to the headlines of a data release. Consequently, their instant reaction is capable enough to force price to surge in a particular direction.’ (Page 119)

I think I know what the intended meaning is in each case, but in both cases it could be much clearer. There are some typographical errors which jerked me out of the book at times: ‘you’re’ and ‘your’ mean two entirely different things. These types of errors are careless and serve, for me at least, to undermine both the sense and the credibility of the message being delivered.

The other aspect which concerned me was frequent reference to various coloured lines in what are black and white diagrams. If there’s only one line, then I can assume that it is the blue (or green) line referred to, but what if there is more than one line?

There is some good information in this book, although intending readers should note that it is the first in a trilogy on the subject of ‘Forex Frontiers’ and this book alone is presumably not enough to enable the novice to be successful in the forex market.

‘Take care of your losses and the profits will come by themselves.’

Note: I won a copy of this book via first-reads.
Jennifer Cameron-Smith

[Steph · Rating 4 out of 5]

I received my copy through Goodreads' First Reads program!

As an introduction to foreign exchange trading, this book does its job very well. I began this book with absolutely no knowledge or previous experience on this topic, but felt I had a firm grasp of the basics upon finishing. It is a very easy read, so anyone interested in researching this career should have no problem understanding what they need to know to decide if FOREX trading is a viable option for them. I truly enjoyed learning about this trade, as it is something I previously knew nothing about, and I was greatly disappointed by the two major drawbacks I noted throughout the book- the author’s constant warnings that there is little chance of success in this trade, and the obvious lack of proofreading and editing.

One major setback I saw in the author’s approach to teaching FOREX is that he constantly reiterates how few actually succeed in this market and how novices barely stand a chance. While I appreciate Cavric’s caution and concern for his readers, I found it only made me afraid to even try to go ahead with my education of FOREX trading because the author seems to push that there is little to no hope for success anyway. He states numerous times that only five percent of FOREX traders are able to make a living from this practice, many being large banks, governments, and financial institutions. This leaves almost zero hope for your everyday, run-of-the-mill trader.

From a literary standpoint, the editing of this book is simply horrible! There are words randomly missing and sentences that lack their first couple words, making some extremely difficult to understand as the reader must imagine what words belong there. I would hope that a system that boasts that it will “jumpstart anyone’s desire to enter the exciting world of FOREX” would take a little more time examining what they are providing someone looking to make a life-altering change. I was thoroughly enjoying learning about trading psychology, market trends, and strategies, but the constant lapse in grammar and sentence structure made me feel that maybe this information was just churned out quickly to reach a publisher and make a profit (since the editing step was obviously skipped over completely), and perhaps its information is less that completely credible.

FOREX Frontiers is divided into fourteen chapters, each highlighting a different area of interest to FOREX traders, such as money management, designing your own trading strategy, deciding if FOREX trading is right for you, and how to jumpstart your own career. The author utilizes graphs and tables to make the denser information more reader-friendly, and there are also many bulleted lists to help break up the information, when droning paragraphs would only lead to confusion. Although, one problem I saw with the author's choice of graphs is that he refers to different colored lines to show his points, but the book is printed in black and white! This makes it a bit difficult to even know which line he is referencing.

I really wanted to give FOREX Frontiers five out of five stars, but the negatives weighed heavily on me as a reader, so it will have to settle for four stars. I would recommend this as a source of beginner information for anyone interested in researching FOREX trading, but if you’re easily scared, you may want to find another reference. And if you’re skeptical about your ability to maintain your interest in foreign exchange trading, FOREX isn’t for you.

[Ivan Cavric · Rating 4 out of 5]

Review by Peter Scholtens:

I am no expert on investing in foreign exchange markets. However, I do have some experience in teaching and training, and a little experience with investment psychology. It is from that perspective that I recommend Ivan Cavric’s book Forex Frontiers: The Essentials of Currency Trading, the first in a trilogy, as a gem in the making. It has the potential to be a successful how-to book, jumpstarting the abilities of anyone desiring to explore the world of forex, while helping the budding forex trader avoid the pitfalls that most forex traders fall into.

