TOP 10 Smart Forex Trading BooksPaul Roberts 24 / August / 22 Visitors: 163
Welcome. In this article, we have written about what literature about Forex, from our point of view, is best suited for reading by novice traders. In addition to this, this article contains no less useful books on self-improvement that are related to trading on the stock exchange. Quality Forex books provide almost universal tactics and strategies for making money even for novice traders. Thanks to the literature about Forex in this material, you will be able to get a powerful boost of motivation because you will know how, almost immediately after studying the first book, it is quite possible to earn money quietly over a long distance, and not from time to time. In these Forex tutorials, examples of profitable trades are demonstrated in detail, which will allow inexperienced traders not to repeat common mistakes.
All the books in this article are divided into three subgroups, namely the psychology of the exchange game, books that teach competent career building, and textbooks directly about various Forex trading strategies, technical and fundamental analysis.
Barbara Rockefeller “Technical Analysis for Dummies”
It is possible that you have heard or read at least one book from the “for dummies” series. The strongest advantage of this series is considered to be that from the very basics and quite consistently it is told about any subject in simple language. If you want to learn technical analysis from the very basics and start profitable trading in the Forex market, then the book “Technical Analysis for Dummies” is well suited for this. The book has a fairly clear description of how to identify entry and exit from the market and fixing market dynamics. A large variety of charts, charts, and other technical analysis tools will allow you to begin to understand all the basics of this method. Another advantage of the tutorial is that it contains valuable information about cryptocurrencies. Even in the most famous textbooks, which are devoted only to cryptocurrencies, there is no such knowledge. This book is definitely one of the best about Forex for beginners, especially if you are not confident.
Benjamin Graham “The Smart Investor”
Although this book is most likely in 95% of all articles with ratings of Forex literature, we cannot but add it to the top. Books about traders are great, 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. Buffett even named his own eldest son Benjamin.
The author of the book considers not Forex, but the stock market, to be the best source of income and suggests finding corporations that are undervalued. Or those corporations that have already passed their peak of productivity, but still have noticeable value. Warren Buffett explains this method with the analogy of a cigar that has few puffs but can still be smoked. You can find out the objective value of a corporation by comparing the price of its shares with the company's reporting. Again, this book is not about Forex.
Many world-famous experts claim that this Forex book is the bible of fundamental analysis. It is hard to do without, even if you are very good at technical analysis, since not all trading situations can be seen only with the help of charts and other technical analysis tools.
Gerald Appel “Technical analysis. Effective tools for an active investor”
The author is a famous theorist and practitioner of technical analysis. The author ran an investment firm that averaged $350 million a year in turnover. Gerald started his career as an unremarkable broker and in the book he talks about how the market works from the inside. The author is the creator of the MACD indicator. This indicator is often used to identify trading signals when the market is stable and there is no clear trend. But it is worth saying that this indicator is not without flaws. The MACD indicator may lag behind the market and give outdated signals. The book also discusses ways to avoid this. After some time, this technique got into many other books about Forex. If you set yourself the goal of obtaining methods that will allow you to predict the behavior of world markets, then the book will no doubt be useful! Another advantage of this book about Forex is that it is written in an understandable language.
Nassim Taleb “Fooled by chance. About the hidden role of chance in business and in life.”
- A lot of things that happen in the world are completely accidental;
- Do not look for patterns where there are none.
Nassim Taleb is a famous trader and economist. Nassim is one of the most profitable players and in his book he writes about Forex and life in general, teaches how to practice the right decisions. The author has also published many other bestsellers. His most popular book, The Black Swan, is one of the most popular books in the self-improvement category. In his book, Fooled by Randomness, he talks about how people tend to identify patterns where there are none. This book about Forex is not only from the category of self-improvement, it is valuable to all those players who want to work successfully in the financial market correctly. Interestingly, the textbook tells the errors of thinking that even the most competent and famous speculators repeat. There are many frequent market situations that can provoke you to make a conclusion about patterns and in this way cause a chain of losing trades, since you will rely on one conclusion, and events will develop differently. In conclusion, let's say that this book for beginner Forex traders will be a good purchase.
Tony Turner "Short Term Trading: A Beginner's Guide"
In this literature, the author begins the story with the history of the world's leading stock exchanges. Then Tony Turner moves on to how wealthy speculators think. Turner analyzes the role of emotions in trading. The author also says that his Forex book should not be the last one you need to study in order to successfully grow and trade Forex and emphasizes the need for further self-education.
The author claims that you need to fix goals in your career according to the competent methodology that he gives in the book. Turner insists that it is very necessary to be able to take responsibility, otherwise an inexperienced trader will not be able to make difficult but profitable decisions.
