forex books

Psychology Forex books

Investment Psychology Explained - Martin J Pring

Martin J. Pring emphasizes in “Investment Psychology Explained” the important values of patience and self-discipline. He shows: how to overcome emotional and psychological burden in trading, how to stick to your plan, how to aware the crowd opinion and ignore it, how to use breaking news, company announcements, mergers and world events on the market, how to work with your brokers and how to evaluate your own psychology and design your own trading strategy. This is a good low price book to guide traders to the right mentality in trades.

Trading for a living - Dr. Alexander Elder

A professional psychiatrist teaches how traders mind merge into ones trading strategy. He explains from a psychological point of view the formation of Elliott wave, oscillators, moving averages, Market Logic, and point-and-figure charting. It also comes with a study guide that helps students to really understand the deep feeling of buyers and sellers. I’ve answered some wrong answers as well. Obviously the computer part is already out of day, the indicators chapter is also would not work anymore. He emphasized in this book a trend channel trading methods, very simple and is the fundamental basic of trading…well it’s up to you to follow, may be he is teaching something better now.

The psychological part in this book will definitely help you to understand yourself, the mass crowd and the loser (where is the winner?). I would not recommend the “method” (he called it) technical part to you because I don’t agree with the indicators, the computer, open interest, etc. that he used and the channel needs a better entry strategy. But the consensus indicators are good reminder (you can find some good consensus report in the Internet and trade against it, yes against it) and gauge to set your risk level (we can talk about that in the forum).

The money management tip for entry and exit in this book is good basic stuff for any trader to be successful. If you need the motivation, get a copy to read…

This book is quite expensive from my point of view, apparently, Dr Elder has developed a brand name …I think he is running some seminars as well. You can preview in Amazon.com the chapter “Individual Psychology” – 4. Why Trade? and 5. Fantasy versus Reality, see whether you like it before you buy.