A Good Forex Ebook Can Help You Make Money

What is a forex ebook and how can it help you master forex or currency trading so that you can make money? Maybe you have seen some ads on TV about this fast growing way of making money online, but did you know that forex trading is very risky? If you do not know what you are doing you can easily see your funds wiped out by a few bad trades. And that is where a forex ebook can be so useful.

Everybody needs some kind of training or guidance when they want to get started with something new,  and currency trading is certainly no exception. Like every activity or environment it has its own terms and references that can seem like a foreign language at times. Then you need advice on a ton of practical details plus a trading system that you can get started with.

There are plenty of books available and you may want to pick some up at the store, but a forex ebook has the advantage that it is downloadable. This means that you can get instant access day or night. Right after you buy you will be directed to a download page where you can get it and start finding out what you want to know right away. Plus, ebooks are often shorter than a printed book, so you do not have to spend so much time wading through a lot of words. You can read it on screen right there on your own computer and of course you can also print it out too, if you want.

A good forex trading ebook for beginners should cover all of the basics that you need to know to start making money from currency trading. This includes:

• explaining terms like spread, pips, bid and ask prices, etc,
• the psychology of trading, including discipline and emotional reactions,
• risk management,
• how to choose a broker,
• trading systems,
• technical analysis (charts and indicators),
• fundamental analysis.

Some ebooks also contain links to video tutorials where you can see how to apply the recommended strategies and techniques as if you were watching over the shoulder of the instructor as he does it. This can be useful for systems but keep in mind that broker platforms vary so what you will use may not look exactly the same. Still, supplementary videos are a useful bonus.

There are many types of forex trading systems. They can be short term such as forex day trading strategies where you will open and close trades in just a few hours or even minutes, or longer term systems where you will leave a trade open for several days or even weeks to make the most of a trend.

There are many good systems but none of them is perfect because the market is constantly changing. So the important aspect is to find one that fits your personality and your trading style.

You can also find forex robots that will trade for you automatically, following their own system. This can be great because you can make money on autopilot. But you still need to understand how the forex market works in order to set up your robot so that it makes profits rather than losses. So even if you plan to use an automatic trading system with a robot, pick up a forex ebook to take you through the forex trading basics.

Forex Profit Accelerator

Markets Lifeless as Traders Await Today’s GDP Reading

Markets are trading or expected to open flat this morning with traders expressing nervousness over the pending 2nd Quarter release of our Gross Domestic Product (GDP). Despite all the optimism having been thrown about in the wake of recent economic data; traders will face the stark reality of what it all means when the GDP gets released this morning. GDP is the sum total of all goods and services produced in our country. In other words it’s the bottom line result of all our economic data.

The current estimate calls for a preliminary 2nd Quarter reading of -1.5%. This is an unfavorable comparison to the first quarter where our economic contraction was only 1%. If correct it will have traders scratching their heads.

Today’s other report of significance will be this week’s Initial Jobless Claims. Wall Street expects to see a number of 565,000 versus last week’s 576,000. Core PCE Inflation is expected to have remained unchanged at 2%.

As for the markets; Silver remains unchanged at $14.25. Gold is $2.00 higher at $947.00. Palladium is $283.00 up $1.00. Platinum is flat at $1235.00.

Our day to day barometers are mixed and quiet. Crude is 52 cents per barrel lower at 70.92. The Euro is 28/100ths of U.S. cent higher at $1.4258. Over in the equities market the Dow finished the Wednesday trading day with a 4 point gain. This morning the index is being called to open 2 points lower.

On the geo-political front it appears the predicted public uproar surrounding the planned visit to New Jersey by Libya’s Moammar Gadhafi has already started according to a front page article in today’s Wall Street Journal. It’s sort of reminiscent of Iran’s Ahmadinejad visiting New York City.

Efficient Market Hypothesis: True “Villain” of the Financial Crisis?

Editor’s Note: The following article discusses Robert Prechter’s view of the Efficient Market Hypothesis. For more information, download this free 10-page issue of Prechter’s Elliott Wave Theorist.

When a maverick idea becomes vindicated, there’s a good story to tell. It usually involves a person (or small group of people) who courageously challenge the orthodoxy of the day — and, over time, the unorthodox yet better idea prevails.

A “good story” of this sort has surfaced during the current financial crisis. A chapter of the story appeared in a recent New York Times article, “Poking Holes in a Theory on Markets.” The theory in question is the efficient market hypothesis (EMH), which the article suggested is so hazardous that it “is more or less responsible for the financial crisis.” This quote tells you most of what you need to know:

“In the last decade, the efficient market hypothesis, which had been near dogma since the early 1970s, has taken some serious body blows. First came the rise of the behavioral economists, like Richard H. Thaler at the University of Chicago and Robert J. Shiller at Yale, who convincingly showed that mass psychology, herd behavior and the like can have an enormous effect on stock prices — meaning that perhaps the market isn’t quite so efficient after all. Then came a bit more tangible proof: the dot-com bubble, quickly followed by the housing bubble. Quod erat demonstrandum.”

