Book Review: The Forex Edge - by James Dicks | Forex Factory

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Book Review: The Forex Edge - by James Dicks

  • #1
  • First Post: Edited Jan 30, 2012 6:41pm Jan 29, 2012 8:28pm | Edited Jan 30, 2012 6:41pm
Just read a book by James Dicks called the Forex Edge: Uncover The Secret Scams and Tricks To Profit in the World's Largest Financial Market. I didn't care for Mr. Dicks with his Forex Made Easy program, but this book was a surprise - all I can say is wow, excellent book and is one of the best I have read on the forex market. Here are some highlights:

How Ethical Dealers Earn Their Money

What Do Shady Brokers Do To Earn Your Money
- Countertrading
- Plug-ins
- Direct Price Manipulation
- Profitability Blacklisted

Why 98% of Traders Lose Money

Technical Reasons Why Traders Lose (17 reasons)

Emotional and Personality Reasons Why Traders Lose (14 reasons)

External Reasons (6 reasons). The 1st one listed is choosing the wrong broker. After reading this book and all the court cases against forex brokers, and according to Mr. Dicks, bad practices some dealers use to separate you from your money, IMHO, this is the #1 reason why traders lose.

The complete table of contents and other info. can be found on amazon.com
  • #2
  • Jan 31, 2012 1:19am Jan 31, 2012 1:19am
thanks for the review !
Twitter: @forexpokerpro
  • #3
  • Jan 31, 2012 5:56am Jan 31, 2012 5:56am
Quoting eagle4x

External Reasons (6 reasons). The 1st one listed is choosing the wrong broker. After reading this book and all the court cases against forex brokers, and according to Mr. Dicks, bad practices some dealers use to separate you from your money, IMHO, this is the #1 reason why traders lose.

The complete table of contents and other info. can be found on amazon.com
This is not the biggest reason for failure, This is the biggest excuse!

If you are not ready to take responsibility for your losses than you should't be trading.
.
  • #4
  • Jan 31, 2012 8:00am Jan 31, 2012 8:00am
Quoting nasir.khan
This is not the biggest reason for failure, This is the biggest excuse!

If you are not ready to take responsibility for your losses than you should't be trading.
.

although i do agree on some level that this is also widely used as an excuse, let's also take into consideration the wrongful chosing of brokers, who are mainly bucketshops under nice curtains.
Twitter: @forexpokerpro
  • #5
  • Jan 31, 2012 9:30am Jan 31, 2012 9:30am
i mean this is true of brokers to some extent.. if you're really serious about this market though and are dedicated to research before getting your feet wet you would already know which brokers are bucketshops.

basically anything that offers stp in my books is a good broker.

I'm with trading-point, instant execution, no re-quotes, and low spreads. What more could one ask for..
  • #6
  • Jan 31, 2012 6:22pm Jan 31, 2012 6:22pm
No, it's not an excuse. Even a good trader has no chance of being profitable with a shady broker. You have better odds rolling the dice in a casino. Do you think any trader has a chance to make it if their broker utilizes a metatrader dealer plug-in? Or another broker that doesn't have the plug-in but hunts stops? I read in a book by Kathy Lien with FXCM where she admitted they hunt stops! Have you ever seen a chart with a huge spike when it's not during news? Do you think that's just artwork? No, it's like Jack Nickolson in the Shining - "Here's Johnny", and Johnny just chopped the door with his ax and took alot of money from the poor traders who had their stops hunted. Just read a thread where someone wrote "the most important step in entering the Forex market is to have the less dishonest Broker". I didn't realize how really bad it is until I read the book.
Sure, there's some traders that blame their broker when they have a trade go against them, but overall forex traders really do have the odds stacked against them due to broker practices.

Quoting nasir.khan
This is not the biggest reason for failure, This is the biggest excuse!

If you are not ready to take responsibility for your losses than you should't be trading.
.
  • #7
  • Jan 31, 2012 6:55pm Jan 31, 2012 6:55pm
Thanks for the review Eagle4x
  • #8
  • Feb 1, 2012 2:29am Feb 1, 2012 2:29am
So which are the good brokers recommended in the book then?

