Best Books on Trading Forex
Do you need some motivation and inspiration from successful Forex traders and traders that were once in your position? These are the best books on trading Forex that helped me think differently and has helped me average 5-10% per month in live alerts shared in my trading room over the last few years.
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Table of contents
Best Books on Trading Forex
Throughout my Forex trading journey I reflect back to when I was first learning to trade. I recall how I was way off the mark in terms of what I was focusing on. It wasn’t an easy ride those first few years of learning to trade the currency markets. I will aid you and help you avoid the common pitfalls I fell into. I’ll help you think correctly via the information in these books and my experience that will save you lots of wasted years and money.
Over a 15 year span these books have helped me hugely in one way or another. Hearing and reading about successful Forex traders and market participants alike and their stories of how their performance has been through peaks and troughs reassures you. I searched for the best books on trading Forex and trading in general throughout my time in the markets and in this article is my top 5 that helped me and also amused me.
How They Can Help You Like They Helped Me
You can pick up little gems of information directly from these successful traders. These books cover a wide variety of topics which include fundamental analysis, day trading and the best ways for new traders to think about Forex Trading. We all need a trading plan and the mindset is a huge part of that plan. Chart patterns are useless unless it is accompanied by a solid trading system and a robust mindset. Swing trader or day trader in the FX market it doesn’t matter without a trading plan its high risk. This information is directly from those traders who walk the walk and share their trading methods. Not like a lot of today’s so-called traders on social media who talk the talk and rarely back it up with credible evidence they can actually trade let alone teach.
This is a complete guide to the best forex books which cover currency pairs, price charts, fundamental strategies, forex strategies success stories and technical indicators.
The books are suitable for complete beginners as there is no time like the present to push your learning on from the basics of trading to the mindset of Mark Douglas in Trading in The Zone and the financial instruments mentioned in Fed up during a financial crisis. Forex trading strategies are relatively simple at their core and can be more complex and Brent Donnelly covers these well in The Art of Currency Trading. Different Trading styles and the essentials of Forex Trading are covered in these books.
One thing that is a major problem now for newbies and struggling Forex traders! They are faced with learning to trade Forex from an abundance of rubbish and invalid Forex trading education that dominates social media.
Forex trading attracts lots of shady characters and scammers. Just see YouTube and Instagram and that’s where you will find hugely popular sales people pretending they are traders with zero proof that what they offer actually works. They’ll portray themselves as successful with polished social media profiles. However, the trading proof of returns on the system they offer is normally no where to be seen. Instead they show off their luxury items from the money made from the subscribers. That’s why these books, the best books on trading Forex is a list of traders who have been there and done it some continue to do it!
It’s something I pride myself on is my transparency.
I share my trades in real time, with the entry stop and target every week in my trading room via live trade alerts. This is to prove that I can trade and my trading method that I offer to learn really works.
Reading about these traders, they are reassuring. It’s normal to take managed losses. A 50% win rate is pretty standard. 2-5% a month is a very good month! All these things are highlighting the truth from real traders and they are very much like you/us. In reality, no one made it in this game easily. But they stuck at it.
Everyone of the books has different elements that you can likely relate to from interviews in Market Wizards to Colin Lancaster’s fiction based book on the troubles in the markets of 2020 during the height of the spreading virus.
The alignment I felt with these traders struggles should ease your concerns as you learn. You realize that they all went through the same feelings and tough periods.
Whilst reading all the best books on trading Forex, I was experiencing something very similar and it motivated me to keep going all those years ago and also was amused when reading Fed Up recently.
A good mix of trading psychology, fiction and interview style. Some of the best books I believe on trading Forex and trading in general are listed below.
These books help in a different way to what most may expect. Because what most new and struggling traders focus on is simply misplaced thanks to the huge amount of misinformation on Forex trading.
Forex trading is one of the hardest mental battles you will endure.
I often tell clients and members that once you have learnt the process and conditions, which is relatively simple. There is then a new battle. A battle begins with oneself!
Forex trading success is not an arrival. It is a constant journey of self discovery, self awareness and lessons on our own weaknesses.
