Forex most important some books for advanced learner....

In the Forex business it may be like to learn something  through books. Well a lot of books are printed and provide wide range knowledge of the currency business and about the market. This is very difficult to learn from the books exact Forex market. It is like exercise where by this a powerful trader grown up. And nowadays in the internet a lot of videos, e-books, trading plan available. But before one who want to gain a very deep Knowledge cannot avoid learning some most important books.

You may be noticing that some indicators are built in meta trader 4. These are helpful for market analysis. And also some powerful drawing tools which are used to just understand the current market view. But long time it works.

Now one is the burning question that are you want to learn these indicators/tools better than others? If yes then you should be learn from the books who has created them. It is better to learn from the indicators inventor books.

Here I have submitted some of these books for advanced learning. If you need these books then email me I will be sent to your mail account as soon as possible.

For Candlesticks:           Japanese Candlesticks Charting Techniques By Steve Nison.

                                           Profitable Candlestick Trading By Stephen Bigalov.

Dow theory :                     The Journal Of Finance Vol LIII No 4 August 1998.

Elliott Wave theory :         Applying Technical Analysis By Trading Techniques. Inc.

Forex Wave Theory          By James L. Bickford.

 

Bollinger Band :                Bollinger on Bollinger Bands By John Bollinger.

New Concept of Trading   By J. Welles.

Trading Chaos                   By Justine Gregory-Williams & Bill L Williams.

Dynamic Trading Indicators          By Mark W Helweg & David C Stendahl.

Technical Analysis : A Complete Guide to Technical Trading Tractics By John L Person.

Trade Line :                       The Best Trade Line Method By Patrick Mikula.

                                            Charting Made Easy By John  J Murphy.

Demark Indicators            By Thomas R Demark.
 

Psychology :                      Investment Psychology Explained By Martin J. Pring.

                                 

Forex strategy simplify an overview

In the forex trading all traders trade forex with proper trade strategies. So the question in come how do you build on trading strategies? Well thousand and thousand forex strategies floating on the internet. You probably watch these. Now it need to justify how these strategies works along with mind set. Mind set because all trader physcology is not same and not same their trading goal. Let us discuss the strategy point a to z.

Do you familiar market nature or structure? You may guess it is chart patterns. No market natures are 3.Bullish-bearish-consolidation/sideway.

You may be watch how a bullish trade run or how it behave from start to stop trending. Do you guess some clue there? If so you are intelligent enough.

If a bullish trending obviously it pull back or retrace this is market nature.

If market price is consolidation then it will break the consolidation level this is market nature.

Now you familiar with break or breakout price level.

So breakout can be your trading strategy. And breakout strategy is vary. They may be a candle to candle price breakout, or consolidation price level breakout, or chart patterns breakout, or support and resistance price level breakout, etc.

Now you again learn support and resistance level. This may  be your trading strategy. Within the support and resistance are you can be trade quite safe depending your take profit and stop loss and risk-reward ratio.

What is support and resistance and identify it?

What is a breakout ?

By answering this question you can able to suit a trading strategy.

How to select right forex broker

Today forex operations is door to door with the bloom of internet facilities and broker system. But in the 90's century it is not easy for participating individual in the  forex market due to large transaction costs. After that USA's regulating body CFTC passed bill and start brokering and online forex participating over the world. Now broker is doing on your favor forex trading by execution your orders within mini second.

                                                              Broker types

1. Dealing Desk  :

• DD forex broker earn money form spread offering to their clients. They send orders to the liquidity providers for their clients.

 2. No Dealing Desk :

• STP broker : Straight through processing system. They send clients order to # Banks, Hedge funds, Mutual funds,other brokers, other clients.
• ECN broker : Electronic communications networks. This type of broker sends orders for their clients through several market participants.Thus they are tight spread and they do not trade against clients.They earn money by small commission per transactions.

