With the explosion of Forex Trading in recent years, it is possible that you, like many others, have become interested or are thinking about starting out in this potentially lucrative field of financial speculation.

Often, it is tempting to read a little on the subject, fund an account and then promptly lose your trading capital. If this is done to the extreme you could find yourself at best feeling a little embarassed. Otherwise feeling quite poor, or at worse even in debt.

So, before doing so, it is most important to educate yourself in this field. There are several ways to do this:

  1. Self Education on the Internet - there are many websites on the internet devoted to Forex Trading where you can download many free articles on this topic. A danger with this is, that it is not always wise to believe something just because it is ‘written’. Care should be take to avoid scam artists and other unsavoury characters (the interenet is full of them - and they are not ashamed of what they do!)
  2. Attend a Seminar - This can be a very good way of learning a new topic such as Forex Trading. However, trading seminars are often perceived as being pretty expensive to us trading newbies. If you are considering going to one, then do lots of research about the company who is running the seminar (start by just typing their name into Google followed by the work ’scam’ - the results can be amazing!). Make sure they run a free introductory seminar and make a list of questions to take with you. Make sure they answer the questions satisfactoraly.
  3. Read some topical Books - This is my favourite way of introducing myself to a new topic after doing some initial research on the internet. Books can easily be bought from Amazon.com or borrowed from you library. It is also a cheap and enjoyable way of learning.

A very good source of independant information from your peers can be found at the MoneyTec.com forex trading forums. Here you can find information from traders who have honed their skills over the last few years.

Some books you may want to look at include:

Forex Made Easy : 6 Ways to Trade the Dollar - FOREX Made Easy gives you much more than just facts and numbers. This first-of-its-kind book provides you with the tools and techniques you need to stand toe-to-toe with the world’s most powerful traders and institutions, using FOREX trading like they have for years to both offset your market risks and augment your profits. Simple, uncomplicated, and filled with examples of individual traders using their smaller size to tremendous advantage in the institution-dominated FOREX, it will open your eyes to an opportunity that is unique, unprecedented, and bound to become a staple for traders looking for new sources of profits, and innovative techniques to protect those profits.

Forex Revolution : An Insider’s Guide to the Real World of Foreign Exchange Trading (Financial Times Prentice Hall Books) - Simply and clearly, Forex Revolution reveals everything you need to know to trade Forex hands-on—from fundamental and technical trading strategies to the unyielding discipline that’s essential to success. In this book, Peter Rosenstreich brings together insider techniques from all over the industry: Traders, banks, Forex firms, even the National Futures Association. You’ll find expert guidance on everything from handling 24/7 markets to profiting from the emergence of China.

Forex Trading Using Intermarket Analysis - This book explores the application of intermarket analysis to the foreign exchange market, the world’s largest and most widely traded financial market. Intermarket analysis helps traders identify and anticipate changes in trend direction and prices due to influences of other related markets as financial markets have become interconnected and interdependent in today’s global economy.

Good luck and happy researching ;)

[tags]forex, finance, forex+books[tags]