We all have them and we all want to evolve into better Forex traders. Some find this nearly impossible. Those that cannot and will not accept their own shortcomings and mistakes will simply never become a successful Forex trader.
The best books on trading Forex and trading, mostly include a bit of a pattern.
That pattern being the journey of the successful trader is a simple step by step process of identifying problems, admitting problems, wanting to fix the problems and implementing a solution, evolving and reviewing.
So without further ado here is a list of my favourite and best books on trading Forex and trading in general.
Best Books on Trading Forex
1. The Art Of Currency trading
While most Forex trading and foreign exchange books focus on international finance theory or simple price action strategies, The Art of Currency Trading is a detailed guide that will teach you how to profitably trade Forex in the real world.
Author Brent Donnelly has been a successful interbank FX trader for more than 20 years and in his book, he shares the specific strategies he has used to profit in the forex market.
The book helps traders understand and master Forex trading in order to achieve sustainable long-term financial success. The book offers information in depth one topic at a time, starting with the basics and moving on to advanced setups and strategies. Whether you are new to Forex trading or have years of experience, The Art of Currency Trading provides the information you need to learn to trade Forex successfully. This excellent guide provides:
- an insider’s view of what drives currency price movements;
- a clear explanation of how to combine macro fundamentals, technical analysis, behavioral finance and diligent risk management to trade successfully;
- specific techniques and setups you can use to make money trading foreign exchange; and
- steps you can take to better understand yourself and improve your trading psychology and discipline.
Written for Forex traders of all skill levels, international stock and bond investors, corporate treasurers, commodity traders, and asset managers, The Art of Currency Trading offers a comprehensive guide to forex trading written by a noted expert trader in the field.
2. Hedge Fund Market Wizards
From the bestselling author, investment pro, and Wall Street titan Jack Schwager comes a behind-the-scenes peek at the world of hedge funds, from fifteen traders who’ve consistently beaten the markets. Exploring in detail what makes an excellent trader.
Hedge Fund Market Wizards gives readers a rare insight into the trading philosophy and successful methods implemented by some of the most profitable traders in the hedge fund business.
- Presents insightful interviews with fifteen of the most successful hedge fund traders and what they’ve learned over the course of their careers
- Includes interviews with Jamie Mai, Joel Greenblatt, Michael Platt, Ray Dalio, Colm O’Shea, Ed Thorp, and many more
- Explains key lessons for traders to digest
- Joins Stock Market Wizards, New Market Wizards, and Market Wizards as the fourth installment of investment guru Jack Schwager’s acclaimed bestselling series of interviews with stock market experts
A candid and frank assessment of each trader’s successes and failures, in their own words. The book shows readers what they can learn from each, and also outlines forty lessons—from finding a trading method that fits an investor’s and traders personality to learning to appreciate the value of diversification.
Bringing together the wisdom of the true masters of the markets, Hedge Fund Market Wizards is a collection of timeless insights into what it takes to trade in the hedge fund world.
3. Trading in the ZONE
In this book Douglas uncovers the underlying reasons for lack of consistency. The information helps traders overcome the ingrained mental bad habits that cost them money. He takes on the myths of the market and exposes them one by one teaching traders to look beyond random outcomes, to understand the true realities of risk, and to be comfortable with the “probabilities” of market movement that governs all market speculation.
4. FED UP
Fed Up! tells the story of a global macro trader working amidst the greatest market panic we have seen since the Great Depression. As the pandemic spreads across the world, listeners are taken through the late-stage decadence of an exuberant market bubble to the depths of the market crash and into the early innings of a recovery. It provides listeners with a front row seat on trading activity, allowing them to experience the heartbeat of the markets
5. Able Trading’s cheat sheet!
A detailed guide of how to cut your learning time in half! A proven approach to the fastest way to success that has been proven time and time again. Members of Able Trading, some of which have gone on to full time trading, learnt their skills in 50% less time at Able Trading than they had previously been trying to learn before.
These are just a few of the best books on trading Forex. I will likely add to this list at a later date.
They offer a wide variety of information that will help you think correctly.
If you want to learn to trade forex then I would love to work with you!
What to read next? Forex Factory – How to reduce your losing trades