Book Review – Currency Trading For Dummies

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If you are interested in learning foreign exchange or considering becoming a Forex trader, your attention has probably, at least once, been to Currency trading for dummies. Currency trading for dummies This is now in its 3rd edition and it explains to beginners the concepts necessary to understand how the world of Forex works: terminology, actors, fundamental analysis, technical analysis, risk management and some trading systems.

Currency Exchange Book Cover For Dummies

Title: Currency Trading For Dummies

Posted: March 2015

Authors: Kathleen Brooks, Brian Dolan

Suitable for:

  • Absolute beginner traders

Main topics:

  • Forex terminology
  • Forex Fundamentals
  • Fundamental analysis
  • Technical analysis
  • Risk management
  • Trading systems

Content

Currency trading for dummies is an introductory book, its main objective is to introduce the main concepts to beginners and “dummies”.

The volume is divided into 5 parts for a total of 19 chapters and appendices.

Part 1: Introduction to Forex, why it happens, who trades it, how trades go.

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 in trading, how to spot trading opportunities, taking into account risk management.

Part 4: How to open, manage and close a transaction.

Part 5: Common skills of successful traders, risk management rules, list of other useful resources.

Annex: Some examples of trading strategies divided by trading style: scalping, swing trader, position trader.

The overall content is actually 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 comprehensive, the chapters on technical analysis are quite disappointing. From a “dummies” book one would expect the topics to be presented in a clear and easy to understand way, I think technical analysis could have been better explained using more pictures, more charts, more examples, the same goes for risk management and trade. In addition, some parts (luckily only a few) are repeated throughout the book without adding significant additional value.

Writing style

The style chosen by the authors is only partially adapted to the target audience. The language remains descriptive, simple, and clear, but while a descriptive style may be ideal for explaining topics such as fundamental analysis, actors, and terminology, I believe other concepts such as technical analysis and business management should be integrated with more graphics and practical examples. .

Value

Currency trading for dummies provides good value if the reader has no prior knowledge of the topic. Many contents have very rich explanations, however, other contents could have been developed in a better way. Think of this book as an introduction to foreign exchange, a place to start, and incorporate it into other books and resources.

Conclusion

Currency trading for dummies is an introduction to the world of forex and is, as the title suggests, ideal for absolute beginners. The volume explains the main concepts of Forex: terminology, trading mechanism, actors, fundamental analysis, news and events, technical analysis, risk and transaction management. Many topics are well developed, but others (eg technical analysis) could have been better developed. Read the book if you want to start learning how to trade currencies, but integrate the content with other resources.

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