Table of Contents

Foreword ix Acknowledgments xiii Chapter 1 Introduction 1 Part I Understand the Foreign Exchange Market (FX 101) 7 Chapter 2 A Very Brief History of FX 9 Chapter 3 Currency Trading Basics 17 Chapter 4 Understand Market Structure 37 Part II Trade the Foreign Exchange Market 71 Chapter 5 Understand Fundamental Analysis 73 Chapter 6 Understand Technical Analysis I 107 Chapter 7 Understand Technical Analysis II (The Seven Deadly Setups) 155 Chapter 8 Understand Correlation and Intermarket Relationships 179 Chapter 9 Understand Behavioral Finance 221 Chapter 10 Trading the News 255 Part III Understand Risk Management 293 Chapter 11 Understand Free Capital 295 Chapter 12 Understand Position Sizing 321 Part IV Understand Yourself 351 Chapter 13 Characteristics of a Successful Trader 353 Chapter 14 Common Weaknesses in Trading 361 Chapter 15 The Voice of Experience 369 Chapter 16 Conclusion 379 Brent Donnelly's 25 Rules of FX Trading 381 About the Author 383 Index 385

About the Author

BRENT DONNELLY has been trading currencies since 1995 and is currently a senior FX trader at HSBC New York. A respected macroeconomic and currency analyst, Brent writes AM/FX, the widely-read macro and FX daily. His work has been quoted by The Economist, The Wall Street Journal, Financial Times, Bloomberg, and other influential media outlets. Over the course of his career he has been a market maker, trader, and senior manager at industry-leading foreign exchange banks such as Citi and Nomura and at a major hedge fund in Connecticut.