forex fire

Many forex traders look for advice from mentors or gurus who have done nothing or sell worthless forex robots all with simulated track records when they could pick up advice from some of the worlds best traders for $100 or less!. So who are these millionaire traders?

Well you will find plenty of them at your local online currency trading bookstore and here I have selected 3 trading books which every trader should read. Here you are getting advice for traders who have walked the walk rather simply talk the talk.

1. Trader Vic - Methods of a Wall Street Master (Victor Sperandeo)

Victor Sperandeo is one of those traders who piles up consistent gains year after year and he did it for decades. Here he shares his knowledge on everything to do with trading - from psychology, to trend following correctly, to money management.

He isn’t a forex trader but the insight he gives in to how to use technical analysis is simply superb.

His 2B method is worth the price of the book on its own and his rules for drawing trend lines is something any novice trader should take note of and he also looks in depth at Dow theory a method all traders should know about and I laughed out loud at the secret of the Gamboni and its so true yet, most novice traders fall into it.

2. The Way of the Turtle - (Curtis Faith)

While visiting a turtle farm trader Richard Dennis had a bet with trading partner Bill Eckhardt that good traders didn’t have to be born - they could be taught. To settle the bet, they recruited a group of individuals from all walks of life, trained them for two weeks then gave them accounts and they earned over than $100 million in less than four years.

Here the top turtle Curtis Faith goes through the experiment and explains why the Turtle method works in today’s markets and how to apply it. He also shares his insight on taking risk, relying on yourself and learning from your trading mistakes. OK You may not be as successful but it’s an inspiring read and one any trader can learn from - You don’t need to be clever to win and anyone has the opportunity.

3. Market Wizards (Jack Schwager)

One of the top selling investment books of all time and an essential book.

Schwager interviews 17 trading legends including Richard Dennis, Paul Tudor Jones, Ed Seykota, Marty Schwartz, Tom Baldwin and others. These guys are simply the best and Schwager has an interview technique that gets the best out of all of them.

If you can’t learn from these guys you can’t learn from anyone. Get it read and re read it, I have read this book maybe 20 times and always find something new, its just one of those books.

So if you want to learn from real pros pick up the above books, there the cost of a night out and will pay for them many times over and remember you’re learning from guts above who have made collectively billions and that’s a lot of money and a lot of experience which you can learn from too.

NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf’s, with 50 of pages of essential info on the best Currency Trading Books visit our website at: http://www.learncurrencytradingonline.com.

Many forex traders look for advice from mentors or gurus who have done nothing or sell worthless forex robots all with simulated track records when they could pick up advice from some of the worlds best traders for $100 or less!. So who are these millionaire traders?

Well you will find plenty of them at your local online currency trading bookstore and here I have selected 3 trading books which every trader should read. Here you are getting advice for traders who have walked the walk rather simply talk the talk.

1. Trader Vic - Methods of a Wall Street Master (Victor Sperandeo)

Victor Sperandeo is one of those traders who piles up consistent gains year after year and he did it for decades. Here he shares his knowledge on everything to do with trading - from psychology, to trend following correctly, to money management.

He isn’t a forex trader but the insight he gives in to how to use technical analysis is simply superb.

His 2B method is worth the price of the book on its own and his rules for drawing trend lines is something any novice trader should take note of and he also looks in depth at Dow theory a method all traders should know about and I laughed out loud at the secret of the Gamboni and its so true yet, most novice traders fall into it.

2. The Way of the Turtle - (Curtis Faith)

While visiting a turtle farm trader Richard Dennis had a bet with trading partner Bill Eckhardt that good traders didn’t have to be born - they could be taught. To settle the bet, they recruited a group of individuals from all walks of life, trained them for two weeks then gave them accounts and they earned over than $100 million in less than four years.

Here the top turtle Curtis Faith goes through the experiment and explains why the Turtle method works in today’s markets and how to apply it. He also shares his insight on taking risk, relying on yourself and learning from your trading mistakes. OK You may not be as successful but it’s an inspiring read and one any trader can learn from - You don’t need to be clever to win and anyone has the opportunity.

3. Market Wizards (Jack Schwager)

One of the top selling investment books of all time and an essential book.

