While forex trading can seem hectic, daunting, and difficult, learning is not impossible. We’ve compiled a list of 5 jam-packed forex trading books that can guide you throughout your entire trading journey – from a foundational understanding of finance to advanced concepts.
These books range from basic theory to advanced strategies and analysis and inspirational ones to keep you going! For the aspiring trader, these books will certainly not disappoint.
Best Forex Trading Books for Beginners
Here’s our top 5 list of the best forex trading books for beginners.
The Art of Currency Trading by Brent Donnelly
Donnelly creates a comprehensive guidebook for aspiring forex traders.
He does a great job introducing the reader to fundamental and technical analysis and the psychology of trading. This book is largely targeted at aspiring traders who are just beginning their journey.
Donnelly is one of the most respected short-term traders and has been a successful interbank foreign exchange trader for more than 20 years. His other books include Alpha Trader, a guidebook that discusses essential mathematics for trading (also worth a read!).
As one trader pointed out, “You are doing yourself a disservice by not reading this.”
Read this book if: you have little to no knowledge of the forex market
Currency Trading for Dummies by Brian Dolan & Kathleen Brooks
This popular franchise of “for Dummies” books certainly does not disappoint. It is a beginner-friendly guide that introduces new readers to the basics of forex trading.
Like other books in the franchise, Currency Trading for Dummies is an informative, easy-to-understand, interactive book on forex trading.
The book covers essential forex topics such as forex market fundamentals, risk management, and trading tools. It also recommends other learning resources!
This book does a good job of explaining difficult concepts in simpler terms. It primarily focuses on the basic concepts rather than technical specifics and in-depth strategies.
This book is a great introduction course for all forex beginners!
Read this book if: you have difficulty understanding complex forex concepts
Come Into My Trading Room by Alexander Elder
Come Into My Trading Room was released after the success of his first book, Trading for a Living.
While his first book focused on technical analysis and risk management, Come Into My Trading Room shifts the focus to the overall management of money, time, strategy, and trading psychology.
Like its predecessor, the book is structured around the three M’s of trading: Mind, Method, and Money Management.
The Mind emphasizes psychological discipline in trading. Elder emphasizes that fear and greed often negatively impact trading. Fortunately, these can be managed effectively.
On the other hand, Method follows various technical analysis tools and techniques, such as indicators, chart patterns, and others.
The final M, Money Management, highlights the critical role of risk management in trading success and introduces many practical methods for the novice trader to minimize losses.
This book is extremely valuable for newbies who want to fine-tune their trading habits.
Elder did a fantastic job revealing the psychological tactics of discipline and organization needed by every successful trader.
Read this book if: you want to improve discipline in your trading journey
Japanese Candlestick Charting Techniques (2nd Edition) by Steve Nison
The Japanese Candlestick Charting Techniques book is a useful resource for traders of all levels. A staple in forex traders’s libraries, this book outlines a guide to understanding, reading, and utilizing candlestick charts for technical analysis.
The book is actually credited as the originator of the candlestick pattern to Western traders.
Candlestick patterns are powerful, useful tools for many markets. This book explains their importance, variations, movements, and trends. It also offers practical applications on the price chart and introduces more advanced techniques for experienced traders.
This book is a must-read for a forex trader of any level.
Read this book to: get an in-depth look at the most useful pattern in forex.
Naked Forex by Alex Nekritin & Walter Peters
Naked Forex: High-Probability Techniques for Trading Without Indicators is a practical guide that introduces the basic, traditional technical analysis concepts.
This method relies on price action and market psychology rather than technical indicators often automated on trading platforms.
Above all else, Nekritin and Peters emphasize the importance of identifying key support and resistance levels, price action patterns, and the psychological aspects of trading.
This book is known to “advocate naked trading,” which involves analyzing price movements directly on the charts without relying on indicators. It offers a straightforward and effective approach to forex trading!
Additionally, it would be wrong to think that the “traditional” trading taught in this book is synonymous with “outdated.” This is far from the truth!
Naked Trading aims to reduce the noise and conflicting signals from multiple technical indicators. Furthermore, it adds and improves many strategies used before technology to fit the modern market!
Read this book to: master the basics of price action – the most important aspect of the market.
Market Wizards: Interviews with Top Traders by Jack Schwager
In Market Wizards, considered a classic in the world of finance, Jack Schwager holds intimate and informative interviews with some of the world’s most successful traders.
Through in-depth conversations, Schwager uncovers trading strategies, philosophies, psychological insights, and personality traits that have contributed to their success.
A favorite among traders, this book showcases a variety of trading styles and approaches, and each trader brings unique insights and lessons.
The book proves that there is no single path to success in forex—you could be risk-averse, aggressive, or contrarian. It inspires traders to believe that every day of trading counts!
Read this book if: you want to be inspired by the real-life stories of other traders.
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