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Insider's Guide To
Forex Trading
Discover All Of The
Insider Techniques
That The Pros Are
Using With Great
Success
By JayKay Bak
The Unselfish Marketer

1

Limits of Liability / Disclaimer of Warranty:
The authors of this information and the accompanying
materials have used their best efforts in preparing this course
...

They disclaim any warranties
(expressed or implied), merchantability, or fitness for any
particular purpose
...

This
manual
contains
information
protected
under
International Federal Copyright laws and Treaties
...
We actively search for copyright infringement and
you will be prosecuted
...
16
Chapter 4: Understanding Currency Conversion………………
...
26
Chapter 6: Forex Volatility And Market Expectation…………
...
34
Chapter 8: Risk Management………………………………………………38
Chapter 9: “Buzz” Words……………………………………………………
...
51
Chapter 12: In Review…………………………………………………………55
Chapter 13: One Final Option………………………………………………60

3

Chapter 1: What the Stock Market
is All About
In any business or moneymaking venture, preparation and
foreknowledge are the keys to success
...

In the stock market, this rule applies to the nth degree, as
you are investing your own money in what could be
considered a high risk wager, and you are playing with fire if
you do not have at least a general background knowledge of
how it functions
...

In many ways, trading on the stock market can be
compared to driving – you do not have to be an expert to
get behind the wheel of a car, though you are expected to
have some previous knowledge about basic traffic laws,
including moving violations, safety regulations, and other
legal vehicular infractions, which are learned through either
specific study and coursework or even through some form of
4

simple exposure (such as the years you have spent riding
with your parents and others who have driven for years)
...

The same is true in entering the world of the stock market
...
And just like someone who is behind the
wheel of a car and getting ready to touch the gas pedal for
the first time, you should start out with caution and work
your way in slowly
...
Likewise, when you select your
first investment, you should choose something stable with
little fluctuation and not invest a large sum of money on this
first venture
...
In the stock market, there are
stockbrokers and other experts who can give you input and
advice to help you in building your knowledge of the
commodities in which you are interested, essentially
“steering” you toward better stock market buying and selling
decisions
...
However, in this book, you will
find all the basic information you need to get started down
the path to trading success
...

All you have to do is read in order to gain knowledge and
wisdom, step by step that will bring you to a heady level of
success
...


6

How Investment Works
Any time you are going to be putting your money into a
fund; it is a good idea to start by understanding what you
are buying into
...
The more you know in
advance regarding the functionality of the system, the less
likely it is that you will take a heavy hit, ending in
devastating loss
...

When you buy or sell a stock on the open market, you
should keep in mind that you are dealing with real objects,
not pieces of paper; you are buying and selling real parts of
a particular company, its product, or some other various
commodity
...
Of course, you could be one of
millions of shareholders, as most companies and products
are broken into minute pieces of the whole, but you are still
considered an investor in that company or product until you
sell your shares
...
You may have even bought
the oil filter that has been put on the car, and you may feel
that this investment makes you part owner
...
However, as long as
you continue to invest in the gas for the car and take care of
the maintenance needs, you can claim part ownership of the
car
...
When the price per share drops and is
considered low, it is an ideal time to purchase
...

In doing so, you become a stockholder, and the value of
your holdings will fluctuate from day to day
...
This is the goal
of all traders and means that your stock will become more
valuable
...
When the price of the stock in your possession
reaches a high point, it is time to sell, making a profit on
your original investment
...
It is important to
make sure that you do not purposely take a net loss because
there are plenty of occasions when you could be forced to
take a loss
...
If possible, you want to hold off until they are each
worth perhaps forty dollars, in essence doubling your
money
...

There are other, more complex ways to invest in the stock
market
...


Making Decisions In The Beginning
Let us return to driving as a reference
...
Instead, you
will stay in residential areas or at least on the access road,
where there is less pressure to maintain such a high speed
...

There are small investment opportunities referred to as
“penny stocks”, which will help you try out your sea legs and
get a feel for how the stock market works prior to investing
large sums of money and risking a big financial loss
...

