If you are new to the world of forex (foreign exchange) trading, and keen to learn more, then this book is for you. It has been written with one objective in mind. To explain in a simple, clear and logical way, everything you need to understand, in order to get started.
Introduction
Forex For Beginners is the prequel to my first two books, A Three Dimensional Approach to Forex Trading, and A Complete Guide to Volume Price Analysis. It is your primer to the world of forex. It has been written to lay the foundations and provide the framework for getting started in the world of forex, in what I believe is the correct way. My other books then build on what you will learn here, to further develop your trading skills and knowledge.
Applying what you learn
What I try to do in all my books, is to show you how to apply that knowledge to help you become a more confident trader. After all, learning is all well and good, but if we are not taught how to apply that knowledge in a practical way, then it is of little use. It is the application of knowledge that empowers, and this is what I have tried to do here, and in my online training rooms, and all my books.
It’s all about risk
There are of course many books about forex trading. What is different about this book, is the focus on those aspects of trading which I believe are fundamental. After all, there are only two questions we need to answer when considering a position in the market:-
- What is the risk on this trade – high, medium or low?
- What is the financial risk on this trade?
The first is the hardest question to answer, and the book will explain in detail the analysis and approach to use, in order to answer this question with confidence. The second question is more straightforward and is answered provided you have an understanding of risk, money management and position sizing in relation to your trading capital. Again, this is covered in detail in the book. As the tagline on the front cover says ‘What you need to know to get started, and everything in between which really sums up what you will learn.
Who This Book Is For?
If you are new to the world of forex (foreign exchange) trading, and keen to learn more, then this book is for you. It has been written with one objective in mind. To explain in a simple, clear and logical way, everything you need to understand, in order to get started.
The book assumes you have little or no knowledge of how the forex market works, or the principles and methodology that you need to follow in order to make money consistently. And consistency is the key here. Because if you can be consistent as a trader, then the money will follow.
Forex For Beginners, covers all you need to know. Everything is explained in simple and clear terms, with hundreds of examples and charts to help you learn quickly. Not only will you discover how to trade, but also how to get going quickly with your new found knowledge, using the most popular FREE trading platform in the world, MT4.
In short, this book is what you need, and takes you by the hand, step by step, from complete novice to placing your first trade.
What This Book Covers?
Forex For Beginners is a straightforward guide to getting started in the extraordinary world of forex trading.
The book describes how and why we have a forex market, how it operates, as well as the mechanics of placing trades. Different analytical approaches are also included, along with understanding the importance of volume and price. From there, the book moves on to explain the concepts of margin and leverage, trading plans, risk, position sizing and money management. The book then pulls it all together in order to help you get started, and in the final section describes key elements of the MT4 platform, as well as how to place and manage trades.
Throughout, there are many images, with simple explanations, to help you learn quickly. If you want a book that takes you from novice, to placing your first trade, (with everything in between), then this is the book for you.
Table of Contents- Forex For Beginners
Chapter One : An Introduction To The Forex Market
If you are new to the world of trading currencies, then the forex market can seem a daunting place. In this chapter, I explain how the market works, why we have this market, who are the market participants, and how you can join in and profit by trading currencies. This lays the foundations and explains some basic concepts.
Chapter Two : The Principle Currencies Explained
Here we start to dig down into the most popular currencies, as I explain their personalties, their characteristics, and some of the factors which drive these major currencies. These are the currencies that will form the basis of your forex trading career.
Chapter Three : The Currency Quote
Currency quotes can be extremely confusing for new traders, even more so since the introduction of the fifth decimal place. In this chapter I explain every aspect of currency quotes, from the spread, the bid and ask to the reasons yen currency pairs are quoted differently to all the others. In addition, I also explain the significance of the spread in relation to your approach to the market.
Chapter Four : Forces That Drive The Foreign Exchange Markets
Here I introduce the principle forces that drive this market. Some of these are market driven, and others are anything but! The forex market is one of the most manipulated, and it pays to know who is doing what, when, how and why!
Chapter Five : Trading Approaches
Most forex traders only ever consider two approaches to the market, technical and fundamental. I use three, and here I explain how and why. Relational analysis completes the picture and gives you a three dimensional view of the market which few traders ever consider!
Chapter Six : The Power Of Volume Price Analysis (VPA)
This approach to trading has formed the cornerstone of my own trading career, since I first started. I have used it in every market I have traded, and I hope that in introducing you to the concepts here, you will embrace it too. It is powerful, logical and once learnt, is never forgotten. When used in conjunction with the MT4 platform, it provides forex traders with a unique approach, and a technique to truly read the market and price action, before it happens. And in case you want to learn more, I have written a complete book on the subject, but let’s start here first!
