Forex trading can be one of the most rewarding and most exciting financial trading experiences for the prepared investor. For those unprepared, forex trading can be a downward spiral progressively becoming more and more painful as you proceed to lose more and more money, without knowing exactly why. When you’re trading forex book yourself a ticket on a rollercoaster — it is just as exciting.
Very often, especially in the loose regulatory environment (or lack thereof) on foreign exchange, you the investor are often left to decide for yourself if forex is a suitable investment opportunity for you. It becomes your personal responsibility to try getting a forex trading education. One of the better ways to learn about forex is getting a good forex book that may share ideas about how to trade and how to analyse the various currencies before you make a trade.
You will learn many of the forex trading tools from a comprehensive forex book. There probably will be discussions on such things as Fibonacci retracement levels, or moving averages, or candlesticks, or about so many other techniques that only a forex book can think of putting together. You should be aware, though, that while reading a good forex book gives you a store of knowledge which is important to a forex investor, having read a forex book can never be considered sufficient to provide a sound forex trading education.
The forex trading market is far more demanding of one’s skills and knowledge than that. The disciplines and lessons of actually participating in the marketplace will probably give a more far-reaching forex trading education than any forex book can provide. On the other hand, your forex trading education will be significantly handicapped if you do not shore it up with the theoretical underpinnings that you can find in a fine forex book.
It would seem that the best approach to raise your level of preparedness for the gruelling forex trading market is to try test runs on how the market operates, through a forex trading website, where there are simulated retail platforms that you can practise on. Some of these online forex trading sites provide a very realistic simulation of the forex trading experience. You can then follow through on the lessons and forex trading experience you obtain from these online sites by looking up the subject matter in a good forex book.
For instance, if you are trying to learn how to do an analysis of the market through the candlesticks, you can read your forex book chapter on this topic, and then make sure you go through the simulation on candlesticks at the website. After your simulation sessions, you should go back to the forex book to reinforce the lessons. Your absorption and comprehension should be much improved.
Somehow, complex subjects generally are better discussed and more clearly explained in a forex book. It is not always easy to understand the theoretical foundations of technical analysis and fundamental analysis – which are the basic analytical tools used in forex trading, but you can get solid discussions on these two topics in a forex book. You also need to obtain sound information about risk management, and management of your trades as well as your trading funds. A forex book on these subjects can give lucid explanations.
If reading a forex book is too time-consuming, you can look up various websites that can offer a forex book in electronic format. The approach in these online forex books is usually simpler and easier to read. In some instances it will be possible to supplement the online forex book with video courses on forex trading.
Having gone through a good forex book will round out your forex trading education, which is crucial to your gaining confidence for your foray into forex trading.
This website is for informational purposes only and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or financial futures instrument or to participate in any particular trading strategy. The information presented on this website is for general information only. Although every attempt has been made to assure accuracy, we assume no responsibility for errors or omissions. Forex-, Stock- and Futures trading is speculative, involves a high degree of risk and is designed only for sophisticated investors who are able to bear the loss of more than their entire investment. Performance figures shown are from a live forward test and can be considered hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there can be frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully account for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
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