After that, the author analyzes the key concepts of short-term trading. It tells how to determine an uptrend, how market cycles are arranged, in connection with which one cycle replaces another. The author discusses examples of market signals for entering and exiting the market. In addition, Tony Turner tells you where to find information that can be used in both types of analysis.
Edwin Lefebvre “Memoirs of a Stock Operator”
I saw that this book is in almost any article about literature for an inexperienced Forex trader, and despite this, it is justified, because the main character is not the writer himself, but a real person whose name was Jesse Livermore. He has traveled a thorny path, endured many failures. Any novice trader can significantly simplify his development as an earning market player and not make a lot of mistakes that take a lot of money.
I'll briefly mention the most valuable concepts from the textbook, but I'll leave you to read Jesse Livermore's decision-making mistakes in full reading and learning.
- Do not open trades when there is no clear opportunity to make a profit;
- If you do not use the Scalping strategy, 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;
- Avoid uncertainty with open trades. Do not lose money because you did not quickly adjust to the market trend;
- Don't trade against the trend without very strong arguments;
- Do not experiment with large lots;
Alexander Elder “Trading with Dr. Elder”
This literature about Forex is written by a psychologist. The book is very exciting. The author is not only a smart psychologist, but also an equally accomplished investor. We are emotional beings, and emotionality in the stock market is almost always bad. Thirst for profit, doubt, anxiety, irascibility, are harmful. This seems redundant, and you may think we're talking too much, but we'll say this: everyone we know made a fair share of emotional mistakes early in their careers. I myself, in the same way, because of the desire to earn more, made mistakes, or sold the instrument too quickly when there were reasons to think that the price would continue to go up, or vice versa, closed the deal too late. In case, while reading this, you decided that this does not apply to you, I will remind you once again that I and many editorial acquaintances thought the same way. As for the meaning of the book, here is what, in our opinion, is the most important:
- In the book, it is easy to follow the course of Alexander Elder's reasoning when making a trading decision, and this is necessary and interesting;
- After thinking about the course of his ideas, you can take this as an example of decision making in certain situations;
- Unlike other forex books, this work shows the system of effective trading education.
William Sharp “Investments”
The author is a famous economist and Nobel Prize winner in economics. It must be said right away that this literature is not as difficult as you probably thought. The author has taught students at many prominent universities, such as Stanford and the University of California. In addition, Sharp founded his own firm that advises the largest investors to the wealthiest investors in the West.
Obviously, this is not the book you should read first. However, if you are looking for the best books on Forex, then you should definitely write it down in your notes. Here is the main information from it:
- The author mathematically justifies that in order to extract more profit, you need to take more risks;
- The author formulated 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 in commodity exchange instruments, mostly non-ferrous metals.
Stephen Forbes, Nathan Lewis and Elizabeth Ames “Inflation. What is it and how to deal with it.”
The book was published in April 2022. Given today's realities, this type of Forex book is all the more necessary for studying the modern market. Its authors are some of the most respected and well-known analysts in the financial markets. For example, Steve Forbes works as the CEO of the magazine of the same name. Co-author Nathan Lewis is one of the most respected writers and specialists in the field of monetary policy. Elizabeth Ames is a prominent journalist who has written for Fox News and many others.
The authors of the book talk about the fact that many views on how the modern US economy should be arranged are no longer of practical value. Steve Forbes argues that as long as the economic and political elites do not realize this, the problem with increasing prices will intensify. This information already makes this book the best one for a broker. The mistakes in US government circles that the authors describe also exist in quite a few other Western countries, so this has an impact on the financial system of the whole world.
Ray Dalio “Principles”
The author comes from a poor family and is the director of the largest investment fund on the planet. The author tells many fascinating events from his becoming one of the most influential people on Wall Street of our time. Among other things, one of the most prominent merits of the author is that he found a way to keep the company's earnings even during the crisis of 2007-2009.
The author focuses on the fact that mistakes are inevitable and a correct approach is required in relation to them. And in fact, the book is more about the approach to everyday life and a career in the field of investing and not about Forex. But, nevertheless, the book also discusses interesting phenomena in the financial markets, for example, when the gold standard was canceled. The next day, it was Monday, Ray expected the stock market to crash, but nothing like that happened. In addition, the author of the book gives advice on the structure of an investment portfolio and shows common mistakes in building a portfolio, talks about the need to add gold and similar assets of the commodity exchange to the portfolio to protect against the risk of increasing inflation.
Paul Roberts 51 years old Born in Edinburgh. Married. Studied at University of Oxford, Department of Public Policy and Social Work. Graduated in 1997. Works at Standard Life Aberdeen plc.