This column brings up some thoughts about trading currency. It is written for somebody with university education, maybe in economics or computer science. What I am hinting at is that you should already have an analytical mind. If you don't have an analytical mind I can't give you any useful guidance. So this guide is not for people who want to get rich quick with some easy solution.
MONEY MANAGEMENT You need to limit your exposure and not over trade. In my view it is not useful to read any book on money management because it is so obvious. However, many people fail and that is due to psychology.
BASIC CHARTS The most common chart nowadays is the candlestick chart. You should buy Japanese Candlestick Charting Techniques, Second Edition by Nison. I haven't found anything else useful on candlesticks. Most other books are just repetitions. The technique is supposed to be a Japanese, but if you go to amazon.japan it will be this book that is the bestseller. You also need a book on different kinds of chart patterns. Encyclopedia of Chart Patterns isn't very good, but it does the job.
ELLIOTT WAVES You definitely need to read Elliott Wave Principle: Key To Market Behavior. This is the best book on the subject, but I wish the author would publish a revised edition based on having an additional three decades of experience. You also need to have a bit more on price projections using Fibonacci. Fibonacci Trading: How to Master the Time and Price Advantage is a good choice. To better learn the method you should subscribe to Prechter's intraday service for currencies. He also has monthly and weekly publications but I find them relatively useless if you want to learn the methodology. Also useful to read some newsgroups focusing on Elliott Waves. I use dailyfx.
WORLD AFFAIRS It does help tremendously to follow world affairs. Well, at least it does for me because I've been interested in world affairs for 20 years. Then you begin to see patterns that the market is slow to pick up. So read Financial Times as well as more specialised publications. Barbara Rockefeller has a daily morning newsletter that I find very interesting. It is good for beginners too because it focuses your attention on what the pros look at. World affaors is a whole different topic and I will not recommend any books. Maybe I will cover the topic in another column.