What books should I read to Really learn trading Forex?

Discussion in 'Forex' started by kortic, Aug 14, 2008.

  1. kortic


    I have read some books, but something is missing. Could you help me find books that really learn trading Forex? :confused:
  2. Start with:

  3. To "really learn trading" you need to watch the markets a lot. I'm talking 1000+ hours easy. No book will teach you to trade, you can find knowledge that can assist you in trading but as far as really learning to trade, there is no better teacher than the market (well perhaps an experienced trader who wishes to teach you everything he/she knows) :)

  4. At there are books written by Toby Crabel, Larry Williams, Ralph Vince.

    There are lots of books written by people who don't understand what are they talking about. But above mentioned authors are well-known traders with excellent results. Please read below:

    In 1987, Williams won the World Cup Championship of Futures Trading, sponsored by Robbins Trading Company, trading $10,000 in real money to $1,147,000 in 12 months – a feat no one else has come close to matching. Williams ran his winnings to more than $2,000,000 by the end of September, dropped down to $750,000 after the October '87 crash, and traded back to the $1,147,000 mark by the end of the year.

    In 1997, at age 16, his daughter, Michelle, won the same competition with exactly 1000 percent returns on her US$10,000 investment.As of 2006, Larry Williams' 100-fold gain is the highest in that competition.

    Larry Williams used Ralph Vince's methods of money management. As you know, any good strategy without proper money management will fail. Ralph Vince's book is must read.

    Toby Crabel is a United States self made millionaire trader, The Financial Times called Crabel "the most well-known trader on the counter-trend side". He is the fund manager of "Crabel Capital Management". Crabel manages 3.2 billion dollars and had a growth of 16.7% in 2005. A producer of consistent returns whatever the weather, Crabel has avoided having a losing year from 1991 to 2002.

    These traders (I mean their books :) ) helped me a lot.
  5. Read "Phantom of the Pits". It is the only thing that I have read in that last few years that has effected my trading. The forex ebook is on Forex Review.

    It gives trading theory in story form and is full of valuable practical knowledge. You will bookmark and enjoy over and over again. Each time I read it (months and months apart) I gain new insight as so has my trading.

    Good luck.
  6. Can you be more specific about the MM rules you use ?

  7. As I said above I use Money Management methods described by Ralph Vince - optimal allocation of funds.

    I will try to explain the matter in the fewest words:

    The portion of our account at risk always affects our returns. Let’s go from one extreme to the other to clarify what I mean. If you place 100% of your trading account at risk on every trade, it will take very little time to close your account… On the other hand, if you put 1/1000 of your account at risk on every trade, you’ll probably never get wiped out, but your returns will be awful – it will be better to put your money in a savings account…:)

    So, there’s obviously an optimal allocation in the middle of these two extremes. Ralph Vince describes how to find this middle in his books.

    As for my trading strategies: I use several ideas of Toby Crabel and Larry Williams. Currently I have in my arsenal 3 profitable systems. Using one of them + Ralph Vince’s Money Management helped me win fx contest run by one of MT brokers using my live account. I always advise to thoroughly test systems before “moving” a system to your live account. Personally I think that trading strategies based on breakouts have the largest potential.
  8. sg20


    Besides MM I don't think book can help you much with forex, a known method was to study TA on a live chart and see how it works on swings and trend trading. On the fundies side, you need to understand the market and what it tends to do under certain situations such as CPI, interest rate, GDP, commodities... I think forex is more trending than either stocks or futures, and if you can find it early you are likely able to trade it successfully.
  9. jlbonani


  10. I remember the story of a researcher (Who was researching on habits of a particular species of fish).He went to his guide and asked 'Which book should start with' The guide replied 'You watch the fish ,you will learn a lot more than when you get reading'.You start demo trading and watch your performance, evaluate, repeat the process till you succeed.Tough but it will give you guaranteed results.It will take time. But it is worth it.
    Good trading.
    Muraleedharan:) :) :) :)
    #10     Aug 16, 2008