Chapter Seven : The Mechanics Of Trading
This may sound like a chapter to skip perhaps – but don’t! I could have called this chapter The Mathematics Of Trading. Here I explain all the underlying maths of the trading account in terms of leverage and margin, and more importantly position sizing and risk management – something rarely explained to new traders. You may need to read this chapter two or three times. I make no apology for this. It is the one area that most forex traders fail to understand.
Chapter Eight : Risk And Money Management
This is the easy part of risk. The financial part. Here I explain how to quantify and manage the risk on every trade. If you could distill the essence of successful forex traders, much of that success could be traced back here. I explain in detail the rules you need to follow in order to manage the financial risk correctly.
Chapter Nine : Your Trading Plan
If having a trading plan with rules was all you needed to succeed, then the world would be full of successful traders. It isn’t. Many books will tell you that your trading plan should have entry and exit rules, set up rules and all sorts of other ‘mechanical rules’ to follow. Not here I’m afraid. There are one or two rules that you must have, but these are for your money management. Everything else is discretionary!
Chapter Ten : The Psychology Of Trading
The markets are driven by fear and greed, and in many ways trading is in fact a mind game. It is not about making or losing money, but in managing your mind. Manage your mind better than others around you, and you will succeed. In this chapter I explain how the mind works in the way it does, and from there I introduce some simple concepts which will help you to manage your emotions as you begin trading.
Chapter Eleven : Choosing Your Broker
Few forex traders ever understand what the broker does, or why, and then complain when things go wrong. In this chapter I explain the various category of broker, the good the bad and the ugly, and the questions you should ask, before you open your account. It is a minefield, and with even large brokers going bust, it pays to do your homework.
Chapter Twelve : Choosing Your Currency Pairs
In an earlier chapter, we looked at the individual currencies and their characteristics. Here I explain the currency pairs, how they behave, and the importance of the cross currency pairs as alternatives to the once traditional major currency pairs. I also introduce the concept of the currency matrix, which will help you to identify the true strength or weakness of a currency.
Chapter Thirteen : Let’s Get Started
A long chapter. This is where we put it all together with some real trades, which I have written up in real time and included in this chapter. It’s all here as I walk you through every step from the initial analysis, to closing the position, and everything in between. This will give you a real sense of the complete process from start to finish, from the initial analysis, to getting in, staying in, and getting out! In this chapter you will also discover the power of trading using multiple charts in multiple timeframes, which can also be applied to a currency strength indicator.
Chapter Fourteen : Getting Started With The MT4 Trading Platform
Now that you are ready to go, you need a trading platform, and what better choice is there for a novice than the MT4 MetaTrader platform. This is the world’s number one platform for forex traders, and one I use myself. It could be summed up in one word – simplicity! It is also free to use and widely available from most forex brokers. Moreover, if you decide to change brokers, you have no new platform to learn. Here I explain the principle features, how to open, manage and close positions, personalize your trading platform and charts, and much more.
Glossary
A list of some of the more common terms and trader slang used in the forex trading world.
Reviews
I’ve just begun trading and knew NOTHING about it before I read this book. The book is amazing as it tells you literally everything “basic” you need to know about how the market works and how to trade PLUS those great nuggets that help you know what good traders do.
There are chapters on every aspect of Forex in this book. If you have any questions about how to choose a good broker or how to open a trade, it’s in here. Everything’s in here in an easy to read and follow resource. I’m so glad I chose this book over the millions that are out there. Anna Coulling definitely knows Forex! I’d highly recommend picking this one up if you want to know how to trade or just what Forex is.
About the author
Hi – my journey into the financial markets was prompted by a desire to make sense of the jargon filled replies I usually received when asking any financial adviser, the simplest of questions. Clearly they believed as a mere woman, I was incapable of understanding the complexities of the markets. This prompted my desire to learn, and since then I have been involved in every aspect of trading and investing for over seventeen years. Now at last, I have the luxury of time, to devote the next phase of my life to writing a series of books with one aim. To explain complex subjects and concepts surrounding the financial markets, in a clear and simple way. I actually began my professional life, as an English teacher. However, English was not my first language, having arrived in the UK from Italy at the tender age of three.
At that time I spoke no English whatsoever, and my first memories are of my little village school in Scotland where I grew up, and where I learnt to read and write, chalk in hand! Very old fashioned, but what a wonderful way to learn. Since then, I have never stopped talking! – well I am Italian and as I’m sure you know, Italians ALWAYS have an opinion on EVERYTHING!!
Languages must be in my blood, as I also studied French and Spanish. I’ve now transferred the ‘teaching gene’ into written form through the power of Amazon. I hope, that whether you are a trader, investor or a speculator, you will find one, or perhaps more, of my books useful in your own approach to the markets.
