This comprises a brief overview of the traditional elements—trading techniques, money management, and style. A basic knowledge of the elements is important to the topic of developing the codex. The brief discussions are intended to get you thinking about your own personal likes, dislikes, successes, failures, and propensities as a trader.
Developing a Trading Codex
This section describes the important transition from traditional element strategies to the process codex strategy. The reader should spend as much time here as possible, taking pen to paper and pouring out his own thoughts on every as-
pect of trading.
The FxCodex Method
FxCodex is my personal codex. It is used in Getting Started in FOREX Trading Strategies to show you how to implement a codex of your own. The key to the FxCodex approach is transparency. As a trader, you will
gradually zero in on high-percentage opportunities using simple and understandable trading techniques. You will apply consistent money management rules consistent with your trading style and the soft elements.
No matter how good a trader you are, things do not always go as planned.
The FxCodex method allows for on-the-fly diagnostics. Traditional traders too often redefine themselves and their strategies when things go awry. This is not good; evolution is more effective than revolution. Do your codex due diligence before you risk a dime in the markets.
This section also offers the reader some alternative codex selections for those who want to go their own way. Several trading campaigns hopefully bring home the codex approach to trading and its differences from traditional
The Complete FOREX Trader
The successful trader never ceases to explore and evolve! But the key is to make changes in harmony with your codex in an evolutionary rather than revolutionary manner. Record keeping is a vital resource for such activities. Written accounts of your trades and daily and weekly summaries not only allow you to accurately monitor your progress but also provide a feedback loop for improvements and codex quality control.
The Layout of GSIFTS
A final note about the layout of GSIFTS: This book is highly visual. Text is kept to a minimum and much information is provided in the charts, diagrams, tables, and explanations. Boxes provide a different perspective on especially
difficult or important concepts, or provide ideas for independent study. I am a big fan of the visual approach to both studying and trading FOREX.
The book attempts a building-block approach to developing the codex method. Part 1 introduces the elements, Part 2 details them in the context of the codex approach, and Part Three shows them in application. The same information may appear to be repeated, but the context is important and the repetition is useful to fully mastering the ideas. As a writer and a trader I am always interested in comments, suggestions, and questions. No matter the vast reservoir of information available to us, we each can see the trading world only through our own eyes. Sometimes the
view from another perspective can be enlightening.