Find out how Forex books are fundamental in your learning
Find out which are the best books on forex to start making money in this vast financial market. As important as knowing the right mentor, nothing better than collecting knowledge through books that are fundamental to learning how to trade.
If you have heard of the forex market or even invested money, you know that this is a very profitable but also demanding market, where in days of high volatility you can get a return of 100% or more on the capital invested. However, as with all types of investments that offer high profits, there is also the risk of losing a lot of money if you do not know how to manage risk when trading currencies and do not have the necessary knowledge to know when to open and close positions to obtain earnings.
Hence, it is very important to invest some money in forex books and courses beforehand so you can get the essential education to become a professional trader. Read on to find out which essential books you should buy to learn forex.
Recommended books to trade in the forex market
Our entry into this financial market was really great, right after opening an account with only 100 euros, we immediately started investing money in the EUR / USD pair and, in less than 1 day, we managed to more than double the initial money. However, after these gains we all started to invest in other forex brokers , but the results were no longer the same. We started by winning, but later we ended up losing a lot of money.
All this because in reality we did not know how to read Japanese candlestick charts, nor did we have the necessary knowledge to analyze the main currency pairs, in order to know when to open buy or sell positions. Therefore, the next step was to increase our education in this area. We invest money in forex courses, seminars and books – the latter is the cheapest option.
Find out which books we bought to improve our training in this area and which helped us to understand much more about forex, in order to open and close positions without fear and with good gains:
The book Naked Forex: High-Probability Techniques for Trading Without Indicators was written by Walter Peters and Alexander Nekritin – CEO and President of TradersChoiceFX. It is a very popular book among many successful forex traders, as here in this book you can find several profitable and effective approaches to trading without the help of indicators. Here the Nake Trading strategy is taught, which is one of the simplest trading strategies.
The Naked Trading trading strategy does not take technical indicators into account, focusing only on the price chart to know when to open and close positions.
A Random Walk Down Wall Street by Burton Malkiel
One of the best Trading books is from a few years ago, from 1973. Although it looks “old”, in addition to having a revised and updated edition of 2015, the book is a classic that every investor should read. It is a book with a lot of content and a lot of details. So, when choosing it as your next read, be ready to dedicate yourself to it.
He recounts a random walk through Wall Street analyzing the market’s efficiency vs. inefficiency. The author discusses at the same time that he disagrees with arguments of the efficient market theory. The book begins with two basic inventory valuation models, and continues with a review of bubbles and crazes throughout history.
We still have content on behavioral finance (from the 9th edition), and also a practical part at the end, which offers a kind of consultancy. Certainly the best forex traders in the world have this book as one of their bedside.
17 Proven Currency Trading Strategies
The book 17 Proven Currency Trading Strategies: How to Profit in the Forex Market , written by Mario Singh, founder and CEO of FX1 Academy – the first and largest education company in forex in Singapore and Malaysia. This book presents an easy-to-understand guide to the world of foreign exchange trading for private investors.
Here you can find out what your investor profile is (Scalper, Day Trader, Swing Trader, Position Trader or Mechanical Trader), so you can choose a trading strategy that suits your profile. In total there are 17 trading strategies that work, explained step-by-step, with easy examples to learn and apply in your day-to-day in this financial market.
Jack Bogle’s The Little Book of Common Sense Investing
The author of this one of the best trading books, John Bogle, is the retired founder and CEO of Vanguard, and the investment philosophy of Vanguard / Bogle. His “Small Common Sense Investment Book”, in literal translation, intends to introduce specific investment philosophies.
Divided into 18 chapters, the book has a very good content, presenting the reasoning of investment strategies apparently very simple, but that work. For those who are interested in knowing the basics of investment philosophy, described and explained in simple terms so that ordinary people, even those who are not experts in financial markets, understand, this is a good book option.
The ideas behind the philosophy that you should invest in low cost index funds are very well detailed, but in a smooth and easy to read manner. In this option, we can say, that your dedication may be less than in our first book option. It is a great title for reading breaks during the afternoon and at the end of the day.
Trading in the Zone: Master the Market with Confidence by Mark Douglas.
Another work by Mark Douglas that focuses on the psychology of successful traders, and is also one of the best trading books. This book is a great tool to help the development of experienced investors.
But it is not just for beginners. The book states that even the most experienced can be harmed by thoughts that make them make bad decisions and consequently fail to negotiate. Here Mark makes it clear that maximizing the professional’s state of mind is the key to obtaining the best results.
He seeks to teach traders ways to think in terms of probabilities and to adopt the essential beliefs necessary to take on the mentality of the best forex traders in the world.
The book tries to unravel and expose the “market myths”, with lessons on analysis beyond the results, and to understand the true realities of risk, so that traders can feel comfortable with the “probabilities” of the movement and speculations of the Marketplace.
Technical Analysis: The Complete Resource for Financial Market
Last but not least, we have the book Technical Analysis: The Complete Resource for Financial Market Technicians , by Charles D. Kirkpatrick and Julie R. Dahlquist. This book is already in its second edition, and can be described as the bible of technical analysis.
It presents a complete and easy-to-understand guide to technical analysis, recommended by the US Association of Market Technicians. The authors explain the theory of technical analysis, analyzing markets from an easy to understand point of view. At the same time, they present complete investment systems and portfolio management plans. You can find momentum indicators , timing effects, capital flows, testing systems, risk mitigation strategies, and many other topics.
The Disciplined Trader: Developing Winning Attitudes by Mark Douglas
Another classic, this time from 1990 and considered one of the first books to introduce the investment sector to the concept of commercial psychology. And for that reason and for all the good content, the book by Mark Douglas, is considered one of the best trading books, and I believe it is also one of the bedside books of the best forex traders in the world.
Mark is an author, speaker, coach, world-renowned professional, and winner of several awards, such as the prestigious “Bull / Bear Award” in 2006, 2008 and 2011, and again in 2015.
The title addresses we have as: the nature of the mental environment, how memories, associations and beliefs manage environmental information, manage mental energy and others. He also talks about covering negative risks, developing winning attitudes and about the mental dynamics of negotiations.
The author states that traders are unsuccessful mainly for 3 reasons: lack of skills, limiting beliefs and lack of self-discipline. He further emphasizes the need to create a framework for first understanding.
In the last chapters we have techniques for making changes, and directions for conscious change in belief systems.