SoP, Reading Material

Beginner Questions
1

Hi folks, I’m new to forex, I am reading through the school of pipsology, trading with forexct and I am looking for some further reading.

So far I am contemplating in reading the following books:

Bollinger on Bollinger Bands,
Forex Patterns & Probabilitie,
The Forex Trading Course: A Self-Study Guide To Becoming a Successful Currency Trader,
Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications,
Encyclopedia of Chart Patterns,
Japanese Candlestick Charting Techniques, Second Edition,
Currency Trading for Dummies,
(possibly some other dummies books as well)

(books not listed in any particular order)

As you can see these books are mainly technical and I am requiring possible books on fundamental analysis have you got any suggestions, thoughts and ideas on this.

As for the above books I have mentioned have you got any comments, thoughts, suggestions regarding these or other books.

Thanks

Tom

2

Add [I]Reminiscences of a Stock Operator[/I] to the list. Even though it was written over 80 years ago, it covers all the basic trading lessons.

3

Hi Jason,
Thanks for the suggestion, can you tell me who the author is please so I am looking for the correct book :-}

Thank you

Tom

4

Hi

Reading and learning is really important but make sure that you do take action too…you will learn loads from watching the charts and maybe following someone on this forum to see what they are trading and why.

Accept knowledge & don’t get to bogged down with jargon and loads of statergies - pick 2-3 and become an expert in those

Happy learning & profitable trading

Karen

5

Well so far, just as a side note, I started with $86 and now I have $96 after one trade.
Little steps :-}

6

Hi Tom,

It’s written by Edwin Lefevre.

cheers,

Jason

7

Thanks again Jason.
I have been able to secure a copy of it.

8

Yeah thats right!
Better to be good at a couple of strategies than to be a jack of all trades and master of none!

9

Well done - babysteps - I would recommend that you record all that you do & why you are doing it …ie
which strategy,
time of day,
how you were feeling when you took the trade - did you get in for the right reasons?
how you were feeling when you exited your trade - did you exit based on fear or strategy?
Did you come out of the trade too early - did it run on - where to?

By recording your actions & feelings you will learn loads - I analysis my actions daily & then weekly to check that I am not doing the same silly things over & over.

hope this helps
Karen

10

So far I have secured copies of the following:
Reminiscences of a Stock Operator
Fx Trading by Alex Douglas
Super Trader by Van K. Tharp

11

That is a great idea.
Sometimes I find I can not easily relay / record / feelings actions and describe my thoughts and/or decisions as sometimes my thinking is complicated (subconsciously of cause! think aspergers), though it may not seem so all the time.
This type of exercise will help in my articulation of these.
I may even post some of my thoughts, feelings etc relating to my trades.

12

I use fundamental analysis and technical analysis and/or a combination of each in my decision process.

13

One thing I did while studying the school was follow up each lesson with a google search of that subject. A world additional information is out there. I real benfited from the video results of the Google searches. But be aware theres a lot of garbage out there also. Good luck and good trading to you.

14

Well here goes.
It was the 10th September 09, I was watching the AUD/USD and the news, the ABS had just released its numbers on the Labour Force for August and announcing that the unemployment rate would remain at 5.8%.
Just prior the release the AUD was trading above 0.86 and just after it went down to 0.85 something, there was no expectation that the rate would be different, though I did not short it (maybe I should have).

I was aware that there was going to be an economic release in the USA overnight (my time) and I was certain it would not be beneficial to the USD.
So I went long and bought at 0.8597, placed stop loss at 0.8537 and a take profit at 0.8644, I watched for awhile (couple hours), it was trading just below where I bought and and I decided to go to bed.
While I was asleep it had broken 0.8600 and continued towards 0.8644 where I closed my position when I awoke.
I closed out at this position because I believed it could not rally any further and being the new kid on the block I wanted to take a profit and being excited.

Now looking back at these events I can see I made some mistakes.
Such as:

-I did not take a note of which Economic release was being released in the US. I thought I would remember. Wrong.
-as you can see I did not keep accurate and detailed notes on what the AUD had reached and its low I only remember it was 0.86 something and 0.85 something. Need to keep more detailed and accurate records.
-Emotions /excitement needs to be restricted so as not to interfere.

Can you see other errors I made?
Please comment.

Also I used the following arithmetic (which you may also comment on), is it the correct formula?:
I have a mini or micro account
Lotsize = 2500

buy 2500 @ 0.8597
2500*0.8597=2149.25

Sell
2500*0.8644=2161

2161-2149.25=11.75

Profit in USD
11.75/0.8644=13.59

Profit as a per cent
98-86=12

12/86*100=13.95%

spread=5pips

So it seems the amounts I mentioned in the other message I posted was incorrect.
So comment, discuss etc please :slight_smile: