Currency Trading For Dummies, 4th Edition
- Length: 416 pages
- Edition: 4
- Language: English
- Publisher: For Dummies
- Publication Date: 2021-12-09
- ISBN-10: 1119824729
- ISBN-13: 9781119824725
- Sales Rank: #264834 (See Top 100 Books)
Trade currencies like a seasoned pro with this friendly, fact-filled guide to the forex market
Over $6 trillion changes hands in the foreign exchange market every day. You can jump straight into the action with expert guidance from the hands-on Currency Trading For Dummies. You’ll learn how the foreign exchange market works, what factors influence currency values, and how to understand financial data. When you’re ready to create your own game plan for trading currencies, you’ll be able to build it around your investment objectives, experience level, and risk appetite. You’ll also find details on the latest trends in currency trading, including currency ETFs, cryptocurrencies, and currency options.
From essential newcomer knowledge to advanced positioning advice, Currency Trading For Dummies offers straightforward instruction that helps you:
- Source data and market intelligence, employ technical analysis, and use the latest tech to find the most lucrative trading opportunities
- Understand the most recent Securities and Exchange Commission (SEC) rules and regulations governing currency trading
- Avoid common pitfalls and mistakes made by novice and experienced currency traders
- Recognize profitable opportunities in the world of ETFs, currency options, and cryptocurrencies
Successful currency trading is within your grasp. This accessible roadmap to trading mastery provides the foundational knowledge you need to create a structured, winning strategy and conquer the forex market.
Title Page Copyright Page Table of Contents Introduction About This Book Foolish Assumptions Icons Used in This Book Beyond the Book Where to Go from Here Part 1 Getting Started with Currency Trading Chapter 1 Currency Trading What Is Currency Trading? Speculating as an enterprise Currencies as the trading vehicle What Affects Currency Rates? Fundamentals drive the currency market But sometimes it’s the technicals that are driving the currency market Or something else may be a driving force Developing a Trading Plan Finding your trading style Planning the trade Executing the Trading Plan from Start to Finish Chapter 2 What Is the Forex Market? Getting Inside the Numbers Trading for spot Speculating in the currency market Getting liquid without getting soaked Around the World in a Trading Day The opening of the trading week Trading in the Asia-Pacific session Trading in the European/London session Trading in the North American session Key daily times and events The U.S. dollar index Looking at Currencies and Other Financial Markets Gold Oil Stocks Bonds Getting Started with a Practice Account Chapter 3 Who Trades Currencies? Meet the Players The Interbank Market Is “the Market” Getting inside the interbank market Bank to bank and beyond Hedgers and Financial Investors Hedging your bets Global investment flows Speculators: Running the Forex Show Hedge funds Day traders, big and small Governments and Central Banks Currency reserve management The Bank for International Settlements The Group of Twenty Chapter 4 The Mechanics of Currency Trading Buying and Selling Simultaneously Currencies come in pairs The long and the short of it Looking at Profit and Loss Margin balances and liquidations Unrealized and realized profit and loss Calculating profit and loss with pips Factoring profit and loss into margin calculations Understanding Rollovers and Interest Rates Currency is money, after all Value dates and trade settlement Market holidays and value dates Applying rollovers Checking Out Currency Prices Bids and offers Spreads Executing a Trade Trading online or on the phone Orders Part 2 Data and Details You Can Use to Trade Currencies Chapter 5 Looking at the Big Picture Currencies and Interest Rates The future is now: Interest rate expectations Relative interest rates Monetary Policy Looking at benchmark interest rates Easy money, tight money Unconventional easing Watching the central bankers Interpreting monetary policy communications Official Currency Policies and Rhetoric Currency policy or currency stance? Calling the shots on currencies Taking a closer look at currency market intervention Financial stability Debts, deficits, and growth Gauging credit risk Geopolitical Risks and Events Gauging risk sentiment Risk on or risk off? Chapter 6 Cutting the Fog with Technical Analysis The Philosophy of Technical Analysis What is technical analysis? What technical analysis is