TOP 10 best books about Forex. Rating of the most useful books for traders
24 / 08 / 22
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Hello. Today we will tell you about what Forex literature, from our point of view, is best suited for reading by novice traders. This TOP 10 also contains equally useful self-improvement books that are closely related to investments. Quality books about Forex show almost universal tactics and strategies for making money even for novice traders. Thanks to the books about Forex in this material, you can feel a strong impulse of motivation due to the fact that you will know how, immediately after studying the first book, you can safely make profit over a long distance, and not periodically. In these books about Forex, examples of profitable trades are shown, which will allow novice traders not to repeat typical mistakes.
All textbooks in this article are divided into three subgroups, namely: the psychology of the exchange game, books that teach a reasonable career building, and textbooks directly about different Forex trading strategies, technical and fundamental analysis.
Tony Turner "Short Term Trading: A Beginner's Guide"
Tony Turner begins the book with the history of the world's largest stock exchanges. Further, the author touches on the topic of how wealthy investors think. Turner analyzes the role of emotions in trading. The author says that his Forex book should not be the last one you need to read in order to develop and trade successfully and emphasizes the need for relentless development.
The author tells that it is necessary to fix goals in a personal career according to the correct methodology that he shows in the book. The author insists that it is very necessary to be able to take responsibility, otherwise a novice trader will not be able to make difficult, but profitable decisions.
Next, Tony Turner begins an overview of the basic terms of short-term trading. Explains how to notice an uptrend, how market cycles work, for what reasons one cycle replaces another. The author shows examples of market signals for entering and exiting the market. In addition to other things, Tony Turner tells where to get information that can be used in both types of analysis.
Barbara Rockefeller “Technical Analysis for Dummies”
It is possible that you have seen or read at least one book from the “for dummies” series. The strongest advantage of this series is considered to be that it is told from scratch and in a fairly structured way about any subject in easy language. If you want to learn technical analysis from the very basics and then profitably trade in the Forex market, then Technical Analysis for Dummies is the perfect book for that. The book has a well-understood description of methods for detecting entry and exit from the market and explaining the market trend. A considerable number of different charts, charts, and other methods of technical analysis will allow you to understand all the nuances of this method. An additional advantage of the textbook is that it contains valuable information about cryptocurrencies. Even in many books that are devoted only to cryptocurrencies, there is no such knowledge. This book is one of the best about Forex for beginners, especially if you are not confident.
Gerald Appel “Technical analysis. Effective tools for an active investor”
The author is a generally recognized theorist and practitioner of technical analysis. Gerald Appel ran an investment brokerage company that averaged $350 million a year in turnover. Gerald started his career as an ordinary broker and in his book, he writes about how the market works from the inside. He is the creator of the MACD indicator. This indicator is often used to identify market signals when the market is calm and there is no particular trend. But it is worth saying that this indicator is not without drawbacks. The MACD indicator may not keep up with the market and identify irrelevant signals. The tutorial also shows steps to avoid this. Later this technique got into many similar books about Forex. If you set yourself the goal of getting concepts that will show you how to predict the behavior of financial exchanges, then the book will no doubt be useful! Another advantage of this book is that it teaches in an accessible language.
Nassim Taleb “Fooled by chance. About the hidden role of chance in business and in life.”
Key messages:
- A lot of things happen in the world by accident;
- There is no point in looking for patterns where they don't exist.
Nassim Taleb is a prominent trader and economist. The author is one of the most successful players and in his book he writes about Forex and life in general, teaches how to make the right decisions. The author has also written many other bestsellers. His most read book, The Black Swan, is one of the most famous books in the self-development category. In his book, Fooled by Randomness, he analyzes how people try to capture patterns where there are none. This book about Forex is not just from the category of self-development, it is valuable to all those players who want to work correctly in the financial market successfully. Interestingly, the book describes the thinking mistakes that even the most competent and prominent traders make. There are many common market events that can trigger you to infer a pattern and in this way trigger a chain of bad trades, as you rely on one inference and the events unfold differently. Summarizing, let us remind you once again that this book will be a great gift for beginner Forex traders.
Ray Dalio “Principles”
The author comes from a very poor family and is the director of the largest investment fund of all time. The author tells a lot of entertaining facts about his becoming one of the main people on Wall Street of our time. Among other things, one of the most notable achievements of Ray Dalio is that he was able to maintain the profitability of the fund even during the crisis of 2007-2009.
The author focuses attention on the fact that failures are inevitable and the right approach is required in relation to them. And in fact the book is more about the approach to everyday life and work in the field of investing and not about Forex. Nevertheless, the book also describes unusual phenomena in the financial markets, for example, when the gold standard was canceled. The next day, it was Monday, the author of the book expected that the NASDAQ would fall, but nothing similar happened. In addition, Ray Dalio gives advice on the structure of an investment portfolio and talks about blunders in building a portfolio, says that it is important to add gold and similar assets of the commodity exchange to the portfolio in order to hedge against the risk of accelerating inflation.