Once you get the hang of it and can better judge the market
trends, you can comfortably move on to more complicated
and adventurous areas of the market
...

Be aware that, just like you may fall off your bike once or
twice and end up with some scrapes and bruises, you may
lose money in an investment here and there
...
In poker, you cannot expect to win every hand,
and the same is true in the world of investments
...
Such
diligent study can help you improve your statistics drastically
in a short time
...
In contrast, if
you know little or nothing about these trends can cause
serious loss
...
Market trends are variable and volatile, both on a
daily basis and over extended periods of time
...

What does it mean for the market or a particular stock to
rebound? Assuming that the value of a company or its stock
has plummeted to a level that seem unrecoverable, leaving
it practically worthless, it may feel as though that company
is in danger of bankruptcy and falling off the scope of the
free trade markets altogether
...
Everyone wants one, and this

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product may be in short supply upon its introduction,
causing a race to the department store shelves
...

The stock price for that company’s shares will recover, and
the resulting gain in value would be considered a rebound –
a return to the original status (or better) prior to the
devastating loss
...
If several different areas of the
market are in a steep downward slide, with values dropping
rapidly (perhaps even ten or twenty percent in a few days),
it is referred to as a bear market
...

Your best bet in these cases is to either sell before prices
drop below your original purchase price or to hold onto the
shares until the market rebounds
...
Then, if you patiently await the recovery or rebound
of the market, you can make a great deal of money from a
bear market
...

At the same time, a bull market is a strong general upward
trend for many stocks
...
You are
safer if you are indoors when the running occurs, and by the
same token, if you own stock during a bull market, you are
in a prime position to increase your net worth and sell your
shares, making a great deal of money
...


The Market Outlook
By taking note of various changes in the status of different
available stock options, you will learn how to spot early
market trends, giving you a clue to the future of a particular
commodity, and this can only add to your chances for
profitability
...

However, you can make an educated guess, much the same
way a meteorologist forecasts the weather
...
With a little time and seasoning, you can attain the
same level of experience and intuition within the stock
market
...
Next, we will discuss some of the properties
of Forex and how much more complex this stock market
entity can be than a standard domestic market
...
The following
chapter is an introduction to the exciting and somewhat
scary world of the Foreign Exchange Market, or Forex
...
In
the United States, there are several branches of the stock
market, each with their own name
...
Of
course, all stock market transactions in the United States
take place on the New York Stock Exchange (NYSE)
...
There may be one or more
distinct markets
...
Several
countries across the world in almost every time zone
participate in trade on Forex, with multiple currencies being
utilized and stocks and commodities from all participating
countries being offered for trade
...
It remains open for trade 24 hours a day, 5 days a
week
...
This means
that the value of your holdings could potentially plummet

16

overnight, while you sleep, because other countries are still
trading while you are in a dream world
...

This is one reason for several safety options, like limit
orders, which we will discuss later
...
In our car analogy,
this would be comparable to having asked someone who has
never driven or even changed the oil in a car to rebuild the
engine
...
You will have to contend with not only the
value of your stocks and your currency, but also the foreign
currencies involved in any trades or exchanges on Forex, as
well as the inconsistencies of values of particular goods and
services across international borders
...


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On the domestic front, the work is mostly done for you, and
all you have to do is navigate, much like an automatic
transmission
...
It
can be distracting, and it certainly complicates the act of
driving
...

Knowing what countries and currencies are involved in Forex
can assist you by allowing you to more closely monitor the
financial situation in the nations with which you will be
interacting
...
It was borne out of the Bretton Woods agreement
in 1944, which set forth that foreign currencies would be
fixed against the dollar, which was valued at $35 per ounce
of gold
...
Of course, his intention was to sell the
currency, which he felt was priced too high against the
dollar, then buy it back later when the value had declined,
turning a quick profit
...
This allowed for
a stronger backing in the foreign markets, and the United
States and Europe began a strong trade relationship
...
At this time, foreign exchange equaled
about $70 billion a day
...
5 trillion daily
...
Though the major players in the European market
were deeply involved in and veterans of international trade
by the time other markets joined in, there were more
currencies to keep track of – the franc, the pound, the lira,
and many more – than was reasonable
...


