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© 1st Forex Trading Academy 2004
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FAQ
What kind of trading strategy should I use?
Currency traders make decisions using both technical factors and economic fundamentals. 
Technical traders use charts, trend lines, support and resistance levels, and numerous patterns and 
mathematical analyses to identify trading opportunities, whereas fundamentalists predict price 
movements by interpreting a wide variety of economic information, including news, government-
issued indicators and reports, and even rumor. The most dramatic price movements however, 
occur when unexpected events happen. The event can range from a Central Bank raising domestic 
interest rates to the outcome of a political election or even an act of war. Nonetheless, more often 
it is the expectation of an event that drives the market rather than the event itself.
How often are trades made?
Market conditions dictate trading activity on any given day. As a reference, the average small to 
medium trader might trade as often as 10 times a day. 
How long are positions maintained?
Approximately 80% of all Forex trades last seven days or less, while more than 40% last fewer than 
two days. As a general rule, a position is kept open until one of the following occurs: 1) realization 
of sufficient profits from a position; 2) the specified stop-loss is triggered; 3) another position that 
has a better potential appears and you need these funds.

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© 1st Forex Trading Academy 2004
56
Reading
SUGGESTIONS OF ADDITIONAL READING
Education is vital to the success of every self-directed investor. We strongly believe that educated, 
experienced clients are more likely to trade productively with us over the long-term.
We consider the following books to be essential reading on trading in the currency markets, and 
encourage you to consider them as such, regardless of your level of experience.
• 
Technical Analysis of the Financial Markets : A
Comprehensive Guide to Trading Methods and Applications
by John Murphy
• 
Technical Analysis Applications in the Global Currency 
Markets
by Cornelius Luca
• 
Trading in the Global Currency Markets
by Cornelius Luca
• 
Trading to Win : The Psychology of Mastering the Markets
(Wiley Trading Advantage Series)
by Ari Kiev

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© 1st Forex Trading Academy 2004
57
Reading
• 
The Disciplined Trader: Developing Winning Attitudes
by Mark Douglas
• 
The Psychology of Technical Analysis : Profiting from Crowd 
Behavior and the Dynamics of Price
by Tony Plummer
• 
Street Smarts; High Probability Short Term Trading Strategies
by Laurence A. Connors, Linda B. Raschke
• 
Market Wizards : Interviews With Top Traders
by Jack D. Schwager
• 
The New Market Wizards : Conversations With America’s 
Top Traders
by Jack D. Schwager

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© 1st Forex Trading Academy 2004
58
Reading
USEFUL LINKS AND ADDRESSES FOR THE ACADEMY
• 
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