Navigating the world of foreign exchange, or forex, might seem a bit overwhelming, especially for those hands-on investors out there. But hey, don’t worry! There’s a bunch of books about currency trading, from the basics of the forex market to some fancy strategies involving fundamental and technical analysis. Let me share the list of best forex trading books that have been through the highs and lows of the forex market and are still going strong
Best Forex Trading Book for Those Newbies
How to Make a Living Trading Foreign Exchange by Courtney Smith – $50.00
Courtney Smith kicks off ‘How to Make a Living Trading Foreign Exchange’ by giving readers a solid introduction to the workings of the forex market. However, the majority of this 2010 masterpiece is dedicated to the pursuit of making money, unveiling six strategies for cultivating a steady income through trading. Smith doesn’t skimp on essential risk management techniques and delves into the psychology of trading. What sets this work apart is Smith’s elucidation of his distinctive ‘rejection rule,’ a strategy crafted to amplify profits derived from fundamental channel breakout systems
Currency Trading for Dummies by Brian Dolan-$29.99
For those just dipping their toes into currency trading, ‘Currency Trading for Dummies’ stands out as a top pick. Packed with clear and easy-to-follow instructions on navigating currency trading and understanding the forex market, this book is not just for beginners—it’s a handy refresher for seasoned pros too. Often cited by the financial media, this gem, originally published in 2011, got a modern update by none other than Brian Dolan, the former chief currency strategist at Forex.com, and Kathleen Brooks, the director of research at Forex.com.
Day Trading and Swing Trading the Currency Market by Kathy Lien – $42.74
Kathy Lien, the powerhouse currency analyst, managing director at BK Asset Management, and a familiar face on Bloomberg, CNBC, and Reuters, has truly mastered the art of demystifying forex. In the third edition of her book, Lien takes a dual-pronged approach, blending theory and hands-on learning with a well-balanced perspective on fundamental and technical forex trading strategies, all geared toward consistent profits. Guiding readers step-by-step, she unravels the complexities of Forex fundamentals, exploring both long- and short-term factors influencing currency pairs. Plus, she sheds light on the technical analysis strategies used by professional forex traders in their day-to-day operations.
Forex Trading: The Basics Explained in Simple Terms by Jim Brown – $10.00
True to its title, this book is all about laying the groundwork for beginners. The author, a self-taught forex trader with a passion sparked at a private gathering for stock traders, breaks down the essentials in a way that’s crystal clear. Brown’s writing, while never condescending, assumes nothing about the reader’s existing knowledge. Covering the ABCs of forex and forex markets, strategies for making entries and exits, trading psychology, the nitty-gritty of forex pairs, where to trade foreign currencies, tips on choosing a broker, and even sharing his own trading strategy, Brown offers a roadmap that novices can follow or tweak to create a personalized trading journey.
Japanese Candlestick Charting Techniques by Steve Nison – $39.00
Steve Nison’s ‘Japanese Candlestick Charting Techniques’ is celebrated for introducing the versatile tool of candlestick charting to the Western world, now widely embraced by forex traders. This comprehensive book offers a deep and extensive education on candlestick charting, a technique applicable not only to forex but also to futures, speculation, hedging, equities, and anywhere technical analysis is in play. Nison’s work serves as an invaluable resource for traders looking to elevate their strategies. For those hungry for more insights, Nison’s sequels, including ‘The Candlestick Course,’ ‘Beyond Candlesticks: New Japanese Charting Techniques Revealed,’ and ‘Strategies for Profiting with Japanese Candlestick Charts,’ provide further exploration into this powerful charting method
Enhancing Trader Performance: Proven Strategies from the Cutting Edge of Trading Psychology
– Dr. Brett Steenbarger (Wiley Trading) – $46.00
Drawing on his firsthand knowledge of the challenges traders confront, Dr. Brett Steenbarger offers insights into overcoming these hurdles using performance and psychological strategies. In ‘Enhancing Trader Performance,’ Steenbarger guides readers on the journey of turning talent into trading skill. He unveils a structured process for developing expertise and illustrates how this approach can pave the way for achieving success in the market
The FX Bootcamp Guide to Strategic and Tactical Forex Trading
Wayne McDonell (Wiley Trading) – $60.00
Wayne McDonell, the go-to guy as Chief Currency Coach at FX Bootcamp, has put together a user-friendly handbook for navigating today’s Forex market. McDonell shows you the ropes on making savvy trades and walks you through the art of blending common technical indicators to craft a winning market strategy. His book lays out a practical trading plan and, in the process, dives into the real hurdles a Forex trader encounters—stuff like battling greed, dealing with fear, handling losses, and the occasional sense of isolation
Best Forex Trading Book for Developing a System
Trade Your Way to Financial Freedom by Van K. Tharp (McGraw Hill) – $17.00
In this bestselling second edition, Tharp provides traders with a distinct advantage in today’s market landscape. Covering all facets of the market environment, he introduces his new 17-step trading model. The book incorporates updated examples and charts, delves into reward-to-risk multiples, and enriches the reader’s understanding through insightful interviews with top traders
The Candlestick Course by Steve Nison (Marketplace) – $42.00
Nison, the pioneer who brought the candlestick technique to the West in two prior bestselling forex trading books, takes it a step further in ‘The Candlestick Course.’ Breaking down patterns of varying complexity, he engages readers with quizzes, Q&As, and extensive examples to test and reinforce their knowledge. Written in accessible and easy-to-understand language, this book provides expert guidance on the practical applications of candlestick charting, ensuring traders of every level gain a comprehensive understanding of this powerful analysis technique.
