Currency trading
Book - 2022
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 newcom...er 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.
Saved in:
- Subjects
- Published
-
Hoboken, New Jersey :
John Wiley & Sons, Inc
[2022]
- Language
- English
- Main Author
- Other Authors
- ,
- Edition
- 4th edition
- Item Description
- First edition by Mark Galant and Brian Dolan was published in 2007.
- Physical Description
- xiii, 396 pages : illustrations ; 24 cm
- Bibliography
- Includes bibliographical references and index.
- ISBN
- 9781119824725
- 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 101
- 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 101
- 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
- Drawing trend lines
- Recognizing chart formations
- Fibonacci retracements
- The Science of Technical Analysis
- Momentum oscillators and studies
- Trend-identifying indicators
- 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
- Consumer-level data reports
- Business-level data reports
- Structural data reports
- 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 overtime
- 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 101
- 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 Dolt
- 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
- Index