Or which ones are the bad ones they tell us to stay away from?
  • #9
  • Edited 8:46pm Feb 1, 2012 8:10pm | Edited 8:46pm
He doesn't give specific recommendations on brokers, but has a chapter on researching on how to find one, including:

Look at financials - go to CFTC web-site to research brokers net capital. Also, check type of registration they have,

Look at fundamentals - reasearch their business model, long term goals, customer reviews, broker resolutions to complaints, Open an account, but you don't have to fund it - see how the broker handles 1st interaction, efficiency, friendliness, etc.

According to the author, the playing field can be leveled by using an IB, which can act as an intermediary on your behalf and fight for you by using its contacts at the broker and try to make things right for you if there is a dispute.

Quoting red2010
So which are the good brokers recommended in the book then?

Or which ones are the bad ones they tell us to stay away from?
  • #10
  • Feb 2, 2012 12:43am Feb 2, 2012 12:43am
Quoting eagle4x
Just read a book by James Dicks called the Forex Edge: Uncover The Secret Scams and Tricks To Profit in the World's Largest Financial Market. I didn't care for Mr. Dicks with his Forex Made Easy program, but this book was a surprise - all I can say is wow, excellent book and is one of the best I have read on the forex market. Here are some highlights:

How Ethical Dealers Earn Their Money

What Do Shady Brokers Do To Earn Your Money
- Countertrading
- Plug-ins
- Direct Price Manipulation
- Profitability Blacklisted

Why 98% of Traders Lose Money...
Thanks for the review. When someone who has been trading since 2005 recommends a book I take notice. I have already placed an order with Amazon and I should have it in two to three weeks. For those of us who have been trading for a while, I guess we will know about some of the subject matter but I am still looking forward to a good read and there is always something new to learn that will help us on our trading journey.

Thanks once again and all the best with your trading. Ray
  • #11
  • Feb 2, 2012 2:07am Feb 2, 2012 2:07am
While I do believe that people who deal with our money are not necessarily to be trusted (there would be no need for regulation if it were not true), it must be remembered that you are just one of many clients: it may be that you've all bet in the same direction at the same time and that you've all put your stops in the same area, but your Broker is also just one of many participants in the market along with China and countless others.

There are trends, there are places to put stops after certain swings are navigated and there are times that your stop is tickled and the trend continues. All we can do is watch the MM and play our preferred method time and again so the odds are with us.

Flip flapping and new system chasing are two things that taught me a lesson. Apparently you can toss a coin to decide deals and still win overall if you follow the method diligently with proper loss cutting and profit running.

My Broker says it does not have a dealing desk and is an Aussie company. I have known many people from many countries and the Australians are, I have found, to be pretty straight up as a people.

Cheers.
  • #12
  • Feb 2, 2012 2:29am Feb 2, 2012 2:29am
can u post ebook link for this book if u have please? I couldnt login gigapedia anymore
  • #13
  • Feb 2, 2012 3:49am Feb 2, 2012 3:49am
I don't have any ebook link. You can get it used for 1/2 the cover price at Amazon, which is where I purchased mine.

Quoting fxshinobi
can u post ebook link for this book if u have please? I couldnt login gigapedia anymore
  • #14
  • Feb 2, 2012 3:53am Feb 2, 2012 3:53am
FYI, the author says in the book that he believes not having enough education and being undercapitalized are the biggest reasons most traders fail. It was my opinion that I mentioned in the 1st post that having the wrong broker is the number one reason, as if you have the wrong broker (i.e. a shady broker), it doesn't matter, you're going to lose regardless.
  • #15
  • Last Post: Feb 4, 2012 1:58pm Feb 4, 2012 1:58pm
Quoting Chulmleigh

My Broker says it does not have a dealing desk and is an Aussie company. I have known many people from many countries and the Australians are, I have found, to be pretty straight up as a people.

Cheers.
Well thats a load of bull right there, sorry mate

but a few of the biggest scammers on here were from aus

not saying they all are, but the majority of traders i have met that are out to scam have been from aus.
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