As a how-to book, it fulfills the following standards for success:

First, it is information-rich, giving a good sense of the parameters of what is involved with getting into foreign exchange trading. Second, it gets to the point quickly, filling in the details on what it takes to be a successful forex investor. Third and last, it provides a plan of action to become a successful forex investor, as well as the promise of further reading to help master the subject.

Forex Frontiers: The Essentials of Currency Trading covers the basics of forex investing, starting right from square one. The first half of the book includes an introduction to the markets, a discussion of the possibilities of failure, and the potential for success. An entire chapter is devoted to the necessity to develop a proper investment psychology. There are discussions of introductory issues such as selecting a strategy, an introduction to technical indicators, selecting a broker, and other challenges.

The second half of the book begins with a discussion of risk and money management, including managing losses and profits. Chapters introducing fundamental analysis and discussing technical analysis in more detail form the core of the second half of the book. The book ends with an important discussion about designing a forex strategy, and a case study of a sample forex strategy.

What I especially appreciate about Cavric’s book is its measured, cautious, and deliberate approach to forex investing. Rather than promising great riches and gain in short periods of time, it stresses the need to be disciplined, to develop a strong investment psychology, and to cultivate and follow a trading strategy, rather than playing around and changing strategies often, or worse, to have no strategy at all.

As such, Forex Frontiers: The Essentials of Currency Trading is a an excellent introduction to the discipline of forex investing. It does not promise too much, but pointing out to its readers the opportunities that exist if the right approach is taken. I am looking forward to the next installment in the series.

[Luna · Rating 2 out of 5]

I received this book as part of Goodreads giveaways and first reads.

I'll freely admit that my knowledge of foreign exchange is limited to the tail end of the news programmes, typically smushed in between the sport and weather report as part of the 'finance' segment. I know of things like margins, Dow Jones, gold commodities and other such nonsense, but typically in name only. I know that the US dollar and Australian dollar are fairly equal at the time of this review's writing, and the New Zealand dollar is typically weaker than the Australian dollar. And that's about where my knowledge ends. When I won this book, I was admittedly a little bit floundered, but hey, I like reading new topics, and I figured if anything this would let me expand my knowledge a little more. I can't say I'm planning on going into currency trading any time soon, but hey, at least I would have an idea on what the news folks were talking about.

The first couple of chapters are easy enough. It was very 'buyers beware'. Okay, I said to myself. A bit obvious- I don't need to be slow on the uptake to know that the foreign exchange market can be volatile. But hey, sometimes we need to be obvious, and this is presented as being a 'ForEx for Dummies' kind of book.

But then things got a bit overwhelming. RSIs? Margin calls? D1s? I don't understand! How does this relate to me, and where's my dot point list of simple explanations I'd like right now? So I flip the page- oh, nice, a graph, this will put things in perspective for me. But that Ivan Cavric starts talking about different coloured lines, and the book is all in black and white... and my brain starts hurting. Really, an editor should have picked up on this- along with other punctuation, grammatical and spelling errors.

All in all, this is a good book- if you already have a good, basic knowledge on the ForEx system. Unfortunately, I don't, so a lot of what Cavric was saying went up and over my head. Sure, I learnt a tiny bit, but not as much as this book, and Ivan Cavric, promised me.

[S.P. · Rating 2 out of 5]

This was a goodreads give-away book (Thanks!).

There are some positives and negatives about this book. As an introduction into the subject the book is OK. there is through the first 10 or so chapters too much telling us how rubbish novice traders are and how only when you are a super-experienced FOREX trader you'll ever do any good.

If you can get past this smugness there is some useful advice - like never 'betting' (for want of a more appropriate word) more than 2% of your capital on any one trade (and using stops to prevent this from happening). Lots of advice on technical and fundamental analysis (don't bet on anything when there is major financial news due) and lots of charts.

Apart from the smugness, there are some copy editing problems with the copy of the book I was sent. Inappropriate hyphenation, and most annoyingly references to the 'blue' and 'red' lines in Black and white charts - really makes trying to understand what you are talking about difficult.

Overall, as expected really, FOREX 'Trading' is basically gambling. you can, and should, minimise the loss to your capital through sensible money management (which is emphasised in this book) and using 'strategies' and 'analysis', but it seems to me from what is implied throughout this book, it is more a case of sticking your finger in the air and guessing. Does this book help? A little. but you know these novice traders are really rubbish, you have to be experienced...