Comments
Submitted by Anonymous on Tue, 08/29/2023 - 18:12
I don't write reviews but well for this book and a couple of Anna's books i have read, i will be a cheat if i don't. This book is so far the best i have read for complete beginners to forex. I at once a few years ago tried forex after a few trainings but was obviously gambling and my little wins were by chance. However, when i wanted to start trading but this time in a serious way, i researched for books to read and finally found a recommendation to Anna Coulling's work. The recommender wrote of her as a self-trained forex trader. I totally have no idea if she is and have never taken time to find out, but from that perspective that she is a self-trained trader, i believed she absolutely understood the struggles of someone trying to figure out right from the start to placing a first successful trade. This book is one piece of work that i found informative, educative, detailed and to the point. After reading this book, i feel confident and I’m always studying charts and nothing makes me feel like a genius after nailing most of the predictions.
With that i decided to thank her but there could be no better way than letting other forex novices like me, know that this book is a great starting point. I sent her an email of thanks but she must be busy with other commitments. I bought her other 2 books "a three dimensional to forex trading” and “a complete guide to Volume Price analysis” and seriously they are great.
Thank you Anna
Submitted by Anonymous on Tue, 08/29/2023 - 18:09
"Forex For Beginners" by Anna Coulling was just the book I was searching for as a newbie Forex Trader. The book assumes no previous knowledge in Forex trading, but builds your confidence step by step through 14 chapters. The book is well planned with knowledge gained in one chapter, being applied as an input to the next chapter. Hence, I do not recommend anybody to engage in random sketch reading as far as this book is concerned, if you are serious about building an income stream as a Forex trader.
The book begins with an introduction to the Forex market, & its currencies, & goes on to explain trading approaches. In here, Anna explains the two commonly known approaches of Fundamental Analysis / Technical Analysis, & goes beyond other books on this subject to explain the Relational Approach which galvanizes the former two approaches into a powerful trading philosophy.
This is followed by Volume-Price analysis. Again most books I read was about "Price Action Trading", which missed-out on a powerful leading indicator such as "Volume". Anna does due diligence to explain the importance of tracking Volume as a means of understanding the real intentions of Market Makers. Forex market, despite its size, is highly manipulated by an elite few, & newbie Forex traders are considered "fair game" in the jungle of currency trading. Fortunately for us, volume is a huge give-away of the artful intentions of market makers, & traders could use this invaluable tool, to understand where the price is being taken next.
Risk, Money Management & Trading Plan appears next in the book, & I highly recommend new traders to have an excellent grounding of these concepts, before stepping into accepting dangers that are lurking in the Forex market.
The Psychology of Trading is next, & the importance of understanding the right mindset is so critical to trading success. Ultimately you are your worst enemy in the market, since as human beings, we have a natural tendency to exhibit "fight or flight" behaviour, which could be detrimental to your trading success.
The book culminates with a real life trading example, which puts everything together, & takes the reader through a step by step process of researching, identifying, executing, managing & exiting a trade. This chapter is very well written, using simple language with clear chart illustrations that anybody can understand.
I highly recommend this book, not only for new Forex traders, but also for seasoned traders, who are trading without using a powerful free indicator such as "Volume".
Submitted by Anonymous on Tue, 08/29/2023 - 18:09
I found this book (the second I've read on forex) to be *very* helpful and written in a way that helps the reader understand very well! I just finished it earlier today. There's a section or two I'd like to come back to, such as the recommendations for which currency pairs to trade as a beginner, but I feel that with taking the time to ingest, this book is superb information.
The chapter rooted in evolutionary biology isn't to my taste (I don't have that world view), and I reckon there is such a place as "desire for profit" and "desire for reserve" that isn't rooted in "greed" or "fear", which I feel the author tended to reduce things to. Though I understand of course that they would be very present in the market as a whole.
On the economics front, I'm a novice in understanding, but I had read elsewhere (in a piece in the direction of Austrian economics) that the unpegging the currency from gold standard in the 70s wasn't for the sake of the direction of a natural free market, but an expedient necessary so that government debts, incurred through policies of central bank market-manipulation, could be eased.
But, those things aside, what a helpful book by someone very knowledgeable and experienced, sharing that information in a very readable way, at a bargain price, the content of which indeed makes logical sense.
If I now make the move to trading for real, I feel I have read the best book I could on the subject, and have learned many things; not just reading charts, but what you're doing, what others are doing, and why. Next, it will be a case of learning to apply that knowledge wisely, getting the feel for putting it into practice with more and greater proficiency.
I just need to know which is Anna's recommendation for best ECN platform for beginners without much capital, wishing to start with long-term trading. A question I wouldn't have know what it meant or why I was asking it before, so wouldn't have been asking it. :)
Thank you, Anna, for your book.