Now the question which broker or what type of brokers you should be chosen? Yeah lets answer as this are you a scalper or day trader? If you are a scalper you need to tight spread for small profit this is easy in forex market.Day trader may be not worry widen spread since they are positioned or swing trader for long frame.
Now turn on the facilities of these brokers.

DD facilities:  1 .Fixed spreads. 2. Trade against you. 3. Quotes are artificial. 4. Order filed by the broker etc.
STP facilities : 1. Variable speed 2. Trade between clients and liquidity providers 3. Price come from liquidity providers 4. Execution automatic or no requote.
ECN facilities : 1. Variable spread or commission fees 2. Trade between clients and liquidity providers or other clients 3. Price come from  LP or other ECN 4. Execution automatic or no requote.

Think where your broker is regulated?

USA: NFA and CFTC

UK : FSA

Australia : ASIC

Swiss : SFBC

Germany :BaFIN

France : AMF

Make sure that Your broker has either tight spread or small transaction cost.

Make sure you can deposit and withdraw money any time and smoothly.

Make sure that trading Execution is automatic.

Make sure that customer service is good.

Make sure that trading platform is vary e.g mt4 or mt5 or mobile trading etc.

How do you create a trading plan? Part- two

Hi traders or learners do you believe in "Holy grail" in the Forex market? Definitely not.There is no holy grail system of it.If you search over the Google what do you  find out...yeah a lot of trading system, all of them called best and more ...ha ha they think so but real Forex life is struggle and more than hard.And finally pips come through pain mean pressure of mentality.It's true.So what can you do now for trading,,, I hereby draw your full attention how to develop a profitable trading plan.. Let's start:

*First deter main to yourselves what kind of trader you want to be.. like scalping.inter day,swing,breakout etc.
*Find out which indicators do much for your chosen trading system best.
*Select your time frame and long time frame do more accurate analysis.
*Confirm that you can identify a new trade if hard first time then practice in demo for experience.
*Understand where to enter and exit trade.
*Define your trading loss risk by MM(Money Management rule,Professional risk 1-2% of capital)
*Use your trading system with exact rules and follow it unless it claim to you that it is profitable.
*Always record your trade write down your daily trading journal.

Now you need some good virtue for profitable trading:

*Rock solid discipline
*Able to control psychology
*Able to control more greed
*Able to control over trading 
*Analysis more than you think 

Preparing before entering trade:

*wait until your target entry come
*keep an eye how market behaving
*Know if news event is upcoming & when

How do you create a trading plan? Part- one

Do you have a trading plan for forex? If not please do attention that without a plan how do you doing a trade since forex is a highly risky market per second. Moreover you won't trade like a blind man. And finally, you won't lose your capital, is it?
So firstly you have done homework with a proper trading plan. So the answer to this a question to you that what type of trader you want to be... Scalper (like to trade quickly and profit or loss at a certain period) or inter day trader (trading with patient and long time means day or more)............................ This depends on your personality, time, patient, and tolerant. Because as a newbie you must be in loss and tolerance matter then working in your mind like a rocket force...Hah! Is this right? Yeah we're suffering  in this market more than we believe first. So you have to be survive firstly unless you are not a profitable trader!!!
What is your target with forex trading? Do you want 1% growth your capital within a week? Want to make double your capital within six months? Do you want to avoid mistakes for the day? Answer these own, then you will be able to target or fix your goal in forex business. This is important!!!!

Learn first there is no way to avoid money management rules. Again money management. Again money .... Professional risk their capital 1% to 3%.

The financial market is highly risky market and there is no guarantee for earning also it is not trustible!!!!

So clear that you need a trading plan. Now turn on about what type of trader you might to be:

*Scalper: Recognize the market moves quickly and entering trades very few seconds and exit trades with a few minutes. Obviously with small profit is their target. This is very thrilling. Scalper believes that market is  quick their direction and won't time to follow market more. They just impatient and won't analyze chart more hours! You need  a broker that offer tight spreed for scalping because you might not like that your small profit just eaten by broker that's offered high range spreed!!!!
If you want to be a scalper do trade highly liquidity pair such as E/U, GBP/U, U/J, U/CHF and of course exact time at the session overlap time means Asia and Europe (EST 2.00 at 4.00) and Europe to USA (EST 8.00 to 12.00 noon). Make sure that no news event then if so news can burn your capital means during the news event market move like rocket force...... Try to do trade one pair. It is safe.