not Forms of technical analysis Finding support and resistance Waiting for confirmation The Art of Technical Analysis Bar charts and candlestick charts Measuring markets with price bars Lighting the way with candlesticks Drawing trend lines Connecting the dots Looking for symmetry Recognizing chart formations Basic chart formations Candlestick patterns Fibonacci retracements The Science of Technical Analysis Momentum oscillators and studies Overbought and oversold Divergences between price and momentum Using momentum in ranges and trends Trend-identifying indicators Directional Movement Indicator system Moving averages Trading with clouds: Ichimoku charts Chapter 7 Getting Down and Dirty with Fundamental Data Finding the Data Economics 101 for Currency Traders: Making Sense of Economic Data The labor market The consumer The business sector The structural Assessing Economic Data Reports from a Trading Perspective Understanding and revising data history Getting to the core Market-Moving Economic Data Reports from the United States Labor-market reports U.S. monthly employment report ADP national employment report Weekly initial unemployment claims Consumer-level data reports Consumer sentiment Personal income and personal spending Retail sales Durable goods orders Housing-market indicators Business-level data reports Institute for Supply Management and Purchasing Managers Index Regional Federal Reserve indices Industrial production and capacity utilization The Fed’s Beige Book Structural data reports Inflation gauges Gross domestic product Trade and current account balances Government debt and budget deficits Major International Data Reports Eurozone Japan United Kingdom Canada Australia New Zealand China Chapter 8 Getting to Know the Major Currency Pairs The Big Dollar: EUR/USD Trading fundamentals of EUR/USD Trading behavior of EUR/USD Tactical trading considerations in EUR/USD East Meets West: USD/JPY Trading fundamentals of USD/JPY Price action behavior of USD/JPY Tactical trading considerations in USD/JPY The Other Majors: Sterling and Aussie The British pound: GBP/USD The new kid in town: Trading the Aussie Understanding Forex Positioning Data How to interpret the data The FX fix Forex and regulation Chapter 9 Minor Currency Pairs and Cross-Currency Trading Trading the Minor Pairs Trading fundamentals of USD/CAD Trading fundamentals of NZD/USD Tactical trading considerations in USD/CAD, AUD/USD, and NZD/USD Trading the Scandies: SEK, NOK, and DKK Swedish krona: “Stocky” Norwegian krone: “Nokkie” Danish krone: “Copey” Checking Out Cross-Currency Pairs Understanding reasons for trading the crosses Stretching the legs Trading the JPY crosses Trading the EUR crosses Part 3 Executing a Trading Plan Chapter 10 Pulling the Trigger Getting into the Position Buying and selling at the current market Averaging into a position Trading breakouts Making the Trade Correctly Buying and selling online Placing your orders Chapter 11 Managing the Trade Monitoring the Market While Your Trade Is Active Following the market with rate alerts Staying alert for news and data developments Keeping an eye on other financial markets Updating Your Trade Plan as Time Marches On Trend lines move over time Impending events may require trade plan adjustments Updating Order Levels as Prices Progress Increasing take-profit targets Tightening stop-loss orders to protect profits Chapter 12 Tax Considerations Determining Whether You Have Trader Tax Status Understanding Ordinary Income, Capital Gains, and Capital Losses Investigating ordinary income Looking at long-term capital gains Coping with capital losses Evaluating scenarios of gains and losses Buckling Down and Paying Taxes to the IRS Tax notices Tax forms The softer side of the IRS: Tax deductions Surveying Tax Specifics for Different Types of Currency-Related Activities First things first: Do you use Internal Revenue Code 1256 or 988? Taxes on currency ETFs Taxes on futures and options Taxes on cryptocurrencies Taking Advantage of Tax-Advantaged Retirement Investing IRAs 401(k) plans Seeking Some Tax Resources Part 4 Forex Alternatives Chapter 13 Currency Exchange-Traded Funds Defining Currency ETFs Picking Out the Pros of Currency ETFs versus Other Currency Vehicles Currency ETF advantages Other factors when choosing currency ETFs Comparing U.S. Dollar Bullish and Bearish ETFs Feeling bullish Being bearish Examining Other Currency ETFs Euro ETFs Yen ETFs Choosing Currency ETFs: Hedged or Unhedged? Studying Some Currency ETF Resources Chapter 14 Currency Futures Defining Currency Futures Comparing Currency Trading and Currency Futures Focusing on