Best products from r/Forex

I’ve become consistently profitable for a little while, so here’s a brain dump of the things I wish I had caught on to slightly earlier. Sorry for the novel...

You can use investopedia to look up anything you don’t understand, but most any site or you tuber is going to try to sell you some sort of system. Honestly these are for suckers and the best thing you can do is just get in there, trade the minimum and garner up some experience. The psychology is different and you’ll likely have a lot more nerves once you have lost a handful of trades with real money. After a few wins you’ll likely be tempted to up your lot size but you really shouldn’t and instead pace yourself until you’re really confident. Stick with one or two pairings at first to really understand the tendencies, not all charts and indicators are created equal.

As far as books, my favorite is Reminiscences of a Stock Operator. It’s something you’d likely want to give a read or listen a few times as you gain experience. There’s a decent number of lessons in there that will resonate at different stages in your career. I’m on my third listen and still finding things I didn’t see as relevant at the time. https://www.amazon.com/Reminiscences-Stock-Operator-Edwin-Lefèvre/dp/0471770884

Other than that one book, I wouldn’t suggest spending any money on educational materials. Youtube should be sufficient, but don’t be tempted by the shiny offer at the end of each video. Instead try and just take the good. These guys don’t make money from trading, they make money from selling manuals. If they had a magic bullet, they’d use it and be driving their Bugatti or what have you instead.

Side tips: Trade, don’t gamble. If you’re unsure, it’s a gamble. Stick to your time frame and don’t rely on indicators to tell you when to trade. This can be tough, but you’ll understand how to use them as confirmation instead of signal in due time. Always take the time to understand what the indicators are telling you and always take news into consideration before making a trade. Sometimes the best thing to do is nothing. I use almost all of the default time frames to paint a complete understanding and as additional confirmation to what I think I should do (M1 M5 M15 M30 H1 H4 D).

Finally, if you feel like you’re most of the way to your profit target, I (personally) like to just take the guaranteed profit and move on to my next idea. The market can have unexpected changes in sentiment and it’s often not worth throwing away profit for the last 10-15% of a movement.

My mantra is “modest daily gains are best gains.”

anil is your best bet for free assistance. Specifically, watch his weekly videos but also he's made a few discussion videos. the most important is one he recently did that roughly covers Elliot Wave Theory. this gives some perspective and also the most important non technical lesson you can get for EW... don't get bogged down in labelling every wave of every degree. just see the larger structure and wait for entries. some more anil notes down the bottom as they would detract from the rest of what i want to stay...

if you haven't read the book you should as it quit good at getting the basics. and an excellent reference and shits over the free super summarised pdf that you can download.

Once you feel like you are correctly seeing the structure, obviously start trading it. if you are not sure if you are actually trading it right, research how to trade it or buy a book like this one.
Something else you can do is sign up for one of the wave analysis services for a month and see how your counts stack up to theirs. It will widen your perspective and glue real-life analysis.

Anil Notes:

• you gotta look past, though getting harder, him talking about the haters and how he was right. he says the haters don't affect him but clearly it does to a certain level. also i believe there is a rising ego that isn't helping.
  
• the the book by prechter, they don't talk about contracting flats at all, just running and expanding. anil points out that in forex contracting flats exist and are fairly common. this trips some people up.
  
• he rarely counts waves, no surprise on that really, but he does draw the waves out so you can actually count the waves if you want.he wont draw all degrees in each video but you get a pretty good idea.
  
• if you watch this video you get a better understanding of how his mind works through his life story. he's a highly educated and successful doctor who understands why education exists and how you need to know enough to think for yourself etc.
  
• anil says often that double three's are fairly common and they are. learning how to spot them will help you
  
• his trend lines, as he will say all the time, don't mean much. but they are quite useful as a tool to recognise when trend may be changing (e.g. wave has finished) and also possible confluence points for rob retracements
  
• he uses the extension of 127% (1.272) extensively as a target for impulsive waves (1/3/5/a/c) as opposed to 100% that most others use.
  
  
  a final note, there are a few people picking up subscribers that are posting elliott wave charts. treat all, even anil really, with caution and suspicion and a lot post how things are going to be and its completely different and wrong. a good example of this is the IgnatBorisenko guy. his wave counts look perfect enough to hang on your wall, but i've never seen him post an accurate prediction.
  

