hile many investors chase performance in the stock market. The strategy of trading foreign currencies can be just as profitable. Unlike the stock market, the foreign currency market is highly liquid and in constant flux. As well, there is little institutional involvement, allowing investors to make profitable trading decisions in an easy-to-manage environment. Additionally, the currency market is the investment world’s back door, and should be available to any person who wants to make quick profits from international movements in currencies.
Best Books on Trading Forex: THE LIST
|1. Currency Trading for Dummies|
|2. Currency Forecasting|
|3. Trading in the Zone|
|4. The Foreign Exchange Matrix|
|5. Market Wizards|
|6. Japanese Candlestick Charting Techniques|
|7. Forex Trading|
|8. Trade Your Way to Financial Freedom|
|9. The Death of Money|
|10. The Black Book of Forex Trading|
|11. A Three-Dimensional Approach to Forex Trading|
|12. Day Trading and Swing Trading the Currency Market|
|13. Bollinger on Bollinger Bands|
|14. The Alchemy of Finance|
|15. Forex For Ambitious Beginners|
|16. Adventures of a Currency Trader|
|17. 50 Pips a Day Forex Strategy|
|18. How to Make a Living Trading Foreign Exchange|
1. Currency Trading for Dummies | By Brian Dolan
Currency Trading For Dummies is a hands-on, user-friendly guide that explains how the foreign exchange (ForEx) market works and how you can become a part of it. Currency trading has many benefits, but it also has fast-changing financial-trading avenues. ForEx markets are always moving. So how do you keep up? With this new edition of Currency Trading For Dummies, you’ll get the expert guidance you’ve come to know and expect from the trusted For Dummies brand―now updated with the latest information on the topic.
Inside, you’ll find an easy-to-follow introduction to the global/ForEx market that explains its size, scope, and players; a look at the major economic drivers that influence currency values; and the lowdown on how to interpret data and events like a pro. Plus, you’ll discover different types of trading styles and make a concrete strategy and game plan before you act on anything.
- Covers currency trading conventions and tools
- Provides an insider’s look at key characteristics of successful currency traders
- Explains why it’s important to be organized and prepared
- Offers guidance on trading pitfalls to avoid and risk management rules to live by
Whether you’re just getting started out in the foreign exchange market or an experienced trader looking to diversify your portfolio, Currency Trading For Dummies sets you up for trading success.
2. Currency Forecasting | By Michael Rosenberg
Provides graduate and advanced undergraduate students, as well as international investors and policymakers, with an explanation of the fundamental and technical forces driving exchange rates over time. The book recommends that investors adopt an integrated approach to currency forecasting that combines fundamental-based with technical-based exchange rate models
3. Trading in the Zone | By Mark Douglas
Douglas uncovers the underlying reasons for lack of consistency and helps traders overcome the ingrained mental habits that cost them money. He takes on the myths of the market and exposes them one by one teaching traders to look beyond random outcomes, to understand the true realities of risk, and to be comfortable with the “probabilities” of market movement that governs all market speculation.
4. The Foreign Exchange Matrix | By Barbara Rockefeller and Vicki Schmelzer
Much is written in an effort to answer these questions, but a lot of it is just noise. In the 12 pieces here, Barbara Rockefeller and Vicki Schmelzer draw on their combined 50 years’ experience in foreign exchange to cut through the clutter and provide an elegant and razor-sharp look at this market. Their analysis is accurate, useful and enlivened by many anecdotes and examples from historic market events. They cover:
– How the matrix concept can help observers understand foreign exchange market action
– What professional FX traders take into consideration before entering into positions
– Whether the FX market can be forecast
– The interplay between foreign exchange and other financial markets
– How technology has levelled the playing field between big and small players, and at what cost
– Whether the prospect of reserve currency diversification away from the dollar is likely
– The toolkit that central banks use to manage national economies and the effect of this on currencies
‘The Foreign Exchange Matrix’ is the go-to book for anyone seeking a deeper understanding of the world of foreign exchange.
5. Market Wizards | By Jack D. Schwager
How do the world’s most successful traders amass tens, hundreds of millions of dollars a year? Are they masters of an occult knowledge, lucky winners in a random market lottery, natural-born virtuosi—Mozarts of the markets? In search of an answer, bestselling author Jack D. Schwager interviewed dozens of top traders across most financial markets. While their responses differed in the details, all of them could be boiled down to the same essential formula: solid methodology + proper mental attitude = trading success. In Market Wizards Schwager lets you hear, in their own words, what those super-traders had to say about their unprecedented successes, and he distils their responses down into a set of guiding principles you can use to become a trading star in your own right.