No wonder we are in such a state we are!

[Kai · Rating 4 out of 5]

I don't know much about currency trading but this book gives you a step by step on how to trade currency. One of the thing I like about the book is that the author Ivan Cavric explains how beginners loses money. As in anything, currency trading is not a get rich overnight scheme which Ivan Cavric kept hammering. Like anything else, you have to work hard by understanding how currency trading works. This book gives the foundation of how to begin trading currency. The only thing I just don't like is the graphs. I'm pretty sure that the author intended to have the graphs in colors. With the graphs being printed in black and white, it is hard to distinguish what is red and blue or blue and green.

I also like the link that Ivan Cavric provided to get experience setting up a demo accout (free of charge)to demo trade. He even mentioned that each individual could takes as long as they can to feel comfortable before moving to the micro account in which you will need to find a broker and then to the last step which is to use real money in trading.

This book is a great textbook/reference book to refer to. There is so much information packed in this book on how one should begin.

[Jason Lewis · Rating 4 out of 5]

Cavric introduces a new method of trading to those familiar with the ups and downs of the current American stock trading of wall street through currency trading with other countries. It is understandable how people would want to jump right into this market immediately because no matter what, if one currency is dropping, then another currency is gaining somewhere at the same time. I can see how some people would think that they can make so much money immediately even though it is a market game that he reiterates takes time, practice, and patience.
I forsee in the future this becoming or already is a recommended or required reading for econimics majors in the collegiate field. It is a lot of information to take in when understanding how the whole forex market works. I hope that future editions or prints of this book include color charts or graphs to follow the text easier as the author refers to the black line graphs throughout the book by its original intended color formats.

[Jan · Rating 3 out of 5]

Goodreads win. Thank you. Forex, one of the largest markets in the world, where one currency is traded for another. Wish I had had this book when I was at college, and in a class where half of the room said they were going to be working on Wall Street. If I had had this book then, I could have at least sounded like I knew what everyone else was talking about! Ivan Cavric walks the novice through FOREX, at first it boggled my mind, thinking in trillions, however, knowing that I would never be trading, I read this with appreciation, for the people who can trade and know what they are doing. Passing this book onto a friend, who trades daily. I know he will love it. Thank you Mr. Cavric.

[Gretchen · Rating 5 out of 5]

This book tells you about all the essentials that you need to know in order to trade foreign currency on the foreign exchange. I won this book in one of the goodread giveaways, and while I have not really considered trading on the forex, this book definitely explains the basic concepts and ideas behind it. And what I liked about this book is that it really stressed the need to understand the forex and to take it seriously. The author really stresses ways to reduce risk when trading. The view is a very good one - not a get rick quick speil that is not realistic. This is the first book in a trilogy and so if someone is interested in learning about the forex, I highly recommend this book.

[Erin · Rating 2 out of 5]

I received this book for free through goodreads.

This book was about the foreign exchange market, which I know nothing about, so it pretty much all went over my head. This book is definitely for someone who already has an idea about forex and what it consists of.

Other than just not understanding, there were many grammatical errors that you wouldn't expect from a $65 book. That also threw me off and I couldn't take the author seriously.

I will pass along to financial friends who may enjoy it more than I did.

[Gábor · Rating 4 out of 5]

This book does offer an good introduction to the basics of currency trading. If you are a beginner, you will likely find the details offered educational, describing services offered by brokers, currency pairs tradeable, money management, psychological aspects, paper trading features, technical and fundamental analysis and more. The book also highlights some pitfalls, scams you are to avoid to become successful. The final chapter in the book even details a basic trading approach.

(This review was based on Goodreads First Reads copy)

[kimyunalesca · Rating 5 out of 5]

I've always wanted to learn about Forex hence this is a great book for me/to anybody who would like to start and learn the basics of currency of trading.I also love that it's hardbound and that when you take of the cover jacket it has a great color of Red no written words just simply a red hardbound book so cool!I love it!also happens to be one of my favorite color.

