An experienced trader knows that Forex is pretty easy to understand, but hard to master.
We wouldn’t argue with that.
But at the same time, getting the basics right can be as difficult as working the Forex trading market like a pro.
We thought we’d dive into the best Forex trading books, to bring you a heads-up on what is worth spending time on.
#9 Forex Trading: The Basics Explained In Simple Terms
Jim Brown is an established expert on many different aspects of trading, but this Forex trading book has it all if you’re interested in learning the basics. It covers pretty much everything, but the simple and accessible structure and language make it an essential text for the absolute beginner. It is for that reason that we see it as one of the best Forex books available.
He’s been trading in Forex for over 14 years now, and was there back when traders were using manual charting, so he knows exactly what the ‘nuts and bolts’ of Forex trading involves, right down to the particular behaviours of each currency pair. His journey has taken him from those manual charts to the incredibly quick and challenging modern Forex arena.
Every single aspect of Forex for beginners is covered.
Choosing brokers and managing pips effectively are also key areas of the work.
He also does something that many Forex experts don’t. He tells you where he trades Forex and he also offers a system that you can pick up and run with, as part of the package.
The value continues with Brown’s online presence.
Even if you just read the book and took advantage of his system offer, you’d still be using a book that delivers a great and useful experience. But he’s also a trader who regularly creates videos and explains his system to all those who are interested. That means Facebook groups and YouTube, with regular updates on the principles covered in this book.
One of the best resources in currency trading for beginners.
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#8 Trading in the Zone
Mark Douglas wrote this book to help traders master their own issues around nerves and confidence. It is arguably one of the first effective trading psychology texts ever written, and definitely one of the best currency trading books. Smart and focused, the book takes you on a huge journey.
Read this Forex trading book and, at the end of it, you’ll understand a lot more about yourself as a trader.
It’s a complex book, and it’s possibly quite difficult to explain the concepts. This complexity is why the book is so famous. Simple principles that come into play every time you set up a trade are explained. Then, Douglas takes you through the reality of trades. This means thinking about how they could go either way, and how you could lose money even if the trade seems perfect.
By covering points like this, Douglas ensures that the psychology of a winning trader is what you walk away with. If we were to try and summarise what he is saying in the book, it’s essentially a new mindset that is being delivered. He wants traders to feel okay about loss, and feel exactly the same way with success.
This is what makes a trader invulnerable to the stress and strain that takes place when trades are occurring.
#7 How to Trade in Stocks
We’re including this one from the great Jesse Livermore because it has all of the fundamentals required for modern Forex trading. In the end, anyone who is successful in trading on any market has to be capable of reading that market, and acting accordingly.
Livermore’s seminal text tells you how to do that.
Let’s not forget that Livermore is still viewed as being one of the giants of investment strategies. His approach was one that he never really discussed openly, but this book affords you an insight into just what it was that drove him to invest.
Livermore was such a prominent figure in his time that he was accused of causing the stock market crash in 1929. At one point he made $3 million in one day with trading. That crash, which essentially brought America to its knees, brought him $100 million. That shows his depth of knowledge and his acute ability to read what is happening with money.
He died in 1940, and while this may initially make you feel that he was part of a different trading culture, the ideas put forward in this book will still make you more effective in Forex trading, they are that useful. This book comes highly recommended, and it should be a part of every trader’s library.
#6 Candlestick Charting
This is without a doubt a classic piece of work on charting, which can be one of the most dense and complex aspects of managing Forex. Steve Nison delivers a very detailed guide to Forex book, which may scare some potential readers away, but if you stick at it you’re looking at a system that will bring you success.
The Candlestick method is from the far east, and Nison regularly comments on the culture surrounding that origin. He has also created whole courses around the charting method, as well as follow-up books and extra modules that expand the Candlestick method even further.
It’s pretty deep stuff that just keeps evolving.
Candlestick charting is about patterns and names in the currency market, and Nison makes this easy to digest and follow through on. The best thing about this Forex trading book is the simplicity behind it all. Nison does an excellent job of making everything feel simple to understand, while he delivers one of the most complex strategies in modern trading.