Schwager interviews 17 trading legends including Richard Dennis, Paul Tudor Jones, Ed Seykota, Marty Schwartz, Tom Baldwin and others. These guys are simply the best and Schwager has an interview technique that gets the best out of all of them.

If you can’t learn from these guys you can’t learn from anyone. Get it read and re read it, I have read this book maybe 20 times and always find something new, its just one of those books.

So if you want to learn from real pros pick up the above books, there the cost of a night out and will pay for them many times over and remember you’re learning from guts above who have made collectively billions and that’s a lot of money and a lot of experience which you can learn from too.

NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf’s, with 50 of pages of essential info on the best Currency Trading Books visit our website at: http://www.learncurrencytradingonline.com.

Mommy I want that new video game! Dad I want the new I-Phone! Grandma I want the new Mac Book! Most parents have heard some variation of the above statements. Parents usually are the primary financial educators for their children. Time after time, I have seen young people receive sizable allowances or inheritances, without a base of knowledge in financial planning. Consider the following five points to assist the children in your life to have a responsible attitude about money.

1) Be a Role Model - The way parents spend money and the way children view money has a significant correlation. Consider discussing the family’s financial goals and plans with the children. How much you share is to your discretion, but include the younger generation in at least a portion of the monthly management. How parents deal with money issues, from the monthly bills to planning family vacations can be important in teaching the children money management and the value of money.

2) Encourage Savings and Investments - To encourage children to save money is one of the simplest ways to encourage a responsible attitude about money. This could include designating a portion of a child’s allowance to a saving account, or making gifts of cash directly to an account in their name. Parents can discuss the account statements with the children and introduce the concept ” paying yourself first”.

3) Develop a Sense of Financial Empowerment - It is important that parents develop responsible spending habits by well thought-out choices. In order to guide and direct rather than dictate the savings and spending. Take children on window-shopping trips to compare prices and products and adopt the mind set that every trip to a store is an exercise leading to a potential purchase. For example, consider limiting impulse buying by implementing a rule that prices and products are compared at a minimum of three locations.

4) Give Unto Others - Involve children in the financial decisions regarding philanthropy. By helping children contribute time or money to a charitable cause, it can teach them that money is important in ways others than personal consumption.

Reference: Matthew P. Bartolomei, Financial Advisor http://www.fa.smithbarney.com/mattbartolomei/index.htm

NOTE: you can freely redistribute this resource, electronically or in print, provided you leave the authors contact information below intact.

About the Author: Janie Lacy is a Mental Health Counselor who has a passion to reach out and help people grow and mature through difficult life situations. Janie has invested in the lives of others through public speaking, leadership training, educational instruction and small group ministry. Janie received her Masters of Science degree in Counseling Psychology through Palm Beach Atlantic University and her Bachelors of Science degree in Business Administration from the University of Central Florida, specializing in management. Her professional affiliations are with the American Counseling Association, the American Association of Christian Counselors, and the Florida Mental Health Counselors Association. For More Information please call (407) 248-0030 or go to our website at http://www.totallifecounseling.com/

1. Communication of essential info: thinking about the work of Edward Tufte, the idea is “the information quotient” of your communication. This is normally thought of in terms of graphics and powerpoint slides, but I think it works for text too. On a slide, every pixel that does not carry information should be eliminated ruthlessly. Example: on a bar graph, the box outline of the data area does not provide info, and by eliminating it, you are more easily able to focus on the bars. Headers and heavily tarted up graphics diminish understanding. What would our plans look like if we brought the same approach? Probably billboards, roadsigns and cartoons. See once, remember always.

2. Sense making in planning:

a. “Certainty is a far better friend than doubt”. Human cognition is programmed to seek patterns in moments of uncertainty. You don’t have a choice but to use an inappropriate tool for problem solving if that’s all you have. It takes a supreme act of will to venture into other processes that are not yet imprinted especially when you are in a pressure situation. Until you hit a moment of immediate realization that disaster is now inevitable, and the “rat brain” takes over and you act from programmed intuition. That’s what it takes to override the rational engineering mind: a trainwreck.