Alexander Elder “Trading with Dr. Elder”
This literature about Forex was created by a psychologist. She is very interesting. The author is not only a very competent psychologist, but also an equally successful trader. People are emotional creatures, and emotions in trading are almost always bad. Greed, embarrassment, nervousness, irascibility, are harmful. It looks redundant and you might think that we are saying something inappropriate, but we will say this: everyone we know has made the majority of their mistakes at the start of their careers due to emotions. I myself, in the same way, because of the desire to earn more, made mistakes, either I sold the asset too quickly when there were reasons to believe that the value would continue to go up, or vice versa, I closed the deal too late. In case, reading this, you decided that this does not affect you, I will remind you once again that I and many editorial acquaintances thought the same way. Regarding the value of the book, here is what, in our opinion, is the most interesting:
- In the textbook, you can track the course of the author's reasoning when making a trading decision, and this is necessary and interesting;
- After analyzing the course of his thoughts, you can take this as an example of decision making in certain situations;
- Unlike other forex books, this work provides a methodology for effectively learning to trade.
Benjamin Graham “The Smart Investor”
Despite the fact that this book is most likely present in 95% of all materials with books, we still should not add it to the top. Books about traders are good, but even more useful when these works are written by prominent investors. The information in it will give knowledge of fundamental analysis from the guru. Benjamin Graham is famous as the teacher of Warren Buffett. Warren even named his first son Benjamin.
From the author's point of view, the stock market is the best way to make a profit and offers to find companies that are undervalued. Or those corporations that have already passed their own peak of profitability, but still have noticeable value. Warren Buffett describes this method with the metaphor of a cigar that has few puffs but can still be smoked. You can find out the objective value of the company by comparing the price of its shares with the company's reporting. Additionally, we note that this book is not about Forex.
Many world famous experts are convinced that this book about Forex is the Bible of fundamental analysis. It’s hard to do without, even if you are fairly well versed in technical analysis, since not all trading situations can be understood only with the help of Japanese candlesticks and other methods of technical analysis.
Stephen Forbes, Nathan Lewis and Elizabeth Ames “Inflation. What is it and how to deal with it.”
The work was published in April 2022. Given the current realities, this type of Forex book is even more needed for the study of the modern market. Its authors are some of the most respected and famous experts in the stock markets. For example, Steve Forbes works as the CEO of the magazine of the same name. Second author Nathan Lewis is one of the most famous publicists and experts in the field of monetary policy. Elizabeth Ames is a well-known journalist who has published on Fox News and many others.
The authors of the book write that the widespread views on how the modern US economy should be arranged are outdated. Steve Forbes says that until this is understood in government circles, the problem with increasing prices will get worse. This information already puts this book in the best for a broker. Wrong views in US government circles, which the authors describe, also exist in many other Western countries, so this has implications for the financial system of the whole world.
Edwin Lefebvre “Memoirs of a Stock Operator”
I know that this book is in almost every article about literature for an inexperienced Forex trader and yet this is not surprising, because the main character is not the author but a real-life trader who was known as Jesse Livermore. He has come a long way, endured many mistakes. Any novice investor can significantly simplify his personal development as a full-fledged Forex player and not make many mistakes that take a lot of money with the help of this book.
I will briefly cover the most valuable information from the textbook, and leave the full training and error analysis in the chain of thought when considering Jesse Livermore's solution.
- It makes no sense to open trades at a time when there is no sure opportunity to earn money;
- If you do not practice scalping tactics, then in this case you can wait until the asset still grows in price, even if you are already convinced that you need to sell it;
- Try to avoid uncertainty when open trades. Do not lose profits due to the fact that you did not adapt to the market dynamics in a timely manner;
- Don't go against the trend without a good reason;
- Don't experiment with large lots;
William Sharp “Investments”
The author is a famous economist and Nobel Prize winner in economics. Initially, it should be noted that this literature is not as difficult as you might think. William Sharp has taught students at many prominent universities such as Stanford and the University of California. In addition, Sharp has created his own firm that advises the largest investors to the largest investors in the West.
Obviously, this is not a book you need to master first. However, if you are looking for the best books on Forex, then it definitely makes sense to record it in your diary. Here are the key details from it:
- The author mathematically justifies that in order to get more profit, you need to take risks more often;
- The author derived the Sharpe ratio of the same name, which helps to understand the ratio of profit for risk;
- The author substantiates the thesis that it is necessary to maintain a balance between high-risk instruments and trading instruments of the commodity exchange, mainly non-ferrous metals.
A complete list of unscrupulous brokers, that we do not recommend working with is available here.
