Friday, April 23, 2010

Every potential forex trader should learn as much as possible before starting to trade. If you have any pretensions in making money from forex, you should invest in educational tools which can make you a better forex trader and reduce the risk of taking a big hit early in your trading days.

For starters, here are a couple of useful books you should read:

"Reminiscences of a Stock Operator" - by Edwin Lefevre. This is a classic trading text written in 1923 about trading legend Jesse Livermore and although not about forex, it's trading wisdom is timeless and this should be read by all traders.

"Bird Watching in Lion Country"- Retail Forex Trading Explained
This outside-the-box ebook explains various strategies including how to use "relational analysis" - using basic technical analysis coupled with fundamental analysis (rather than relying on just one or the other) which creates a more powerful synergistic strategy. Also helps you to create your own system using leverage, discusses the myths of "random" timing signals where many traders fall down, and using cost averaging trade entries.
This book is available here