The publication aims to help its readers understand the risks associated with trading and how to make sound investment decisions.
The first part of the NFA Forex Trading Guide explains the dynamics of the currency market, as it discusses how the off-exchange market works, how trades are executed, and how profits can be calculated.
It then delves into the risks associated with trading, such as the danger of losing your entire investment or falling victim to fraud.
The booklet also talks about other important issues to consider when trading, such as market regulation and which agencies to approach when encountering a problem with one’s trading account.
Aside from that, the NFA enumerates a few broker-related questions that could help traders protect themselves against bad practices. It even takes it a step further by providing hotlines for you to call if you have any problem with your broker!
And lastly, it contains a glossary of forex terms to help readers familiarize themselves with forex lingo.
Of course, being the curious ninja that I am, I got myself a copy of the NFA booklet. And here’s my verdict:
It’s a really easy read. Noobs who don’t have any prior background in forex will find the FAQ-style booklet helpful. But as awesome as it is, it only has as much information as a 23-page, image-filled book can contain.
Other than the basics, readers who are looking to further their knowledge on currency trading still need to find other materials to supplement the information NFA provides.
But have no fear newbie traders! There are a lot of resources (some free, some paid) out there that could help you begin your forex trading journey. Here are a few that I recommend:
BabyPips.com’s New School of Pipsology-This is THE NUMBER ONE resource for newbie traders, no doubt about it! The school is designed to help wannabe traders acquire the skills, knowledge, and special abilities to become a successful trader in the foreign exchange market in a very exciting and entertaining manner!
Currency Trading for Dummies – Perfect for beginners. While it may not be as entertaining or updated as the School of Pipsology, it can still serve as a solid spring board for forex freshies.
Enhancing Trader Performance by Brett N. Steenbarger – One common complaint among forex traders that self-study is the absence of a mentor. Forex traders need someone who can motivate and mentally prepare them for trading. This book fulfills that need, as traders can treat it as their very own forex shrink!
That’s it for this issue of Espipionage! Tune in next week for more!