- Features interviews with superstar money-makers including Bruce Kovner, Richard Dennis, Paul Tudor Jones, Michel Steinhardt, Ed Seykota, Marty Schwartz, Tom Baldwin, and more
- Tells the true stories behind sensational trading coups, including the one about the trader who turned $30,000 into $80 million, the hedge fund manager who’s averaged 30% returns every year for the past twenty-one years, and the T-bond futures trader who parlayed $25,000 into $2 billion in a single day!
6. Japanese Candlestick Charting Techniques | By Steve Nison
A longstanding form of technical analysis, Japanese candlestick charts are a dynamic and increasingly popular technical tool for traders of all skill levels. Known for its versatility, this ancient charting can be fused with every other technical tool available, including traditional Western technical analysis.
Japanese Candlestick Charting Techniques is the most comprehensive and trusted guide to this essential technique. Informed by years of research from a pioneer trader, this book covers everything you need to know, including hundreds of examples that show how candlestick techniques can be used in all of today’s markets.
This totally updated revision focuses on the needs of today’s traders and investors with:
* All new charts including more intra-day markets
* New candlestick charting techniques
* More focus on active trading for swing, online and day traders
* New Western techniques in combination with candles
* A greater spotlight on capital preservation.
From speculation and hedging to futures and equities, candlestick charting is the next level up for both amateur day traders and seasoned technicians, and this book provides expert guidance for putting it into action
7. Forex Trading | By Jim Brown
- His custom indicators for the MT4/MT5 MetaTrader platforms and more recently TradingView, as a download package at the end of the book.
- An invitation to join his free JAGfx Facebook Group with over 6,000 members (both new and experienced Forex Traders contributing) and/or Telegram Group.
- Daily interaction in his Facebook Group.
- He calls his trades live, shares his results AND records regular trade analysis videos.
- His contact details if you require further clarification.
Jim, from Queensland Australia, is a full-time Forex Trader, currently residing in Vietnam. His knowledge of currency trading has evolved from the old fashioned manual charting when he first started in 2002, to trading on multiple screens and entering the arena of automated trading. During this time, he has developed and shared many trading systems for free, and assisted many new traders through various blogs and forum participation.
This book is for those of you who are just starting to consider trading Forex but don’t know where to start, given the abundance of information on the internet. It is a good first book to read, to gain an understanding of the very basics. As an added Bonus, Jim offers one of his Trading Systems, as well as the indicators without any further cost to his readers.
Check out his YouTube videos, chat with him on Facebook or in Telegram – he’s an approachable guy who is passionate about trading.
8. Trade Your Way to Financial Freedom | By Van K. Tharp
“Sound trading advice and lots of ideas you can use to develop your own trading methodology.”-Jack Schwager, author of Market Wizards and The New Market Wizards
This trading masterpiece has been fully updated to address all the concerns of today’s market environment. With substantial new material, this second edition features Tharp’s new 17-step trading model. Trade Your Way to Financial Freedom also addresses reward to risk multiples, as well as insightful new interviews with top traders, and features updated examples and charts.
9. The Death of Money | By James Rickards
The international monetary system has collapsed three times in the past hundred years, in 1914, 1939, and 1971. Each collapse was followed by a period of tumult: War, civil unrest, or significant damage to the stability of the global economy. Now James Rickards, the acclaimed author of Currency Wars, shows why another collapse is rapidly approaching – and why this time, nothing less than the institution of money itself is at risk.
The American dollar has been the global reserve currency since the end of the Second World War. If the dollar fails, the entire international monetary system will fail with it. No other currency has the deep, liquid pools of assets needed to do the job.
Optimists have always said, in essence, that there’s nothing to worry about—that confidence in the dollar will never truly be shaken, no matter how high our national debt or how dysfunctional our government. But in the last few years, the risks have become too big to ignore. While Washington is gridlocked and unable to make progress on our long-term problems, our biggest economic competitors—China, Russia, and the oil producing nations of the Middle East—are doing everything possible to end U.S. monetary hegemony. The potential results: Financial warfare. Deflation. Hyperinflation. Market collapse. Chaos.