Yes and (shameless self plug) I even wrote a book about it.

You have the right idea, an automated trading agent is definitely a benefit in that it is emotionless, constantly running (assuming you have your machine, router and modem hooked up to a UPS) and can be profitable. I must stress the can be since it will not always be that way.

I've written mine completely on my own, no MQL EA development for me! To be honest I stay away from MT4/5 mainly because of the windows requirement (yes, I've heard of Wine but I'm not interested).

My approach is algorithmic with a touch of AI since that's what has worked best for me. I still tune my app every few weeks/months (it's been good lately, so I'm happy) but I do keep an eye on it. I use fixed SL/TP levels, but I've had them "dynamic" in the past.

If you're looking for a fool-proof formula for success, there isn't one. You need to trade manually and learn from your mistakes. Find yourself a strategy that works for you. My strategy involves MA crossovers with an RSI confirming it, but I also have a bunch of other "filters" with it like a minimum value for the crossover, a range that the RSI needs to be in to confirm a signal, etc. Coupled with a fixed SL/TP, it's done me well. The parameters for each are dynamic and found via my AI algorithm. Still, I came up with this strategy doing manual testing with it, followed by a boatload of back-testing.

PM me if you want to chat more.

Sorry for the lenghty post, I just rambled away a bit. The last paragraph isn't really that relevant.

I mean... from the technical analysis standpoint, all the stuff that people are saying now is the same stuff you can find in books that are several decades old (for example this one http://www.amazon.com/Technical-Analysis-Stock-Trends-Edition/dp/1439898189/ref=pd_sim_14_3?ie=UTF8&dpID=515wOX3jMzL&dpSrc=sims&preST=_AC_UL160_SR108%2C160_&refRID=14W13T8GE200TSE8CB95 ).

For general technical analysis, if you pick any book that is reasonably well acknowledged, you will be fine. For more "specialty" things like Fibo and Eliott, it varies from person to person, I don't use them so I can't help you here.

For trading psychology, I personally liked the Market Wizards books, some of the people interviewed in those books busted their funds and what not, but others are functioning until now just fine. My main take from that book wasn't the advice given by people, but the fact that there were so many different traders and all of their diverse trading styles were working shows that there isn't just one right way to do it imho. Mark Douglas is good aswell, www.chatwithtraders.com is similar to Market Wizards,

As for tutors and various websites, I can't name any I'd trust, I think it's just waste of money. Better spend that on a good book, stare at charts and try with a small account until it clicks. Most of the courses just sell you the basic technical analysis stuff for a huge price and to be honest, I don't believe there is one hidden trick that will suddenly make me a profitable trader. If there was and the guy selling the course knew it, why would he bother selling it to peasants and wasting time? Either put it online somewhere in a forum and enjoy the money or keep it to yourself and.. enjoy the money I guess. If somebody had a trading system to make boatloads of money, why would he bother selling it for €2000? The time simply wouldn't be worth it, if you could make 10x that in a single trade. But then again, I really think that trading in the end is about 20% strategy and money management and 80% psychology, so take my opinion with a pinch of salt.

> Is this really just a bullshit game of fluking the right pattern at the right time?

If you haven't read Market Wizards , you absolutely must. The point is not to be inspired by their towering successes, rather it is to realize that people can and do make it as traders. More importantly, it's realize that everyone does it differently. But it's important to work through the stories and see how hard it was for many people, it's not enough just to read what someone else says about it.

> Why are there so many?

Because humans are inventive and creative! The fact that there are so many ways of making trading work is something we traders should be grateful for, because it means there's likely something out there that suits each trader.

>How do you even begin picking a strategy or pattern or whatever to learn or study.

In some ways, I think you let it come to you.