New Concepts in Technical Trading Systems by J. Welles Wilder Jr.(Trend Research) – $65.00
This comprehensive, fully illustrated how-to book unveils six original and definitive technical trading systems. Built on the premise that no single technical trading system consistently generates profits in both robust directional markets and non-directional congestion markets, the book provides insights and strategies for navigating diverse market conditions.
Best for Technical Analysis
Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications – $42.00
John J. Murphy (New York Institute of Finance)
Catering to both novices and seasoned traders, Murphy demystifies the concepts of technical analysis and their practical applications. He skillfully interprets the role of technical forecasters, elucidating how they leverage their techniques in the financial markets. Serving as an excellent primer for both technical and fundamental analysis, this book also serves as a gateway, directing readers towards other valuable sources of knowledge in the field.
Intermarket Analysis: Profiting From Global Market Relationships – $50.00
By John J. Murphy (New York Institute of Finance)
In his exploration of intermarket analysis, Murphy dissects the intricate relationships between global equities, bonds, currencies, and commodities. Written in straightforward language, he builds a compelling case for intermarket analysis, cutting through the noise of conflicting economic news and daily viewpoints. The result is a clear and current picture of the interwoven dynamics shaping the financial landscape.
Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves – $39
Kathy Lien (Wiley Trading)
In this second edition, Lien offers a diverse array of technical and fundamental strategies for achieving profitability in currency trading. Drawing on time-tested approaches, she equips traders with the tools to compete at the highest levels. The book covers not only technical strategies but also delves into fundamentally-oriented approaches, exploring intermarket relationships, interest rate differentials, option volatility, news events, and the impact of central bank interventions.
Best for Trading Psychology
The Disciplined Trader: Developing Winning Attitudes by Mark Douglas – $33.00
“Douglas emphasizes that successful trading is predominantly a psychological game, attributing 80% of success to mindset and only 20% to methodology. He identifies emotion as the adversary of triumphant trading. In his forex trading book, Douglas articulates that even with a modest grasp of fundamental and technical information, those who maintain psychological control will thrive in the dynamic trading environment
Trading in the Zone by Mark Douglas (Prentice Hall) – $28.00
Continuing from where ‘The Disciplined Trader’ left off, Mark Douglas dives deeper into the psychology of trading in his sequel, ‘Trading in The Zone.’ Focused on bridging the gap between perceiving market movements and executing trades, this book goes beyond the technicalities. Its purpose is to provide readers with profound insights into themselves and a deep understanding of the trading landscape, aiming for sustained success by unlocking the nuances of the trader’s mindset.
Best for Delving Into the Minds of Top Traders
The New Market Wizards: Conversations with America’s Top Traders by Jack D. Schwager (HarperCollins) – $12.00
In the follow-up to his highly acclaimed trader interview collection, ‘Market Wizards,’ Jack Schwager delivers valuable insights into investing gleaned from some of Wall Street’s most esteemed professionals. Sharing firsthand accounts of remarkable successes and self-inflicted setbacks from prominent traders and investors, Schwager illustrates that even small investors can sidestep pitfalls and optimize their financial endeavors. Through inside stories and practical advice, he empowers readers to navigate the intricate world of finance with confidence and wisdom.
Millionaire Traders by Kathy Lien and Boris Schlossberg (Wiley Trading) – $26.00
Lien and Schlossberg join forces to unveil a strategy on how to outsmart Wall Street in its own arena. In ‘Millionaire Traders,’ they introduce twelve everyday individuals who have metamorphosed into highly successful traders. The book delves into their insights and practical advice, centering on equities, futures, and foreign exchange, scrutinizing the diverse paths they’ve navigated to achieve substantial profits. Packed with a wealth of strategies, this book provides a versatile toolkit for making money in today’s dynamic financial markets.
Forex trading books provide invaluable insights and strategies, serving as essential guides for traders navigating the dynamic world of foreign exchange markets.
In conclusion, the world of Forex trading is rich with resources, and Forex trading books stand as indispensable companions on the journey to mastering the complexities of currency markets. Whether you are a novice looking for foundational knowledge or an experienced trader seeking advanced strategies, Forex trading books offer a wealth of wisdom, insights, and practical techniques to enhance your trading performance and navigate the ever-changing landscape of the financial markets.