*Interday trader: You have enough time for trading and like to one day spend for it.So you are a day trader. If so you may pass some violate turning points of trading that are the part of scalping. You hate scalping. You have much patience! During one day you like to loss or profit and close your trade. Day trader does some type of trading ideas like:
*Trend : They find out major trending and follow trading day long.
*Counter trade : They want to identify a new reversal of current trading so that they can enter a trade-in early for making some pips. So they go to small time frame about guess or find out reversal. This is called in forex market Multi time frame analysis. 
 
*Breakout trading: When is market ranging a possible breakout is coming to be in believed. So they trade breakout level when just identify strong support and resistance level and the market must be in a small range. This type of trader prepares themselves do both sides of breakout level trading since it is uncertain where will be market breakout.

*Swing trading: It is suitable for those whose has not enough hours of watching the market and they are not scalper but some hours at the end of the day (not everyday)  for watching the market. They identify medium trend and enter trades with a large stop loss and must be wanting to trade more than one day. They are calm and patient. Usually they do fewer trade.

*Position trading: It is suited for those traders whose has a lot of money and want to trade several months even a year round!

Is there any relation with forex and gold/oil/bond/security/com-doll/stocks?

The title may be guessed on you how does it work with Forex. Yeah! Fantastic! This is because you will be find more valuable information about monitoring these market and of course there is a close relation with Forex for those above the title.........

Gold is trading when usually investors think that the currency is just struggling with economic circumstances. So fund transferred where? Where will be USD spent out? The answer is just fund goes to buy Gold because it is safe them for investing.

So when gold prices rise meanwhile USD fall. But clear that Australia is 1/3 Gold producer and more than 25% bank reserve gold in  Swiss banks.

*You will be found AUD/USD and USD/CHF some jumps for catching pips.... But not all time..... When just confirmation Gold price rise or fall and of course London Gold Market, remember it.   

Black crack or oil prices monitoring carefully when the oil price rises USD fall  but not all time and USD/CAD is trade is then ok because Canada supply to USA nearly 2 million barrels per day.

When people become bored with currencies and not happy with tiny profit then may be attended with bonds.. Unlikely say that the bank does not provide good profit...so buying bonds is quite happening then...

And people do it high return bond means that higher interest is declared by the Governments.... to the bond buyers this is called bond yields. So if bond demand rises then for example with USA then USD price rises ....  

*take an eye the bond price at BondsOnline.com or Bloomberg.com

Stock  give to your gauge about how looks that economy at a certain time. If the stock market is quite good investing move flow over it and believe then that currency must be bull in power in nature.

*so look up these data at finance.yahoo.com 

News that can help you to understanding economic condition for forex

Are you forgotten fundamental analysis? Oh...no at all.Good.Now you can guess an economic condition of a certain country quite well. How? Well I just now send to you. Try to overcome learning Forex quickly ......................

Beige Book : Current Economic condition shows. The USA federal reserve board uses this report to determine about  interest rate policy at FOMC meetings  after the release the beige book a report  published.

Effect : If the beige book portrays inflationary pressure then the The FED may raise interest rates. If the beige book portrays recessionary conditions then the FED may set low interest Rates.

Published : Eight times  in a year. Two weeks ago the FOMC meeting at 2.00 pm ET on Wednesday.

Source : The Federal Reserve Board.

The Chicago Purchasing Manager’s Index ( PMI ) : It is related ISM index which is Very much in use for determining overall economic activity. If 50% above the grade then expanding factory Sector or below 50% indicate the opposite.

Published : Monthly. Current month last business day at 10.00 ET.

