Are books about Forex useful and what do they teach?

May 28th, 2010

Popularity of Forex market is growing from day to day and due to development of the Internet and modern technologies currency trading became available for everybody. Thereby, many people with lack of experience and knowledge came to the Forex market. However, sooner or later every beginning trader faces the necessity of learning the basis of currency trading. So books about Forex will teach traders the essence of currency trading on the international currency exchange market Forex.

At present day, Internet carries a great number of literature on Forex trading – these are books on fundamental and technical analysis, books on the psychology of trading, books on capital management and so on. Thus, not only the beginning but also the experienced traders have a huge variety of literature on Forex to choose.

Below let us discuss a few categories of books on Forex, why they are useful and what every trader can find useful in them.

The books on fundamental analysis comprise the literature on economy, which dwell on different financial sides of not only Forex market but the whole global economy. Though not all books on the economy will be identically helpful, you should select only those who are destined for traders.

It is necessary to remember that in the process of trading not all traders keep to fundamental analysis. However, those traders who do, will have a handicap as due to the fundamental factors the international currency market starts to move more often. From the stated above it follows that even those traders who do not adhere to a based on fundamental analysis trade should definitely study the books on Forex fundamental analysis.

The books on technical analysis

The books on technical analysis are most popular among novices of the market. This happens because technical analysis is easier and in simple words deepens a trader into the principles of Forex trade. Exactly with reading these books the majority of traders begin their Forex work. Nowadays it is possible to find plenty of books on technical analysis in the Internet. Though there exists one disadvantage, connected with applying this analysis in trading process. Most part of the available books are too old, so a trader will not get the desired effect. Nevertheless it does not mean that technical analysis should be avoided, simply every trader using technical basis for operating on Forex should modify the applied strategies for himself.

The books on trading psychology

This type of literature should be read by absolutely every trader irrespective of his experience on the market. As it is psychology of a trader’s behaviour which can determine the traders correct actions and the correct schedule for the working day with no harm to health and your funds. Very often traders are making actions not in the accordance with the situation on the market but overwhelmed by emotions. The books about Forex psychology will teach you how to suppress your emotions without letting them into your trade.

The books on capital management

This section of Forex literature is very important and it cannot be omitted. Every participant of the market should study the books about managing the capital. These books help a trader to work out the maximally profitable and correct trading strategies. Moreover, this type of books is significant also because in the Internet there is not so much information devoted to capital management and reading it will not take much time.

Absolutely every participant of trade irrespective of his experience on the market should practice self-education. Analyzing Forex literature together with permanent practice will make your trading profitable and exciting.

Many of the described above sources of information can be found on the educational website of InstaForex Company – www.instafxeducation.com. This is the largest Forex library in pdf-files.

Added by Olga Vitkovskaya,
InstaForex Clients’ relationship manager

Mini-seminar of InstaForex Company was held in Johor

May 24th, 2010

There was the regular seminar held in Johor, Malaysia on May 8. The seminar was organized by the leading Forex broker InstaForex Company within the series of seminars 2010. Professional Forex lecturers of InstaForex Company Ismail Bin Mohamad and Asri Bin Mohamad and visitors had opportunity to discuss such topics as “Using medianline for high probability trading set up” and “Fundamental news trading”.

seminar-johor01

InstaForex educational seminar impressed by its friendly and constructive atmosphere of dialog. Everyone who visited this event on the 8th of May was satisfied with a lot of useful information.

InstaForex Company thanks all guests and participants of the seminar and invites everybody to attend our next arrangement.

Added by Dmitry Golynsky,
InstaForex
Development manager

Does the Japanese candlestick charting make sense?

May 20th, 2010

The Japanese technical analysis development was moving on during a lot of years. However, for a long time the Western world knew almost nothing about such popular technical analysis method as “Japanese candlestick charting” by means of which the Japanese traders and analysts have been running a financial analysis for more than 30 years already.

Opening the core of this kind of analysis worth saying that the Japanese candlesticks is a method which gives an opportunity to investigate the market condition for the present moment, in other words, consider the current state of the market. The Japanese candlesticks usage allows analyzing not only currency, but also stock and futures markets.

Methodically the analysis techniques based on the Japanese candlesticks is used above all for choosing the most suitable moment for making deals. However, if a trader has been practicing the Japanese candlesticks method for a long time, then the history of this method employment can introduce strategic changes into the general trading style of the trader.

Some experts of Forex market actively recommend to increase the Japanese candlesticks effect combining them with other indicators which are able to reflect the real financial markets situation strictly and clearly that will surely bring the highest results. But the analysis based on the Japanese candlestick charting can be a self-sufficient instrument for a trader. Actually, this method is more than autonomous and does not require additional “bells and whistles”.

