Average Reviews:
(More customer reviews)Many of the recent books on FX have been of such poor quality that I wonder where our priorities are. Publishers, authors and readers seem to have lowered the bar both in terms of the quality of the presentation and in terms of rigor. Are we so impatient that we cannot wait until the text is proofed for errors or until the research is adequately validated and sourced? Are we just lazy? This is the question on my mind as I finish Schlossberg's book.
While it may be an achievement for him personally, it is unfinished and I suspect even he must agree. While I do acknowledge the paucity of books on the FX spot markets -- especially thorough and well written books -- there is no excuse for this one. The two concepts that stood out in this book, and the concepts the author seemed most eager to sell, were the scaling in approach and the Bollinger Band "bands." Guess what readers! You can learn all you need to know about Schlossberg's approach to both by reading his articles on Investopedia and MoneyTec. (He published his article on "bands" more than two years go. The rest of his book is just filler...and covered in more detail and more accurately in other books. You can, literally, find free and very well documented information on the internet that covers all 10 chapters!
He also doesn't give credit where credit is due, presenting some concepts without ackowledging the debt owed to his intellectual benefactors and giving the impression (I'm sure without realizing it) that he is the originator. This has also become popular in the industry -- taking credit when none is deserved. (I won't name names.) Specifically, the idea of Bollinger Band "bands" is not original. His only contribution is putting quotes around the "bands". (I have personally been using them since 2000, and I was taught by someone else who had been using them since 1998.) You can find a more diverse discussion of them on any of the major FX forums, but you might have to dig a little. (Don't be lazy!)
But these are only my pet peeves. And I am peeved at the author a bit. He is, as he says, a currency strategist for FXCM. He has also referred to himself as a profesional trader in the past. But titles can mean anything these days and I am left wondering whether he really trades for a living. All the speaking and seminar tours -- and he does a lot -- leave little time to actually trade consistently. On any time frame but the weekly and monthly. If you are not trading consistently, then you are simply not trading. And if you are writing about trading, then you had better be trading consistently yourself. Or retired from trading successfully.
My doubts go further. The model he presents is statistically very dangerous and requires very precise entry and exit techniques in order to enable the risk model to work. Beginning traders should simply not try this model and instead look for something that has a better reward to risk profile and that has more forgiving entry and exit tactics. He claims the countertrend trades on the Bollinger Band "bands" model he presents have a high probability of success. This might be true, but traders must remember that he has provided little in the way of precise entry and exit rules and even less on the money and risk management side of the equation. (And all of a few sentences on how to determine whether this style of trading is suitable for you.) And since it is impossible that he is trading consistently, I wonder if he can really say with an acceptable measure of statistical certainty that his model has been or will be profitable over time. He would probably be better off not disclosing this information for legal reasons, but acknowledging its importance and explaining its use would go a long way toward making the book credible. If a new trader jumped in and started trading this model based on the information presented in the book, he or she would merely be "eyeballing it." You can still succeed this way, but it's more a matter of luck than skill.
He has not presented essential statistics to indicate that he employs the model profitably -- yet he gives the impression he is a profitable trader. In undertaking the exploration of any trading model, I have to know a few things first:
(1) What is the likely win / loss ratio over a minimum of 100 trades?
(2) What is the average profit and average loss?
(3) What is the expectancy of the model?
(4) What time frames and time periods is the model likely to perform best?
(5) What is the maximum drawdown I can expect?
Granted, Schlossberg's approach is discretionary and his focus is technical (and so is mine), but the lack of any informaton on the measures above -- or their importance to formulating trading models -- has me worried. Which brings me to a question similar to the first. Are we so impatient about the process of trading -- market research and model selection, self-assessment, and risk management -- that we can't wait to jump into the trade? If we are, I suspect we will all lose.
And that is my rating for this book. A loss of $40. Booker's claim that this is the only book one needs for technical analysis is pure rubbish. (They often speak together at FX expos and Booker himself is selling FX education courses and, in general, Rob's response to everything is "brilliant!" He's a very positive guy.) In addition to the above, the charts are poorly presented and some of the patterns, particularly the head and shoulders patterns, are not necessarily valid in the "classical" sense. And the whole thing just feels like a series of previously published articles loosely strung together -- which is in fact what some of the chapters are. Don't be fooled. This book will not give you the skill you need to carve out a small but profitable niche in the global currency market. (It might give you the confidence, but that and a buck fifty will get you a cup of coffee and maybe a date with the barrista.)
You're best bet, unfortunately, is to keep reading books on general trading -- in particular the books on stocks and futures. They still present the best information for our buck fifty. (What you need to know about FX specifically is already on the internet and free of charge.) Try Elder's "Entries and Exits" to get a feel for what it's like to be a lonely trader. Read Murphy's "Technical Analysis", Bulkowski's "Encyclopedia of Chart Patterns", Bollinger's "On Bollinger Bands", and Nison's "Japanese Candlestick Charting Techniques". These are the books that a new trader should start with, along with Steenbarger's "Enhancing Trader Performance" (forget about his first book unless you just like reading about trading psychology) and Gandevani's "How to be a Successful Trader" (best yet on practical trading psychology, though full of typographical errors). When you read them, sit in front of the charts and actively participate in your learning. When you're done, read a few more on specific indicators that appeal to you. Maybe check out other paradigms like market profile and point and figure charting. Trading is a way of life and you will spend a lot of time just doing research and reading more books on specific technical and fundamental perspectives. Choose your sources wisely. Be patient.
Don't waste you're time reading Schlossberg. Do your due diligence on researching the best brokers for retail trading (hint: it isn't FXCM) and know the structure and conventions of trading the FX spot market and the use of leverage BEFORE you put real money into an account. Even the newbie would be better off reading something else. Some newbies here obviously disagree, but they're newbies. (And like I said before, don't be lazy!)
Simply put, the author owes us more for our $40. He is not alone of course. Just about every author who has published on spot FX is guilty. And we deserve better.
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Technical Analysis of the Currency Market: Classic Techniques for Profiting from Market Swings and Trader Sentiment (Wiley Trading)Proven currency-specific trading strategies from one of today's top currency analysts"If you trade currency, then you need to have this book on your desk. It's the only book you need for technical analysis of the fastest-moving market on the planet."-Rob Booker, Currency Trader, W.R. Booker & Company"In plain English, Schlossberg lays out the basics in using technical analysis to trade foreign currencies, from the fundamentals of how the FX market works to the variety of technical strategies and trade management techniques traders can employ. Along the way, he offers entertaining examples and observations as well as simple, easy-to-read charts and diagrams. Anyone interested in getting started in the hugely popular FX market would do well to begin with this book."-Sarah Rudolph, Executive Editor, SFO Magazine"Boris Schlossberg has done a fabulous job with this book. It's packed with insightful tips and strategies that are sure to save traders a lot of time and money."-Cory Janssen, CoFounder, Investopedia.com"Schlossberg's book is a great resource for traders just starting out in currency markets. His focus on simplicity is critical for a new trader's education on how to make money."-Andrew B. Busch, Global FX Strategist, BMO Financial Group
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