As a career educator with no children of his own, the only obvious legacy I might leave on this planet is likely to be in the form of the instructional institution or institutions I establish and operate in my lifetime, if any. So, as part of my preparation for when and if that day ever comes, I checked out the book Currency Trading for Dummies from the main branch of my local library for ideas on topics I might opt to include in the instruction delivered to junior traders hired by the hypothetical prop firm I’ve envisioned. The book mentions ten resources that I plan to list here. But, keep in mind that John Wiley & Sons, Inc. published the "Dummies" book. So most, if not all, of the resources they recommend are likely to be published by them as well. The other thing I should mention is that the edition I checked out was printed in 2015, so I don't know if there are additional or updated editions of resources that might be even more helpful that have come on the market in the meantime. The book I will cite first is Elliott Wave Principle: Key to Market Behavior, by A. J. Frost and Robert R. Prechter, Jr. (Wiley). Supposedly, this is the go-to guide if one is interested in learning more about the Elliott wave principle. The claim is that Elliot wave patterns are an important part of currency price movements, especially if you're intending to trade from a medium- to longer-term perspective; and that this book explains the philosophy behind Ralph Nelson Elliott's theories of price patterns and provides practical examples of how to apply those theories to all financial markets.
Buddy … you either know or you don’t. I don’t get this idea of looking for ideas in a Dummy. Unless you’re actually dummier … Good luck.
Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications, by John Murphy (New York Institute of Finance), is supposedly THE encyclopedia of technical analysis, written by a man that at least some consider to be the most prominent technical practitioner in the market. Murphy covers all the tools and all the rules in depth, from both a theoretical and a practical standpoint. Murphy also lays out one of the most comprehensive reviews of chart patterns you will find anywhere. If you are going to have only one book on technical analysis in your library...it is said that this is the one.
Zero Hedge (www.zerohedge.com) is a news website and content aggregator that reports on economics and the goings-on of Wall Street. This is one of the first websites the authors check each day due to its contrarian analysis. It often takes the opposite side of what the market thinks (which the authors feel can be refreshing) and much-needed, change in perspective. The blog also posts the most interesting and relevant research from some of the world's most prominent analysts. The posts are signed under a pseudonym, Tyler Durden, a character from the film Fight Club. There is a lot of speculation over who Tyler Durden actually is; at the time of writing, it is still unconfirmed. You can check out Zero Hedge on twitter at @zerohedge.
Other Websites... The authors (who work for Forex Factory) say that it (http://forexfactory.com/) may not be as pretty as some other sites, but is an extremely useful resource for the following reasons… It has one of the most trusted economic calendars out there, which is extremely useful if your broker doesn’t provide you with one. It includes market news and has a trade feed with its members' latest positions; the feed is updated in real time. Perhaps the most useful ting about Forex Factory is its trader forums. These forums have different threads of conversation that offer you the chance to join a community of retail traders and talk trough your ideas, problems, and so on. It's free. BabyPips.com is a beginner’s guide to forex tading, but some of the posts are fairly sophisticated, so the Dummies authors recommend it for the beginner to intermediate trader who is trying to up their game. One of the best things about this site is that some of the contributors talk you through their trades. They go through the reason for their trades, the setup, and the execution. They often post after the trades are closed out to let you know what went well and what didn't, and why. This site is a good place to learn market dynamic and market discipline. These are the Twitter accounts they think are worth following… @bloombergnews @reuters @FOREXcom @FXStreetNews @FXStreetReports
The Dummies authors are huge proponents of candlestick charting, and for their money, Japanese Candlestick Charting Techniques: A Contemporary Guide to the Ancient Investment Techniques of the Far East, 2nd Edition, by Steve Nison (Prentice Hall), is the best book on candlesticks out there. Nison takes you inside the linguistic and cultural meanings behind the myriad candle patterns, which leaves you with a more intuitive understanding of the patterns. With this greater understanding, you're more likely to spot viable candlestick patterns and understand what they're telling you. They say that they keep this book handy and refer to it frequetly in their own candlestick observations.
The Book of Five Rings, by Miyamoto Musashi and translated by William Scott Wilson (Shambhala), is known as Go Rin No Sho in Japanese. According to the Dummies authors, this relatively short book (about 150 pages) is a fascinating exposition on the philosophy of strategy and rules of tactical warfare. They say that Musashi was the greatest sumurai ever to live, and this book is his end-of-life distillation of all the rules of strategy and swordsmanship gained in his lifetime. Supposedly, Musashi's exhortations on timing and staying calm in the midst of chaos are as applicable to successful trading today as they were to martial artists in the mid-17th century, when the book first appeared. Moreover, it is not a book for a single reading only. You'll want to pull it out and reread it often. Not only does it contain advice on strategy and mental discipline, but it also offers lessons on personal fulfillment and finding a spiritual, focused, and balanced existence (though I personally will continue to look to Yahweh and Yeshua Hamashiach for such lessons).
Technical Analysis for Dummies, 3rd Edition, by Barbara Rockefeler (Wiley), is an excellent introduction to the many and varied tools and methods of technical analysis, all delivered in the easy-to-read For Dummies style. Rockefeller takes you through all the important tools and approaches, and provides plenty of real-life do's and don'ts that you can apply to your own trading.
In Market Wizards: Interviews with Top Traders (Wiley), Jack D. Schwager, a veteran trader himself, interviews the legends of the trading world for their insights and philosophies of trading. Wizards is not confined strictly to the forex market; it offers a wider-ranging discussion of stocks, futures, and currency trading. In it, you learn how the likes of Richard Dennis, Bruce Kovener, and Paul Tudor Jones, to name just a few, approach trading. These traders are living legends today, but they all started out relatively modestly and succeeded through discipline, strategy, and diligence while managing intense psychological pressures. If you're in search of a trading style, these guys have plenty to offer.