Books contain wisdom and experience of others put down in written form. Books on forex trading contain the experiences and discoveries of veteran traders in their trading journey over the years. Although we don’t recommend that you abandon courses in favour of books, books can be a means to revise and entrench knowledge that has been got from courses. Hereby recommended are a list of books that are worth reading.
Best Forex Trading Books for Beginners
- Currency Trading for Dummies by Brian Dolan and Kathleen Brooks:
This book’s simple language makes it one of the best for beginner forex traders. The book’s authors, Kathleen Brooks and Brian Dolan are experienced persons with commendable pedigree to their name.
The For Dummies series was devoped to break down technical topics for the layperson.
This book touches on technical analysis in a way to make it understandable to beginner and entry-level traders.
- Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves by Kathy Lien
Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves is written for newbie traders, exposing them to implementable strategies that can be used to profit from the markets.
This book contains an overview of the forex market and how it works as well strategies to profit from short-term swings in the market.
Also provided alongside the book is companion website containing tutorial videos on trading.
The author, Kathy Lien, is a financial markets veteran with years of experience in Wall Street.
- A Three-Dimensional Approach to Forex Trading by Anna Coulling
This book is mainly targeted at newbie traders who need a high overview of the forex market as well as more advanced traders who are to better their perspectives on the market. Couling’s book is designed to help readers decipher how and why markets move.
The book then analyses how trends in the primary markets – stocks, bonds, and commodities – affect the forex market. While it is full of insights, it doesn’t necessarily contain any new strategies.
The author, Coulling, has traded and taught about the markets for about 17 years.
- Forex Trading: The Basics Explained in Simple Terms by Jim Brown
A valuable book for new traders, this book covers a range of topics such as strategies for entries and exits, risk management, trader psychology, amongst others.
This book teaches how newbie traders can come up with trading strategies of their own.
- Trade Your Way to Financial Freedom – by Van K. Tharp
An excellent book for beginner traders that teaches you how to create financial stability out of your trading business.
- Reminiscences of a Stock Operator by Edwin Lefevre
Of course, it is not one of those books that will teach you a new “strategy”, but it is one of the best books written on finance in general, and trading in particular.
Reminiscences of a Stock Operator is the unauthorized biography of Jesse Livermore, who is regarded as one of the greatest traders who ever lived. Livermore was famous on Wall Street where he made and lost his fortune several times over. Some of the things you will get out of the book are Livermore’s observations of the market. One good instance:
“It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I’ve known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine–that is, they made no real money out of it. Men who can both be right and sit tight are uncommon.”
This teaches the importance of knowing how to keep the money you earn.
- Market Wizards: Interviews with Top Traders by Jack D. Schwager
Also not a “strategy-teaching” book, Market Wizards is bestselling classic that delves into the minds of some of the most successful traders in relatively recent past.
This book addresses a side of trading not often talked about: the human side. In the book, some of the world’s greatest traders were interviewed about their experiences growing up, how they started trading, how they developed their skills, their trading experiences, philosophies and styles, giving the reader access to varying perspectives on issues in the market. This book should be especially valuable to anyone who desires to make something great out his trading career.
- How to Make a Living Trading Foreign Exchange: A Guaranteed Income for Life by Courtney Smith
Smith begins the book with an high-level introduction to the world of forex explaining how things play out in the market. But most of the book is centered around making money, offering a number of strategies to earning a steady income through trading. The also provides important risk management techniques and delves into the topic of psychology of trading.
- Forex For Ambitious Beginners: A Guide To Successful Currency Trading by Jelle Peters
Although he is a legal philosopher and historian, Jelle Peters has owned his skill as a Forex trader, a proof to us all that anyone can become a successful trader, regardless of background.
Peters also runs a forex blog.
Forex for Ambitious Beginners can be described as a no-nonsense guide to becoming successful in the market, exposing you to common mistakes you have to steer clear of.
Peters also includes chapters on specific forex trading strategies, technical analysis indicators and other instructions such as how to read candlestick charts.
- Forex For Beginners: What You Need To Know To Get Started And Everything in Between by Anna Coulling
From the author of A Three Dimensional Approach to Forex Trading, this book serves as a “primer” to the world of forex trading.
Forex for Beginners focuses on a number of concepts, one of which is that of risk management in forex trading. Coulling breaks this concept down into two areas: The level of risk (high, medium or low) and the financial risk.
One commendable thing about this book is that it starts from the basics and works its way up, making it equally useful for both newbie and experienced traders.
Forex Trading Books and Forex Education
Forex books should form an integral part of your overall forex education strategy; however, we all know that proper forex education takes a considerable amount of time. But does that mean you have to wait till you are fully versed till you start learning? Absolutely not. You can start earning right away by making use of profitable forex trading signals.