Hi, I am new to forex, and new to the TA aspects of financial markets which from what I can tell, is how forex is most often traded by day traders. I'm not looking for a one-easy answer of a course or something to give me a forex trading stategy that will work in one go. I believe in soaking up as much information as I can get my hands on - BUT, I would like to do this in a relatively efficient manner by choosing the most recommended books used by experienced FX traders. So, in what books/resources have you found helpful in learning to trade foreign exchange? So far, i am interested in books by Cornelius Luca (though i'm told they are quite dry and boring, but lots of good info) and the book: "Forex for Maximum Profit" seems to be the highest ranked forex book on amazon.com. Also, I understand TA is similar in forex as in equities, but not identical, so any forex specific TA resources would help. All of the VERY basics I can read off of the internet, however finding more comprehensive and non-redundant information, presented in an applicable manner seems to be much more difficult. So any suggestions, brains storms, whatever, would be appreciated. Thanks.
Main areas that you need to know is TechnicalAnalysis (Wiley's Encyclopedia is good), Fundemental Analysis (if you want to use it) and most importantly Risk Management. I believe what ever strategy you decide to choose, profitability depends on risk management. Unfortunately I didn't come accross a good book that really covers the type of risk management involved in forex market. I think the best way to have an idea about this is follow a good trader's trades for a while. If you will be developing your own system, you will need a software to backtest and improve it. I recommend Wealthlab, at least you can load the demo and try it for a while.
any ta stuff will be useful at this stage. 4x specific stuff will only be of use if you want to trade off fundamentals. other than that a market is a market is a market. id say if there is any difference in ta between 4x and anything else is that 4x remains range bound for longer periods. thats it. the tricks and sneaks are the same as other markets. my advise would be to start at the basics and understand the market AND THE INDUSTRY you are trading in - who is your market - is it the true interbank market or a bucket shop? it is of paramount importance you understand all the tricks and sneaks before you start trading for real. good place to start is reminiscences of a stock operator by lefevre. written many moons ago but still probably one of the best all round books that discusses tricks and sneaks, the industry, psychology, etc. everything but ta!
malaka; Jack Schwager 3 top trader books amoung the top ; wouldnt know if that would help in 4x. Would be careful in that sector where one of the main selling/ad points = you wipe out an account you will not owe them any more money.
Hey, Malaka56, welcome to currency trading, hope you do well! Be sure to get some hours logged in on free forex trading demos - when you first start is, conceivably, the time when you are at your worst as a trader. Therefore, get 'beat up' on a demo - that way you're not losing your own real money in the market (at least in the beginning ). Best regards, Sam
Thanks for the tips guys. I opened a demo this weekend with FXCM, and i'll play around with demos at oanda and other places for 2-3 months before I put money on the line and feel confident enough to actually trade. Ive found in other "learning endeavours" that online forums are generally one of the best places to learn, information and years of advice is distilled down into debates, conversation, and quips of wisdom. After time, you learn who on the forums knows what theyre talking about, and weight their opinions more heavily. I'm hoping elitetrader will be this for me, and i'll persuse other forums as well to keep updated. I imagine a lot of the people (perhaps the majority) on elite trader work out of their homes, so it may be difficult to have a nice community - which in my opinion is essential for brainstorming new ideas, fostering business relationships, etc. Thanks for welcoming me, seems like a good bunch of people. At first I will probably use someone elses stategies and see which ones I like (I guess momentum trading in FX is pretty different since there are no level2 quotes to rely on), and perhaps develop my own overtime. I'm somewhat of a computer geek, so automated systems is particularly interesting. Alright, well, I'll check out some of those books on TA, and if there are any more suggestions, let me know! Thanks.