Forex trading beginner : What do I exactly need to learn ?

  • Thread starter Thread starter occulti
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What do you suggest me to do ?
Unfortunately not much, since I am quite good in stocks and commodities (Lang & Schwarz AG O.End 15(15/unl.) WF999DUCKS - LS9HDK - Zertifikate | comdirect.de) but I rarely trade currencies.
So what I can suggest you is:
1) to follow pingu's advice and start getting your fingers dirty with a real money
2) to read my book: (Amazon.com: Knowledge rather than Hope: A Book for Retail Investors and Mathematical Finance Students (9783000465208): Vasily Nekrasov: Books)
The book is not on FX trading but the approaches I describe are quite universal.
In particular, you will understand why (too much) leverage (a.k.a. overbetting) is a perfect tool to strike yourself on your head.
 
Unfortunately not much, since I am quite good in stocks and commodities (Lang & Schwarz AG O.End 15(15/unl.) WF999DUCKS - LS9HDK - Zertifikate | comdirect.de) but I rarely trade currencies.
So what I can suggest you is:
1) to follow pingu's advice and start getting your fingers dirty with a real money
2) to read my book: (Amazon.com: Knowledge rather than Hope: A Book for Retail Investors and Mathematical Finance Students (9783000465208): Vasily Nekrasov: Books)
The book is not on FX trading but the approaches I describe are quite universal.
In particular, you will understand why (too much) leverage (a.k.a. overbetting) is a perfect tool to strike yourself on your head.
Alright. Thank you
 
A good first start is to look at the STAD journals in TradeStation. There you can see various trading codes and other traders even provide their own code to code. Google "Emilio tomasani's book. I think I spelled his name wrong. He works through strategies. Quantstrat has a demo replicating all this code in the "Luxor.R" for example. Try to spend time optimizing variables and avoid overfitting. Do walk forward analysis.
 
Backtesting is one awesome way to learn trading. You can develop as many trading strategies as you want and test them on historical data to check if your strategy is efficient or not. This will give you an idea where you need to work on without having to lose money in the live markets.
 
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