Rickards offers a bracing analysis of these and other threats to the dollar. The fundamental problem is that money and wealth have become more and more detached. Money is transitory and ephemeral, and it may soon be worthless if central bankers and politicians continue on their current path. But true wealth is permanent and tangible, and it has real value worldwide.
The author shows how everyday citizens who save and invest have become guinea pigs in the central bankers’ laboratory. The world’s major financial players—national governments, big banks, multilateral institutions—will always muddle through by patching together new rules of the game. The real victims of the next crisis will be small investors who assumed that what worked for decades will keep working.
Fortunately, it’s not too late to prepare for the coming death of money. Rickards explains the power of converting unreliable money into real wealth: gold, land, fine art, and other long-term stores of value. As he writes: “The coming collapse of the dollar and the international monetary system is entirely foreseeable… Only nations and individuals who make provision today will survive the maelstrom to come.”
10. The Black Book of Forex Trading | By Paul Langer
Have you lost money trading the Forex Markets? Or are you consistently winning and making a regular income with your trading?
Are you spending money in third-party systems that don’t seem to yield you any results?
Are you wasting your money trading without enough knowledge?
Do you want to understand the systems and tactics advanced and professional Forex traders use to build their accounts?
If you aren’t achieving the results you want form Forex Trading this book will help you get there faster and easier.
If you only knew that by tweaking and fixing certain aspects of your trading you could literally start making money right away.
The knowledge and information contained in The Black Book Of Forex Trading was learned by me after several years of losing, trying and testing. Spending thousands in systems, courses and coaches to get to where I am now.
You could easily learn the core of what I know by reading this book. And literally change your trading forever since the concepts are simple and easy to follow.
What actionable and realistic Forex tactics will you learn?
– How to stop struggling with the markets
– How to STOP losing money!
– Gain enough confidence to trade, knowing that you have the right knowledge and the numbers are in your favor
– Adapt any of my THREE proven, powerful yet simple forex trading strategies to your own needs (day trade, swing trade or position trade)
– Start earning money CONSISTENTLY
– Become a profitable trader in four months or less
– Fund your financial freedom and the lifestyle you want with your trading
All of this while you develop a real Forex System to win constantly
Trading doesn’t have to be complicated to make you money
Aimed for beginner to intermediate traders who can’t yet become successful in their trading, this book will guide you and help you answer many questions normally other books, courses and gurus won’t cover.
Written by a real trader who lost most of his life savings due to bad trading, only to make them back many times over after learning a Proven, Powerful yet Simple method that is COMPLETELY laid out for you in this book, no secrets kept.
This book covers the three main areas of trading:
1- Strategies – how to adapt a winning strategy to your personal lifestyle and needs (no black box or spaghetti charts full of indicators and lines, just simple and pure price action, easy to read and follow)
2. Money Management – How to optimize and maximize your winnings without risking too much
3. Get control of your emotions and become a better trader – Why most traders let their emotions rule their trading and a few simple steps to control how your mind play tricks to you while you trade.
At the end of the book you will find a very simple to follow yet very powerful blueprint to plan your next months, get control of your financial future and achieve your trading success.
Download your Copy of The Black Book of Forex Trading NOW and change your trading forever
P.S. You’ll be able to notice a difference in your trading within 24 hours
11. A Three-Dimensional Approach to Forex Trading | By Anna Coulling
If you aspire to become a full-time forex trader, this is the book for you. Even if your dream is perhaps more modest, and you simply want to have a second income trading the forex markets, then again, this book is for you.
It has been written with one clear objective in mind. To explain how and why currency markets move in the way they do, using the combined power of relational, technical and fundamental analysis. Combine this with a three-dimensional approach to trading itself, using multiple time frames and multiple chart analysis, and the world of foreign exchange will become crystal clear. Many aspiring traders, simply do not realize that the forex market sits at the heart of the financial world, which, when you think about it logically, is really common sense. After all, this is the biggest money market in the world, and if the financial markets are about one thing, they are about money. Making it, protecting it, or increasing the return.
In the book, you will discover how changes in market sentiment in the primary markets of commodities, stocks, bonds, and equities, are then reflected in the currency markets. This is something which often surprises novice traders. After all, why look at a stock index, or the price of gold, or a bond market? The answer is very simple. It is in these markets where you will find all the clues and signals, which reveal money flow. After all, the financial markets are all about risk. In other words, higher returns for higher risk, or lower returns for lower risk.
