Books play an essential role in helping ordinary people become excellent traders. They also play a great role in improving the skills of existing traders. Fortunately, there are hundreds of such books that will make you become a better trader. In this report, we will look at the best forex trading books you should read today.
Day Trading and Swing Trading the Currencies Market – Kathy Lien
Kathy Lien is one of the best-known forex writers and traders in our generation. She has authored several books and appeared in leading financial media like CNBC and Bloomberg. She also writes regularly at Investing.
In this book, she provides an in-depth look into forex trading, history of key pairs, what moves currency pairs, the best times to trade, and how to conduct technical analysis. In addition, she takes a dive into several trading strategies like breakouts, fading the double zeros, and carry traders. This book is perfect for new traders. Her other books like The little book on forex trading and Millionaire traders are also excellent books for traders.
Forex Trading: The Basics Explained in Simple Terms – Jim Brown
Jim Brown is a self-taught forex trader who has been in the industry for more than 20 years. He is also the author of several other forex trading books like Trading forex with divergence and MT4/5 and Tradingview high probability in forex. Also, Jim is a renowned forex trading analyst who regularly appears on various television shows.
In this book, Jim writes in simple terms about how the forex industry works, how to conduct fundamental and technical analysis, how to enter a new trade, strategies for exiting a trade, and trading psychology. He also gives a free bonus trading strategy that is aimed at new traders. This is a great forex trading book that is tailored towards new traders.
Octopus by Guy Lawson
Unlike the previous two books, Octopus is not necessarily a book about forex trading. Instead, it is a real-life thriller about Sam Israel, an experienced trader/hedge fund manager who was jailed for losing his investors’ funds. As such, this book is an interesting read for new and experienced traders. It is also useful for anyone with ambitions of running a trading hedge fund.
The book starts with Sam Israel, a young man from a prominent family in Wall Street. All he ever wanted to do was to become an experienced and wealthy trader. As a young man, he landed a job as a clerk for a Wall Street trader. Later on, he worked for a hedge fund and then decided to start his own. He registered his fund, raised money, and started making losses. After years of cover-up, he was arrested and sentenced to 22 years in jail.
This book will give you an inside look at the hedge fund industry, how it works, and some of the most common trading strategies that investors use. It will also teach you the role of psychology in trading and how to manage your expectations.
Currency trading for dummies – Brian Dolan
Currency trading for dummies is an excellent forex trading book that is recommended for people who are new to the industry. The book starts with a brief explanation of what the forex market is and how the industry started. The author then takes a deep dive into currency pairs and the key characteristics of a good trader. Other topics that he covers in the book are the importance of being prepared, the key characteristics of specific currency pairs, and managing risks in the market.
Unlike the first two books above, currency trading for dummies will not make you a good trader. That is because the author does not take highlight the specific trading strategies. Still, the book will introduce you to trading and give you some information about trading and risk management.
The new trading for a living – Alexander Elder
Alexander Elder is one of the most prominent forex trading experts in our generation. He is a well-known author and a forex strategist who appears in several prominent media publications.
He has written several books, including Trading for a Living, Come into my trading room, Entries and Exits, and How to take profits and cut losses, among others. Still, Trading for a living is the one I recommend to anyone who wants to start making money in the forex market.
Alexander writes in simple-to-understand language and gives excellent examples. He starts this book talking about psychology and how it impacts the market. He then goes to charting, where he looks at concepts like support and resistance, trends and ranges, and kangaroo trails.
Further, he looks at the role of volume in trading, a few technical indicators, and risk management. Most importantly, he looks at several trading systems like the impulse system, channel trading systems, and the triple screen trading system.
Volume price analysis – Anna Culling
Volume is one of the most important concepts in the forex market. Indeed, failure to look at the volume is one of the common reasons why many traders fail. Unfortunately, there are very few books on trading that focuses primarily on volume.
Published in 2013 by Anna Culling, Volume price analysis has become the best go-to-book for anything about volume. In this book, she starts with the role of volume in the market and then takes an in-depth look at how traders can use it in the market. She also looks at how to incorporate the concept of volume to technical analysis.
This book is recommended to both new and experienced traders. For new traders, it will give them the foundation of volume and how to incorporate it in their trading. Experienced traders not versed with the concept of volume will also find the book extremely useful.
Beyond Candlesticks – Steve Nison
Steve Nison is the prominent writer focused on candlesticks in forex and other assets. He has been observing and writing about these patterns for more than two decades.
In Beyond Candlesticks, Steve provides an in-depth look at candlesticks, their history, how they work, and how traders can use them to make wise decisions. He starts the book with the basics of the candlesticks and how they form.
He then moves to the candlestick patterns, where he distinguishes between single candles like hammer and hanging man and dual candle lines like the dark cloud cover. Later in the book, he also writes about popular Japanese concepts like the Kagi, Renko, and Three-Line break charts.
This book is recommended to new and experienced traders. New traders will learn more about how candlesticks are formed while experienced traders will get more details about the candles.
Final thoughts
Reading is an excellent thing to do for anyone who wants to succeed in the trading industry. In this report, we have looked at the seven most-important forex trading books that traders should read. Still, there are other books that we have not mentioned. Some of the most notable ones are Naked forex by Walter Peters, The black book of forex trading by Paul Langer, and Technical analysis of the financial markets by John Murphy.