Forex Today

19

While some countries have still not accepted the currency as
their own (such as Britain, who still uses the sterling pound),
the process of currency conversion has been simplified
without the large number of various currencies that were
previously dealt with
...
S
...

Today, the Foreign Exchange Market is international and
worldwide
...
These now include most of Europe, the
United States, and Asian markets, especially Japan
...

Another completely separate but perhaps more important
concern with trading in Forex is understanding how trade
works in multiple currencies
...
This means studying not only domestic market trends
and currency values, but also those of foreign markets
...
S
...
S
...
With so many
variables and volatile currencies being exchanged, how can
you know a good buy or sell when you see one without
complete awareness of the value of foreign currency?
The first step is to find a source that will give you a basic
idea of the current exchange rate between your domestic
currency and the foreign currency in question
...
Of course, this will not be
consistent down to the cent or fraction of a particular
currency throughout an entire business day, but at least you

21

will have your starting point from which to begin, almost like
North on a compass
...


Currency Expression
It is also good to understand the means be which the
currency conversion is expressed
...
In this
configuration, the two currencies are listed in an XXX/YYY
ratio, with the XXX position referred to as the base currency
...
It is sort of like
making reference to miles per gallon or rotations per minute
on a car – a direct comparison of one to the other in the
form of a ratio
...
For example, if the British pound
sterling can be traded in thousandths, the currency will be
expressed to the third decimal place
...
S
...


22

In one cross-rate expression example, one U
...
dollar may
be equivalent to 117
...
This ratio would be
expressed as 1
...
456
...
S
...
Since the whole number
value (or big figure, as it is referred to) of the secondary
currency, or the currency in the YYY position in terms of
conversion changes so infrequently, often only the decimal
portion of the number is mentioned in the Foreign Exchange
Market
...
456, with no mention at all of the 117 whole yen
that is shown in the ratio
...
456 to 117
...
024
...

The most common currencies found in Forex are the U
...

dollar, the British pound sterling, the Euro, the Japanese
yen, and the Australian dollar
...
However, with the
consolidation of most of the European market trading on
Forex to the Euro, many currencies have been eliminated,
making trade on Forex for other lands less complicated
...
S
...
The same is true in reverse should the value of a
foreign currency increase against a U
...
dollar
...
We will discuss this process, as well as other ways
to take advantage of the Foreign Exchange Market (like
arbitrage) in more depth in future chapters
...
Such ideas will not seem so “foreign”, and you will
be caught up and knowledgeable right along with the pros
...


Forex Trending

24

Following charts, listening to the advice of market analysts
and chartists, and learning to make educated predictions
yourself will help you keep track of various marketing
trends
...
Will it be a clear, calm day with little
activity, or is there a storm brewing with winds of change
and uncertainty? How can you tell what will happen with
your holdings the following day or even further into the
future?
Simply learning to read market trends can remove a lot of
natural apprehension and uncertainty for beginning traders
...
The following chapter will explain more about
how to interpret the statistics and basic trends
...
Now,
you would like to know how to gauge market trends in order
to profit from your business ventures on the open market
...
You want the real goods
...
While you can never be 100% sure at any
given time of the next move that will be made on the market
as a whole, being able to read statistics and interpret them
will place you ahead of the pack in regards to “guessing”
what will happen next
...
If you can keep track of the
cards that have already been played, you are more
informed, statistically, regarding what is likely to be dealt
next, meaning you can place abet with greater insight than
someone who has no clue what has already been played
...
You simply
learn the pattern and follow it to the end, reaping the
financial rewards
...
They
monitor the market hourly, daily, weekly, monthly, and
yearly so that they can provide big-time traders with the
same knowledge mentioned before
...
The same is true for stockbrokers
...

The best part of this is that you have access to the same
information as these VIP clients
...
These charts are basically a combination
of a line graph and a bar graph that show the trend of
various stocks, indexes, or other interests over a specified
period of time
...

