The Little Book of Currency Trading

An accessible guide to trading the fast-moving foreign exchange market The foreign exchange market, or forex, was once dominated by global banks, hedge funds, and multinational corporations, but that has all changed with Internet technology and the advent of online forex brokers. Now, hundreds of thousands of traders and investors around the world can participate in this profitable field. Written by forex expert Kathy Lien, The Little Book of Currency Trading will show you how to effectively invest and trade in today's biggest market. Page by page, she describes the multitude of opportunities possible in the forex market, from short-term price swings to long-term trends, and details practical products that can help you achieve success, such as currency-based ETFs. Explains the forces that drive currencies and provides strategies to profit from them Reveals how you can use various currencies to reduce risk and take advantage of global trends Examines financial vehicles that can help you make money without having to monitor the market every day The Little Book of Currency Trading opens the world of currency trading and investing to anyone interested in entering this dynamic arena.

Introduction xi Chapter One When Lightning Strikes 1 Chapter Two Rubles and Bahts and Euros—Oh, My! 19 Chapter Three The A to Zs of Forex 35 Chapter Four Step Right Up 53 Chapter Five Movers and Shakers 63 Chapter Six The Investor versus the Trader 77 Chapter Seven What All Winners Do 89 Chapter Eight So You’re an Investor? 105 Chapter Nine So You’re a Trader? 119 Chapter Ten Risky Business 133 Chapter Eleven The Top 10 Mistakes 145 Chapter Twelve Greetings from Nigeria, Please Help! 157 Chapter Thirteen Getting Down to Business 169 Chapter Fourteen Crash, Burn, and Learn 181 Chapter Fifteen Start Smart 193 Author’s Disclaimer 197