One of the most common phrases in the forex market is “Forex is not a get-rich-quick scheme.” There is a process that you must follow to become a profitable trader. The most effective way to learn how to trade safely and successfully is by reading books on trading.
Many people who want to become traders start trading with the basic knowledge they have gathered within a few months, but they do not have a clear idea of what is happening in the market. They are often confused by all kinds of information that they receive from different sources, which can be misleading or even dangerous for novice traders. Read on to know the best book for forex beginner traders.
Pros and Cons of Reading Forex Books
Pros
- Allows you to learn faster
- They offer money management skills
- They will guide you for many years to come
- They contain everything you need to know
1.Currency Trading for Dummies by Brian Dolan
Currency trading for dummies is a guide for new traders who are just starting their journey into the world of currency trading. This is the perfect book for anyone who wants to learn the basics of trading currencies and how to make money trading.
The author starts by explaining a currency pair and how it works. He then goes on to explain why you should trade currencies and how you can do so using software or live accounts. The book also touches on different strategies for trading currencies, which include trending, breakout, reversal, and swing trades.
2.Forex Trading: The Basics Explained in Simple Terms by Jim Brown
Forex Trading by Jim Brown is another book that introduces you to the basics of forex trading. The book’s author is self-taught, meaning he provides insights based on his experiences in the forex market. The best part is that the language used in the book is very easy to understand and follow. Some of a few things included in the book are;
- Meaning of forex trading and the market
- Strategies to use when opening and closing positions
- Everything you need to know about forex pairs
- Includes trading psychology
- How to select a good broker, etc.
The author is also open about the trading strategies he uses to win in the market. He makes them simple for novice traders to understand and apply in their trades.
3.How to Make a Living Trading Foreign Exchange by Courtney Smith
Courtney Smith shares her insights on making a living in the book; “How to Make a Living Trading Foreign Exchange.” The book begins by explaining the forex market in general. The book was published in 2010, and unlike many other forex books, it focuses on money-making strategies. It has provided six forex trading strategies that will allow you to earn a living.
Apart from that, you will understand the psychology of forex trading and risk management methods while reading the book. Smith has also included his ‘rejection rule,’ a technique that will double your profit from the breakout strategy.
4.Japanese Candlestick Charting Techniques by Steve Nison
Candlestick is an important subject when it comes to forex trading. The Japanese Candlestick Charting Techniques is a book that explains the basic principles and techniques of candlestick charting in a simple and easy-to-understand way.
It is a must-read for people interested in using candlesticks as part of their trading strategies. The author, Steve Nison, is one of the best traders in the world who has made more than $3 billion trading with this method. He also has many other books on trading strategies, so you can be sure he knows what he is talking about.
The book starts by explaining how Japanese candlesticks work and how they differ from other types of charts, such as bar charts or line charts. It then goes on to explain how these different charts work together and how they can be used to make better decisions about your trading strategy.
The book also shows how a candlestick chart can be combined with moving averages and other indicators to create even better results. This book offers all sorts of information on using different tools in your trading system to succeed in the market.
5.The Black Book of Forex Trading by Paul Langer
The Black Book of Forex Trading is a perfect source for beginners looking for a more in-depth understanding of trading. The book contains all the information to help you get started as a forex trader. The book discusses different forex-winning strategies, such as swing and scalp trading. It also explains more about support and resistance, including trends and ranges and calculating position sizes.
The book also includes chapters on how to survive when you are losing money and how to avoid getting into bad trades. The Black Book of Forex Trading is not just another forex trading book but an encyclopedia that contains everything you need to know about making money in the forex market.
6.Day Trading and Swing Trading the Currency Market by Kathy Lien
The currency market is a very tough and competitive place. It’s also an exciting place, with many opportunities to make money. In the book “Day Trading and Swing Trading the Currency Market,” you will learn how to day trade and swing trade to win in the forex market.
The book’s writer, Kathy Lien, is a currency analyst, BK Asset Management’s managing director. She is also a well-known guest on CNBC, Reuter’s programs, and Bloomberg. In her book, she will also help you understand the following;
- How to use technical analysis to identify trends in different types of currency pairs
- How to determine when to enter a position based on current market conditions
- How to execute your trades using techniques such as stop loss orders and take profits orders
- How to use technical indicators like RSI or Bollinger Bands to help you make better trading decisions
7.A Three-Dimensional Approach to Forex Trading by Anna Coulling
The Three Dimensional Approach to Forex Trading Book by Anna Coulling is a must-read for any beginner who wants to learn how to trade forex. The book is written in a simple and easy-to-understand language, making it easier for the reader to grasp all the book’s concepts.
This book teaches you about the Forex market and tells you about different types of trading strategies that are used in this market. It also provides tips on identifying good investment opportunities so that you can profit from them.
The author has provided detailed information about different types of currencies, their rates, and their trading volumes. This will help the reader understand what happens in the Forex market before they decide whether to participate in this market or not.
8 “The Big Short: Inside the Doomsday Machine” by Michael Lewis (addtional reading)
This book recounts the 2008 financial crisis, focusing on those who foresaw and profited from the housing market crash.
9 . “Reminiscences of a Stock Operator” by Edwin Lefèvre (addtional reading)
Based on the life of Jesse Livermore, this classic offers timeless insights into speculation and trading psychology.
10. “Irrational Exuberance” by Robert Shiller (additional readings)
Examining speculative asset bubbles, this book discusses the psychological and economic drivers of market over-optimism.
Frequently Asked Questions About Best Forex Books for Beginners
How Can I Get the Following Books?
You can purchase forex trading books on online stores like Amazon or download them from reputable online sites.
Which Is the Best Book to get started with?
It is important to start with a book that touches on all the forex basics to understand all the terms and strategies used in trading. A good example is: Currency Trading for Dummies by Brian Dolan.
