Becoming really successful at Forex trading goes beyond thinking like a beginner, you have to trade like the experts do. This is why it is important to read helpful books once in a while. Reading about a new investment you are about to venture into is the key to being successful in such an investment. Hence, which is why Forex books are the first step for traders in the Forex trading journey.
If you ask many experienced traders
about their journey in the Forex trading world, they would simply tell you that
it is a huge challenge as there are so many different terms, ideas and
strategies. Most of the experienced traders all started from somewhere and to
make your journey a smooth one starting with Forex trading books is a good
place to start. Thus, to understand the basics of Forex, it is best to go for a
Forex manual written by an experienced trader who explained everything in
simple terms. Getting the best trading guides can be quite difficult which is
why in this write-up we have shortlisted 10 top and Fascinating books for Forex
traders.
Want to learn if forex trading is worth getting into, check out our content on Is It Worth Becoming a Forex Trader
HOW
TO CHOOSE BEST FOREX TRADING BOOKS
In order to choose the best Forex
trading boos, the following factors should be considered by traders:
1. Focus:
Best forex trading
books should have a focus which should be on Forex trading. If it is not
directly focused on forex trading, then it is not a good forex trading book. A
good forex trading book should be concise and focused on the main topic which
is Forex trading.
2. Comprehension:
A good forex book
needs to be written in easy and uncomplicated language to understand. It should
not be filled with ambiguous terms and complex analysis that might be difficult
for the reader to understand.
3. Targeted
traders: A good forex
book should not be trader targeted or specific. This implies that it should be
a book that cover all types/levels of traders. It should cover topics for both
beginner, intermediate and advanced traders.
4. Experience:
A good forex trading
book should feature either the experience of the writer or that of another
experienced trader for the reader to have a better understanding of what he
read in the book since Forex is more of practical than theory.
5. Instructional
materials: A good
forex trading book should possess instructional materials provided by the
author such as instructional videos to help the reader know how to make use of
the trading method of the author.
TOP
8 BEST FOREX TRADING BOOKS 2020
1. Forex Trading: The Basics Explained in
Simple Terms (Forex, Forex for Beginners, Make Money Online, Currency trading,
Foreign Exchange, Trading Strategies, Day Trading)- Forex book for Beginners.
2. Forex for Beginners: What you need to
know to get started and everything in between – (Best Forex books for Beginners).
3. Currency Trading for Dummies Kindle
Edition- (Best Forex books for Currency Trading)
4. Japanese Candlestick Charting
Techniques: A Contemporary Guide to the Ancient Investment Techniques of the
Far East – (Best Forex books for Technical Analysis).
5. Trade your way to Financial Freedom –
(Best Forex books for beginners and Experienced Traders)
6. The Disciplined Trader: Developing
Winning Attitudes - (Best Forex books for trading psychology).
7. The Black Book of Forex Trading: A
proven method to become a profitable Forex Trader in four months and reach your
financial freedom by doing it - (Best Forex books for Forex trading strategy).
8. Reminiscences of a Stock Operator Paperback – (Best Forex books for User-friendly)
We highly recommend looking at the comparison table below, where we highlighted the key features of each product.We highly recommend looking at the comparison table below, where we highlighted the key features of each product.
TOP 8 FOREX TRADING BOOKS COMPARISON TABLE
Forex for Beginners
·
Basics
of Forex
Explains complex subjects around financial markets
Explains volume price analysis in simple terms
Has a user-friendly guide
An easy-to-follow introduction to the Forex market
The book covers Japanese candlestick as a form of technical analysis
It covers hundreds of examples showing how candlestick charting
techniques works
Sound trading advice to help a trader develop his own trading methods
The book is focused on volume trading concepts
The book addressed the psychological nature of how successful traders
think
A great book to help improve your trading psychology
The book provides a link to more than 80 minutes of video content that
can help you get started with your Forex trading strategy
The book addressed how to stop struggling with the markets
The book has descriptive table of contents
The book covers dollar figures in 2020 dollars
Top 8 Forex Trading Books
OVERVIEW:
The Book was written to give beginners an understanding of the basics of Forex. The book might seem less lengthy but what it lacks in length it makes up for it in clarity. The book is well known for its clear and concise language that breaks Forex into simpler terms. If as a beginner,the Forex trading terms you have come across so far have been complex and overwhelming, they should no longer be after you complete reading this fascinating book. Furthermore, the author also provides a copy of his own trading method and instructional videos on how to make use of it to help beginners in their journey through the Forex trading world.
Pros
Explains how forex trading works in simple terms.
The book addresses trade management and position size for beginners.
The book is providing to you the strategy art of war
Cons
The book does not emphasize keenly on risk management which is important for beginners.
OVERVIEW:
The book explains everything from the
basics to the trading methodology which the author has used in all her trading
and investing with her years of experience. The author describes Forex for
Beginners as a “primer” to the world of Forex trading. This book focuses on the
concept of risk in Forex trading which is important for beginners to understand
in order to prevent frequent losses. To illustrate, the authorcategorizes this
concept into two main areas: The level of risk (high, medium or low) and the
financial risk. Also, this book helps you as a beginner to learn how to assess
and manage risk in Forex trading. It starts from the absolute basics and down
to the author’s own trading methods explained fully.