In case your Latin is rusty, Quod erat demonstrandum means “which was to be demonstrated.” Its abbreviation (QED) appears at the conclusion of a mathematical proof. In this case, the massive financial bubbles of recent years are the proof that refutes the efficient market hypothesis, which argues that markets move in a “random walk” and are not patterned.

Similar articles in the financial press have reported the demise of the EMH. Just this week an Economist magazine blog included this bold declaration:

“No one has yet produced a version of the EMH which can be tested and fits the evidence. Thus, the EMH must logically be discarded, as a valid hypothesis must be testable.”

QED, indeed — I agreed years ago that the random walk was implausible. But I didn’t come to this view because of behavioral economists, although their work over the past decade has certainly been valuable. Instead, I was persuaded by the work of someone who first challenged the financial orthodoxy more than three decades ago, specifically April 1977. As a young technical analyst at Merrill Lynch in New York, his research circulated among several of Merrill’s clients. His name for these studies was the Elliott Wave Theorist: the April ‘77 study was a detailed analysis of the 1975-76 stock market, which offered this comment on the random walk model:

“If market moves are arbitrary (as the random walk proponents suggest), then internal components would rarely ‘make sense’ mathematically, and then only by statistically insignificant fluke occurrences. However, there seems to be enough evidence that mass psychology, as recorded in the Dow Jones Industrials, form patterns that are uncannily interrelated….At least this much can be fairly reliably stated as a result of this work: This idea that the market is a ‘random walk’ is probably false.”

Robert Prechter left Merrill soon after; he has published the Elliott Wave Theorist in every month since. Every issue has, in one way or another, “convincingly showed that mass psychology, herd behavior and the like can have an enormous effect on stock prices.”

So while there may be a good story to tell about behavioral economists, I trust you see why I believe there is a vastly better one to tell.

The “enormous effect” of “mass psychology” and “herd behavior” is exactly what explains the financial downturn that began in late 2007. Prechter’s Elliott Wave Theorist anticipated the crisis and warned subscribers beforehand. Likewise, he alerted them to the bear market rally that began last March.

For more information from Robert Prechter, download a FREE 10-page issue of The Elliott Wave Theorist. It challenges current recovery hype with hard facts, independent analysis, and insightful charts. You’ll find out why the worst is NOT over and what you can do to safeguard your financial future.

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Robert Folsom is a financial writer and editor for Elliott Wave International. He has covered politics, popular culture, economics and the financial markets for two decades, via print, radio and the Internet. Robert earned his degree in political science from Columbia University in 1985.

Initial Claims Expected to Show Marginal Improvement

Our day to day barometers are trading a shade lower in quiet trading. Euro traders are playing close to the vest in light of of the current economic data estimates. Last on the Euro $1.4216 down 27/100ths of cent against our Dollar.

Crude Oil is also changing hands in quiet fashion after yesterday’s stunning $3.23 surge in price. The last thing oil traders expected to see yesterday was an 8.4 million barrel decline in Crude supplies. Last on Oil $72.23 off 19 cents per barrel.

The metals complex inched higher in listless overnight trading with many participants choosing to stand aside until the release of today’s U.S economic data. Silver is up 7 cents at $13.97. Gold is unchanged at $943.00. Palladium is $278.00 up $3.00. Platinum is $4.00 lower and trading at $1238.00.

Initial Claims are expected to show marginal improvement with 550,000 first time claims for unemployment versus last week’s 558,000. Leading Economic Indicators which projects the expected rate of economic growth 6 months in the future are estimated to clock in +.7%, same as last month. The Philadelphia Fed index of Manufacturing is expected show a reading of -2 compared to the prior reading of -7.5.

In the stock market the Dow finished Wednesday with a 61 point rise in the aftermath of lower Oil supplies and despite worries about China’s economic condition. This morning the Dow is being called to open 16 points higher. On the domestic front contentious health care reform continues to be front page news nationwide.

Friday’s economic calendar:

U.S. Existing Home Sales
Canadian Consumer Prices

Plunge in the Weekly Oil Supplies Sent Crude Soaring

The metals reversed course after an unexpected plunge in the Weekly Oil Supplies sent Crude soaring by $2.56 per barrel lifting the metals in the process. This week’s Oil Inventories clocked in with a decline of 8.4 million barrels. Needless to say traders scrambled to cover their short positions and go long the entire energy complex. Last on Crude $71.75.

The surge in Oil put pressure on the Dollar as well. The Euro is currently up 1.25 cents against our Greenback at $1.4243.

Stocks led by the energy sector bounced from an 80 point Dow loss to an 83 point rise on the day. Traders rationalize the drop in Oil supplies as meaning greater demand. Greater demand implies a stronger economy. Maybe!

As for our metals; Silver ended with a loss of 15 cents at $13.85. Gold erased it’s losses ending the day $3.00 higher at $941.00. Palladium finished the day unchanged at $275.00. Platinum down $2.00 to close at $1230.00. Volume was moderately active.

Traders will now ponder tonight’s Asian open hoping to see the some stabilization in the their markets. As for tomorrow the economic calendar resumes with the Weekly Initial Jobless Claims, Leading Economic indicators, and the Philadelphia Fed Index of Manufacturing. At a glance the early estimates are calling for flat to slightly improving numbers.

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