The Forex trading course : a self-study guide to becoming a successful currency trader

This edition is more than an update on the first edition. Since the first edition was

released in 2008, the world of forex trading has significantly changed. The challenges

facing the forex trader are new and greater than ever. The financial collapse of 2008

ushered in a rebalancing of the world economy, with monetary policy and currencies as

key instruments. The era of quantitative easing began, and with it, central bank intervention became and remains since a prime mover of currencies. Forex trading became

subject to greater spikes and disruptions and, more than ever, sensitive to market emotions. Expectations regarding global growth and inflation have significantly influenced

currency movement. These changes underscore the need for a refocus on fundamentals

for forex trading.

The significant advances in the Internet since 2007 have also transformed forex trading and its technological environment. The forex trader today has the opportunity to

access more information, more quickly than ever before. Also, a popular phenomenon

called social media trading has emerged where the forex trader can “copy” the trades of

other traders. The Internet wraps information flow with rumors and hyperbole, creating

herding behavior and swarming patterns.

Contents

Preface vii

About the Author ix

PART 1 What Drives the Forex Market? 1

CHAPTER 1 The Fundamentals of Forex 3

CHAPTER 2 The Role of Inflation, Reflation, and Deflation 17

CHAPTER 3 Exploiting Information about Economic Growth 23

CHAPTER 4 The China Factor 35