the Fundamentals of Currency Futures Contracts Basics included in a futures contract Margin and maintenance requirements Common currency futures contracts Leverage: The double-edged sword Surveying Basic Futures Trading Strategies Going long Other strategies Reading Currency Futures Quotes Sizing Up E-Minis and E-Micros E-minis Trading with the E-micro Common currency E-mini and E-micro contracts Checking Out Futures Trading Resources and Brokers Chapter 15 Currency Options Introducing the Basics of Options Why consider options? What assets have options on them? Buying a Call Option for Big Gains Understanding how buying a call option works Looking at the features of a call option Distinguishing the “moneyness” of call options Writing a Call Option to Generate Income What if the security goes to the strike price or higher? What if you don’t want to sell at the strike price? What if the security’s price stays flat or moves sideways? What if the security’s price goes down? How often can you write a covered call? Using a Call Option for Safety or Hedging Picking Apart Put Options Use 1: Bearish speculation Use 2: Generating income Use 3: For hedging and protection Considering Some Combination Trades Debit spreads and credit spreads Diagonal and vertical calendar spreads The bull call spread The bear put spread Breaking Down the Mechanics of Making Options Trades Choosing a brokerage firm and gaining approval for options Placing an order Reading an options table Getting a Few Golden Rules for Options Beginners Trying Options Tutorials and Resources Chapter 16 Trading Cryptocurrencies Describing Cryptocurrencies Considering the Main Benefits and Issues of Cryptocurrencies It’s Your Choice: Participating in the Cryptocurrency World in Three Ways The greatest control: A cryptocurrency wallet The simplest approach: A brokerage account The safest approach: Business transactions Looking at Leading Cryptocurrencies Bitcoin (The mother of all cryptos) Ethereum Dogecoin Taking the First Steps to Buying Cryptocurrencies Choosing a platform or broker Selecting storage Examining Cryptocurrency ETFs Getting a Few Golden Rules about Cryptocurrencies Digging into Cryptocurrency Resources Part 5 The Part of Tens Chapter 17 Ten Habits of Successful Currency Traders Trading with a Plan Anticipating Event Outcomes Staying Flexible Being Prepared for Trading Keeping Technically Alert Going with the Flow (Trading the Range) Focusing on a Few Pairs Protecting Profits Trading with Stop Losses Watching Other Markets Chapter 18 Ten Rules of Risk Management Trade with Stop-Loss Orders Leverage to a Minimum Trade with a Plan Stay on Top of the Market Look for the Right Opportunities Step Back from the Market Take Profit Regularly Understand Currency-Pair Selection Double-Check for Accuracy Take Money Out of Your Trading Account Chapter 19 Ten Great Resources for Currency Trading Technical Analysis of the Financial Markets Japanese Candlestick Charting Techniques Elliott Wave Principle Technical Analysis For Dummies The Book of Five Rings Market Wizards: Interviews with Top Traders FOREX.com Zero Hedge BabyPips.com Forex Factory Chapter 20 Ten (Or So) Golden Rules for Currency Trading Beginners Read, Read, Read Simulate Trading First Start Small Keep a Ceiling on Your Total Speculating Be Diversified Have a Rule on Profits (and Losses!) Analyze the Trade That Went Bad Learn from Others Recognize That History May Not Repeat, but It Does Rhyme Specialize If Possible (In Other Words, Focus!) Know That Successful Trading Isn’t Just What You Do but How You Do It Finally, Don’t Stop Educating Yourself Chapter 21 Ten Alternatives to Currencies Gold Silver Cryptocurrencies Common Stocks The “I” Bond Commodities Mutual Funds Country Exchange-Traded Funds Collectibles Real Estate Investment Trusts Appendix Trading Strategies What’s Your Sign? Determining Your Trader Type Looking at Trading Strategies Based on Trader Type For the scalper: The Red Zone strategy How it works The Red Zone strategy in action For the scalper: The Opening Range Breakout strategy How it works The Opening Range Breakout strategy in action For the swing trader: The Favorite Fib strategy How it works The Favorite Fib strategy in action For the swing trader: The Moving Average Crossover strategy How it works The Moving Average Crossover strategy in action For the position trader: Trading the Ichimoku cloud How it works The strategy in action Index EULA
To access the Link, solve the captcha.
1. Disable the AdBlock plugin. Otherwise, you may not get any links.
2. Solve the CAPTCHA.
3. Click download link.
4. Lead to download server to download.