I won and received this book for free thru goodreads first read.Thank you so much!

[Tracy Smith · Rating 4 out of 5]

Won this from Goodreads, really looking forward to it arriving, cant wait to read it.

Book received thankyou.:) Will review when have finished it

Excellent book, found it really facinating and extremely useful. May well feel that I can be a bit braver in my investments now I have a lot more knowledge on the subject.

If this is a subject you are interested in then this book is a must read!

[Stuart Hargreaves · Rating 4 out of 5]

Having a degree in banking (ACIB) I looked forward to reading this book . Although I am not that experienced in trading I did feel that the overall philosophy was correct and it proved to be an interesting read with several good proven methods explained, by reading this book any novices to foreign exchange trading are not guaranteed to make money , however this book outlines step by step what to do if you wish to start trading, but remember Rome was not built in a day.

[Karen]

This is an introduction to Forex trading for the novice. The author does an excellent job of stressing the importance of intensive study and practice before beginning to invest. He also covers selecting a broker. A novice will require a fuller explanation of the analysis and indicators used in designing a trading strategy than he provides. Some of this material must have appeared elsewhere, since the text refers to colors on the illustrations which are in black and white.

[NR-Bal · Rating 5 out of 5]

As the name depicts, this book is related to foreign exchange market. Before reading this book my knowledge was very limited about trade currency, but it provides step by step knowledge on how to trade currency. I found it to be very informative and useful. A good reference book for people who want to learn and I look forward to reading the rest in this series. There is so much information packed in this book on how one should begin.

[Paul · Rating 2 out of 5]

I had hard time getting through this. Not because of the quality of writing but the subject material. A tad on the dull side for my tastes. It felt like I was being forced to take on a task that I'd put off week after week. Instead of being able to engross myself in it, I tended to yawn excessively. I didn't enjoy it.

This book fromGoodreads First Reads.

[Sarah · Rating 3 out of 5]

I found this to be an interesting read. This book has given me a much better understanding of the Forex market and I look forward to reading the rest in this series.

The language used is simple and easy to follow and doesn't make you feel like a complete dunce if you aren't in the financial business world.

[Erika · Rating 4 out of 5]

I won this book from Goodreads First Reads!

This book was pretty interesting, you learn a lot about Forex. This is usually the kind of book that I would not read, but it was really interesting.

This book is about the Foreign exchange market. It is the first one of the trilogy.

If you want to learn the basics of the company and how it works, read this book!

[Brittany · Rating 3 out of 5]

I won this book on Goodreads First Reads. I thoroughly enjoyed reading this book. There were a lot of concepts that I hadn't thought of or come across before. I will definitely be implementing some of the techniques described in the book. Great read for people new to trading. Can't wait to read the rest of the series.

[Nancy S · Rating 4 out of 5]

I won this book for free through Goodreads First Reads giveaways.

If you are a beginner with Forex trading (foreign exchange market) this is an excellent introduction.

I like that this book outlines step-by-step what to do if you wish to start trading. I found it to be very interesting and informative.

[Jodi Boulier]

I have always wanted to trade and was afraid. I am glad I read the book and learned alot. My husband is currently reading it and we both have a lot to discuss since he is working out side of the US and we are making the decisions we need to make for our future. Thanks for the knowledge!

[Lucy · Rating 4 out of 5]

I won this book from Goodreads, and I'm glad I did! I have no experience with currency trading, but I found the book easy to read and understand, with plenty of good tips for a beginner like me.
Can't wait for the rest of the books in the series!

[susan murray · Rating 4 out of 5]

Perfect for people wanting to engage in forex it is in laymen terms easy to understand.It lets you know about the ups and down and pitfall novices can and sometimes do fall into.It also makes you understand it is not easy to make a quick buck it is not just numbers but patience .

[Jacque · Rating 3 out of 5]

This book teaches people how to trade currency. I found it interesting but it is not something that I would get into myself. I would recommend it for anyone who wants to trade in the currency market.

[Lulu · Rating 4 out of 5]

I won this book from the first reads giveaways and I am so excited to read it. Thanks.

My knowledge is very limited, so I found this book quite useful in learning about basic currency trading. A good reference book for people who want to learn.