Forex Books
Forex Books are texts and documents that provide traders information on forex trading for free or for a fee. A Forex Book generally gives value to a trader or broker by providing general information on trading skills, strategies, signals, systems and promotional material.
There are basically two types of Forex Books available. One is a normal book printed out, the one that you normally find in bookstores, and the other one is an eBook, meaning electronic book, which you can download via the internet.
The Forex market trading is a complex subject and gaining a full understanding of the matter may confuse newcomers. With the exception of Forex training courses, Forex books and eBooks are becoming one of the most popular ways of learning the dynamics of the Forex market.
It is important to keep in mind that Forex Books or eBooks are available in variety, and not everyone is an expert. It is wise to only purchase a Forex Book or eBook from trusted authors, traders and brokers.
Here are a few factors to consider when choosing good Forex book:
1. Author
A good Forex Book or eBook is usually authored by a well known and successful trader or broker. The author should be well respected in the trading community and the background of the author’s trading experience should reflect his success in the Forex Market.
2. CONTENT
The book should indicate its content and purpose to its reader. You should also consider if the author only wants to sell a product or if he really wants to educate his readers. Unfortunately the market is flooded with peopole just trying to make some quick cash, and will not help you.
Here are some Forex Books recommended for reading to get you started with the Forex Trading:
1. The Complete Guide to Day Trading: A Practical Manual from a Professional Day Trading Coach by Markus Heitkoetter
This is a three-part guide, professional day trading guide book by Markus Heitkoetter that lays out a simple, proven system for trading success. He covered topics from the basic essentials of trading to the actual process of making money in the markets.
2. The Currency Trader’s Handbook: Strategies for Forex success by Rob Booker
This is a Forex eBook about currency trading with money management strategies, trading systems, and other topics about the Forex Market.
3. The Complete Idiot’s Guide to Foreign Currency Trading by Gary Tilkin and Lita Epstein
This Forex Book is an easy-to-follow guide that starts at the beginning and provides basic information about Forex with definitions of market terminology and how to place your first order.
4. Currency Trading for Dummies: A reference for the rest of us by Mark Galant and Brian Dolan
This Forex Book offers a guide that gives you a step-by-step action plan for understanding and trading the Forex market. It gives practical guidance and savvy tips, trading fundamentals, and technical analysis.
Forex Capital Markets
Forex, short for Foreign Exchange, is the conversion of one currency to another in a real-time trade. As a business venture, you could potentially earn money easily so long as you have knowledge of the industry, and the required information necessary to make a favorable investment.
Let’s look at an example. Let’s say you exchanged 500 USD for 22,660 Philippine Pesos, resulting in a 45.32 unit exchange rate. After a few months the US economy goes down, and the USD value dropped to 44.88 in Pesos, resulting in you making money. If you wanted to make even more money, you could now invest in the weaker USD and wait for it to reclaim its value in the market.
After several days, as you have anticipated, the dollar has reclaimed its former value, making a new rate of 1 USD : 45.55 PHP (Philippine Pesos). Now that you have even more money to invest, you can buy another currency and repeat the process. Imagine if you had invested ten times as much as the example, or even one hundred times the amount. Hopefully by now you are beginning to see the Forex market’s potential.
Forex Capital Markets are so dynamic, fast-paced, and large that you can literally make thousands in an instant. The Forex market is open 24 hours a day, Monday through Friday. Many people prefer engaging in Forex trading more than any other, including stocks. There is less risk, the market is open longer, and your assets are less vulnerable. These are some of the very reasons why many investors see Forex trading as a direct competitor to the stock market. People all over the world are doing their best to get involved in this promising commercial undertaking. While this may be one of the oldest trading markets in the world, it has never been a very popular one. However in recent times, due to regulation changes and technological advancements, it has become one of the fastest growing industries of the 21st century.
Forex got its start in banks, involving mostly large sums of money. Nearly two decades ago, it opened its doors for businessmen and women to participate. Rates where changed to compete with banks, and private brokers started getting involved. All of these events made Forex what it is today. Now just about anybody can get involved and start making money the same day.
Foreign Exchange Platforms
A Foreign Exchange platform is computer software that serves as a channel for Forex market information used in online Forex trading. The software presents information such as the current exchange rates for currencies, charts, and data regarding the market. There are two types of platforms available. Historically the only option available was software you download onto your computer, that connected through a private network to display information. Although this option still exists, web-based platforms are becoming far more common. Most times you can download a web-based platform for free from various Forex websites, however some more advanced brokers may charge a minimal fee. Regardless, a Foreign Exchange platform is beneficial to those with internet access, and highly convenient for those not wishing to leave their homes.
FACTORS TO CONSIDER WHEN CHOOSING FOREX PLATFORMS
1. DOWNLOAD CHARGE
As mentioned previously, you can download some Forex platforms without a charge. However, those platforms that do have charges generally have additional features that can enhance your trading session. This is something to keep in mind when trading.
2. COMPATIBILITY
As with any computer program, it is important you check the system requirements before downloading, to be sure you computer can run the platform. Pay special attention to which operating system the program is designed for. Web-based trading platforms can generally be run on any operating system, however they may prefer a specific web browser. Review the download page thoroughly.
3. HISTORICAL DATA
When looking for a platform that fits your needs, consider the importance of your platform keeping a record of all transactions. An exact history of every trade is a must-have in this industry. Not only do you need these on a daily basis for real-time trading, but also on a long term basis so you can review mistakes.
4. TECHNICAL INDICATORS
The inclusion of technical indicators can be of great value when searching for the proper platform. It will show you all previous prices of a given currency, giving you extended knowledge when trying to predict the future value of a currency.
5. GRAPHICAL USER INTERFACE (GUI)
The platform you select should be pleasant to look at, and simple to operate. Any tools included in the platform should be easy to find, and utilize.
6. BACK TESTING
Back testing is a Forex strategy where traders are allowed to simulate past trading strategy based on previous data, to see its effectiveness in the future. Check to see if the platform you are considering supports back testing, as it can save you a great deal of money that may be lost in trial and error.
GETTING STARTED WITH FOREX PLATFORMS
Most of the Forex programs on the market today offer free trial periods so you can test their software, and it would be wise to download a few of them to take advantage of this. You can open up a demo account before you start trading with real money. This is a great opportunity to put your skills to the test to see if you come up with favorable trades.
When you feel that you are confident enough to trade for real money, start up with a micro or mini account with small leverages. Start from the bottom and work your way to the top. That way, you can almost guarantee yourself profit with minimal loss.