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Forex for Beginners: A Comprehensive Guide to Profiting from the Global Currency Markets

Book Description

Forex for Beginners: A Comprehensive Guide to Profiting from the Global Currency Markets is a guide for those who want to earn extra income trading currencies without committing large amounts of time or money. This book will introduce global investors to the basics of forex (foreign exchange) trading and provide them with a solid framework for analyzing currencies and profiting from their fluctuations. Topics covered include the forces that cause exchange rates to fluctuate, an overview of the mechanics of trading, analytical and forecasting tools, how to profit from pricing trends, and common pitfalls that often ensnare traders.

While most books make grandiose promises of instant success and large profits, Forex for Beginners represents an alternative approach to investing in forex. The forex market is dominated by institutional capital and algorithmic trading, making it unrealistic to think that day traders can beat the market by relying on charts and technical indicators alone. Thus, the emphasis here is on fundamental analysis—using economic concepts to spot currency misalignments—and staking out positions to profit from them over a period of weeks and months.

If you're eager to tap into the world's largest financial market on a part-time basis, this is the book for you. You will gain an understanding of how currency markets work and use this knowledge to generate income.

Table of Contents

  1. Titlepage
  2. Dedication
  3. Contents
  4. About the Author
  5. Acknowledgments
  6. Preface
  7. Introduction
  8. Chapter 1: Historical Background
    1. Bretton Woods II
    2. Market Structure
    3. Participants
    4. Regulation
    5. Conclusion
  9. Chapter 2: What Are Your Options?
    1. US Dollar
    2. Euro
    3. Japanese Yen
    4. British Pound
    5. Swiss Franc
    6. Canadian Dollar
    7. Australian Dollar
    8. New Zealand Dollar
    9. Hong Kong Dollar
    10. Chinese Yuan
    11. Exotic Currencies
    12. Currency Trading Instruments
    13. Conclusion
  10. Chapter 3: What Makes Currencies Move?
    1. Fixed vs. Floating
    2. Managed Floats
    3. Exchange Rate Theory
    4. Monetary Theory
    5. Portfolio Balancing Model
    6. Theory Meets Reality
    7. Market Microstructure Analysis
    8. Conclusion
  11. Chapter 4: Forex Analysis
    1. Analytical Schools of Thought
    2. Trading vs. Investing
    3. Superior Efficacy of Fundamental Analysis
    4. Blending Technical and Fundamental Analysis
  12. Chapter 5: Fundamental Analysis
    1. Interest Rate Analysis
    2. Inflation Analysis
    3. Economic Indicators
    4. Balance of Payments Analysis
    5. Sentiment Analysis
    6. Market Correlations
    7. Debt Analysis
    8. Monetary Policy and Central Bank Intervention
    9. Political Factors
    10. Conclusion
  13. Chapter 6: Technical Analysis
    1. Charts
    2. Trend Analysis
    3. Pivot Points
    4. Elliot Wave Principle
    5. Fibonacci Analysis
    6. Moving Averages
    7. Moving Average Envelopes and Bollinger Bands
    8. Oscillators
    9. Summary
  14. Chapter 7: Trading Strategy
    1. Long-Term Fundamental Strategy
    2. Purely Technical Strategy
    3. Technical & Fundamental Trend Trading
    4. Currency Crosses
    5. Carry Trade
    6. Advanced Strategy
    7. Trading the News
    8. Basic Options Strategies
    9. Leverage and Position Sizing
    10. Conclusion
  15. Chapter 8: Opening an Account
    1. What Kind of Broker?
    2. Opening an Account
    3. Conclusion
  16. Chapter 9: Account Management
    1. Reading a Quote
    2. Leverage & Margin
    3. Rollover
    4. Order Entry
    5. Autocharting
    6. Backtesting
    7. Conclusion
  17. Chapter 10: Pitfalls and Risks
    1. Currency Risk
    2. Forex Addiction
    3. Broker/Credit Risk
    4. Online Trading Risk
    5. Interest Rate/Rollover Risk
    6. Country/Political Risk
    7. Conclusion
  18. Chapter 11: Successful Investing
    1. A Final Note on Leverage
    2. Demo Account
    3. Plan Your Trade and Trade Your Plan
    4. Risk Management
    5. Trading Log/Journal
    6. Trading Psychology
    7. The Business of Trading Forex
    8. Conclusion
  19. Appendix: Online Forex Resources
    1. Tutorials
    2. Forex Blogs
    3. Other Blogs
    4. Portals
    5. Economic Data
    6. Forums/Social Media
    7. Fundamental Analysis
    8. Technical Analysis
    9. Forecasts and Signals
    10. News
    11. Regulation
    12. Other
  20. Index