b. So, how do you train for the uncertain? Is there an algorithm for managing uncertainty just as effective as the military decision making process (MDMP) for semi-structured problems? Well, the bad news is that the Army is struggling exactly with this cognitive problem. That’s also the good news: that what makes sense to you and your experience base is as likely a method as any other, in particular when you appreciate that you will only effectively use a method that you sense fits you and your needs anyway. When we are on a movement to contact, we go slower, take shorter steps, deploy more scouts, and strive to make new connections, then proceed more quickly when we develop a sense of what’s going on. Try that same methodology in your problem solving. Begin the “not-MDMP” by asking people to characterize how they think the process should go (so it silently and in writing, otherwise the first person to talk will seize the agenda) Then use divergent thinking process to explore the suitability of the choices. Then converge to agree as a group on the technique to apply.

3. A useful process in this regard may be IDEO’s routine process for rapidly, consistently and effectively generating innovations that have market value.

The Ten Faces of Innovation: IDEO’s Strategies for Defeating the Devil’s Advocate and Driving Creativity Throughout Your Organization by Thomas Kelley and Jonathan Littman (Hardcover - Oct 18, 2005) That book is the best description of the IDEO process. IDEO really gets it too and their market place performance proves it.

If you choose a “the challenge of creative design” metaphor to approach your “not-MDMP” challenge for handling uncertainty, IDEO could be a useful place to start.

Ken Long, Chief of Research, Tortoise Capital Management
finance: http://www.tortoisecapital.com
essays: http://kansasreflections.wordpress.com

Independent research, combining technical analysis and behavioral psychology.
30 day free trial of reports and live trader chatroom.
Training, education, mentoring and coaching for professional traders.

Observing the movement of stock prices in Japanese Candlestick format and in real-time depiction is somewhat akin to watching the printout of an electrocardiogram in motion. One is seeing at first hand the story of an unfolding investor psychology. The first practitioner of Candlestick price representation, so many centuries ago in Japan, was no doubt seeking to develop a strategy or a system of tactics which would deliver to him a trading advantage which would assist him in planning his next moves. The technique of price recordation which he developed was based on the principle of expanding the “line,” or “bar,” on a chart representing the range of prices for a given time period so as to create a fattened-out line, or cylinder, in which the opening price and the closing price for that time period would be the upper and lower limits of the cylinder. If the closing price of the day were higher than the opening price, then the cylinder would not be filled in, or would be left “white;” whereas if the closing price of the day were lower than the opening price, then the cylinder would be filled in, or made “black.”

This style of price display presented a visual picture which was instantly recognized by the eye. It was easy to discern the mood of the rice traders which was in effect during that session; and, depending on the relationship of that particular Candle bar’s relationship to adjacent and nearby bars, the operator had a basis for making a prediction of the direction of prices for the next day.

Furthermore, when interpreted properly in the light of human judgment, the shape of a bar, especially when considered in conjunction with adjacent or nearby bars, was found to possess an ability to forecast a reversal of major trend.

After long and expensive historical research and translation of old records into English, the Candlestick approach to price charting was brought to the Occidental world about 25 years ago. In the early years, the Candles developed a following only very slowly. More recently, however, professional traders and investors, as well as those who do not trade or invest for a living, have begun to appreciate the advantages of the Candlesticks, to the point at which it seems reasonable to predict that they will be the standard within the foreseeable future.

What is so unusual about the Candles? In short, they form patterns which have meaning in terms of revealing traders’ theretofore-hidden investment rationale, and also in terms of allowing forecasts to be made regarding the future course of price action. Some of these visual formations or images are useful in foretelling the end of a trend and a possible topping out and rollover to the downside (if the major trend has been one of increasing prices) or of bottoming out and rolling to the upside (if the major trend has been one of declining prices).

At the top of an extended rising market, one of the more dependable reversal patterns is the “Evening Star,” a three-bar pattern in which the first bar is a tall white bar; the middle bar is a small “Star” which usually sits higher than the first bar; and the third bar is a tall black candle which usually sits lower than the Star. This formation is bearish in its implications; and the implication is strengthened if the Star is a “Shooting Star,” which looks like its namesake. At the end of an extended declining market, the inverse pattern can also appear; and, perhaps not unexpectedly, its name is the “Morning Star.”

