More than 75% of retail traders lose money. Money that will never be recovered. You know why? The largest population of traders who lose money is beginners. This is because most beginners don’t take the time to learn and understand the forex market before getting their feet wet with real money. Take time to learn the ins and outs of the market with the best forex trading books for beginners outlined below.
Best Forex Trading Books
1Currency Trading For Dummies by Kathleen Brooks and Brian Dolan
This book has been compiled with a simple and easy to understand language for the layperson. It outlines topics such as the size and scope of the market and major drivers to the forex market. The book also offers advice on the common pitfalls traders get into and ways to avoid it.
The book has been an Amazon bestseller for years since it’s the number one book people purchase for beginner forex trading.
The writers are both popular with several years in the market. Kathleen started the world of trading in 2003 and is a research director at Forex.com. She’s also a guest at CNBC, Bloomberg, and BBC. Brian also has extensive experience in the forex market has been in the industry for more than 20 years.
2Day Trading And Swing Trading The Currency Market by Kathy Lien
After graduating from NYU, Kathy Lien immediately secured a job at Wall Street. She got involved in the financial markets and her experience has enabled her to create popular books on trading. Kathy has been featured on CNBC and Bloomberg among others.
Her book is designed for beginners to intermediates and has easy to implement strategies. The book also explains how forex works and some time tried and proven strategies to use. You also get to know how to make money from short swings and how to navigate the overbought and oversold market conditions.
3How To Make A Living Trading Foreign Exchange by Courtney Smith
This book offers several strategies you can use in trading. It has also detailed 6 ways to earn a steady income from forex. And it focuses on other areas such as discipline, risk management, and investor psychology – some important factors to successful trading.
Courtney also outlines an actionable strategy called the Rejection Rule which is about doubling profits from the channel breakout.
4How To Start A Trading Business With $500 by Heiken Ashi Trader
Most retail traders start with limited capital. Heiken understood this and created a step by step approach to have a successful trading business with small capital.
The book also shows you how to acquire and the way to implement good trading habits. It also outlines some communication skills with your forex broker and trading activities for hedge funds.
5Forex Trading: The Basics Explained In Simple Terms by Jim Brown
As the name suggests, this book is written in a simple to understand language. The book contains topics such as what is forex. The advantages of trading forex. Where people trade and the pairs that people trade.
It also features essential topics such as money management, trading psychology and some strategies for entries and exits.
6The Black Book of Forex Trading by Paul Langer
This book is written by a trader from experience. The experience of getting fingers burnt and roasted in the forex market. Paul shares his experience of losing money and knowing what works so that you as the reader can sidestep his mistakes and get success faster.
The book is for the beginner to an intermediate trader who is still struggling to get profitable trades. It teaches you how to create a working strategy and ways to maximize your gains without going through unnecessary risks.
If you’re a beginner, you learn how to get enough confidence and become successful within 4 months. It’s one of the best forex trading books.
7The Disciplined Trader by Mark Douglas
Mark emphasizes the importance of proper trading psychology. He says emotions are the enemy and details how an average trader with proper psychology of trading can succeed longer in the markets than an experienced trader with limited psychological strength.
The book also details how he almost everything through trading and how a change of psychology – by improving his emotional strength – propelled him to be successful.
8The Japanese Candlestick Charting Techniques by Steve Nison
Steve is a global author and coach when it comes to Japanese candlestick trading. He introduced the trading strategy to the western world and has written other books on candlestick trading. This strategy can be used in other markets including stocks, futures, and even cryptocurrencies.
Nison has years of research when it comes to trading and this book is great for a beginner into candlesticks. As it is, Japanese Candlestick can be used as a strategy on its own but some traders implement it with other strategies.
9Currency Forecasting: A Guide To Fundamental And Technical Models Of Exchange Rate Determination by Michael Rosenberg
Michael was an analyst at Merrill Lynch when he published this book in 1995. Years later the book is still relevant to traders as well as other analysts.
The book discusses the macroeconomic factors of forex and the dynamics of analysis and how to use exchange rates to forecast the future of currency pairs. The book has been dubbed one of the best forex trading books in the market.
10Trading In The Zone by Mark Douglas
The book teaches you five elements to use to become successful and how to think on odds and probabilities. It is filled with actionable examples of how supply and demand affect the price action of the markets.
Mark, who has been an industry consultant for years, says some of the reasons traders fail is due to lack of consistency and thinking in terms of losing and winning instead of assessing the odds and probability of a trade.