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Currency Trading For Dummies®, 2nd Edition

Book Description

Your plain-English guide to currency trading

Forex markets can be one of the fastest and most volatile financial markets to trade. Money can be lost or made in a matter of seconds, and forex markets are always moving. So how do you keep up? This hands-on, friendly guide shows you how the forex market really works, what moves it, and how you can actively trade in it — without losing your head!

  • All the world's a stage — get an easy-to-follow introduction to the global forex market and understand its size, scope, and players
  • Show me the money — take a look at the major fundamental and economic drivers that influence currency values and get the know-how to interpret data and events like a pro
  • Prepare for battle — discover different types of trading styles and make a concrete strategy and game plan before you act on anything
  • Pull the trigger — establish a position in the market, manage the trade while it's open, and close out on the most advantageous terms

Open the book and find:

  • Currency trading conventions and tools
  • Key characteristics of successful traders
  • Trading pitfalls to avoid and risk management rules to live by
  • How major currencies typically trade
  • Why it's important to be organized and prepared
  • The 411 on buying and selling simultaneously
  • Tips for understanding rollovers and interest rates

Learn to:

  • Grasp currency quotes
  • Capitalize on the foreign exchange market
  • Manage risk and reward
  • Use the forces that drive currency movements
  • Identify key traits of individual currency pairs

Table of Contents

  1. Cover
  2. Table of Contents
  3. Title Page
  4. Introduction
    1. About This Book
    2. Part I: Trading the World’s Largest Financial Market
    3. Chapter 1: Currency Trading 101
  5. Part I: Trading the World's Largest Financial Market
    1. Chapter 1: Currency Trading 101
    2. Chapter 2: What Is the Forex Market?
      1. Getting Inside the Numbers
    3. Chapter 3: Who Trades Currencies? Meet the Players
      1. The Interbank Market Is “The Market”
      2. Chapter 4: The Mechanics of Currency Trading
    4. Chapter 4: The Mechanics of Currency Trading
      1. Part II: Driving Forces behind Currencies
      2. Chapter 5: Looking at the Big Picture
  6. Part II: Driving Forces behind Currencies
    1. Chapter 5: Looking at the Big Picture
    2. Chapter 6: Understanding and Applying Market News and Information
      1. Sourcing Market Information
      2. Chapter 7: Getting Down and Dirty with Fundamental Data
    3. Chapter 7: Getting Down and Dirty with Fundamental Data
    4. Chapter 8: Getting to Know the Major Currency Pairs
      1. The Big Dollar: EUR/USD
      2. Chapter 9: Minor Currency Pairs and Cross-Currency Trading
    5. Chapter 9: Minor Currency Pairs and Cross-Currency Trading
      1. Part III: Developing a Trading Plan
      2. Chapter 10: Training and Preparing for Battle
  7. Part III: Developing a Trading Plan
    1. Chapter 10: Training and Preparing for Battle
    2. Chapter 11: Cutting the Fog with Technical Analysis
      1. The Philosophy of Technical Analysis
      2. Chapter 12: Identifying Trade Opportunities
    3. Chapter 12: Identifying Trade Opportunities
    4. Chapter 13: Risk-Management Considerations
      1. Managing Risk Is More Than Avoiding Losses
      2. Part IV: Executing a Plan
      3. Chapter 14: Pulling the Trigger
  8. Part IV: Executing a Plan
    1. Chapter 14: Pulling the Trigger
    2. Chapter 15: Managing the Trade
      1. Monitoring the Market while Your Trade Is Active
      2. Chapter 16: Closing the Position and Evaluating Your Results
    3. Chapter 16: Closing the Position and Evaluating Your Results
      1. Part V: The Part of Tens
      2. Chapter 17: Ten Habits of Successful Currency Traders
  9. Part V: The Part of Tens
    1. Chapter 17: Ten Habits of Successful Currency Traders
    2. Chapter 18: Ten Beginner Trading Mistakes
      1. Running Losers, Cutting Winners
    3. Chapter 19: Ten Rules of Risk Management
      1. Trade with Stop-Loss Orders
    4. Chapter 20: Ten Great Resources
      1. Technical Analysis of the Financial Markets, by John Murphy
  10. Cheat Sheet