The opposite of the Shooting Star is the “Hammer,” which appears only at the end of an extend downtrend. The Hammer is considered to be one of the more reliable predictors of a possible change of trend to the upside, especially when the next day’s closing price is higher than the closing price of the Hammer.

A “Doji” is a price bar in which the opening price and the closing price are the same. It is considered to be an indicator of a reining-up - of indecision - and of a possible change of trend, when it appears at the end of an extended move in either direction. A Star whose opening price and closing price are the same is called a “Doji Star.” A “Bearish Engulfing” pattern occurs at the top of an uptrend, and is marked by the “real body” (i.e., the cylinder in the price bar) engulfing the real bodies of one or more previous bars. The “Bearish Engulfing” formation is, quite naturally, bearish. Its converse is the Bullish Engulfing pattern, which occurs at the bottom of a downtrend; and, obviously, carries a bullish signal.

In Candlestick parlance, gaps (”windows”) are celebrated as being generators of support and resistance. Often, a comparison of price action before and following a gap clearly reveals the power of a gap to repel prices which venture within it.

The Candles are useful in any time frame, including day trading. Although they are valuable in foretelling reversals, they do not predict the extent of a move. They are perfectly compatible with all “Western” Indicators, and the synergy which often results from the Candles and the Western Indicators used together can be remarkable. Furthermore, the Candles are equally adaptable to use in every financial market, including stocks, indexes, commodities, and Forex.

Technical analysis of Japanese Candlestick price imaging is founded on the hypothesis that price action in the financial markets is not random or mechanical; rather, that it is patterned (if the practitioner is following Elliott Wave theory), and that it is the result of human emotion in action.

There are many practitioners of Candlestick analytics who make their services available to the investing public. Some of them publish investment advisory newsletters (alternatively called “investment newsletters” or “market letters” or permutations thereof); some offer instructional and training seminars, forums, and chat rooms; some publish books; and some of them offer multiple services and products. Their observation of the Candlestick world sometimes leads to a critique of the common wisdom as propounded by the media, and to explicit review of, and commentary on, the state of the markets. Expostulation of the Candlestick analytical technique is not commonly a part of financial news programs, either in the popular printed media or on television; nor are the particulars of Candle theory often the subject of study, research, investigation, or illustration for the benefit of the investing public.

This is unfortunate, because the information which flows from these concepts could often open up new possibilities for investors and be of value to them in their decision making process.

http://www.candlewave.com

Each author who writes on a technical subject has his or her own particular points of beginning as well as different outlooks and styles of presentation of the material. There are many good textbooks which explain in great detail the construction of the various Japanese Candlestick patterns as well as their trend-reversal predictive qualities. Some textbooks by certain authors point up the desirability of combining the utilization of standard “Western” Indicators with Candlestick analysis per se, in order to obtain a better understanding of the psychology which underlies investors’ and traders’ buying and selling decisions. In particular, those authors whose offerings also include seminars and forums tend to emphasize the total compatibility between the Candlesticks and the “Westerns.”

This effort often proceeds to the point of suggesting that the student incorporate into his analytical process the “Westerns” which he is accustomed to using and which he has found to be of the greatest value to him - but the suggestion stops there, without very much specific instruction involving particular Indicators. There seems to be something missing, in that the student is pretty much left to his own devices. Perhaps even more importantly, the full interplay between the Candlesticks and the Westerns, and the synergism between all of them, is never fully brought to the fore.

So, the Candlesticks alone, while a truly remarkable tool, are only half a loaf; and the Candlesticks plus only a passing or partial reference to the Westerns is just a shade better. The complete interplay between the Candles and the Westerns can best be shown by a computer program which affords the operator the opportunity to compare the Candlestick presentation with all of the Westerns which his heart may desire.

When that is done, the complete picture emerges, and the operator can come to a more complete understanding of the market psychology at work in any time frame; and the Candlesticks are elevated, celebrated, and brought in the direction of perfection as the finest foundation of technical analysis of the financial markets.

http://www.candlewave.com

Trading is the buying and selling of stocks or other financial instruments over short periods with a view to making a profit between the opening and closing of a position. By contrast, investing is the accumulation of assets over the long term. Although investors adjust their portfolios, this is part of a longer strategy rather than creaming-off short-term profits.

