The forex market is the biggest with the most liquid across the globe. As this is an international market, the average value traded often goes over $1 trillion per day. Since this is the foreign exchange, all currencies are also welcome, which can be incredibly scary to a new trader. Many people have wondered how do you become successful in such a booming worldwide market, and some experts have stepped up to lend their advice. These authors detail all kinds of strategies, maneuvers, tactics and mental skills needed to overcome challenges in the forex market. These are also seasoned traders who have worked with the forex market for many years. Whether you’re a beginner or just want to perfect your own forex strategies, these are some amazing reads that will truly inspire you to make successful trades.
1. Trading in the Zone by Mark Douglas
Mark Douglas is a well-known name in trading literary works. His book The Disciplined Trader was released in 1990 and got people talking about trading psychology. It’s still considered a classic to stock trading theory. Some people call Trading in the Zone the “Bible of Trading.” The book’s theories and explanations can apply to almost any market, but it seems particularly fond of forex. As a trader, this book will change the way that you look at foreign markets and currency trading. While the forex can be particularly risky, Douglas goes into a variety of ways to be inspired by that fear and make smart choices for success.
Douglas really focuses on the mental strategies behind doing well in trading including trending and non-trending techniques, mental strategies, trading dos and don’ts and much more. Through his guides, the reader is able to see how to get an edge on the market and utilize his theories to train the mind towards trading goals.
The book goes into why there is a lack of consistency in the market and also advises traders on how to overcome instinctual habits that may cost them more money when trading. There are also several exposed myths, which are very useful for today’s forex traders.
2. Jesse Livermore: World’s Greatest Stock Trader by Richard Smitten
Jesse Livermore is often regarded as one of the most legendary stock traders. The stock market hero was known for winning and losing millions of dollars during the stock market crash through short selling in the early 1900s. Even with his multi-million dollar losses, he continues to be one of the most talked about figures in modern stock trading theory schools. This book details the experiences and techniques of Livermore in a way that stock traders can truly appreciate.
Smitten starts off explaining about Livermore’s upbringing and how he ran away at the age of 14 with just $5 on his person. Livermore continues to be one of the most talked about stock traders in history. His tactics and short-selling skills during the American stock market crashes actually revolutionized Wall Street. This book details Livermore’s trading system and goes into the steps that Livermore took to secure his trades in the early 1900s.
The World’s Greatest Stock Trader also goes through valuable lessons and advice gained through Livermore’s trading skills that can apply to almost any market but especially foreign exchange. It will help you learn more about currency trading and recognizing significant opportunities across all markets. If you are inspired by Jesse Livermore, there is also Reminiscences of a Stock Operator by Edwin Lefevre, which focuses more on the legendary stock trader’s life.
3. Currency Trading for Dummies by Mark Galant and Brian Dolan
For beginners in forex trading, Currency Trading for Dummies is a must read. While it’s not specifically written about the foreign exchange market, the advice on market changes, currency charts and finishing trades is invaluable if you are a new trader. Galant really covers the basics and offers sound advice to trading on the forex market.
The book goes through how to spot the best trading opportunities, thoroughly comprehend what sparks market changes, pick the best brokers, complete successful trades, minimize risk, maximize profits and develop an in-depth analysis of currency charts.
Traders learn how to understand the tendencies of different currencies, how to look for the right times and reports, how to manage trades and a lot of other basics. If you’re just starting out on forex market trading, the tips and practical basics in Currency Trading for Dummies will really change how to perceive this global market. In addition you’ll learn the ins and outs of the most popular FX trading techniques.
4. The FX Bootcamp Guide to Strategic and Tactical Forex Trading by Wayne McDowell
Wayne McDowell is the Chief Currency Coach at FX Bootcamp and one of the seasoned traders of today’s Wall Street. This guide is entirely about how to trade successfully again and again on the forex market, which makes it an incredibly valuable tool for anyone who doesn’t have that much experience with the foreign exchange.
McDowell shows readers how you can combine technical indicators with guaranteed market strategies. This helps to create a “tactical trading plan,” which allows traders to easily maneuver in and out of a trade. McDowell gives specific advice on when to pull the trigger on certain trades and how to hold off on others that may just be above your head. The advice covers both technical and fundamental aspects that every prominent forex trader needs to be a success.
McDowell also talks about all of the different challenges that traders face in the forex market and how to overcome those difficulties. Some of those challenges are re-learning old mental habits so that you’re not held back from taking risks. In addition, traders learn how to handle the emotions and predicaments that come with trading on the foreign exchange. There is a lot of loss and isolation that traders often don’t know how to go through.
5. Forex Patterns and Probabilities: Trading Strategies for Trending and Range-Bound Markets by Ed Ponsi
The forex market is particularly vast and daunting for most traders. There are so many variables, and if you’re not careful, you may find yourself on a trading ledge. Ed Ponsi gives you some incredible advice on how to capture huge profits with forex while also avoiding those mistakes that lead so many traders to despair. This book is definitely for those with a little bit more experience in forex trading. After you’ve read some of the others on this list, you’ll definitely find more clarity and even hone your strategies.
Ponsi developed his approach after years of trading on today’s forex market. However unlike some beginner guides and general trading theory books, Ponsi goes in-depth with Forex Patterns and Probabilities to really help traders understand the mechanics of currency trading as it is today.
The book is divided into four detailed parts that go over how to understand the playing field of forex markets, analyzes specific trading strategies including FX-Ed trend techniques, develop an insider’s view of behavioral patterns of prominent forex traders and explains non-trending trading techniques like the volatile “squeeze play.” It’s a definite must read for anyone who already has an understanding of forex markets but wants to know more.
Some other good reads for forex traders include Face the Trader Within by Chris Lori, Warrior Trading by Clifford Bennett, The Secret of Candlestick Charting by Louise Bedford, Nison Candlesticks – Japanese Candlestick Charting Techniques and Beyond Candlesticks by Steve Nison, Encyclopedia of Chart Patterns by Thomas N. Bulkowski and How to Trade a Currency Fund by Jarratt-Davis.
While there are plenty more books on forex trading, these are a great start for any trader just beginning their journey into the foreign exchange market. Each book goes into great detail about the nuances of forex trading that separates it from Wall Street. You learn about different currencies and how to spot anomalies that are worth the risk. These books also give traders lessons on how to train your mind to understand forex. These tips allow traders to push themselves farther while also making sound decisions. The advice from seasoned experts in forex trading can greatly impact even those with some experience in forex trading. With these books as tools and guides, you’ll be able to make some incredible investments and hopefully avoid the most common mistakes of beginners on the forex.