I first came across this book “Secrets of Forex Millionaires” by Yeo Keong See when I was travelling around Kuala Lumpur.
I’ve never seen a book like this in Australia so when I saw this in the book store, I bought it right away. Unfortunately Australia doesn’t stock that many Forex books so I tend to buy up in Asia lol.
This book is great for new people who want to start investing in Forex. It’s for people who have no idea on what to do, how to start, terminology and charting basics. The book is organised in a very easy to understand fashion and simple to apply.
Here are some take aways from the book.
Mindset of Successful Traders
Yeo covers the key mindset habits of successful traders. Trading can be very hard and mentally taxing. When you’re trading, you’re thinking about the market, focusing on each move and whether it goes in your direction or not, it’s emotionally exhilarating. Probably the worst part of trading is dealing with your losses. I know I have a hard time dealing with my losses since I connect my losses to loss of food, rent, freedom etc. However after speaking with professional traders, they all have this ability to decouple their losses and continue trading which gives them a win.
This is a great chapter that teaches you the mindset behind successful traders.
What is Technical Analysis
In this chapter, Yeo covers the basics behind technical analysis. This book is primarily focused on reading technical charts and understanding it’s movements. There are no fundamental analysis here and it’s focused primarily on reading price action charts in the market. Yeo introduces technical analysis and demonstrates how easy it is to read them through pictures and diagrams.
This chapter is a great read for people who have no idea what technical analysis is, let alone Forex.
In this chapter, Yeo goes deeper and covers chart patterns in the market. Once you have an idea behind technical analysis, you proceed to the next level which is understanding the overall picture of the market and it’s patterns. Yeo gives a few examples on the different types of chart patterns that you’ll normally find in the market such as double tops and double bottoms, cup and handle and more. I’ve used these chart patterns in the past and they definitely exist in the market.
Yeo covers an interesting part of Forex where you can “predict” the movements of the market temporarily. This is the only chapter that covers “fundamental” analysis and the rest is technical. Yeo uses a technique where you read the customers traders report (CTR) and you can anticipate the movements of the market based on the report. If the report influences a particular currency, you can predict that that currency will either be a bullish trend or bearish trend depending on volume in the report.
Overall, this is a great book that teaches you the basics behind Forex trading. I wish I read this book when I was starting out however I was living in Australia so I guess I’m out of luck on that one. Check out the book and prospect in the Forex market.
Stay Strong and Be Relentless.