You can actually find information on most commodities and
their market trends for years in the past, and some even all
the way back to their introduction to the open market
...


Understanding Market Trends
Understandably, as economies vary, the value of various
commodities can change
...
Along with that power comes a
higher value for the items purchased
...
Therefore, stockholders become wealthier in terms of
assets, simply because the shoppers are driving the market
with their purchasing power
...
A strong upward trend in the stock market is an
excellent sign for any economy
...
For
example, warfare rarely has a positive effect on the stock
market
...
Some analysts were sure that
it would never properly recover
...
However, the critics proved to be wrong, and the
United States proceeded to rebound, or recover from a bad
downtrend, in a strong manner
...
In watching the reaction of the
stock market, you can learn to read trends based on world
events
...

Especially on the Foreign Exchange Market, you will find
trends vary depending on many current events
...
This is referred to as devaluation,
which will be discussed in greater detail in the following
chapter
...
What factors affect the
value of currency on Forex, and is there any way to control
this?

Devaluation And Revaluation
As mentioned in the previous chapter, devaluation refers to
the purposeful decline in value of a currency in relation to
other currencies as charged by a government entity
...
S
...
S
...
This makes any items purchased in the foreign
currency more expensive for those trading in U
...
dollars,
as the exchange rate is lowered
...
S
...

An opposite change in value can also occur, raising the value
of the foreign currency
...

While it may seem that purposely adjusting the value of a
nation’s currency is “cheating”, or taking an unfair

30

advantage by making foreign products cheaper to purchase
and increasing the value of exports, there are regulations in
place to prevent the manipulation of exchange rates for such
purposes
...

There are ways in which you can take advantage of
devaluation and revaluation, which will be discussed later
on
...
As
soon as you drive a new car off the lot, the value is almost
cut in half
...
However, over the
next few years, the car continues to lose value at a more
gradual pace
...

Currency appreciation and depreciation are changes in the
value of the currency that are driven by market forces rather
than by government mandate
...
The

31

exchange rate, which was currently six rubles per U
...

dollar, would over a period of time change to 9
...

However, prior to the change, there was a widespread panic
within the former Communist nation, and the value of the
ruble dropped due to many people in Russia opting to trade
in their securities prior to maturity
...

The same sort of crisis occurred in the 1920’s with the crash
of the U
...
stock market
...
In running to the bank, people
actually caused the crash rather than escaped it
...

While inflation is bound to occur, it can be minimally
tempered through the use of the currency valuation
...
Often, men
enjoy taking old cars and restoring them to their original
beauty
...


32

The ever changing rates of currency conversion and volatility
of the market create an inherent market risk, or a day to
day potential to experience loss due to fluctuation in
securities prices
...
However, some risk can be offset by particular
types of investments or ways of investing that are more
secure or protected
...
These options
include the ability to preset your purchase or sell price for a
specific commodity, as well as using various predetermine
order levels to place orders and complete transactions
...
There
is always a cloud hanging over your head waiting to burst,
and all it takes is one little pinprick
...
The next
chapter will help you get a grasp on reality and what is
involved in balancing your risk factor with a grounding in
reality; your ego with your id
...
However, you want to know everything
you can about balancing that risk with intelligent investment
options
...
The long
position is basically the purchasing position – you are about
to take on a long-term commitment for ownership of some
stock, security, or other traded commodity
...

The best time to take up the long position is when stock
prices are low
...
In fact, as others take the long position
and purchase at the same time you do, this will actually
drive the value of securities up through the standard rule of

34

supply and demand, causing the beginning of what could be
a bull market
...
The prices tend to drop on any cars left on the
lot for sale, and the dealer is more often willing to bargain
because he or she wants less inventory on the lot
...
This can only be of assistance
to you
...
You should never sell for a price that is below your
cost, as this brings negative equity and loss of funds
...

In other words, if you buy a security at fifteen dollars per
share, and it quickly rises to twenty-five dollars per share,
you may very well feel that it could hit thirty dollars per
share within a week
...


35

Market-Makers And Selling Short
What if the stock values are up incredibly high, but you did
not get in on that particular commodity and own no shares?
Your first step should be to visit a market-maker or to make
a deal with a broker for a short sell
...