A Three Dimensional Approach To Forex Trading will empower you with knowledge. Knowledge and confidence go hand in hand. Confidence breeds success, and success breeds money, which will then flow from reading this book.
12. Day Trading and Swing Trading the Currency Market | By Kathy Lien
Day Trading and Swing Trading the Currency Market gives forex traders the strategies and skills they need to approach this highly competitive arena on an equal footing with major institutions. Now in its third edition, this invaluable guide provides the latest statistics, data, and analysis of recent events, giving you the most up-to-date picture of the state of the fast-moving foreign exchange markets. You’ll learn how the interbank currency markets work, and how to borrow strategy from the biggest players to profit from trends. Clear and comprehensive, this book describes the technical and fundamental strategies that allow individual traders to compete with bank traders, and gives you comprehensive explanations of strategies involving intermarket relationships, interest rate differentials, option volatilities, news events, and more.
The multi-billion-dollar foreign exchange market is the most actively traded market in the world. With online trading platforms now offering retail traders direct access to the interbank foreign exchange market, there’s never been a better time for individuals to learn the ropes of this somewhat secretive area. This book is your complete guide to forex trading, equipping you to play with the big guys and win – on your own terms.
13. Bollinger on Bollinger Bands | By John Bollinger
John Bollinger is a giant in today’s trading community. His Bollinger Bands sharpen the sensitivity of fixed indicators, allowing them to more precisely reflect a market’s volatility. By more accurately indicating the existing market environment, they are seen by many as today’s standard―and most reliable―tool for plotting expected price action.
Now, in Bollinger on Bollinger Bands, Bollinger himself explains how to use this extraordinary technique to compare price and indicator action and make sound, sensible, and profitable trading decisions.
Concise, straightforward, and filled with instructive charts and graphs, this remarkable book will be essential reading for all serious traders, regardless of market. Bollinger includes his simple system for implementation, and techniques for combining bands and indicators.
14. The Alchemy of Finance | By George Soros
George Soros is unquestionably one of the most powerful and profitable investors in the world today. Dubbed by BusinessWeek as “the Man who Moves Markets,” Soros made a fortune competing with the British pound and remains active today in the global financial community. Now, in this special edition of the classic investment book, The Alchemy of Finance, Soros presents a theoretical and practical account of current financial trends and a new paradigm by which to understand the financial market today. This edition’s expanded and revised Introduction details Soros’s innovative investment practices along with his views of the world and world order. He also describes a new paradigm for the “theory of reflexivity” which underlies his unique investment strategies. Filled with expert advice and valuable business lessons, The Alchemy of Finance reveals the timeless principles of an investing legend.
This special edition will feature a new chapter by Soros on the secrets of his success and a new Foreword by the Honorable Paul Volcker, former Chairman of the Federal Reserve.
George Soros (New York, NY) is President of Soros Fund Management and Chief Investment Advisor to Quantum Fund N.V., a $12 billion international investment fund. Besides his numerous ventures in finance, Soros is also extremely active in the worlds of education, culture, and economic aid and development through his Open Society Fund and the Soros Foundation.
15. Forex For Ambitious Beginners | By Jelle Peters
There are many books that promise to teach you highly profitable trading systems, to show you how easy making money trading the forex really is. This is not one of those books.Forex for Ambitious Beginners will not turn you into a profitable trader, only you can do that, through practice, study and persistence. But this book will help you avoid many, many mistakes beginning traders make.You will learn essential elements of successful forex trading, such as how to protect your trading capital, how to find a forex trading strategy that matches with your trader personality and how to build your own trading system and tweak it for optimum performance.The book will also touch on important basics about the FX market that traders need to know about. Who the players on the forex are for instance, and which factors influence the most important currencies. Other topics include specific forex trading strategies, popular technical indicators, how to read candlestick charts and how to recognize chart patterns.Forex for Ambitious Beginners is about minimizing risk and maximizing potential, about looking for ways to continuously bend the odds in your favor. It will provide you with a solid foundation on which you can start building your forex trading career.The book concludes with a challenging quiz, offering detailed explanations of the correct answers.In short, if you’re ambitious and want to really learn how to trade the forex — as opposed to being spoon-fed a fantasy about some super strategy — then Forex for Ambitious Beginners is for you.About the authorJelle Peters is the founder of the popular forex website www.forexinfo.nl. He writes daily currency analysis, has published numerous articles on forex strategies and is a sought after speaker for forex webinars and seminars.
