Getting Started in Currency Trading: Winning in Today's Forex Market

Author: Michael Duane Archer Categories: Forex, Beginners

Quick Summary

A beginner-oriented guide to forex trading covering the history of currency markets (from the gold standard through Bretton Woods to modern floating rates), market structure, how prices are determined, forex versus stocks and futures, technical and fundamental analysis basics, risk management, and practical guidance on choosing brokers, platforms, and developing a trading plan.

Detailed Summary

Michael Duane Archer's Getting Started in Currency Trading (3rd edition, 2010, Wiley) is a comprehensive beginner's guide to the foreign exchange market, part of Wiley's popular "Getting Started In" series.

Part 1 covers the foreign exchange landscape: what forex is, spot market mechanics, which currencies are traded, who participates (from central banks to retail traders), how prices are determined, advantages of forex over stocks and futures (24-hour trading, leverage, liquidity, no uptick rules), and the basic tools and costs of trading.

The historical context chapter traces currency trading from ancient times through the gold standard era (1816-1933), the creation of the Federal Reserve, the SEC's establishment, the Bretton Woods system (1944-1973), the shift to floating exchange rates, the development of the International Monetary Market at the CME, the arrival of the Euro, and modern regulatory structures (CFTC and NFA).

The technical analysis sections cover chart types, trend identification, support and resistance, common technical indicators, and pattern recognition. Fundamental analysis coverage includes how economic indicators, central bank policy decisions, and geopolitical events affect currency valuations. Risk management principles include position sizing, leverage management, and stop-loss strategies.

Practical sections guide readers through broker selection (including regulatory considerations and account types), platform features, order types, and the development of a personal trading plan. The companion website provides additional resources including demo account recommendations and links to economic calendars.

The book's strength is its accessibility to complete beginners while providing enough depth that readers who finish it can begin demo trading with a solid foundation.