The world of currency transactions, or forex, can be intimidating even for experienced investors-practitioners. However, there are many books on currency trading – from a basic introduction to the Forex market to advanced strategies based on fundamental and technical analysis. Here are the six best ones that have stood the test of time and the ups and downs of the Forex market.
1. Forex Trading: The Basics Explained in Simple Terms
As the name suggests, the book “Forex Trading: The Basics Explained in Simple Terms” in an accessible and understandable form reveals some of the difficult moments of Forex trading. The author of the book, Jim Brown, explains how to trade in the foreign exchange market, in a language understandable to beginners.
The book “Forex Trading: The Basics Explained in Simple Terms” covers all the basics of Forex trading. You will learn about currency pairs, how to analyze market trends and manage risks. In addition, the book contains many practical tips and strategies that can be immediately put into practice.
2. The Little Book of Currency Trading
Kathy Lien’s book “A Little Book about Currency Trading” is an excellent guide for novice traders who want to master the basics of Forex trading. The book is an Amazon bestseller, has hundreds of positive reviews and is written by a veteran retailer in the Forex market.
After reading the “Little Book on Currency Trading”, you will learn how the foreign exchange market works, which pairs are best to trade, and also discover effective trading strategies that you can implement into your own trading.
3. Japanese Candlestick Charting Techniques by Steve Nison
Steve Neeson’s book “The Technique of constructing Japanese Candlestick charts” is considered one of those that introduced the Western world to this universal technical analysis tool, widely used by traders in the Forex market at present. The book contains detailed and in-depth training in the construction of candlestick charts, which are also used in futures, speculation, hedging, stocks and other areas where technical analysis can be applied. Neeson’s work is ideal for traders seeking to increase the level of their trading strategy. In the future, it may be worth reading one of the following sections: “The course of candlesticks, beyond candlesticks: New Japanese methods of charting are revealed” and “Strategies for making profit on Japanese candle charts”.
4. Day Trading and Swing Trading the Currency Market by Kathy Lien
Kathy Lien is a world-renowned currency analyst, Managing Director of BK Asset Management, a frequent guest of Bloomberg, CNBC and Reuters programs. In her book, which is already in its third edition, a two-pronged approach is applied, combining theory and practical training with a balanced understanding of fundamental and technical Forex trading strategies that allow you to regularly make a profit. Lien introduces readers step by step to the fundamentals of Forex trading, such as long-term and short-term factors affecting currency pairs. She also talks about technical analysis trading strategies that professional traders use on a daily basis.
5. The New Market Wizards – Jack Schwager
The author interviews many successful traders, asking them about their trading systems and what makes them profitable. This book about trading opens your eyes to different trading styles and how they can be effective. There is no one right way. Each of the interviewed traders found what works exactly for him, and then improved this method. We also recommend reading the book “Unknown Wizards of the Market” by the same author.
6. The Complete TurtleTrader – Michael Covel
This book tells the story of a trader who argued with his business partner that he could make any person a successful trader if he gave him a proven strategy. The trader financed and trained a group of recruits, whom he called “turtles”. Many of the students/turtles who participated in the experiment really became successful traders, and the strategy of following the trend that they were taught is revealed in this trading book.
7. Intermarket Analysis – John Murphy
Inter-market analysis is the study of the interaction of markets in order to predict further price movements. For example, if bonds and stocks are doing well in some countries, this may affect the respective currencies. If the US dollar is strong, it could affect commodity prices. The book provides a basis for understanding how prices in the Forex market change in relation to other assets.
8. The Art and Science of Technical Analysis
One of the most rated books on Forex trading and a valuable addition to any trader’s library is the Art and Science of Technical Analysis. The book, written by Adam Grimes, goes beyond technical analysis and provides a deeper understanding of market behavior.
You will get the basics for analyzing price movements, market trends and the use of indicators. Numerous techniques for developing effective trading strategies and tips for managing psychology that can influence your trading decisions are given.
9. The Visual Investor
Another book by John J. Murphy was included in our list of the best books on technical analysis in the Forex market, this time – “Visual Investor”. Many traders highly recommend this book; it covers various topics, including technical analysis, graphical models and indicators.
One of the best features of the book is the use of visual aids to explain complex technical concepts. A large number of charts helps the reader to visualize the trends and patterns of the market, which facilitates the identification of trading opportunities.
10. Trend Following – Michael Covel
The book contains almost everything you need to know about trend-following trading strategies. Such strategies can be applied in any market, including foreign exchange. The book examines the reasons why trend-following strategies have stood the test of time, and provides interviews with successful traders. The volume of the book is more than 600 pages, so it needs to be read long and carefully, not quickly.
Where is the best place to trade on the Forex market?
CMC Markets provides traders with access to a wide range of currency pairs and currency indices from a single award-winning trading platform*. Start trading on the Forex market to gain access to 330+ currency pairs available on our platform.
How can I improve my Forex trading skills?
If you want to improve your Forex trading skills, then one of the best ways is to open a demo account. It allows you to work out strategies without risk and try out the platform using a virtual currency worth £ 10,000. As soon as you feel comfortable, you can switch to a real account to top it up and trade for real money.
Can Forex trading be a profitable full-time job?
Some traders use Forex as a permanent job and make a profit, although serious dedication is required to achieve this level. Forex trading requires a large monthly profit on a small capital to replace income, or a smaller but constant monthly profit on a large account balance. Consider starting trading for additional income. If profitability and profitability will grow, as well as constancy, then think about whether Forex trading has the stability and income level necessary to replace work. Read about Forex trading from home.