The Japanese candlesticks have similar scheme with a bar chart.  As a rule, the Japanese candlesticks are used on the daily charts, it is caused by the fact that initially this analysis method was created and used for analyzing the day timeframe.  The meaning of this method comes from correlation of opening and closing prices during the same trading day, and closing prices of the previous trading day and opening of the next one.

Usage of the Japanese candlesticks charting together with other technical indicators as well without them will let each trader determine more accurate the current market sentiment and behavior.

More details on the Japanese candlestick charting are given in the book by John H. Forman “Candlesticks for support and resistance” where any currency player will get nuances and trade secrets of using this kind of analysis. The book describes over 50 different candlesticks and their combinations, in addition, you will know which from the technical instruments can be used with the candlesticks for achieving the most significant result, and which conversely will “dry” the effect of the Japanese candlestick analysis.

In the book you will also get the answers to absolutely all questions concerning the Japanese candles, besides, learning the book you will carry yourself with the new bounds of a technical analysis and graphically see how the Japanese candlesticks can bring success and profit on the international currency market Forex. Regardless of your experience and which market you work with: futures, share market, bonds, goods and currencies, John Forman’s book studying and further usage of these skills will make you successful on the market.

One more competent author John L. Person considering the technical analysis aspects carried out a research of the Japanese candlesticks charting in his book “A complete guide to technical trading tactics”.

You can download the books by Forman and Person devoted to the Japanese candles and other books covered all trading aspects on Forex market in “Library” section of InstaForex Company educational portal.

Added by Alexandr Demkin,
InstaForex Chief clients’ relationship manager

One more step forward our clients

May 18th, 2010

It is not a secret that InstaForex Company always strives to be closer to the clients and provide necessary information by convenient for every trader mean of communication. Despite the huge distance between the company and its clients, traders always feel broker’s concern. They have opportunity to get the most important and latest news about the company by means of Internet-communities and blogs. Today we gladly inform that InstaForex Company launched new projects in the cyberspace of the global network. Starting from this moment you can find company’s news, follow the analytical reports from leading InstaForex experts, monitor the contests results and view photo and video materials, posted in two new groups at Google and Yahoo.

Moreover, new micro-blog “Google Buzz” was established for your convenience. We will publish up-to-date economic news and financial indicators. Now you have the easiest way to get access to the necessary information: choose the portal you like and get the current news at first hand.

If you prefer to share your opinion, experience or discuss innovations of the company with people who thinks the same way, we invite you to visit groups located in the popular Internet-communities: FaceBook, Linked In, Yahoo-Groups.

If you do not want to waste your time or dissipate your energy on the necessary data search, then daily updated micro-blog at Twitter will become your provider in the world of economic news and fresh information summary from the financial markets.

Active users of blogosphere are offered to become readers of our blog, placed at the most popular blog-community LiveJournal.

Regular customers of video communities can daily familiarize themselves with up-to-date news of Forex world on the corporate channel of the company in YouTube.

Be a part of Internet-communities with InstaForex and you will always be kept up with the latest and the most important news of the company.

Added by Kirill Kuznetsov,
InstaForex PR-manager

Bollinger bands on Forex

May 14th, 2010

Bollinger bands are one of the trading indicators’ type, which is targeted to generate signals about the increase or the decline of volatility on Forex market. This indicator is developed for a trader to observe the tendencies on the market– whether it is calm or stormy.  If the market is even, the bands are converging, if the market starts to move, the bands are diverging.

Bollinger bands’ chart consists of three lines: in the middle – a simple moving average (SMA), higher is the upper band (SMA+2) and below is the lower band (SMA-2 standard derivations).

In order to calculate the indicator it is needed to compute a doubled divergence with the movement within a certain period of time, thereafter up- and downwards from the chart one plots the dots according to these calculations. In the result, there should appear a graph, resembling an envelope. The volatility ascend on the market will make the chart look diverging, and correspondingly, the lowering of volatility will be pictured as a converging envelope.

Bollinger bans are often used to recognize the moment when the price is ready to expand into a trend or, on the contrary, when a flat should be anticipated.

Bollinger bands have a few peculiarities from the analysis viewpoint. When prices start moving horizontally, and on Forex market there is no vivid trend, the bands are converging. When a new trend is forming, the bands are diverging. Thus, if the bands have been in the horizontal channel for a long term, a strong breakthrough should be projected resulting in a new trend.

Bollinger bands work well in combination with other types of charts. Though, taking a decision to open or close a position one should not consider signals of a single indicator. All your actions should be confirmed by numerous Forex indicators.

Bollinger bands are becoming more popular among other indicators; every trader using the technical analysis for his trading strategy, should know the way to employ it.

However, this indicator provides no precise signals for opening or closing positions on the basis of a price crossing the lines, but they can determine the borders, within which the price fluctuations can be analyzed by additional indicators. As a rule, together with Bollinger bands such indicators as the relative strength index, the MADC and Money Flow are used.

Added by Alexey Skachilov,
InstaForex
Clients’ relationship manager