Best forex and/or trading book you have ever read?

Would like to find digital version of -"The Psychology of Finance" by Lars Tvede

hi guys,

would like your feedback on this quote from ed ponsi's book "forex patterns and probabilities":

"Let’s assume for the purpose of this example that we are trading a currency
pair that has a 3-pip spread, since a spread of that size is very common
in the forex market.
Our trader just wants to gain 10 pips. That should be easy, right? It’s
understood that the trader will lose the spread (3 pips) upon entering the
trade. So, in order to turn a profit of 10 pips, the trader actually needs the
exchange rate to move 13 pips in his or her favor:
10 + 3 = 13
Now that we know what is required to create a winning trade, let’s see
what would have to happen to create an equivalent loss. This is how we
will determine the odds of success or failure.
In order to generate a loss of 10 pips, the trader would only need an
adverse move of 7 pips. This is because a loss of 3 pips is incurred immediately
upon entering the trade, again due to the 3-pip spread.
10 − 3 = 7
We’ve determined that our trader needs a positive move of 13 pips to
gain 10 pips, but an adverse move of just 7 pips will result in an equivalent
loss of 10 pips. The “raw odds” of 10-pip win versus a 10-pip loss for this
trade can be expressed as:
13/7 = 1.857 : 1
The odds of success in this case are 1.857:1, or nearly 2:1 against."

so... he comes up with a 13/7 ratio due to the fact that he takes into account the 3 pip spread for the buy AND the sell. but i figure the spread should be used on only one calculation to come up with a 10/7 ratio, as calculating it twice effectively doubles the spread to 6 pips.

i would like to presume that i am missing the point somewhere, i would be grateful if you could show me where? or is it a brain fart on ponsi's behalf?

regards,
beyazkus

http://forums.babypips.com/images/misc/progress.gif

The idea is to make a 10 pip win or loss. Since your spread is 3 pips, a 10 pip win requires price to move 13 pips from entry and a 10 pip loss only requires a 7 pip move. Hence a 13:7 win/loss pip requirement from entry.

I highly recommend this.

High Probability trading


Trading Without Gambling


by marcel link.

http://www.amazon.com/Marcel-Link/e/..._athr_dp_pel_1

dear eurotrash,

i did the calculations with actual dollar figures, and of course ponsi is right. thank you for leading me in the right direction.

regards,
beyazkus

"TRADING WITH DINAPOLI LEVELS ..." of Joe DiNapoli is my favorite book at the moment.

"Trading in the zone" of M. Douglas in my opinion has too hight rating... nothing special...

This book is especially good for new traders who havent yet spent years and thousands of dollars trying to learn how to trade .
I wish I had come across this book years ago when I first began trading .

Its called " The Universal Principles of Successful Trading " by Brent Penfold .

Read it and you should save yourself alot of time, money and frustration .


EZ

For newbies, the book "Forex Patterns and Probabilities by Ed Ponsi" is my top suggestion!!!

i forgot "Bird watching in Lion Country", by Dr. Dirk Du Toit. Provides a sound approach and methodology to currency trading, good both for novice and experienced traders.

I have read "High Probability Trading" but haven't read "Trading without Gambling".

I agree that High Probability Trading is a very good book. In my opinion that book has the same level of quality with "Trading in the Zone".

I have read this book. It seems very good and I plan to spend this weekend studying it more.

the best book for me is "Risk Control and Money Management "

Ohhh i love the title "Bird watching in lions country". It sounds like a novel to me about someone watching birds in a place where there are alot of dangerous animals around and he is kinda alone there too.

Anyway my favorite is Reminiscence of a stock operator (ohhh wow i spelled reminisense right first time in my life).
.

This is becoming a valuable thread..!

The best book I have read w.r.t. technical analysis is 'The New Science of Technical Analysis' by Thomas Demark.

Bit of a complicated read and there will be sections which you will want to re-read but this dude has spent some serious time analysing the markets and this book is a testimony to that!

I'm about half way through 'Getting Started in Currency Trading' by Michael Duane Archer and I ahve to say, for someone who had zero idea about Forex trading before I picked it up, so far I've found it really heplful.

Sorry Alexone for responding to you so long after your question. I have been absent from Forex Factory for several months. To answer your question, by mentor I mean by an actual full time trader taking me by the hand and showing me how to trade instead of trying to learn out of a book. But, you need to learn the basics out of a book first. Then let someone teach you that has been through the bad times in the market and can really show you how get through it the right way. I was losing money every month and was going to give up trading all together until I found someone that was willing to help me one on one. Since then I have been in profit for the first time in my life. I recommend you doing the same.

Six readings of "Reminiscences of a Stock Operator" may not be enough for everyone. I have read selected portions of this book for about 50 times or so. It is bit surprising why many people find it difficult to benefit from the concepts in this book. Probably becasue it requires some experience before one grasps Jesse's thoughts. This book offers everything required to develop trading skills.

Jesse's trading style may not suit everyone but his money management technique is excellent, it is just brilliant. Sometimes I doubt this technique could be the sole reason of his successes and violating this was the only reason for his failures.

"Trading in the Zone" provides concepts that are more relevant to currency trading, i.e. looking at the probabilistic outcome of several trades rather than relying too much on speculation (prediction).

These two books are great, but one would still need an operating method whether it be based on fundamentals or technicals. This last part i.e. finding a trading method maybe the most difficult for a trader. Many may already have a viable edge but ignorant of concepts provided in the above two books. I could not find a viable method from one source, had to create one using pieces of knowlege gathered from many sources.

Hi 4xAddict,

Day Trading Forex ~ Joe Ross

Order flow,
Soca

Trading in the ZONE - Mark Douglas
Mastering the Currency Market - Norris/Gaskill/Bell

Both of these are very good books.