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Here are some free stock market eBooks that I have collected over the years. You can download them for free on this page. This will provide you with tons of reading material for months to come!

Make fast and easy REAL money with forex system

Aug 14th 2010 at 5:59 PM

Aspects of FOREX
There are 5 essential aspects of foreign currency market. Understanding these sides of trading is crucial for arranging your FOREX trading experience.

Fundamental Analysis
is the process of market analysis. Fundamental analysis can be a part of any financial planning or forecasting. FOREX fundamental analysis deals with interest rates, central banks decisions, global industrial, economical, political and weather news. Fundamental analysis is the most natural way of making FOREX market forecasts.
Fundamental analysis provides for market depth data in comparison with all limit-based orders available from Forex broker’s clients. Market depth data will only be available if you trade with a reliable broker.
There is no unified way to determine the true market depth of Forex. FOREX is a decentralized market, it has no fixed centralized exchange, where all data could be gathered. Thus, it is impossible to measure the true market depth in currency trading.
The direction of the market - the so-called trend - can be determined. You should switch to the daily charts to identify the main trend. It should be seen without any indicators. In case with a ranging market, you have to seek the answer about the market trend from the higher chart – a weekly chart.
Trading news is recommended to determine the main daily trend. You should also review Forex Economic calendar, especially the Forecast column to analyze market expectations. If after comparison of the forecast and previous data you get the same suggestion about the market direction as the daily trend, you can consider trading it.

Technical analysis
relies only on market data numbers - quotes, charts, indicators, volume of supply and demand, etc. The main idea is the dependence of the future market technical data on the past market technical data.
There is no formula to tell whether tomorrow there will be a trend or not. There are a few things Forex traders may check in order to anticipate certain market behavior on a next day.
Check if there is important news to be released tomorrow for the currencies you'll be trading. If so, you can expect decrease in Forex market activity right before the news, or even starting from the early morning hours. A high increase of activity after the news hours is a result of market being shaken out, a new or an old trend being identified, confirmed or changed, and as a result, every Forex trader would be looking to join in.
Another factor that could help to judge about the market trending conditions tomorrow is a price approaching near major support/resistance level. When this happen, price tend to consolidate, test and try before either turning back or breaking out. During such periods traders find frequent sharp price turns, increased volatility, but without price progressing much in either direction.
Another simple factor could be the angle of the Moving average. If the Moving average is flat, flows horizontally without significant incline to either up or downside, you can pretty much conclude that the market is flat. On this assumption it would be logical to identify price channeling boundaries and avoid trading with trend following strategies until price breaks out of the channel.

Money Management
is a set of rules which you develop to set your own trading style and amount of money you have for trading. Money management plays very important role in getting profits out of Forex.

  • Money ManagementTrade with Sufficient Capital.One of the worst mistakes that Forex traders can make is attempting to trade without sufficient capital. The trader with limited capital not only be looking to minimize losses beyond the point of realistic trading, but he will also frequently be taken out of the trading game before he can realize any sense of success trading.
  • Exercise Discipline.Discipline is probably one of the most overused words in Forex trading education. However, discipline continues to be the most important behavior one can master to become a profitable trader. Discipline is the ability to plan your work and work your plan. It is the ability to give your trade the time to develop without hastily taking yourself out of the market simply because you are uncomfortable with risk. Discipline is also the ability to continue to trade the methods and patterns even after you’ve suffered losses. Do your best to cultivate the degree of discipline required to be a world-class trader.
  • Be Aware.Never follow blindly by entering the market first, figure things out before plunging in. Do not be greedy, be patient and set realistic targets daily. Admit your mistakes and never commit them again. You should be open to learning. Invest your valuable time to truthfully and completely comprehend the complexities and fundamentals of Forex trading.

FOREX Trading Psychology

is crucial. You need to master your emotions to keep your trading performance under strict control of mind and intuition. Controlling your emotions in Forex trading is often a balancing between greed and cautiousness. Almost any known psychology practices and techniques can work for Forex traders to help them keep to their trading strategies rather to their spontaneous emotions.

  • Trading Psychology.There are some simple principles that are essential keys to unlocking the door toward becoming a millionaire, or at least gaining a little more than losing.
  • Have a Plan. Many traders do not realize that trading is more complex than it seems. It should not be driven by merely a hunch. A good trader is always ready with a realistic plan. This plan should include sophisticated research and examination of the currencies as well as stop and limit levels of the trade. This prepared plan should have an analysis of the expected upside along with the downside.
  • Cut your losses at an early stage and bó loyal to your profit earners. Some traders want to believe that their losses might still do well after a good waiting time. But the market moves against these non-profitable positions and makes them lose hundred of points, not recovering enough to sustain even if they do rise again. Do not be caught in the belief that every trade should be profitable.
  • Play Smart. Don’t let your emotions rule in trading. Always be objective with your decisions. While in the market, do not hope that it will move in a favorable direction just for you. Be sensitive enough to see the factors that may have influences the changes that transpired against the original analysis you had made. If the considerable signs are there, reconsider your losing position.
  • Do not overtrade.This is one of the most common mistakes traders make. Leveraging your account too high by trading far larger than before puts you in a very vulnerable position. Always analyze the charts correctly and use this information to derive at a sensible trading decision. One good tip is to limit your leverage at 10%; in this way, you won’t be forced to exit a position at a wrong time, before you even get a win.

Forex Brokerage

is the last essential aspect. Every Forex trader like any other professional needs tools to trade. One of these tools is a Forex broker, or an on-line Forex broker - a company which will provide real-time market information to trader and bring his orders to Forex market.

  • Brokerage.There are many FOREX brokers to choose from. Here are some things to look for:
  • Lower spreads save you money. The spread, calculated in "pips", is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time. FOREX brokers don't charge a commission, so this difference is how they make money. In comparing brokers, you will find that the difference in spreads in FOREX is as great as the difference in commissions in the stock arena.
  • Make sure your broker is backed by a reliable institution.Unlike stock market brokers, FOREX brokers are usually tied to large banks or lending institutions because of the large amounts of capital required (leverage they need to provide). Also, FOREX brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). You can find this and other financial information and statistics about a FOREX brokerage on its website.
  • Find a broker who will give you what you need.Forex brokers offer many different trading platforms for their clients - just like brokers in other markets. These trading platforms often feature real-time charts, technical analysis tools, real-time news and data, and even support for trading systems. Before committing to any broker, be sure to request free trials to test different trading platforms. Brokers usually also provide technical and fundamental commentaries, economic calendars and other research.
  • Choose the appropriate account type. Many brokers offer two or more types of accounts. The smallest account is known as a mini account and requires you to trade with a minimum of $250, offering a high amount of leverage, which you need in order to make money with so little initial capital. The standard account lets you trade at a variety of different leverages, but it requires a minimum initial capital of $2,000. Finally, premium accounts, which often require significant amounts of capital, let you use different amounts of leverage and often offer additional tools and services.



Please to comment
Sep 4th 2013 at 4:09 AM by marty
Great,thx for sharing,mc.

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