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Forex Education - 6 Essential books All Traders Should Read

If you want good forex education forget buying an e-book from a vendor for $100 or so, who has never made money in his life and get down to your bookstore and get some forex education from traders who have walked the walk - rather than simply talk the talk!
Of over 600 books I read, I have picked six that are essential reading for any trader and you can get them for $100 bucks or so, which could be the best money you ever invested.

So check out the books below and make them part of your forex education.

1. Market Wizards - by Jack Schwager
Interviews with the top traders in the world. A look at everyday life of people who make a living trading – this is simply a classic and I still find myself visiting it after 20 years and re reading it.
If you can’t learn from such trading legends as Richard Dennis, Paul Tudor Jones, William O’Neil, and Marty Schwartz – then you can’t learn from anyone!

2. The New Market Wizards - by Jack Schwager
More interviews with top traders from around the world. This book is the same format as Market Wizards and brings together some top traders and again benefits from Schwager’s great interview technique.

3. Trader Vic–Methods of a Wall Street Master Victor Sperandeo
This is perhaps one of my favorite books and you will see why after reading it, he has been such a consistent trader and his focus on long term results, money management and long term trend following are essential reading - his “2B” test technique, it is worth the price of the book alone.

4. The Zurich Axioms: Investment Secrets of the Swiss Bankers – Max Günter
I picked this book up and read it in one sitting - an absolutely fantastic, if un-conventional book!
If you have accepted investment wisdoms such as diversify to make gains be prepared to re consider your view.
It’s the type of book that is so easy to read, yet gets your adrenalin pumping with every page, until you’re buzzing at the end and want to turn on your computer and trade!

5. What I Learned Losing a Million Dollars (Hardcover) Jim Paul and Brendan Moynihan
An inspiring story of a real person who lost a million and a half bucks and tells his tale, with great insight including, even contemplating suicide at one point. If you don’t think emotions get the better of you in trading this book will show you how they can.
There are too few books that tell us how to avoid losing money they all ocncentrate on how easy it is to make money and thats what makes this book so unique.
All the mistakes that forex and other traders make are outlined, explained, and amusingly told in this boo.
The book gives you an affinity with the author which brings makes his message even more powerful.
This book is not an outline of how to trade, but how to get the right mindset.
These are lessons about how we accept a trading loss, how to learn from losing trades, and finally how each of us can be tempted to rationalize losses.

6. Technical Analysis - by Jack Schwager
There are loads of books on technical analysis and this is simply to most complete guide you can get.
It’s more of a reference book than an entertaining read, but as with all Schwagers books there is a wealth of knowledge you can tap into – Everything you need to know about technical analysis is here and the fact that I picked over John Murphy’s work shows how highly I rate it.
So there you have it six different but essential reading for all traders novice or pro.
These six books together, present a great mix of forex education and I personally feel all traders should read these books.
I hope you enjoy the above books as much as I did and that they give you some great forex education and a head start in your quest for currency trading success.

Author: kelly Price
MORE FREE INFO ON BUYING SLOVENIA PROPERTY For all the facts on Slovenia and how to buy and Slovenia Property visit our website for a comprehensive resource of articles, features and properties at www.sloveniaestates.com
Learn more about kelly Price at www.sloveniaestates.com

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Forex Trading Strategy - The Ultimate Momentum Indicator for Huge Profits

Many traders in their forex trading strategy simply pick levels and buy or sell into them and hope they hold. This simply sees them lose, as they are hoping levels will hold and NOT acting on confirmation of price momentum to put the odds in their favor.
Here we are going to look at the ultimate momentum indicator that will help you time your trading signals with laser accuracy.

The momentum indicator we are referring to is the stochastic and it simply should be considered by anyone serious about making money in forex trading.

The logic
Of the stochastic is based on the assumption, that when a market is rising, it will tend to close near the highs of the session - and when a market falls, it tends to close near the lows.
Lets look at the calculation – although you don’t need to understand just as you don’t need to understand an internal combustion engine to drive a car – you can look at it visually which we will return to in a minute first:

The Calculation
The stochastic oscillator is plotted as two lines called %K, a fast line and %D, a slow line.
• %K line is more sensitive than %D
• %D line is a moving average of %K
• %D line gives the trading signals

It’s actually similar to the way a moving average is plotted.
Therefore consider %K as a fast moving average, and %D as a slow moving average.
The lines are plotted on a scale of 1 to 100 scale.
“Trigger” lines are normally drawn on stochastics charts at the 80% and 20% level – this indicates when markets are overbought, or oversold and a trading signal maybe generated.

Using Stochastics
The best way to get a feel for stochastics and how they can help your forex trading strategy is to look at them – you can see them free on many services and a good one is futuresource.com
The 80% value is normally used as an overbought signal, while the 20% is used as an oversold signal.
The signals are even more reliable if a forex trader waits until the %K, and %D lines turn upward, below 5% before buying - and in conversely, above 95% before selling.
The most reliable way to trade stochastics is to use the above as a warning sign and wait for the stochastic lines to cross with bullish or bearish divergence.

For example, buy when the %K line rises above the %D line, and sell when the %K line falls below the %D line.
Beware of short-term crossovers these can generate a false signal and cause losses.
The best crossover is generated when the %K line intersects, “after” the peak of the %D line.
Don’t worry if it sounds confusing it becomes much easier when you look at the set up on a chart service such as the one we referred to earlier and you will soon be getting the hang of them.

Why they are so valuable
Because they allow you to shift the odds in your favor instead of relying on hope when you trade into support or resistance you will shift the odds in your favor by knowing the strength of price momentum.
Stochastics are the ultimate timing tool for traders and allow you to enter your trading signals with the odds on your side. In any forex trading strategy you need to trade the odds and the stochastic is a powerful weapon that you can use for currency trading success.

Discover the stochastic indicator and you may be glad you did.

Author: kelly Price
MORE FREE INFO ON BUYING SLOVENIA PROPERTY For all the facts on Slovenia and how to buy and Slovenia Property visit our website for a comprehensive resource of articles, features and properties at www.sloveniaestates.com
Learn more about kelly Price at www.sloveniaestates.com

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