By Admiral Markets
Reading books is of course, extremely beneficial to you, as you will always benefit from self education, self development, and a bit of light entertainment from time to time.
As a new trader, acquiring the proper knowledge by reading the best Forex books available is arguably one of the most critical aspects of becoming a successful trader. Forex trading books can provide the foundation upon which you can build successful trading strategies, and be able to understand how to select good quality stocks and Forex pairs, while at the same time successfully managing and minimizing risks. Reading should be a top priority for you as a trader.
So where should one begin? It’s all well and good typing ‘what is the best book for candlestick charting?’ into google in a bid to find the right book quickly, but perhaps it is better to have a range of Forex trading books first, together with, a few beginners books, to make sure you’re giving yourself a well rounded knowledge of Forex in general.
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So without further ado, here is our list of the best recommended Forex trading books you must read in 2018!
10. “Reminiscences of a stock operator” by Edwin Lefevre
Edwin Lefevre’s book focuses on Larry Livingston, who represents a thinly veiled depiction of Jesse Livermore – one of the most famous traders of all time.
Readers can follow Mr Livingston on a trading journey that leads through various instances of him being financially broke, and then recovering to amass a fortune each time. Each recovery therein, gives him new strength and a will to finally understand the market’s behaviour.
This veiled biography of Livermore, recounts his real-life fame for making and then losing several multi million-dollar fortunes while short selling during the stock market crashes in 1907 and 1929.
9. “The disciplined trader” by Mark Douglas
Mark Douglas stresses the importance of a proper trading psychology in his book ‘The disciplined trader’. He discusses how emotions are always the enemy of a trader, and how, even a trader who has limited knowledge of the technical and fundamental understanding of trading but has good psychological control, will ultimately be on the winning side.
The author is not ashamed to admit that he has lost almost everything he owned because of his bad trading decisions. That experience led him to a rigorous self-examination, where he discovered that emotions, especially fear, had made him trade with losses.
8. “The candlestick course” by Steve Nison
Steve Nison is famous for introducing Japanese candlestick charting to westerners. His first book ‘Beyond Candlesticks’ showed some advanced techniques of candlestick charting. However, this book summarises candlesticks more generally – making it ideal for new and experienced traders. This price action Forex book should be a perfect choice for learning how to identify what candlesticks to use with a system for successful entries and exits. Traders who have studied all the candlestick patterns presented in this book should have an edge in trading. A must read for all prospective traders.
7. ”How to Start a Trading Business With $500” by Heiken Ashi Trader
Written by a Heiken Ashi trader, many traders begin their business with very little capital. This book gives a realistic way to become a full time trader with limited capital, providing a guidance plan to begin a trading business with capital as low as $500. The core of successful trading is money management, and this book explains how to do so, as well as, how to become a disciplined trader. The book also includes topics such as :
- Implementing good trading habits
- Communication skills with your Broker
- Maximisation of returns from limited capital
- How to become a Professional Trader
- Trading activities for a Hedge Fund
6. “Currency Forecasting” by Michael Rosenberg
The “Currency Forecasting” is one the best books on forex trading. Michael Rosenberg, an analyst of Merrill Lynch, wrote the book, and for a long time analysts and traders have referred this book as it aligns fundamental and technical analyses in a concise matter to help trade forex markets. Rosenberg has been able to link monetary dynamics with currency market moves; as a guide for traders to predict Currency Forecasts. Currency Forecasting is a classic among Forex technical analysis books and should definitely be on your bookshelf!.
5. “Japanese Candlestick Charting Techniques” by Steve Nison
The “Japanese Candlestick Charting Techniques” book is popular with traders who want to learn about candlestick charts, and how they can be used with other technical tools for technical market analyses. Candlestick charting is used by a range of traders in any market ranging from Forex, futures, equities, commodities, or anywhere that technical analysis can be applied to a market. Authored by Steve Nison, who has years of research study and trading in markets, this makes it a good read for traders who are learning Forex trading strategies.
4. “How to Make a Living Trading Foreign Exchange” by Courtney Smith
Courtney Smith outlines the Forex markets and how to trade it in his book “How to Make a Living Trading Foreign Exchange”. Smith’s book details trading strategies for making money on forex markets, including six key ways to help traders earn a steady income. Smith’s rejection rule includes a strategy aimed to double the profit generated from a basic channel breakout system. Smith’s book on Forex trading includes risk management aspects to help with the psychological aspects of trading.
3. “Forex Trading: The Basics Explained in Simple Terms” by Jim Brown
Very suitable for beginner traders, this book covers essential elements of Forex trading. It includes:
- Strategies for Entries
- Strategies for Exits
- Money Management
- Trading Psychology
- Basic Trading System
With the basic trading system that is included in the book you can build your own trading strategy based on the provided system. If you are approaching Forex trading as a beginner, and would like to have a Forex strategy book that covers the basics in a very clear manner, then go and grab it!
2. “Trading in the zone” by Mark Douglas
The author Mark Douglas, is a trader, trading coach and has been a industry consultant since 1982. Mark Douglas professes “thinking strategy” to be the major feature for being a successful trader. Douglas discusses five elements which might help traders become consistent winners in the market.
‘Trading In The Zone’ aims to expose the “people factor” in commodity price action and the lack of consistency in stock selection. It recommends simple exercises for traders to think in a probabilistic way in order to develop a winner’s mindset. This publication is littered with examples to help traders have a better understanding of their decisions.
This is the Mark Douglas classic that has had a huge impact on trading and charting style for many traders. In it, Douglas explains the common dangers of trading and different terms of probabilities. Thinking in terms of odds and probabilities instead of wrong or right, will help you to understand the market structure better than the average trader. Douglas explains this ideology well by saying that “to manage risk and allocate capital more efficiently, traders need to be aware of the catalysts, such as earnings, the fundamentals, and the price action of supply and demand”.
1. “Momentum, direction and divergence” by William Blau
This book by William Blau, is a perfect read for all new and prospective traders. Blau perfectly yet profoundly describes how most popular oscillators work, including the RSI, Stochastic, and MACD. By reading this book we might discover very effective and unique ways to measure trend and momentum through MACD as well as divergence. Mr. William has provided the inspiration for all MACD traders, and various trading methods which have inspired traders with new ways of identifying MACD divergence. This Forex trading education book has been the top choice in many lists for top Forex books in 2018.
Bonus Book: “Technical Analysis For Dummies” by Barbara Rockefeller
Barbara Rockefeller is a foreign exchange veteran and one of the pioneers in technical analysis. She has been the author of six books, where this one is actually a must read for disparate types of traders. ‘Technical Analysis For Dummies’ is an absolute classic trading book. The third edition of the book was published in 2014 and provides readers with new insights and an updated look at unique formulas and key indicators. In her book you can learn:
- How to determine the markets’ performance
- How to spot proper investments
- Where to look for markets’ turning points
- How to improve your profits and portfolio performance
When you finish reading, it is always best to actually verify what you have learnt in practise. Theorycraft is one thing, but actually making money in the markets is a totally different beast. Through applying what you have learnt by combining some of the best Forex books to read in the market, together with, the practical knowledge you can receive with our Zero to Hero and Forex 101 online courses, you should be well on your way to potentially achieving financial freedom.
If you are patient and willing to put the time in your education, it may be a lot less work than you think. Taking the time to prepare and thoroughly research every educational option, as well as, setting realistic goals will help you find the right solutions for successful trading.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.
Article by Admiral Markets
Admiral Markets is a leading online provider, offering trading with Forex and CFDs on stocks, indices, precious metals and energy.