Currency Trading For Dummies is a hands-on, user-friendly guide that explains how the foreign exchange (ForEx) market works and how you can become a part of it. Currency trading has many benefits, but it also has fast-changing financial-trading avenues. ForEx markets are always moving. So how do you keep up? With this new edition of Currency Trading For Dummies, you'll get the expert guidance you've come to know and expect from the trusted For Dummies brand—now updated with the latest information on the topic.

Inside, you'll find an easy-to-follow introduction to the global/ForEx market that explains its size, scope, and players; a look at the major economic drivers that influence currency values; and the lowdown on how to interpret data and events like a pro. Plus, you'll discover different types of trading styles and make a concrete strategy and game plan before you act on anything.

• Covers currency trading conventions and tools
• Provides an insider's look at key characteristics of successful currency traders
• Explains why it's important to be organized and prepared
• Offers guidance on trading pitfalls to avoid and risk management rules to live by

Whether you're just getting started out in the foreign exchange market or an experienced trader looking to diversify your portfolio, Currency Trading For Dummies sets you up for trading success.

Kathleen Brooks is research director at FOREX.com. She produces research on G10 and emerging-market currencies, providing her clients with actionable trading ideas.

Brian Dolanhas more than 20 years of experience in the currency market and is a frequent commentator for major news media.

Part I: Getting Started with Currency Trading  5

Chapter 1: Currency Trading 101  7

Chapter 2: What Is the Forex Market?  17

Chapter 3: Who Trades Currencies? Meet the Players  33

Chapter 4: The Mechanics of Currency Trading  47

Part II: Driving Forces behind Currencies  71

Chapter 5: Looking at the Big Picture  73

Chapter 6: Understanding and Applying

Market News and Information  99

Chapter 7: Getting Down and Dirty with Fundamental Data  115

Chapter 8: Getting to Know the Major Currency Pairs  139

Chapter 9: Minor Currency Pairs and Cross-Currency Trading 163

Part III: Developing a Trading Plan  179

Chapter 10: Training and Preparing for Battle  181

Chapter 11: Cutting the Fog with Technical Analysis  201

Chapter 12: Identifying Trade Opportunities  229

Chapter 13: Risk-Management Considerations  249

Part IV: Executing a Trading Plan  267

Chapter 14: Pulling the Trigger  269

Chapter 15: Managing the Trade  283

Chapter 16: Closing the Position and Evaluating Your Results  295

Part V: The Part of Tens  305

Chapter 17: Ten Habits of Successful Currency Traders  307

Chapter 18: Ten Rules of Risk Management  313

Chapter 19: Ten Great Resources  317

Appendix: Trading Strategies  321

Index  343