Forex Trading Industry Knowledge
Updated by Jonbert Davidsen ∴ Thursday, April 27, 2017
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Christopher Lee’s two Books
Here I’ll review Christopher Lee’s two books: Forex Candlesticks Made EasyAnd Forex Dreaming: The hard truth of why retail traders don't stand a chance... and how YOU can rise above and start WINNING.But first a story . . .Perhaps you’ve heard the blind men and the elephant story. Here’s a recap:
The Blind Men and the Elephant
Six blind men took a walk and met an elephant. The elephant allowed them to touch and feel it.The first man said: “This animal is long and flexible as a snake,” while he held the elephant’s trunk. “No, it’s thick and round as a tree trunk,” said the second blind man, while feeling the elephant’s leg. The third man said: “No, it’s immense and flat.” He touched the elephant’s side. The men walked as a group, but each of them just felt parts of the elephant. None envisioned the whole elephant.
What’s the Point?
Blind men = New traders Elephant = The Forex Industry The link to the full story is at the top of this blog post. What had happened here was that the blind men were in an unfamiliar environment. It’s why it was difficult to characterize the new experiences. New traders face the same challenge when they get into trading. It’s a new world, different from anything else, they’ve tried before.
This blog post is about: 1) The entire elephant, with reference to Christopher Lee’s book Forex Dreaming. And . . .2) One leg of the elephant, focusing on Christopher Lee’s book Forex Candlesticks Made Easy It’s tempting to say it’s all about how to read candlestick charts in Forex trading. It important, but there’s more. Christopher Lee deserves a blog post on this website because it has the potential to give first-time readers an aha-experience. He writes about ‘The Forex industry’ much more than he writes about the details in trading. It’s something new traders can relate to on the dot. Reading Christopher Lee’s trading material helps readers to zoom out and focus on the bigger picture.
A Trend in the Trading Material
The online trading material falls into three groups: • Books on entries techniques (lesser on exits.)• Books on trading psychology and money management. • Books on the Forex industryThe first group is biggest. Number two smaller, but with some pleasurable content. Number three, almost not existing, except Christopher Lee and a few other traders. These traders focus on conflicts of interest in the trading industry. To stay with the story of the elephant and the blind men, these authors/traders say it’s important to sense the whole elephant (the industry) before diving into the details such as reading charts.
The hard truth of why retail traders don't stand a chance... and how YOU can rise above and start WINNING
The price for Christopher Lee’s Kindle eBook Forex Dreaming is $0.99. Next to nothing. It describes the journey from a 9-5 job to living the Forex trader lifestyle. Christopher Lee has an appealing discussion about what separates trading from other earn-money-online topics. Next, he moves on to talk about the unrealistic claims in the trading industry. The author says he wrote the book for “well-meaning people who want a realistic and sustainable approach to Forex trading.” The book elaborates on the details why traders struggle. The readers better their chances catching the inherent conflicts of interest in the Forex industry. They can explain why few traders will trade themselves into the league of consistently profitable trades.
“Lesson 1 Learned From the Book.”
“Successful retail trading begins with getting the perspective right on how to play the game of retail trading.”
The Forex Dream
The Forex dream description is enlightening. The book has the potential to get new traders to realize, they have only felt the elephant’s leg. They have no clue what THE ELEPHANT looks like. The book gives these new traders a chance to change the perspective and look for the missing parts. Christopher Lee urges readers to take into account the possibility that the retail trading industry is designed to facilitate the retail traders failure.As he proceeds, he lines out the pitfalls most newcomers face. The author uses analogies to bring home the points. They work well and help the newcomers to understand what’s required to establish a fundament for retail Forex traders. The book is more about fundamental trading principles than strategy discussions. As Christopher Lee writes: “Unless you have some operative knowledge about how to play the game, you’ll always be the guy with the short end of the stick, wondering why your account keeps dwindling.”
“Lesson 2 Learned From the Book.”
“Align the trading strategy with informed expectation and industry knowledge.”
Trading and Business
In Forex Dreaming the reader gets thoughts on the similarities between trading and running a business. They are meant to get the perspective right. After reading them, the readers will take on a different market-approach. The passage in the book about trading and business includes topics such as: 1) Who is trading against the retail Forex trader? 2) What’s the retail Forex traders plan for success?3) What are the retail Forex trader strengths and weaknesses?4) How to pick a strategy that fits the RT trader's personality?
