FM JWBK133-Greene April3,2008 14:54 CharCount=0 vi FM JWBK133-Greene April3,2008 14:54 CharCount=0 Turning Losing Forex Trades into Winners i FM JWBK133-Greene April3,2008 14:54 CharCount=0 Founded in 1807, John Wiley & Sons is the oldest independent publish- ingcompanyintheUnitedStates.WithofficesinNorthAmerica,Europe, AustraliaandAsia,Wileyisgloballycommittedtodevelopingandmarket- ing print and electronic products and services for our customers’ profes- sionalandpersonalknowledgeandunderstanding. TheWileyTradingseriesfeaturesbooksbytraderswhohavesurvived the market’s ever-changing temperament and have prospered—some by reinventing systems, others by getting back to basics. Whether a novice trader, professional, or somewhere in-between, these books will provide theadviceandstrategiesneededtoprospertodayandwellintothefuture. For a list of available titles, please visit our Web site at www.Wiley Finance.com. ii FM JWBK133-Greene April3,2008 14:54 CharCount=0 Turning Losing Forex Trades into Winners Proven Techniques to Reverse Your Losses GERALD E. GREENE John Wiley & Sons, Inc. iii FM JWBK133-Greene April3,2008 14:54 CharCount=0 Copyright(cid:1)C 2008byGeraldE.Greene.Allrightsreserved PublishedbyJohnWiley&Sons,Inc.,Hoboken,NewJersey PublishedsimultaneouslyinCanada Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmittedin anyformorbyanymeans,electronic,mechanical,photocopying,recording,scanning,oroth- erwise,exceptaspermittedunderSection107or108ofthe1976UnitedStatesCopyrightAct, withouteitherthepriorwrittenpermissionofthePublisher,orauthorizationthroughpayment oftheappropriateper-copyfeetotheCopyrightClearanceCenter,Inc.,222RosewoodDrive, Danvers,MA01923,(978)750-8400,fax(978)750-4470,oronthewebatwww.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Depart- ment,JohnWiley&Sons,Inc.,111RiverStreet,Hoboken,NJ07030,(201)748-6011,fax(201) 748-6008,oronlineathttp://www.wiley.com/go/permissions. LimitofLiability/DisclaimerofWarranty:Whilethepublisherandauthorhaveusedtheirbest effortsinpreparingthisbook,theymakenorepresentationsorwarrantieswithrespecttothe accuracyorcompletenessofthecontentsofthisbookandspecificallydisclaimanyimplied warrantiesofmerchantabilityorfitnessforaparticularpurpose.Nowarrantymaybecreated orextendedbysalesrepresentativesorwrittensalesmaterials.Theadviceandstrategiescon- tainedhereinmaynotbesuitableforyoursituation.Youshouldconsultwithaprofessional whereappropriate.Neitherthepublishernorauthorshallbeliableforanylossofprofitorany othercommercialdamages,includingbutnotlimitedtospecial,incidental,consequential,or otherdamages. Forgeneralinformationonourotherproductsandservicesorfortechnicalsupport,please contactourCustomerCareDepartmentwithintheUnitedStatesat(800)762-2974,outsidethe UnitedStatesat(317)572-3993orfax(317)572-4002. Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappears inprintmaynotbeavailableinelectronicbooks.FormoreinformationaboutWileyproducts, visitourwebsiteatwww.wiley.com. LibraryofCongressCataloging-in-PublicationData: Greene,GeraldE. TurninglosingFOREXtradesintowinners:proventechniquestoreverseyourlosses/ GeraldE.Greene. p.cm.–(Wileytradingseries) Includesbibliographicalreferencesandindex. ISBN978-0-470-18769-2(cloth:alk.paper) 1.Foreignexchangemarket. 2.Foreignexchangefutures. I.Title. HG3853.G7372008 332.4(cid:2)5–dc22 2008012221 PrintedintheUnitedStatesofAmerica 10 9 8 7 6 5 4 3 2 1 iv FM JWBK133-Greene April3,2008 14:54 CharCount=0 TomymostpatientandunderstandingwifeSharon,whosupports mypassionforhelpingForexTraders. ToallForextraderswhohavelostmoneytothebrokersand banks.Hopefullythismanuscriptwillhelpeachandevery readersucceed. v FM JWBK133-Greene April3,2008 14:54 CharCount=0 vi FM JWBK133-Greene April3,2008 14:54 CharCount=0 Contents Foreword ix Acknowledgments xi Introduction 1 CHAPTER 1 Trading Systems 3 CHAPTER 2 Trend Lines & Trend Walls 19 CHAPTER 3 Convergence & Divergence 31 CHAPTER 4 The Bad Trade 37 CHAPTER 5 Bad Trade Recovery 47 CHAPTER 6 Loss Recovery with MACD 65 CHAPTER 7 Loss Recovery with Stochastics 81 CHAPTER 8 Loss Recovery with Moving Averages 109 CHAPTER 9 Loss Recovery with Fibonacci Ranges 135 CHAPTER10 Loss Recovery with Trend Lines 167 Conclusion: Loss Recovery in Practice 203 Appendix: Ten Pips per Day 217 About the Author 219 Index 221 vii FM JWBK133-Greene April3,2008 14:54 CharCount=0 viii