Currency Trading For Dummies

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.

Introduction 1

Part 1: Getting Started with Currency Trading 7

Chapter 1: Currency Trading 101 9

Chapter 2: What Is the Forex Market? 19

Chapter 3: Who Trades Currencies? Meet the Players 37

Chapter 4: The Mechanics of Currency Trading 53

Part 2: Data and Details You Can Use to Trade Currencies 79

Chapter 5: Looking at the Big Picture 81

Chapter 6: Cutting the Fog with Technical Analysis 109

Chapter 7: Getting Down and Dirty with Fundamental Data 139

Chapter 8: Getting to Know the Major Currency Pairs 165

Chapter 9: Minor Currency Pairs and Cross-Currency Trading 189

Part 3: Executing a Trading Plan 207

Chapter 10: Pulling the Trigger 209

Chapter 11: Managing the Trade 225

Chapter 12: Tax Considerations 237

Part 4: Forex Alternatives 253

Chapter 13: Currency Exchange-Traded Funds 255

Chapter 14: Currency Futures 269

Chapter 15: Currency Options 283

Chapter 16: Trading Cryptocurrencies 307

Part 5: The Part of Tens 323

Chapter 17: Ten Habits of Successful Currency Traders 325

Chapter 18: Ten Rules of Risk Management 331

Chapter 19: Ten Great Resources for Currency Trading 337

Chapter 20: Ten (Or So) Golden Rules for Currency Trading Beginners 343

Chapter 21: Ten Alternatives to Currencies 349

Appendix: Trading Strategies 355

Index 379

Paul Mladjenovic is a national speaker, a consultant, and the author of Stock Investing For Dummies, High-Level Investing For Dummies, and Investing in Gold and Silver For Dummies. He was a Certified Financial Planner during 1985–2021, and he was a financial and business educator for over 40 years. He is the CEO of RavingCapitalist.com.

Trade currencies like a veteran forex guru

Do you want to get in on the $6 trillion of daily action on the forex market? In Currency Trading For Dummies, you’ll find an everyman’s guide to participating—and profiting—in the currency markets. Leave the confusing jargon behind and discover everything from essential advice for newcomers to advanced positioning techniques as you create a plan that’s built around your objectives, experience level, and risk appetite. You’ll also learn to recognize lucrative opportunities in alternatives to forex, like exchange-traded funds, options, and cryptocurrencies!

Inside…

• Understand currency rates
• Go around the world in a trading day
• Meet the main forex players
• Build a currency trading plan
• Use technical and fundamental data
• Check out major and minor currency pairs
• Look at forex alternatives