The firm will then turn around and sell those shares to an
individual at that low price, regardless of the market rate, in
effect making its own market (thus the name)
...

A short sell is another option for a quick profit
...
Your
job is to then wait for the stock price to go down, purchase
the same quantity of stock, and return the holdings to the
broker, keeping the profit from the sale, minus the broker
fees
...
They will purchase the car from you at a very low
price, then turn around and sell it on the lot for a high profit
margin
...
Because you
have sold shares for a high price, you have already profited,
and in the worst-case scenario, the particular stocks will not
drop in price
...

How can you be sure that you will not overshoot the best
price options or miss a good rate because you are
unavailable to place a buy order or sell order with your
broker? Is there a way to set limits on your trades? Next,
we will discuss ways to protect your investments and limit
your risk factors
...

There are several ways to do this, and we will discuss those
in this chapter
...
For
instance, you have designated to your stockbroker that you
will not sell X Security until its value reaches a minimum
value of Y dollars
...
Setting limits
for the price you pay for a particular security, as well as the
price you will accept to sell it, protects you and your
investment in several ways
...
Any loss that occurs with limit orders will
always be unrealized loss, or a loss that is not measurable in
liquid assets or cash
...
Since
you have set a limit that does not allow your commodities to
be sold for less than the original cost, you cannot possibly
have a loss in your net worth
...

Another way to protect your assets is to hedge
...
When that price
is reached, the order will be processed and the transaction
completed
...

You can also buy on margin
...
Then, when the value of
the securities you have purchased rises and you are able to
sell for a profit, you repay the loan and keep the excess
from the sell, minus the broker fees
...
However, online services are often
less expensive than live agents, but you can research to
determine what your best option is
...
A whipsaw is market trend
that defies the odds
...
Despite how careful you are as you learn to drive a
car and become coordinated, sometimes you cannot do
anything to avoid being rear-ended
...

For example, if you purchase a security at five dollars per
share because the stock seems to have fallen as far as it can
go and appears to be starting an upward trend, then
unexpectedly, the stock plummets to one dollar per share,
this is considered a whipsaw effect
...
The stock will do one of two things
– it will either dissolve entirely, and the company will go
bankrupt (this is what you do not want to happen), or it will
rebound, and you can opt to wait for a chance to turn a
profit or you can get out as soon as the purchase rate is
reached
...
However,

40

if you find that you are involved in several of these
instances, you should seriously reconsider your investment
options
...
You should seek advice for any
future investments you expect to make prior to purchasing
any further stocks or securities
...
You could either
purchase additional stock in the same company at the lower
price if you expect it to recover, or you can opt for another
hot commodity that is about to explode in price, either of
which will help you offset your loss
...

All of these are viable options to recover a loss, but waiting
for the share value to rebound is always the first choice
...

As you grow and learn about these various options, you will
need to feel more comfortable when surrounded by financial
gurus and geeks who speak what sounds like gibberish,

41

muttering words you have never heard left and right
...


42

Chapter 9: Buzz Words
Now that you know a little more about the stock market,
and you have decided to try your hand at investment, you
should be more concerned with understanding the jargon
you will hear on the trading room floor
...


Margins, Spreads, And Other Condiments
Okay, so it is margins, not margarines, but it sounds very
similar
...
For
instance, when you think of a margin, for many this means a
variable – like the “margin of error” in a statistic
...
Then, when the value begins its next
upswing, you sell the stock at the higher price, pay back the
margin (along with the premium accrued), and retain the
profit
...
The margin account is
provisional based on the value of the stock
...
This is referred to as a margin
call
...

For instance, a forward trade is set up between two
individuals or two companies outside the open market
...
There is usually a bid made – the offer
to buy a commodity at a certain price – and an asking price
or offer – the price for which the other business entity is
willing to sell the securities or other holdings
...

