Kathleen Brooks

Currency Trading For Dummies


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      Today, millions of individual traders and investors all over the world are discovering the excitement and challenges of trading in the forex (short for “foreign exchange”) market. You don’t even have to be at your desk to trade — these days, you can trade on the go using a smartphone or other handheld device.

      No question about it, the forex market can be one of the fastest and most volatile financial markets to trade. Money can be made or lost in a matter of seconds or minutes. At the same time, currencies can display significant trends lasting several days to weeks and even years. Most important, forex markets are always moving, providing an accessible and target-rich trading environment.

      In contrast to stock markets, which are more familiar and relatively intuitive to most investors, the forex market somehow remains more elusive and seemingly complicated to newcomers.

      In this book, we show you how the forex market really works, what moves it, and how you can actively trade it. We also provide you with the tools you need to develop a structured game plan for trading in the forex market without losing your shirt.

      If you’re an active trader looking for alternatives to trading stocks or commodity futures, the forex market is hard to beat due to its sheer size (more than $6 trillion turnover per day at last count) and the depth of the market.

      But as an individual trader, gaining access to the forex market is only the beginning. Just because you’ve got the keys to a Formula One race car doesn’t mean you’re ready to compete in a Grand Prix. First, you have to understand how the car works. Then you have to figure out some of the tactics and strategies the pros use. And then you have to get behind the wheel and practice, developing your skills, instincts, and tactics as you go.

       Getting a handle on the forces that drive currency movements

       Understanding forex market trading conventions and strategies

       Interpreting economic data and official statements

       Finding sources of data and market intelligence

       Gauging market psychology, sentiment, and positioning

       Identifying key traits of individual currency pairs

       Utilizing