Next, the book give an introduction to how the Forex industry is structured. It includes a walkthrough of who the market participants are, and how they’re related. This section helps the newcomer to understand what a retail trader is. It does so by comparing the retail trader with the bank- and hedge fund traders. Understanding the structural disadvantage should help the reader to a better approach to the markets.
After giving a market participant's presentation, Christopher Lee discusses the broker's role and relation to the retail traders. It’s an informative discussion, and better than many others attempts to explain it elsewhere.It’s a discussion of a broker’s business model. Understanding the broker's business model, gives the readers a fresh perspective. It allows them to consider the limits and advantages of different trading forms. They get help to find out if they are short-, long-term traders, or a scalpers.The discussion begins with this basic fact: The broker’s goal is to earn as much money as possible. When readers learns to examine how the brokers do this, they’ll be a more informed retail traders. Christopher Lee also used first-class analogies to explain these topics without getting into moral discussions about the broker's role.
“Lesson 3 Learned From the Book.”
“Some brokers are good. Some brokers are bad. All have a conflict of interest with their clients.”
Trade Like the Professionals
Trade like the professionals is a sentence found all over the Internet. But, after reading Forex Dreaming, it’s easier to understand why we see this statement everywhere online. The thoughts on how and when the professional’s trade, will lead readers to ask: “Is it the Retail Forex traders interest to trade like the professionals?” The discussion prepares the readers for what to do, next time hey face a situation when someone urges them to ‘trade like the professionals’.
The Trading Education Industry
Next topic, the trading education industry. Christopher Lee questions the approach much trading education online represents. The author doubts the legitimacy of promoting trading as an exciting, fun and profitable activity. The author’s characteristic of the online trading education industry is spot on. The readers will be better to see the different interest at stake next time they visit a trading website. In this discussion, the author distinguished between ‘online trading education’ and ‘false gurus.’Perhaps other authors have discussed this topic, but until now, Christopher Lee has written what I see as the best description of this conflict of interest in the industry. Christopher Lee writes: “The general retail trading population doesn’t demand high-quality trading courses.” His characteristic of the average retail trader seems valid. By studying it, the readers have better chance to stand out from the retail trader crowd. Christopher Lee ends the trading education industry discussion by describing a refreshing cycle. With the understanding of this cycle, the readers are better equipped to spot potential scammers in the Forex industry.
A part of the book prepares new traders to better understand the ongoing discussion about the status of technical indicators. Christopher offers a stimulating explanation why the technical indicators get so much attention in online discussions. He gives two suggestions: Both seem plausible. The first has to do with how new traders think. The second has to do with what the ‘trading educators’ prefer to teach and why. The connections Christopher Lee sees between TA and the Forex dream are entertaining. As a part of this discussion, CL uses an analogy from chess to explain what he means. It offers an alternative why fixed technical indicators stop to work long term.
The Book’s Last Part
After having set the scene what to be aware of, the author uses the last pages to help readers find a balanced solution. Even if Forex Dreaming is a short book, it’s worth reading. The newcomer gets a topic-presentation; he’ll have difficulties find other places.
Forex Candlesticks Made Easy
Because it's easier than you think!
After reading Christopher Lee’s Kindle eBook, Forex Candlesticks Made Easy is a good read. The book comes as PDF. Price $37 With the first book above, the readers learned about the big picture in the Forex world. With Forex Candlesticks Made Easy, they’lll zoom in and look at the Forex charts rather than the Forex industry. Again, the author uses analogies to emphasize his points. First, he compares traders with detectives. When the readers look for good trades, they search for confirmation of their suspicions. General ideas are too vague to trade from on the charts. The book attempts to show them how to find the evidence they need before entering a trade. Reading this book, the RT Forex traders gets forex candlesticks explained. They can use what they learn both for practical trend trading and for classifying candles.The book is more focused on one aspect, reading charts, than the first book above. Christopher Lee explains the way he reads the Forex charts by identifying different candle types and how they are related. By reading Forex Candlesticks Made Easy, new traders get clear and applicable concepts that help them conducting Forex candlestick analysis.
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