investment spectrum of low-risk and high-risk options. The
markets this book will cover are considered a high-risk investment.
We do not recommend a high-risk investment strategy
for any money you cannot afford to lose. Risk can include factors,
such as inflation and recessions, that affect the value of
what you are holding.
Methods That Apply to Multiple Markets
The methods we will be discussing apply to all markets,
including stocks, bonds, futures, options, and forex. Because of
the liquidity of the international currency markets, the low cost
of entry, and the advent of easy-to-use platforms and free charting
packages, along with mini and micro contracts, most of the
examples we give will be in the forex markets.
Foreign Currency Trading
Foreign currency trading on a retail level was the brainchild of
Leo Melamed, chairman emeritus of the Chicago Mercantile
Exchange, with encouragement from the economist and Nobel