BOOK REVIEW
FX
In this exclusive interview, Javier Paz explains why he wrote The Forex Trading Manual and tells us which kind of return a trader can expect on the Forex. He underlines the importance of training, unveils how he developed
his proprietary trading industry developments over trading the strategy, and
- as an expert in this field - he gives us his view on the retail forex
FXTM Can you tell us about your experience as a trader and senior analyst on the forex?
JP My experience in Forex dates back to 1999 as I began to work for BankBoston as a currency analyst, writing daily institutional reports about Latin American currencies from a fundamental perspective. Around 2001, a friend and I developed trading strategies using a
combination of fundamental
analysis and statistical forecasts. We used statistics to forecast macroeconomic data and in turn their impact on price action. In 2005, I became head of institutional sales for Interbank FX (IBFX), where I recruited and assisted money managers and introducing brokers. This experience helped me develop software for money managers,
interact with these
high stakes traders, and conduct trade forensics as needed. Since I left IBFX to pursue industry research goals, I got back into more active trading and developed
a pivot based trading strategy for EURUSD. I also realized that having a trading strategy by itself was not enough, and that traders (myself included) needed to learn or re-learn some basics in terms of trading plans, trader psychology, and how to quantify risk. I trade the EURUSD during the Asian session – in other words during my evenings in the United States – and work during the day as a senior analyst for Aite Group, a Boston-based research firm where I am their expert on retail trading coverage.
FXTM Why did you decide to write a book about forex trading? and what makes “The Forex Trading Manual”
educational trading?
different books
from other on currency
JP Two reasons for writing the book and I think these reasons do make the book different than what is available out there. First, I believe that dedicated individuals who
next 5 years.
learn the correct principles can get to the money making part of Forex quicker
of it an enjoyable experience.
and can make I
believe brokers in general (and particularly agency brokers) are not doing enough to teach new traders about right-sizing their trading. As a result, many can blow the bulk of their investable assets within a few short months, and then some of these people go on to learn important lessons when they have less capital to play with. So, I believe the Forex industry needs to read about proper risk manager, using a robust/credible trading plan, no matter what the ultimate strategy may be.
Second, I wrote this for my teenage kids and in a way they could capture these important lessons without having had a lot of financial education.
FXTM I like your comparison between trading and driving. Is this book designed to give traders a “licence” in forex trading?
FX TRADER MAGAZINE April - June 2013 61
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