Read about what other people do. Some of it you will automatically think is just BS, or recognize that your current life circumstances just don't let you test out that approach.

Some of other stuff will naturally appeal to you (and don't make the mistake of thinking because you want to do it, so does everyone else, so it can't be any good). Follow that up. Investigate it, learn a lot about it, throw away the stuff that doesn't work.

If someone, somewhere made an approach work, then you're in with a chance of making it work too, so long as it's a good fit for you. Your personality, your style of intelligence, your risk tolerance levels, your available time, your stress tolerance, your view on the market, your view on the way the world works in general. Don't worry about trying to find the best strategy, or the most profitable one, or the true strategy. You only need one that works for you.

This is very cool. Thank you

Edit: in case anyone is looking for more in depth information on any of the experiments or biases mentioned (Anchoring, as-if and other defences, loss aversion...), check out Behavioural Investing by James Montier.

Its a collection of papers, but put into a great format that is easy to read and very visual. It is also available on torrent sites.

That being said, I do hope to post some of the best ones on /r/forex in the near future.

Yeah, those fake prop shops are a bummer. Real ones are hard to get in to, so if an opportunity seems too good to be true, it probably is. There are lots of different prop shops that are totally legit, especially since you're already in London. I'm inexperienced and I hope to get into a prop firm too when I graduate in two years, so I'm not really qualified to give you that much advice. I can, however, direct you to /r/financialcareers. And if you're tired of erroneous advice and deceptive advertising on the internet, read books! I read one called Bite the Ass Off a Bear, and it taught me a lot about what to expect when pursuing a career in finance. It mostly focuses on hedge funds, but lots of advice can apply to anyone looking to be a professional trader.

Two things you can do that I'm also working on:

1. Build a robust track record. You need this since you don't have a degree. If your tenure as a retail trader has been less than impressive, then keep working at it until you can show that you're capable of growing an account and minimizing downside. I'm assuming you're at least kind of good, though.
   
2. Learn to program, then put it on your resume. Lots of places want you to know your quant stuff. I'm learning python on Quantopian. It's a steep learning curve, but once you get the hang of it, it's pretty damn fun- and incredibly useful.

Omg, there are so many to note... but here goes!

Better System Trader has loads of podcasts on youtube - from there all you have to do is download them using a youtube to mp3 converter.

As mentioned before you have Chat With Traders

Additionally there is also the Trading Heroes Podcast.

Below are all youtube videos you'll have to convert to mp3

This is a really good interview from Mark Douglas.

Ari Kiev - Becoming a disciplined trader.

Rande Howell - Mastering your emotions for disciplined trading. However, I summarised this earlier over here.

One that actually is an audiobook and can be found somewhere on the internet for free ;) is Trading for a Living: Psychology, Trading Tactics, Money Management by Alexander Elder

LPT: You'll find a lot of what you need on youtube, if it isn't there - I'm sure you'll be able to find a torrent.

Day Trading and Swing Trading the Currency Market by Kathy Lien (a free pdf is available online, I didn't link it so it doesn't get too much notice and is taken down) is also a great book to start with, for beginners especially. She goes into fundamental analysis to some extent, and there is a very helpful formal approach she discusses in Chapter 8, on how to develop a trading plan.

StockCharts has some great articles. There was one by Andrew Aziz, I think, on studying candlesticks in charts. Or it can be that people are just blatantly copy-pasting. I have seen Kathy Lien's chapters ripped off and claimed by some other authors as their own.

Do not trade unless you learn how forex works first. Remember, there will always!!! be opportunities. After you learn how trading works, open a demo account. Practice on the demo account, you will surely make mistakes like everyone else. Demo account is the best practice platform. Then move to a real account. After you are done with babypips, as people suggested, checkout a book called Trading in the zone. This book will pay dividend when you start trading. I think the biggest hurdle is managing risk. You will learn a lot. Good luck!

https://www.amazon.com/Trade-Financial-Freedom-Business-Books/dp/007147871X

This book has changed my perspective on everything. It helped bring peace into accepting what I can control AND MOST IMPORTANT, what I cannot control in the markets