Source : Chicago Purchasing Manager’s Association.

Consumer Confidence Index : It is based on current economic situation survey on 5000 Consumer’s.

Published : Monthly. Current month last Tuesday at 10.00 ET.

Source : The Conference Board.

Consumer Price Index ( CPI ): It is familiar as Cost – Living-Index. It is referred the Core CPI which is one of the key measure of inflation for the US economy. Inflation occurs when core CPI is larger than expected. It measures the price changes such as food, energy, house rent.

Published : Monthly. Current month at 13^th 8.30 ET.

Source : Bureau of Labuor Statistics, US Department of Law.

Website : www.stats.bls.gov/news.release/cpi.toc.htm 

Durable Good’s Order: It is official calls as Advance Report of Durable Goods manufacture’s and Order.

Effect : If the index rise then production raise + employment get a job. And the other is opposite.

Source : The Census Bureau of the Department of Commerce

Published : Monthly. Current month the 26^th at 8.30 ET.

Website : www.census.gov./ftp/pub/indicator/www/m3/index.htm. 

Employment Cost Index (ECI) : It measures labuor cost including wages/salaries and benefits as well. 

Effect : It is useful in evaluating wage trend and risk of wage inflation. If wage inflation.Threaten’s interest will be rise then bond and the stock price will fall.

Published : Quarterly. Last business day of Jan , April, July, Oct at 8.30 ET.

Source : US department of labor. Bureau of labour statistics.

Existing home sales :

Source : The National Association of Realtors.

Published : Monthly. On the current month 25^th business day. 

Gross domestic products (GDP) :

Source : US Department of Commerce Bureau of Economic Analysis

Published : Quarterly. 3^rd / 4^th of the month at 8.30 am ET.

Website : www.bea.doc.gov/bea/dn1.htm

Housing starts and Building permit : It is relevant just residential investment which is near ¼  GDP. 
Source : The census bureau of the department of commerce.

Published : Monthly 16^th.

Website : www.census.gov./ftp/indicator/www/housing.html.

Industrial production and capacity utilization : Industrial sector represents 25% of GDP. It's this rate Up 85% then inflationary pressure is generated. 
Source : The board of governor of the federal reserve system.

Published : Monthly 15^th.

Website : www.federalreseve.gov/release/G17/Current/g17.txt 

Initial claims : Person whose claims to Gov. for the first time they are unemployment. So people claim so that job market growth.

Source : The department of labour of the gov.

Published: Weekly, Thursdays 8.30 ET

ISM Manufacturing Index : Its service is 300 purchasing nationwide under 20 categories.

Effect : It is considered as the king of all manufacturing indices.

Published : Monthly and first business day.

Source : Institute of Supply and Management.

Website : http://www.ism.ws

New Home Sales : It measures the consumer spending capacity of the certain countries' economies  Condition. If existing home sales then Good understanding guesses of economic condition.

Published : Monthly and last business day.

Source : The census bureau of the department of commerce 

Personal Income and Consumption:  US consumer spends 95 cents every Dollar and their income. So Corporate profit and economic sound look good.

Published : Monthly and first business day

Source : US Department of Commerce Bureau of Economic Analysis

Philadelphia Index :  Regional manufacturing index.

Published : Monthly third Thursday

Source : The Philadelphia Federal Reserve Bank

Producer Price Index (PPI):  3 types of PPI. Industry, commodity, and stage of processing.

Effect : It is identifying  food and energy for its monthly stability and  called as Core PPI. So inflationary pressure is created when core PPI is greater then expected gains.

Source : The department of labour of the gov.

Published : Monthly 11^th.

Retail Sales : The index measuring total sales of goods.

Published : Monthly 12^th

Source : The census bureau of the department of commerce.

International Trade : The report of Export and Import different of US goods and services. About 14% GDP is involved with Export and Import.

Published : Monthly 19^th.

Source : US Department of Commerce Bureau of Economic Analysis.