Investing your hard earned money can seem like an intimidating venture, but thanks to Currency Trading for Dummies there is at least one area of investing that becomes quite clear. Even if you have never invested in the foreign exchange market before, this exceptional book will teach you exactly what you need to know to make wise decisions.
Speaking the foreign exchange language
The first challenge in understanding currency trading is learning how to “speak the language” of the foreign exchange. Currency Trading for Dummies has this covered, as it explains all of the financial terms and descriptions in a way that is easy to comprehend. And don’t worry if you can’t quite remember the description of each term after just one read through, there is an excellent glossary of terms that makes it quick and easy to revisit one if you’re not certain of its meaning.
You might be wondering just how different the language could be related to foreign exchange trading; it’s all English, right? Yes, it’s English, but there is a wide variety of terms you’ve likely not encountered before. Take a look at just a sampling of the terms discussed and explained in Currency Trading for Dummies:
Rest assured, these and many other terms are explained in clear, simple language so that anyone can understand and apply them to their currency trading activities.
Logical progression of information
One of the nicest things about Currency Trading for Dummies is the very logical and consistent approach it takes to laying out the information you need. Many books claim to offer this to readers, but this is one of the few that really delivers.
The book is divided into four main parts:
Part 1 – In this first section, you are introduced to the very basics of foreign exchange trading. It includes excellent discussions of all facets of this market, including how this form of investing began, how it has developed through the years, and the fundamental mechanics of how the exchange actually works. From performing profit and loss calculations to explaining how rollovers work, this part of the book provides a solid foundation of the easy to understand information you need.
Part 2 – This section contains additional information about foreign exchange trading that takes you beyond just the basics. You learn a great deal about more in-depth topics such as the differences between fundamental analysis and technical analysis, the concept of major currency pairs and minor currency pairs, and much more. By the end of this section you will have gained more detailed knowledge to “flesh out” the basics learned in Part 1.
Part 3 – This section focuses on why it is important to create your own individual trading plan and how to go about doing exactly that. You are guided through an excellent development process where you identify important factors that influence the final version of your plan, such as the type of trader you are, developing strong market discipline and maintaining that discipline over time, assessing risk as part of planning potential trades, and more.
Part 4 – This section is where everything comes together, as you learn how to take your trading plan and put it into action. Actually executing your trading plan is a big step, but with Currency Trading for Dummies you certainly will not be taking this step by yourself. You will learn about a number of issues and situations that you might encounter along the way, such as deciding whether or not to average into a position; smart trading of breakouts; and making adjustments as necessary based on real world market activity and results.
Practical information, advice, and guidance direction
One of the hallmarks of Currency Trading for Dummies is the wealth of solid, practical information it contains. The examples are based on real world situations, helping you to better understand what you might encounter once you start with your own foreign exchange trading plan. Just as important, though, is the common sense advice presented throughout the book.
For instance, many first time investors in the foreign exchange market get so excited about entering the market that they neglect to do enough analysis and planning before jumping in. Currency Trading for Dummies emphasizes just how critical it is perform key calculations and evaluation before actually investing money and taking a position in the marketplace. It also does a very good job of explaining how the calculations you need to consider in the foreign exchange market are different from those you would consider when investing in the traditional stock market.
Another example of the practical approach this book takes is the discussion about how much risk is acceptable. It offers some excellent tips on how to evaluate your own individual risk tolerance and also gives some good guidelines on how to make a good decision based on the results of your evaluation. While no investment book can ever guarantee any level of results, of course, Currency Trading for Dummies does a particularly good job of discussing risk frankly and openly, helping you to set very realistic expectations for yourself.
Exceeding your expectations
If you have ever purchased a “For Dummies” book on any other subject, you already understand just how terrific this style of book can be. This particular one, however, exceeds all expectations of what goes into an extremely well written “For Dummies” book.
Like all of the books in this category, it is written in the kind of plain and simple language that makes it quite easy to grasp even the most complex subjects. The authors do an excellent job of laying out the content in a logical progression, building from the most basic and foundational material up through the more detailed and advanced material.
And unlike many other books on foreign exchange and currency trading, Currency Trading for Dummies is not an attempt to promote or sell any particular product or service. It is extremely even-handed in its approach, and does a very nice job of setting reasonable, attainable expectations for the kind of success you might experience. There are no huge promises, no aggressive sales pitches, just clear and easy to understand discussions of each topic.
A worthwhile investment
Currency Trading for Dummies is a worthwhile investment for anyone who is considering entering the foreign exchange market or is already invested in the foreign exchange market. For the true beginner, it contains all of the key information you need to develop a foundation of knowledge about this kind of investing and to put together a solid trading plan. For the existing foreign exchange trader, however, there is still a wealth of useful information contained in this book. There is real value in having a solid resource guide such as this available at your fingertips to quickly and easily provide clear information and explanation.
This truly is a step by step guide to foreign exchange trading, helping you to create the trading plan and strategy that is right for your own individual circumstances. By the time you are finished reading Currency Trading for Dummies, you will:
Whether you are brand new to foreign exchange trading or have been doing it for a while, Currency Trading for Dummies is an excellent choice for learning about this exciting marketplace and making the most of the opportunities it presents to investors along the way.