Investments consistently grow over the long term, investing is rational. But trading is closer to an afternoon at the races.

Wall St traders rank among the highest paid members of society, out-earning doctors, engineers, teachers and countless other seemingly more useful occupations. Trading is perceived as lucrative and glamorous.

Trading has become available to the little guy since the onset of the Internet.

There’s no shortage of cut-price brokers clamoring to execute your trades, computerized platforms offering to put your system on auto-pilot, and courses promising untold wealth for just a few hours a day in front of the screen. There’s all kinds of strategies - swing trading, day trading, momentum trading, scalping… in all kinds of markets - stocks, forex, options, future, commodities…

It all sounds too good to be true. But is it?

Markets are supposed to be efficient. That means that the price of any stock, currency etc is the right price taking account of everything that’s publicly known about it. If that’s so, how come the big boys can make big bucks? Maybe it’s because they know just a little more than you or me, or maybe because they can take advantage of any new facts that little bit quicker.

Trading is basically a zero-sum game. The act of trading doesn’t generate value in itself. Every dollar gained by someone is a dollar lost by someone else. Although historically cheap, commissions still take a chunk out of every trade. These can soon mount up if you’re making many trades a day, and remember every trade carries a commission going in and another coming out.

All this doesn’t mean trading isn’t for the small player, but it does mean s/he should proceed with extreme caution. There are individuals out there doing very well from trading, but there’s a good many that have lost their shirts.

If you’re still interested, accumulate knowledge, read widely, get involved in Internet forums… Decide what you’re going to trade and adopt, adapt or create a system.

Then open one or more practice accounts. Get to know the platform. Test your system. Tweak it until you’re confident you can make a consistent profit. Then, and only then, consider doing it for real. If you take the plunge, remember the psychology differs when you’re playing with real money - your money. Stay disciplined.

Johnny Finnis is editor of personalmoneymanagement101.com, a simple and unbiased introduction to finance and investment for ordinary people to make the most of their money. Have your say on our blog

It’s a fact that forex trading can be learned by anyone but most traders fail and the reason they do is they don’t understand forex trading psychology. If you do, you can join the elite 5% who make big consistent profits…

So what why is mindset so important?

The simple answer is forex trading is not just about method, it’s also about the discipline to trade your method.

If you don’t have the discipline to trade your system, you simply don’t have one.

So why is trading with discipline so hard?

The reason is simply, you will at some point face a string of losses and it happens to even the best traders.

Forget all the rubbish you read, about trading with little or no drawdown, you read from vendors - It’s not true. You are going to face periods of losses which may last many weeks and you have to keep going, despite taking losses and your emotions will be telling you to deviate from your plan.

Its here, that robust money management and discipline, will carry you through a losing period, until you hit profits again.

Discipline means you have to understand what you are doing and have confidence.

Most traders think they Can follow a so called expert and win, while most advice and forex robots sold online are junk, they cant even follow the few good advisors and forex trading systems because they don’t learn from the ground up.

When you operate in the forex market, you operate in an environment that presents these unique challenges:

- The market is all powerful and is always right and only you can be wrong

- Its anarchy and chaos and you will lose for periods of time

- Its an odds based game and you need to learn how to trade them

- There is no rule of law and of course you have to make your own rules to survive

- The work ethic doesn’t apply and work rate counts for nothing.

- Being clever also counts for nothing only being right does

In this chaotic and vicious world, your rules and discipline will help you survive and prosper. You can win but remember your method is only part of the equation it’s your mindset that is key.

As we said earlier anyone can learn currency trading- but most traders think it’s easy or they can follow others. They don’t ever bother to learn the basics to get confidence and discipline and they lose.

Forex trading isn’t a walk in the park, that’s why 95% of traders blow up.

Of course for the serious trader, this presents a great opportunity for big gains.

Forex trading psychology is the key, to putting you in the 5% of winning traders, who pile up the big profits and remember - the market doesn’t beat the trader, the trader beats himself. This is generally due to a poor understanding of forex trading psychology.

NEW! 2 X FREE ESSENTIAL TRADER PDFS ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf’s and a proven Free Forex Trading Robot and an exclusive risk free Forex trading Course visit our website.