Most of the beginners out there are very comfortable starting off their learning through books. While some of the new generations of traders might rely fully on the articles and videos on the internet, there is still a huge group of people who prefer to learn through books. For them, it is important to know the books on forex trading so that they can go through them, list down the ones that they like and then learn forex trading through these books.
There are thousands of forex trading books but we have tried to narrow them down to a few good ones and also have added our views about them. There could be hidden gems or you might be comfortable with the list that we have given. It all comes down to what you are comfortable with.
The Best Trading Books for Day Trading
Many traders, especially the experienced ones, believe that day trading is a highly risky endeavor especially for beginners. Most of the time, this is true as day trading can be very stressful but also take a lot of time each day from the trader and considering these, it is indeed not advisable for beginners. But that doesn’t take away from the fact that there are still many traders out there who make a living out of day trading.
Forex for Dummies
This is one of the earliest and most simple books on forex written by Katheleen Brooks and Brian Dolan. Though the color and the name of the book are likely to remind the readers about the large set of dummies books, this one is quite different and very comprehensive as well and is definitely among the good forex trading books.
The authors of the book manage to explain even the most difficult concepts of forex in a very simple manner and this book is definitely a must-have for all those who are starting out on learning forex. They discuss the fundamentals of many of the major currencies and also the factors that drive the economies and the currencies of the various countries. These are the foundations for any forex learning that you should start with. Irrespective of whether you are going to do day trading or positional trading, this book is important for understanding the basics of forex and is considered by many as one of the best forex trading books for beginners.
50 Pips a Day Forex Strategy
This is a lightweight book that explains strategies and ways on how beginners can trade and make 50 pips a day. If you are able to achieve this as a trader, it is more than enough for you to make a very good living. It starts from the basics of forex trading and also talks about risk management which is one of the first things that you need to learn for you to survive as a day trader as this could make or break you as a trader.
This book is not only for beginners but intermediate traders can also learn a few tricks from this book. Though this may not feature among the top 10 forex trading books, this is a good place to start with and get ambitious for your future.
The Best Trading Books for Systems Trading
As a newcomer to the forex markets, you need to choose what type of trading you want to do and choose the appropriate forex market books. Whether you want to do day trading or whether do you want to do positional trading. Irrespective of which path you choose, you need to have a strategy to survive in this market. The market ebbs and flows and no one can control the market. You need to have a set of rules, not for the market, but for yourself and your trades so that you can dip yourself into the market, get what you need, and come out safely. So, we recommend some books that talk about strategies.
Investment Psychology Explained: Classic Strategies to Beat the Markets
This book is written by Martin Pring and is considered as one of the best forex trading books. Though it doesn’t talk about any specific trading strategies, it does discuss various mental states and emotions that a trader goes through while trading and how you should be able to control those emotions during trading so that you can emerge successful and continue to remain so for the long term.
It also discusses the various common mistakes that the traders make while trading and how these can be avoided so that the trader would avoid the pitfalls of trading. It also talks about the mindset that the trader needs to take control of the situation and of his mental state as well so that he can emerge successful.
Encyclopedia of Chart Patterns
This book has been authored by Thomas N. Bulkowski and is considered one of the most comprehensive books on chart patterns. It is a must-read for anyone who is into trading through technical analysis as it deals with hundreds of chart patterns and also explains each one of them in a thorough manner.
It also specifies the entry and exit points for each chart pattern and so all that the trader needs to do is wait for these chart patterns to appear and design an entry and exit strategy based on the definitions given in this book. It is definitely one of the books that every forex trader must have in his library and though it might be intimidating to study so many patterns right at the beginning, you have to remember that trading is a marathon and so you have a lot of time all through your life to learn about these patterns. One more good thing about these patterns is the fact that these patterns not only appear in forex charts but also in all different charts which means that the principles explained in this book can be applied to any market.
day trading and swing trading the currency market by Kathy lien
This book has been written by one of the most famous forex analysts who appears on various TV shows discussing the currency markets and now the trader would be able to read about her thoughts and strategies in this book. This book discusses both the technical analysis and also the fundamental factors that affect the various currencies and it is important for a trader to understand these.
But the trader should also keep in mind that he is comfortable with the material that he is reading. Just because the author is a well-known analyst doesn’t mean that we can associate ourselves with their wavelength and so this book, as with any other, may not be suitable for all traders in a general manner. So, it is better to go through this book and see how far you are comfortable with the material given in it before you decide to delve deeper.
The Black Book of Forex Trading
This book has been authored by Paul Langer and is considered a good book that can be used for reference in the long term once you are through the beginner’s stage. As the name suggests, this book can be used to refer whenever you are not sure of some concepts in trading or forex or when you are stuck with the development of your strategy.
Apart from the written content that is there in the book, there is also a link to audio content which can be found within the book and in this audio, the author will help the trader to implement various different forex trading strategies by walking through the process of development of such strategies. We believe that this book may not be exactly suitable for beginners and this book is generally used by traders at the intermediate or professional level.
forex for ambitious beginners: a guide to successful currency trading
This book has been written by Jelle Peters and is suitable for beginners. If you are just starting out on your forex trading journey, then this book is a good guide as it gives you a realistic approach to forex trading and also tells you about the pitfalls of jumping headlong into trading without understanding the length and depth of the market and how it functions.
The understanding of these is very important so that you have a solid foundation on which you can build your trading career and this is likely to last much longer than when you jump in headlong. It tries to delve into the point that any trader needs to be consistent first of all. Most of the traders start with what is called beginners luck and they get their first few trades correctly and begin to believe that they rule the market. But what is the key here is the fact that this is a marathon and so it is important to be consistent than to be widely successful for a short period of time. For this, the trader has to persevere, work hard, study and practice what he has studied for long periods of time until he is confident that what he has learnt will hold him in good stead and help him to profit from market moves. The foreign exchange market is vast and all you need to do is to get a tiny dip from it for you to be successful.
forex trading: the basics explained in simple terms
This book is from Jim Brown and is more of a later book than what we have discussed earlier. This is another book that is written specifically for beginners and as the name suggests, it tries to explain the market, the basics of forex, the economies and how the economy and currency of each country are tied with each other, and how the various factors affect the country,its economy and hence the currency.
It also talks about the risks associated with trading and even goes to the extent of suggesting some good forex brokers for beginners to start their trading careers in. This is one of the major problems in forex trading nowadays as it is very difficult to find good and reliable brokers. The book seeks to address such pain points as well.
In the above, we have listed down a few books that help with day trading and swing trading in the currency market. The financial markets are a beast and it is not easy to master them, even for experienced traders. You can come up with technical and fundamental strategies or a combination of these after going through the books listed above as each of them offers a lot of insight into the markets. All the books may not be suitable for all investors and that is why it is important to go through each and find the books that you are comfortable with.
You have to remember that is important to survive and prosper from the start so that you can keep yourselves going. Though it is enough to just survive for most, for some it is important to prosper from the start as well so that they can keep themselves motivated for the long marathon.
Many traders find themselves losing money rapidly due to the fact that they get ahead of themselves and believe that they control the market, which no one actually can. Try to be patient and understand that it is important to be slow and consistent rather than fast as this may lead to losses in the short term ad your account may also go bust. So keep these lessons in mind and ensure that your learning does not go to waste and also be ready for the long haul. If you manage to get through the difficult stage, then nothing can be as rewarding as trading in the forex market.