For Forex traders, you are simply buying a unique system here.
But this is also one of those books that we feel could be enjoyed by anyone who is interested at all in finance and money. So while it will help you chart more effectively, it will also give you some fundamental lessons about life.
We’re serious on this one.
Buy it, and disappear for a couple of days while you read it. It will change your entire perspective on trading in general. And it will give you a solid grounding in technical analysis and Forex trading strategies.
#5 Day Trading the Currency Market
Kathy Lien is widely respected in the markets arena, and this book shows you why. The whole thing is beautifully put together, and it caters to some beginner principles as well as more advanced analysis techniques that you can use in the Forex market when you are more experienced.
One of the most useful aspects of the work is Lien’s ability to take a graduated approach. She looks at currency pairs and how they will change in the medium to long-term, for example, but doesn’t swamp you with information.
This makes hers an agreeable and useful guide.
The book has been carefully written, and Lien’s aim here is to ensure that readers can take practical steps away with them. Following the approaches and principles in the book will lead you towards profit, as well as improve your Forex skills overall.
#4 Currency Forecasting
While the title of this book may seem a little idealistic to anyone who has lost money with Forex in their lives, there’s a lot of good work here. Michael Rosenberg works for the mighty Merrill Lynch, and he has spent a good part of his career on technical analysis.
All of that knowledge is delivered perfectly in this book, which is an absolute must if you want to get serious about trading Forex.
The book came out in 1995, but it is testament to Rosenberg’s expertise that is consistently referred to by analysts and Forex professionals today. There is nothing here that is anything less than highly useful.
You will learn a lot.
If we were to pick out any favourite lessons to learn here, it would be the understanding that the international political and financial situation is not always mirrored in what happens on the markets.
#3 How to Make a Living Trading Foreign Exchange
Trading Forex is more than hard, it’s a daily challenge. Having the right approach from the outset counts for a lot. Courtney Smith is an excellent guide along that path. He outlines a superb and simple beginner strategy, one which brings instant confidence to the reader.
The ‘rejection rule’ is what the book is most famous for, and rightly so. The rule is useful for making profit, and is successful. But that is just one of the highlights. Smith frames the book around six key strategies that should help both beginner and expert profit from the Forex markets.
The strategies for trading foreign exchange here are sound, and easy to follow. It’s a book that deserves a full read-through immediately though, so give yourself the time to digest the concepts.
#2 How to Start a Trading Business with $500
It’s a tempting title, and the inside of the book delivers on the promise. As you will know, one of the most challenging aspects of an individual trader’s life is the raising of capital. This book takes you through the approach you will need to take to Forex when capital is as low as $500.
A large emphasis is placed upon key aspects like communicating effectively with a broker, something that is so important when you’re starting out, but even more so when capital is low. The book also offers some great insight into the self-discipline and the trading style required to be a successful trader.
This section is perhaps the most enlightening part if you’re new to the arena.
Well-written, and incredibly easy to understand, this basic text will help anyone who has low capital at their disposal, but still wants to make a living from the foreign exchange market and the foreign currencies traded on it.
#1 50 Pips a Day Forex Strategy
This is a little-known book that has a lot to offer beginners and intermediates. It basically does what it says it will, and can get you on the road to success within just a few days. In a simple and clear style, the book outlines what you need to do to make sure that you make profit, pure and simple.
What’s great about this book by Laurentiu Damir is the inclusion of a trading system process that allows you to create your own Forex strategy. In this sense it is an empowering book that should allow anyone to jump into a profit situation reasonably quickly.
It also allows you to get a hold on money management, so you don’t make any silly mistakes with the funds that you have. A perfect little introduction to Forex, and a very empowering book for anyone who is just starting out.
This is a useful list of recommended Forex trading books, and using any one of these books will make your Forex experience a successful one.
Obviously, it is important that you follow the instructions and advice from the various authors here. They can make you a better trader, but you have to put the work in first if you’re going to make the best use of the material. The availability of these titles is good, and you’ll find them in the forex books section on Amazon.