1. It's a self fulfiling prophecy
   
   
2. It's proved well in history so it's got a good chance of repeating its self, not concrete (SR is the same)
   
   

3. Fibonacci is found in the wild https://www.amazon.com/Wild-Fibonacci-Natures-Secret-Revealed/dp/1582463247
   

   
   

   )

A good free ebook - http://www.rockwelltrading.com/day-trading/free-day-trading-ebook-1/

A good book to buy - http://www.amazon.com/Trading-Zone-Confidence-Discipline-Attitude/dp/0735201447

Trading In The Zone

Trading for a Living

The Universal Principles of Successful Trading I've read this one twelve times and not because it's fun.

Think and Trade Like a Champion by Mark Minervini

Higher Edge with a Single Candlestick

Everything Written by CrucialPoint in Here

Building an Equity Millipede

Just a Few

Tip: If you don't fully understand the writing to the point you can explain it to a 5 year-old, DON'T MOVE FORWARD. Keep reading and researching the particular topic until you can.

edit: FORMATTING

I am reading these ones now: https://www.reddit.com/r/Forex/comments/702czu/not_sure_if_posted_before_but_these_two_docs_are/?st=JEHRCHP2&sh=f1d7adf0

Really good.

This one is good too: https://www.amazon.com/Complete-Guide-Price-Analysis/dp/1491249390

Did you know Amazon will donate a portion of every purchase if you shop by going to smile.amazon.com instead? Over $50,000,000 has been raised for charity - all you need to do is change the URL!

Here are your smile-ified links:

https://smile.amazon.com/Trade-Mindfully-Performance-Mindfulness-Psychology/dp/1118445619

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^^i'm ^^a ^^friendly bot

Not the quantity but quality is important.

Read from practitioners and not book sellers.

Mental game is most important: https://www.amazon.com/Trade-Mindfully-Performance-Mindfulness-Psychology/dp/1118445619

I'm a huge fan of Market Profile, so here's a handy tutorial: https://www.cmegroup.com/education/interactive/marketprofile/handbook.pdf

Also a big fan of the directional movement index, so here's a tutorial on that: http://www.investopedia.com/articles/technical/02/050602.asp

Heard good stuff about "Trading in the Zone" in terms of covering trader psychology, but haven't read it because the psychological aspects never really caused me much of an issue (I work in real estate investments, so used to it): http://www.amazon.com/Trading-Zone-Confidence-Discipline-Attitude/dp/0735201447

Not a fan of ForexFactory, but this thread (Building an Equity Millipede) is pure gold: http://www.forexfactory.com/showthread.php?t=245149

I've heard opinions that Trade Mindfully (https://www.amazon.com/Trade-Mindfully-Performance-Mindfulness-Psychology/dp/1118445619) is much better. Anyone read that one?

I'm reading this right now. Starts from the beginning and is very clear. $5 on Kindle so it's not going to break the bank.

Forex For Beginners by Anna Coulling http://www.amazon.com/dp/B00GBHQXZC/ref=cm_sw_r_udp_awd_adv9ub1YDAASB
http://www.amazon.com/dp/B00GBHQXZC/ref=cm_sw_r_udp_awd_adv9ub1YDAASB

I'm not dure how else to explain it to you. You should read Trade Your Way To Financial Freedom by Van Tharpe. Terribly named book, but it's the first book all noobs should begin with. It does a decent job of watering down the concepts of expectancy and opportunity; expectunity. Noobs should avoid that babypips bullshit.

https://www.amazon.ca/Trade-Your-Way-Financial-Freedom/dp/007147871X

Read Fooled By Randomness By Nassim Nicholas Taleb if you really want to get into it. Best book for traders in my opinion.

http://www.amazon.com/Trading-Zone-Confidence-Discipline-Attitude/dp/0735201447

Buy this book. Read it repeatedly. This is a core piece of knowledge for any trader, it talks about the steps necessary to move yourself to an emotionless state that will help keep you profitable.

Emotions are the reason that traders lose money and fail.