Beat the Forex Dealer: An Insider's Look into Trading Today's Foreign Exchange Market

by Agustin Silvani

The foreign-exchange market is often referred to as the Slaughterhouse where novice traders go to get 'chopped up'. It is one of egos and money, where millions of dollars are won and lost every day and phones are routinely thrown across hectic trading desks. This palpable excitement has led to the explosion of the retail FX market, which has unfortunately spawned a new breed of authors and gurus more than happy to provide misleading and often downright fraudulent information by promising traders riches while making forex trading 'easy'.

Well I'll let you in on a little there is nothing easy about trading currencies. If you don't believe me then stop by Warren Buffet's office and ask him how he could lose $850m betting on the dollar or ask George Soros why his short yen bets cost him $600m not once but twice in 1994. What's wrong with these guys, don't they read FX books?

In reality, the average client's trading approach combined with the unscrupulous practices of some brokers make spot FX trading more akin to the games found on the Vegas strip than to anything seen on Wall St. The FX market is littered with the remains of day traders and genius 'systems,' and to survive in the long-run traders have to realize that they are playing a game where the cards are clearly stacked against them.

Have you ever had your stop hit at a price that turned out to be the low/high for the day? Bad luck perhaps? Maybe. What if it happens more than once? Do you ever feel like the market is out to get you? Well guess what, in this Zero Sum game it absolutely is.

Covering the day-to-day mechanics of the FX market and the unsavoury dealings going on, Beat the Forex Dealer offers traders the market-proven trading techniques needed to side-step dealer traps and develop winning trading methods. Learn from an industry insider the truth behind dirty dealer practices stop-hunting, price shading, trading against clients and 'no dealing desk' realities.

Detailing the dealer-inspired trading techniques developed by MIGFX Inc, consistently ranked among the world's leading currency trading firms, the book helps turn average traders into winning traders; and in a market with a 90% loss rate winning traders are in fact quite rare! More than just a simple manual, Beat the Forex Dealer brings to life the excitement of the FX market by delivering insights into some of the greatest trading triumphs and highlighting legendary disasters; all written in an easy to read style.

Make no mistake about it there is a lot of money to be made in currency trading, you just have to know where to look. Sidestepping simple dealer traps is one way of improving your daily p&l, but it is surely not the only one. Successful trading comes down to taking care of the details, which means skipping the theoretical stuff and providing only up-to-date, real-life examples while sharing the FX trading tips that have proved so profitable over the years. By stripping away the theory and getting down to the core of trading, you too will find yourself on the way to beating the forex dealer!

Genres: Finance

240 pages, Hardcover

First published November 1, 2008

Reviews

[Casey D Wilder · Rating 5 out of 5]

I really like the ideas behind the book--like how forex dealers are out to get you. Some of the trading strategies may be valid, but they're not the way I trade, so I won't evaluate those. I would say that it's probably a must read for most forex traders because it's really important to know the odds stacked against you and this author doesn't try to hide that from you.

[Marian · Rating 5 out of 5]

This book is excellent, not sure why it’s not more highly rated. For people who pay attention and can read between the lines, this book provides all the tools you need to pull consistent profits out of the FX markets.

Highly recommended.

[James Mcmeekin · Rating 2 out of 5]

Not a good place to start for any aspiring traders. There isn't anything in here that will teach you good trading habits, in fact I'd argue there are bad trading habits in here. The author has an obsession about stop-losses being hit by his fx broker and subsequently the trading approach is lose. Stop-losses are essential and should be placed strategically.

In saying this, have a read, it offers a cynical viewpoint to the fx market, not one I fully subscribe to, but there are obviously people in fx trying to win - where there are winners there are losers.

If you're new to trading start with this book - Naked Forex high-probability techniques for trading without indicators by Alex Nekritin.

[Tech Nossomy · Rating 3 out of 5]

An already older book, ie written before the many turbo- and crypto-exchanges came to market aggressively advertising to the aspiring retail daytrader, but all the same making a sterling effort at dispelling some of the myths surrounding forex trading. Though outdated in some minor respects (LIBOR), the key points are still valid and this book stands out for managing expectations to said retail forex trader.

The book discusses the mechanisms of the forex market from the perspective of the dealer / market maker and how subsequently the retail trader can exploit the few opportunities that exist in the market. The appendix discusses some market setups, but unfortunately still discusses standard momentum / technical analysis techniques.

Read the 2008 edition.

[Giorgio · Rating 3 out of 5]

Read this as an amateur trader with a bit of experience.
The first part, sadly (or fortunately we may say), is outdated for 2021. The second part is good. Probably not best suited for a beginner though

[Atiba · Rating 5 out of 5]

Saw a 10% improvement in my trading after reading this book. I suspect the bad reviews are from brokers who don't want you reading this.

[Marcelo Garza · Rating 4 out of 5]

Insightful and well written.

[Goldèn Zerö · Rating 4 out of 5]

Amazing strategies for market entry and deals with deep losses, how to trade with dealer riding the flow of the market to take quick pips

[Gavin MOK · Rating 1 out of 5]

I am going to be brutally honest.
Do not waste your time and money on this book.

[Alberto · Rating 3 out of 5]

First book I read about forex specifically.
Shows the relationship between banks / dealers / clients.
Nothing concrete about price action, and only one or two suggestions on trades, and mostly for very short term, small targets. Advocates scaling but only dedicates a short chapter to it.
Didn't know what I was expecting, I'm sure there are better books out there.