If the spread cannot be narrowed and eventually closed, no
deal can be made
...
Usually, the
forward price is outlined as available for a particular date,
and should the transaction not be completed on this date

44

(referred to as the transaction date), then the trade must be
renegotiated
...
While several
other terms relating to the stock market will be similar
because of the common language, there are some specific
terms that are very different in the British trading
vocabulary
...
However, in
Britain, this type of investor is simply referred to as a
“jobber”
...

This does not refer to a green patch of land, a measurement
in inches, or even 36 of something
...

In other words, you can have a yard of dollars or a yard of
yen, and though it is the same quantity of bills, coins, or

45

whatever physical currency is used, it is not necessarily
equivalent in value
...
S
...
They have chosen to still use the pound
sterling, a currency that has been used in the country for
hundreds of years
...


Open And Shut
In the stock market, there are various types of orders that
can be placed to help protect you from making a bad
investment or to limit the amount you pay for a certain
security or other commodity
...
This action is referred
to as closing a position
...

An open order is exactly what it sounds like, meaning that
the order remains pending until it is either executed by your
stockbroker or canceled by you as the client
...
You also have options like One Cancels the
Other Orders
...
Then, should
one of those reach this preset low price, your stockbroker
will follow your direction and invest your money in that
particular security, followed by a cancellation of all additional
orders
...
A
quote is never completely accurate and is usually referred to
as a spot price, as the value of a security can change within
a few seconds
...
When you put in an order, the broker then
processes the fill, or completion, of that order
...

The completion of a trade or purchase, referred to as a
settlement, can also be called the execution of a transaction
or realization of an order
...

Next, we will consider some specialized, more complex
trading options that you can use on Forex to take advantage
of the volatility of the market and the constantly varying
exchange rates
...
You no longer have to
work so hard to determine currency conversion or find the
next big explosive commodity
...

What, then, becomes the next big challenge for someone
trading on the open market? What keeps things from
becoming monotonous and boring? First of all, there is
always something new and different happening on the
Foreign Exchange Market
...
However, there are various ways
that you can take advantage of the variance in currency
conversion and a lag in time between markets that can
affect trading values
...
Although
computers have made worldwide communication almost
lightning fast these days, all of these markets can trade
48

together with fairly equivalent values for the securities
shared across currencies
...
Seasoned traders
have learned to take advantage of this lag in the market
trending by using a process called arbitrage
...
The
process is a bit complex, so we will use an example
...
S
...
5 British pounds,
meaning that everything is going to be twice as expensive in
British pounds
...
If they were equivalent, then the stock
would trade for two dollars in the United States and one
pound in Britain
...

If the value of the stock drops in Britain to
...
In this case, arbitrage would
take place when you bought shares of the stock in on the

49

British market in pounds and sold it on the U
...
market in
dollars, benefiting by the slow communication of the fall in
value of the stock
...
40 per stock
...
What exactly does this involve? You must closely
watch the changing conversion rates
...
This is very similar to arbitrage, but the area is much
riskier due to high volatility
...
S
...

One piece of advice to keep in mind, though, is that it is best
to immediately dispose of all liquid assets in foreign
currency, usually in the same day
...


50

Chapter 11: Other Trading
Options
Besides the expert options described above, there are other
nontraditional ways to make money on the stock market
...
Some
types of trading are simply not for the faint of heart, and
that means you must have complete motivation and an
adventurous spirit to take part in these areas of the market
...


Day Trading
Day traders take on some of the greatest market risk of all
...
These stocks are extremely volatile, and for
most, day trading is a quick way to lose a great deal of
money
...
You cannot be certain of
the overnight position (the net value at which a stockbroker
or day trader will open the following morning)
...
In these
cases, the day trader has to set a time limit for him- or
herself to get out, selling all shares, so that he or she can
sleep soundly while the world spins round and start the next
day fresh
...
In fact, it is not really recommended at all, and
most people who partake of this volatile part of the industry
are extremely seasoned in trading on the open market, do
not consider the risk factors carefully enough prior to
entering this branch of the market, or have enough money
that they simply wish to try this form of investment and do
not care if they lose a goodly sum
...
Fannie Mae and Freddie Mac are two of the major
corporations from which stocks are purchased on a
secondary market
...
When a person purchases a home, he
or she requests a loan from the bank, usually for about
eighty percent of the cost of the house
...

