(Part 2) Best products from r/Forex

The best book i've ever read for Forex is this: http://www.amazon.com/Technical-Analysis-Complete-Financial-Technicians/dp/0137059442/ref=sr_1_2?ie=UTF8&qid=1398231664&sr=8-2&keywords=technical+analysis


Very in depth and goes over a lot of detail. 600 pages of great info. I also have heard that in a lot of broker sponsored events that introduces TA trading, a lot of them recommend that book, and i can see why. The only thing i would add in the book is consolidation zones and better opinion on Engulfing Candlesticks.

I honestly don't know of many books about forex, but I was able to read the first few chapters of Currency Trading For Dummies, and it seemed to be alright (covering the basics and such). However, if you don't want to spend money on books, check out these online forex guides (some may be linked in the sidebar, but they're good for beginners):

BabyPips

Forex4Noobs

Investopedia

DailyFX

You can learn a ton about the forex market for free online, but there's always stuff you learn while actually trading that they can't prepare you for in books/online.

Gonna cheat and list 2 books that influenced me most:

1. Free CME market profile guide: https://www.cmegroup.com/education/interactive/marketprofile/handbook.pdf
   
   
2. Schwager's Hedge Fund Market Wizards: https://www.amazon.com/Hedge-Fund-Market-Wizards-Winning/dp/1480590010
   
   The former is super helpful to develop your strategy and understand price action...the latter highlights different approaches and ways to think about the market based on real experience from some of the greatest traders.

If you want books, Buff Dormeier's Investing with Volume Analysis covers the VSA theory very, very well, and this is what really made it click for me. Though Coulling is very good at boiling down the theory to beginner's language, I think she feathered very lightly on why the logic works -- a gap that Dormeier's book fills nicely. The book also has a helpful list of indicators.

One more is Mark Leibovit's Trader's Book of Volume: it has a similar section on theory, and has a more thorough encyclopedia of volume indicators.

If you found this video interesting, I strongly recommend checking out Soros on Soros. which is a reworking and expansion of this series of interviews (I believe) into book form.

From a trading perspective, maybe only half of the book is worth the read, but that half does give some deeper insight into the world view and paradigms that he uses to generate his trading ideas. He's very much a global macro style trader who looks for system imbalances/dysfunctions, rather than systemic inefficiencies, and the difference between the two is quite critical.

It's also worth a read to disentangle some of the mythos that has sprung up around him, and how the man himself reacts to the whole 'man who broke the Bank of England' label. In particular, the trade wasn't even Soros's, it was Stanley Druckenmiller's. Rather Soros insisted they leverage the trade more aggressively. Additionally, he reflects on what more savvy traders already know - that he was ultimately just along for the ride on the back of a groundswell of market sentiment, with many other participants who were of a similar mind.

In some ways the infamy he gained from that trade is one reason why the people who won big off the SNB de-peg remain out of the public eye. The situation has a lot of similarities, and the SNB de-peg short was an even easier trade in some respects.

The book of Japanese candlesticks I read was specific but no to that extent more like how to give context to all the candles and their meanings. By any chance the book you read is this? the one I read on Japanese candlesticks is this one if by any chance you're interested.

I am not a big fan of Elliott's theory but a friend of mine advised me to read Elliott Wave Principle by Frost and Prechter.

I haven't read it myself but I was told that it is a really good book.

Speaking of which, I'm also reading another book that ties together the different markets that relate to Forex.

I'm starting to realize that the forex market is the bitch in the middle of equities, bonds, and commodities. So I really really need to understand all of these relationships so that I nab these good opportunities.

Only 20% of the way into the book, it is pretty long and tedious, but it seems to build up foundations before the rubber hits the road. But there's LOTS of building blocks.

A Three Dimensional Approach To Forex Trading - Anna Coulling

Point being, I think that if I have a better understanding of FA, I might be able to better spot these big breakouts.

EDIT: My wife asks me, "Why are you buying so many books???!" "Because I don't know enough!" :)

I was reading the book Antifragile.

There was a part where the author describes the major shock he had when first introduced into the forex trading pit. He describes the sheer cognitive dissonance watching traders who could barely write their names and appeared to have an education of a high school level trading so much money. He came from quant like style of trading and was expecting sharp traders. The reality was that these traders knew next to nothing about countries and generally not bright. However, these below average intelligence people were making money hand-over-fist in the currency market. It was such an entertaining part of the book to hear how he describe the reality of large traders.

His take away message is, theory and practice are two very different thing. Practitioners are the ones who wins, not the academics with fancy forumlas.

open a small accont, risk a little of if for each trade (less than .3% of your capital) and study the markets.
A good read for starters is this book, IMO:
http://www.amazon.com/Diary-Professional-Commodity-Trader-Lessons/dp/0470521457/ref=asap_bc?ie=UTF8

Good luck

My favorite forex "conspiracy theory" is about SNB playing with the market when they firstly put the floor in and then 4 years later when they removed it, just days after they reiterate it will hold. here is supporting evidence in form of a book Forex Case Studies I recently read :)

Here's the most important stuff:

Adam Grimes, free course, book and blog. Currently the best educator on technical analysis because he has a very good balance between a quantitative and a discretionary approach. Also extremely cheap, you only pay for the book. Be free to ignore his meditation and hand drawing stuff.

Alexander Elder, it's a bit more general and less rigorous, but has a lot of nuggets.

Chat with traders, a lot of guests are there to sell you shit and are incredibly boring, but you can spot them pretty easily once you listen to a couple of podcasts.

But what benefited me most was backtesting (the right way, going bar by bar). I backtested hundreds of trades and a few half dozen approaches/strategies, found something that worked, forward tested it, went live. That's what I would recommend because it saves you a lot of time, you don't need to spend a year with a $500 account to find out if your strategy works, and a lot of the psychological issues disappear.

3 parts to a trade.

Lot size.
Entry.
Exit.

Too much is focused on the entry - or probably more correctly not enough on correct lot size (risk) and exit (trade management).

A good trading psychology book is called Mean Markets and Lizard Brains - https://www.amazon.com/Mean-Markets-Lizard-Brains-Irrationality/dp/0470343761

This book would be his best work.

Not very well written, but a decent Divergence Trading Strategy

(Not mine...I just like Divergence trading)

As in http://www.amazon.com/Theories-International-Critical-Writings-Economics/dp/1848441037 ?

Do you have a link to any of the resources you mentioned? Thanks.

If you're a beginner I'd say stay away from that book. I've read it and I didn't understand half of what he said. I'd really recommend this book by Dr Van Tharp though.

Edit: Also do a YouTube search. There's a bunch of his videos there. Sometimes he gets a bit kooky though.