Pros
The book is 90% specific practical guidelines and only 10% on Forex
basics.
The book has a lot of good information for someone who has no prior
knowledge of Forex trading.
The author sticks to systems and methods that have worked for her
Cons
The book has poor chart images.
OVERVIEW
The book is easy to comprehend which
allows the Forex market to be easily accessible by the layman. It also contains
instructions that are well packaged and can be easily understood. Also, the
book is designed to explain the complex topics in a simpler and understandable
language for beginner traders. Again, the text is easy to read and broken down
into lists, bullets and breakout text boxes. Furthermore, the book also
discusses technical analysis in a simpler form that can help guide beginners.
·
·
Pros
The book provides tips and hints from professionals
The book covers the use of various type of orders
The book also covers economic events that can affect currency pairs.
Cons
The book lacked better visual of the charts and the diagrams in the
kindle format are not readable.
OVERVIEW:
This masterpiece provides a lengthy
and in-depth knowledge on candlestick plotting, analysis and charting, used as
well in futures, equities, hedges and speculation. The book explains to beginners
in expressive language the author’s years of practical experience in this
popular and outstanding approach to market analysis. It consists of hundreds of
examples that span the futures, equity, fixed-income and foreign exchange
markets and shows how candlestick charting techniques can prove effective in
almost any market. On the whole, it explains the basics such as constructing
the candlesticks and learning the patterns, to the advanced topics such as the
rules of multiple technical techniques. To sum up, the book teaches you how to
make use of technical analysis in your trading path.
Pros
The book provides an in-depth knowledge on many new candle patterns
The book is printed on high quality paper with big fonts and enough
margin making it easy to read
The book provides a proper insight into how candlestick charts are used
in Japan
Cons
The book relies heavily on chart and chart on kindle format are
strenuous to follow.
OVERVIEW:
This book provides a beginner with a realistic view of the market and how to trade it. The author ensured he pointed out the essential factors that help a beginner trader to be successful in their trading career. He also pointed out the common traps that newbies fall into and also went a step further to explain why this happens.
Pros
The book covers stop-loss and how to take profit as well as position
size.
The book gives readers perspective on how to look at trading in general.
The book stresses on money management which is important for beginners.
Cons
The writing style is too complex to read even for the simple concepts.
OVERVIEW:
This is
one of the first books to address the psychological nature of how successful
traders think. The author examines the causes as to why most traders cannot
raise and keep their equity on a consistent basis and brings the reader to
practical and unique conclusions as to how to go about changing any limiting
mindset. The trader is taken through a step-by-step process to breakthrough
those queries and begin to understand that their very thoughts may be limiting
their ability to succeed at trading.
Pros
The book focuses on how traders can deal with their emotions to improve
their trading
The book is also good for stock traders who want to improve their
win/loss ratio
The book will help improve a traders trading principle and discipline
Cons
The book is not written in a concise manner and also had lots of
repetition
OVERVIEW:
The book highlights how a trader can follow the success stories of other traders who have made it big in the financial world but only few will understand the skills one learns after going through failure. This book teaches you the macroeconomics bit of Forex and also captures the international monetary changes of both technical and fundamental analysis. In spite of the fact that the book is relatively less, it imparts significantly irreplaceable knowledge and can be adopted under complex situations for a long period of time. It gives you a simple yet powerful blueprint to plan and get control of your financial plans and achieve success in your trading.
·
Pros
Explains how to become a profitable trader in four months or less
The book will help the reader gain enough confidence to trade
The book provides sound advice on risk management.
Cons
The book is not a good reference to what beginners might want to know
about forex.
OVERVIEW:
“Reminiscences of a Stock Operator” is a fictionalized account of the early life and rise to fortune of Jesse Livermore, one of the most famous speculators in history. Renamed Larry Livingston in this book, he gets his start as a young boy in the "bucket shops" of Boston, where small bets are made against the house on the rise and fall of stocks or commodities. Soon he graduates from quote-boy to beating the bucket houses at their own game, until they throw him out for winning too much. After that, he heads to Wall Street to try his hand at real trading, with many dramatic gains and losses along the way. Livingston becomes a force in the markets, which are not as highly regulated as they become eventually. His tips on speculating and human nature fill the pages and are still legendary among modern traders.
·
r
Pros
The book provides inspirational quotes that can help motivate the reader
The books makes learning fun by providing the personal experience of
Jesse Livermore
The book has an indirect, conversational tone that ensures the readers
learn beyond the Livermore’s narrative
Cons
The book opens up with pages of quotes which can be discouraging for
impatient readers.
CONCLUSION
Having theoretical knowledge of Forex trading without practice is nothing. The reason for reading Forex books is to help improve your knowledge on Forex as well as to help in improving your trading strategy. It is therefore important that you put into practice what you have learned from reading Forex trading books. The best Forex books mentioned in this article will help improve your knowledge and help improve your success rate in Forex trading despite your own strategy or prior experience in Forex trading. Traders should also engage themselves in reading financial news, study charts, etc. as this will keep them informed with the current happenings in the Forex market instead of reading Forex books alone as a guide for practicing Forex trading.
Additionally, if you are interested in learning a to z of forex trading, you may check out our content on Learn Forex Trading- Step by Step Guide