16. Adventures of a Currency Trader | By Rob Booker
“A truly easy, unique, and enjoyable read! Rob has done it once again to teach us in the funniest way possible how not to make the most common trading mistakes. If you are tired of reading how-to books, this is perfect for you. I highly recommend this book to all traders. Everyone will learn something about themselves by reading this book.”
―Kathy Lien, author, Day Trading the Currency Market, and Chief Strategist, www.dailyfx.com
“Adventures of a Currency Trader is a must read for anyone who has ever traded or is thinking about trading in the Forex markets. Rob Booker has a unique way of taking years of market knowledge and transforming it into an educational and entertaining experience. It has quickly become a cult classic in my trading library!”
―H. Jack Bouroudjian, Principal, Brewer Investment Group
“Brilliant! Rob’s humor and humanity shine through in this parable about trading and life. Filled with wisdom and wit, it’s an exhilarating rollercoaster ride through the peaks and valleys of the learning curve, with many valuable lessons learned along the way.”
―Ed Ponsi, President, FXEducator.com
“Rob’s fable of everyman ‘Harry Banes’ is destined to become a trading classic. This is both the missing piece and the foundation that comes before the strategies and methodologies. The search for the Holy Grail begins and ends in the heart and mind. The journey is authentic and real and if you’re willing to take it with Rob, you will be rewarded in the end. Seldom has psychology and wisdom been so entertaining!”
―Raghee Horner, trader and author of Forex Trading for Maximum Profit and Days of Forex Trading
“In a series of insightful and entertaining vignettes, Rob Booker teaches both the novice and the experienced trader some hard won truths about the currency market. It’s a must read book written by a guy who survived the trenches and went on to prosper in the biggest and most competitive financial market in the world.”
―Boris Schlossberg, Senior Currency Strategist, Forex Capital Markets LLC, and author of Technical Analysis of the Currency Market
17. 50 Pips a Day Forex Strategy | By Laurentiu Damir
This is a very clear and simple to follow forex trading strategy to get you started achieving consistent profits day after day trading the forex market. It will make you 50 pips per day or more every day. It is ideal for beginner traders but it will give a great deal of help to more experienced traders that have not found a clear strategy to make profits consistenly.
It is easy to understand and to put in practice.
It has very well defined entry, stop loss and exit levels.
Apart from the strategy, this book also contains a very useful guide that teaches you how to construct a profitable forex trading system for yourself and how to avoid trading and money management mistakes.
How to Build a Solid Trading System
Are you new to forex trading or just started to trade on a live account but with not much success ?
You need a solid forex trading system based on sound principles of the forex market, that has clear trading and money management rules.
Do you have a forex trading system and you have been trading with it for a period of time but still you don’t have the success you hoped for ?
This can only mean that your trading system does not take into account the basic trading rules and principles that any powerful forex trading system incorporates.
This book teaches you how to construct your own powerful forex trading system, what are the most important forex trading tools that you must include in it, what not to include in your forex trading system, how to apply solid money management rules and equaly important, how to avoid making trading mistakes that will cost you when you start to trade with your newly developed forex system.
18. How to Make a Living Trading Foreign Exchange | By Courtney Smith
How to Make a Living Trading Foreign Exchange puts the world of Forex at your fingertips. Author Courtney Smith begins with an introduction to the Forex market-what it is and how it works. He then delves into six moneymaking techniques for trading Forex, including his unique Rejection Rule that doubles the profit of basic channel breakout systems. In addition to two specific methods for exiting positions at critical levels, Smith also discusses powerful risk management techniques and successful trading psychology strategies that will keep you one step ahead of the game.
- Reveals the secrets of the Forex market and how to create a lifetime of income trading it
- Offers advice on maximizing profits during the volatile swings that have increasingly become the norm
- Other titles by Smith: Option Strategies, Third Edition, Seasonal Charts For Futures Traders, Commodity Spreads, and Profits Through Seasonal Trading
Make more from today’s Forex market with How to Make a Living Trading Foreign Exchange.
Final Thoughts on the Best Books on Trading Forex
When managing currency risk, it is important to use the currency instruments available to you in that country. It is possible to buy virtually any foreign currency on the foreign currency exchange and track its value, no matter how volatile, and no matter where you are or where you intend to invest it. The foreign currency exchanges offer a broad range of currency instruments, which should be tailored to your needs.
Do you see a book that you think should be on the list? Let us know your feedback here.