Meanwhile, to assure that money is available at that bank
for the next person who needs a mortgage loan, Fannie Mae
or Freddie Mac, two entities originally established by the
United States government, will purchase the loan from the
bank
...

What do these agencies then do with the deficit they have
acquired? They sell it
...
Eventually, those securities mature,
probably about the same time that the original loan is paid
off to the bank, and the investors reap the benefits of their
investment with the interest earned
...
This is the exchange of
securities or bonds in order to take advantage of lower
interest rates
...


53

For example, let’s say one business is in possession of a
bond “A” that is paying out only two percent interest in its
current market, and another is holding bonds “B” in its
market at three percent interest
...
They
can mutually benefit from a sale of the securities to each
other due to a gain of more interest
...
This is more often processed between
businesses on the foreign market rather than individual
parties, though with the correct broker, it could be
accomplished
...

If you determine that you should have stock options as a
business, you will probably decide to hire a fulltime
consultant for all your financial needs, including the handling
of your share holdings
...


54

Chapter 12: In Review
After shoveling through piles of information and taking in so
much knowledge, you probably feel like you are swimming in
terminology and cannot remember just where to begin
...

The following pages are a brief overview of the in depth
discussions in this book, allowing you to quickly reference a
topic in a bind
...
As a shareholder, your net worth increases and
decreases based on taking a short position (selling) when
values are high and a long position (buying) when prices are
low
...

When most commodities traded on the market are on a
strong upward trend for a period of time, this is referred to
as a bull market
...


55

If no such trend is recognized, and the value of stocks and
securities is fairly even, this is referred to as flat
...
Currency is the
denomination or monetary division used in a particular land
(such as the U
...
dollar or the Euro)
...
Determining
what the equivalent is would be referred to as currency
conversion
...
Britain, which to this point
has opted to continue using the pound sterling, also takes
part in international trade, as well as the United States,
Japan, and Australia
...
Determining whether or
not this is worthwhile depends on the currency conversion
rate
...

Purposeful change in the rate of conversion by a government
is referred to as valuation – devaluation is taking value and
strength from the currency, and revaluation adds strength
and purchase power to the currency
...


Careers In The Market
Without the assistance of professionals, it is nearly
impossible to trade on the open market
...
They use such information and basic history
to help predict the outcome of different aspects of the
market in the future
...

A stockbroker is an individual or a company that assists you
in making your investments
...

A market-maker does the same job as a stockbroker, with
the exception that this individual or company retains an
investment in a particular variety of securities and bonds
that can be sold in short order to a client for a lower price so
that the client can make money by immediately selling the
same shares at the higher market price
...
This involves the opposite approach – borrowing
money to purchase a stock or security that is at a low
market value so that the client can later resell the
commodity at a higher price
...
By
placing limit orders, you guarantee to the best of your ability
that you will not lose money on the market and virtually
guarantee at least a minimal profit
...
If you leave standing instructions with your
stockbroker, these are referred to as open orders that
remain such until the transaction is executed and the order
filled
...

Also, set a value date – a date at which time you can take
an average of the value of a particular commodity and
review your options
...


59

Chapter 13: One Final Option
While “Chapter 13” is not an appropriate way to end a
financial endeavor, it is, in this case, one of the most
important conclusions to an incredibly helpful tool full of
investment advice, especially when it is placed at the end of
a book to offer assistance to those threatened with
bankruptcy due to bad investment decisions
...
Much like moving on to a new car
after purchasing a lemon that has been nothing but a
nightmare, you can reverse your direction
...
In some
cases, it is virtually impossible for an individual to ever get
the hang of the functionality of the market
...

It is okay not to fit into the market
...
One final option
you have is to create a discretionary account
...
You never again have to worry that you have
made a bad investment
...
Your
broker will simply let you know when you have increased
your net worth or if your assets have taken a dive
...
Now, you have the basic knowledge
and the essential reference guide to get you started on the
path to success and wealth that you can access at any given
time

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