Bookstore at Forex
09/15/2007 12:00 am EST
At the Forex Expo, Tom Aspray, MoneyShow.com’s video content editor, chatted with the authors of two currency trading books that he recently reviewed on our Web site.
In the last few months Tom has reviewed a half dozen FX Trading books, and says that these two easily stand out from the pack. Here’s what he had to say:
If you have never traded FX, but are curious about it or planning to try FX trading, then Currency Trading for Dummies, by Mark Galant and Brian Dolan, is the book for you. I was pleasantly surprised by its factual, ‘no nonsense’ manner, as well as the significant amount of background information included – information that is not always covered in other FX books. I particularly found the chapter, entitled “The Mechanics of Currency Trading”, quite informative. The discussion of calculating profit and loss, which in FX is not as straightforward as it is for stock traders, and the advice to do this iteration before establishing a position, will help many beginning FX traders to survive. The explanation of rollovers is also easy to follow, and I would expect that many who are already trading FX will benefit from the information.
The second book I found quite valuable was a very technical work by John Person called Forex Conquered: High Probability Systems and Strategies for Active Traders. This book clearly presents many valid methods to trading FX . These methods include pivot point analysis, pivot point moving averages, Stochastics, MACD, and most importantly, candlestick charting. All are applied to the forex markets, with clearly labeled charts. One chapter is completely devoted to specific candle formations which John finds the most important. He also reveals how he uses moving averages of the pivot point values as a trading system. John repeatedly emphasizes the importance of a disciplined approach in his discussion of entries, exits, and stops. If you have actually traded the cash FX markets, his advice rings true, since I’ve known these markets to get away from a trader so quickly it gives them vertigo.
Person’s book is clearly more appropriate for those of you who are already trading FX or traders who desire some strategies to apply to either a demo or a real account. Currencies Trading for Dummies is a must read for those who have not traded FX but are considering it, but I also think it provides some little known facts for those who are already trading FX.