Book Review — Currency Trading for Dummies
If you have some interest in learning foreign exchange or you are thinking about becoming a Forex Trader probably your attention has fallen, for at least once, on Currency Trading for Dummies. Currency Trading for Dummies is now at its 3rd edition and it explains to the beginners the concepts needed to understand how the world of Forex works: terminology, players, fundamental analysis, technical analysis, risk management and some trading systems.
Title: Currency Trading for Dummies
Published: March 2015
Authors: Kathleen Brooks, Brian Dolan
- Absolute beginner traders
- Forex terminology
- Forex fundamentals
- Fundamental analysis
- Technical analysis
- Risk management
- Trading systems
Currency Trading for Dummies is an introductory book, its main purpose is to present the main concepts to beginners and "dummies".
The volume is divided in 5 parts for a total of 19 chapters and appendix.
Part 1: Introduction to Forex, why it happens, who trades it, how trades happen.
Part 2: Why exchange rates change, basic understanding of the consequences of market news and information, fundamental analysis, get to know the most popular currency pairs.
Part 3: How to develop a trading plan, introduction to technical analysis and how it helps trading, how to spot trade opportunities, consideration of risk management.
Part 4: How to open, manage and close a trade.
Part 5: Common skills of successful traders, risk management rules, list of other useful resource.
Appendix: Some examples of trading strategies divided by trading style: scalper, swing trader, position trader.
The overall content is really just an introduction to the main concept, this book is surely not enough to become a trader. While the part covering fundamental analysis is quite complete the chapters regarding technical analysis are quite disappointing. From a "for dummies" book one would expect to have the subjects presented clearly and easy to understand, I believe that technical analysis could have been better explained using more images, more charts, more examples, the same applies to risk and trade management. Also, some parts (luckily only a few) are repeated throughout the book without providing significant additional value.
The style chosen by the authors is only partially suitable for the targeted audience. The language is kept descriptive, simple and clear, but while a descriptive style can be ideal to explain topics such as fundamental analysis, players and terminology, I believe that other concepts like Technical Analysis and Trade Management must be integrated with more charts and practical examples.
Currency Trading for Dummies provides a good value if the reader has no previous knowledge in the subject. Many of the contents have very rich explanations, however, some other contents could have been developed in a better way. Consider this book as an introduction to Foreign Exchange, a starting point, and integrate with other books and resources.
Currency Trading for Dummies is an introduction to the world of foreign exchange and is, as the title suggests, ideal for absolute beginners. The volume explains the main concepts in Forex: terminology, trading mechanism, players, fundamental analysis, news and events, technical analysis, risk and trade management. Many of the topics are well developed but others (for example, technical analysis) could have been expanded in better ways. Read the book if you want to start learning how to trade currencies, but integrate the contents with other resources.
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