Let me share some insights about how to use books and other sources of information, that grew out of my journey to profitable trading in the Forex. When I decided to learn how to trade, I made the mistake of confusing “information-gathering” with “learning”. So, I spent thousands on courses, software and books, only to become overwhelmed with all that information. It wasn’t until much later; I realized that books, courses and advice are only starting-points on the way to real learning.
As I began trading, my feelings swung between fearful extremes of “paralysis-by-analysis” and impulsiveness. For me, trading was neither pleasant, nor consistently profitable! Just when I needed to get out of a trade quickly, “p-b-a” would kick in and I’d lose more of my precious resources. I knew this approach wasn’t working and, if I wanted to become a confident and consistently profitable trader before losing all of my money, I had to stop trading scared and find another way. It dawned on me that, before all the courses, books and “advisers”, there was only the Market. After all, wasn’t the Market the source of all their recommendations? It was such a relief to get all of that conflicting info out of my head! That’s good news. The bad news is that the “price” of my new way to learn was counted in thousands of “hours”, instead of thousands of dollars! I didn’t care, though, as long as it worked. And, I did spend thousands of hours looking at the charts – at least 12 hours each day for about a year and a half! But, I kept at it because I remembered, from my training as an adult educator, that real learning only happens when each student interacts with and organizes information to produce knowledge. That’s what I did, using only price and indicators on the charts.
Here are a few examples of how you can begin to cut down the hours of observation and analysis necessary to create your own trading system: (Always do this manually, by eyeballing the charts, and document on spreadsheets.) 1. Find trends on the weekly charts (FXCM Power Charts show Weekly charts.) 2. Observe which indicators function as reliable “signals” to capture the majority of the move. 3. Choose the indicator combos that become obvious “signals” to you the second you see their patterns on the charts. (Be aware that you will prefer indicators shown on some charting services to others.) 4. Look for times when indicator combo did not accurately signal price direction and make adjustments to your system. Murphy's older book:
The Visual Investor is helpful for knowing which classes of indicators produce a balanced system.
Creating your system is one small part of the learning involved in trading successfully. The first, and primary, thing to consider is your attitude toward money and your level of confidence in your ability to handle it. For a free e-book filled with exercises to help increase your comfort level with trading, do a search for The Secrets To Emotion Free Trading by Larry Levin, or go to:
www.trading-naked.com/articles_and_Reprints.htm.
IMNSHO,
every book should be a workbook, every course should be a workshop, and every piece of advice should come with worksheets for the student. If not, the student should make his\her own, as I did.
Always remember that your main goal is to understand the infallible market. It is never wrong and you can’t control it; but you can learn to follow it. For that respectful attitude, the Market will reward you with abundance. Enjoy the journey and only put real money on the line when you can, consistently, practice-trade feeling only no excitement, no anxiety - only calm. Suzanne
Licensed Brokers
Re: what's a good forex training course/book?
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