The foreign exchange market, also known as the forex or FX market, is a popularly traded and most liquid market across in the world and comprises of the currencies representing the world’s most powerful economies.
Forex (FX), the market on which the whole world trades its currencies, is unique for a few reasons:
- It’s open 24 hours a day (except for weekends),
- It hosts participants from all over the globe and
- It is the largest market in the world.
While the forex market is based on simple principles – trading currency to do global business, the trading isn’t simple.
These economies and currency’s values fluctuate based on a variety of factors, which ensures a thrilling, fast-paced trading environment – perfect for day trading for profits. But it’s not suited to everyone and requires practice, commitment, and mental fortitude.
Forex trading also requires a general understanding of technical analysis, indicators, chart patterns, market psychology and much, much more, many of which can be learned from a variety of books.
This list contains the very best forex books that can educate traders on how to get started trading forex currencies and doing so successfully.
How do you to make sure that you have the essential forex trading knowledge?
Reading well-organised forex trading books is a one way to make sure of that. Knowledge and practical information specific to the currency market are key.
The order of the twenty-seven forex trading books below does not represent their ranking.
Currency Trading for Dummies
Written by Kathleen Brooks and Brian Dolan
Firstly, don’t let the Dummies name, or the iconic yellow cover put you off – Dummies books are without a doubt some of the best on any subject matter they cover. Currency Trading for Dummies on forex currency trading is a great option for anyone considering entering the foreign exchange market.
The Currency Trading for Dummies book contains a thorough breakdown of each of the major currencies along partnered with tips and tricks on how to trade FX markets. In addition to the already awesome offerings, there is information on what factors drive the various economies. Currency Trading for Dummies is perfect for beginners or those looking for an in-depth refresher ‘course’.
Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves
Written by Kathy Lien
This book is written by one of the most renowned currency market analysts and teaches aspiring forex traders the ins and outs of the forex market. Kathy Lien has appeared on CNBC, and Bloomberg to offer insight and market analysis.
Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves dives into both fundamental and technical analysis, and it introduces traders to a variety of trading strategies that can be applied to generate regular profit.
Currency Forecasting: A Guide to Fundamental and Technical Models of Exchange Rate Determination
Written by Michael Rosenberg
A currency’s exchange rate determines the asset’s price within the forex market and the currency’s value across the globe. These rates fluctuate based on a variety of factors, including economic growth, political climate, geopolitical risk, and more. Currency Forecasting: A Guide to Fundamental and Technical Models of Exchange Rate Determination teaches forex traders how to both analyse and understand the primary factors driving the value of each nation’s currency and use the information to combine with technical analysis, trading indicators, and chart patterns to become profitable. Great for beginners.
How to Make a Living Trading Foreign Exchange: A Guaranteed Income for Life
Written by Courtney Smith
Every trader has read stories about how forex market day traders have given up their 9-5 and made a living in trading instead.
In How to Make a Living Trading Foreign Exchange: A Guaranteed Income for Life, Author Courtney Smith explains how markets work in easy to understand terminology, and provides readers with six unique strategies to generate regular income from trading forex markets.
Forex Trading: The Basics Explained in Simple Terms
Written by Jim Brown
This book is one of the best books of all time for those who want to learn to trade forex currencies, and it breaks down the basics into the simplest possible of terms. Traders of any level can pick this book up and understand it, and use it to create their own trading strategies.
Forex Trading: The Basics Explained in Simple Terms provides readers with a glossary of forex markets, strategies, psychology, trading pairs, and tips on how to choose the right broker to best suit traders’ personal needs.
Adventures of a Currency Trader: A Fable about Trading, Courage and Doing the Right Thing
Written by Rob Booker
The Adventures of a Currency Trader follows fictional forex trader Harry Banes and his experience trading across the forex market. Through his anecdotes and situations, traders can learn about various challenges, delivered in an entertaining format.
Those who are in the market for more of a reference guide may not enjoy the way the story is presented, but, the unique take makes the read easier as a result.
The Death of Money: The Coming Collapse of the International Monetary System
Written by James Richards
The Death of Money: The Coming Collapse of the International Monetary System offers a bleak view of the future of money, due to the world’s over-reliance on the US dollar – the world’s global reserve currency, and its collapse could trigger a complete global economic meltdown.
The Death of Money looks at how greed is driving this to dangerous levels, and while it is indeed about the currency market, it may result in many who read it to consider cryptocurrencies as well, as this asset class is designed to have attributes that prevent inflation and control or influence from third-parties
Trade Your Way to Financial Freedom
Written by Van K. Tharp
Trade Your Way to Financial Freedom by Van K. Tharp offers readers a look at the common mistakes which forex traders regularly tend to make and how to avoid and overcome them in a realistic way. The Van K. Tharp promotes readers with an open-minded approach.
The Foreign Exchange Matrix: A New Framework for Understanding Currency Movements
Written by Barbara Rockefeller and Vicki Schmelzer
The Foreign Exchange Matrix: A New Framework for Understanding Currency Movements is written by two authors who combine a total of 50 years of experience to provide master-level knowledge about forex markets. This book outlines important basic concepts, market dynamics, and what the driving force is behind trends, and much more.
The book may be confusing at times but the information at its core is extremely valuable.
Forex Trading Money Management System: Crush the Forex Market with Bigger Profits and Smaller Losses
Written by Don Guy
Forex Trading Money Management System: Crush the Forex Market with Bigger Profits and Smaller Losses is an easy to use guide which focuses on money and risk management by using a simplified system focused on maximizing profits booked and reducing any losses.
Forex Trading Money Management System: Crush the Forex Market with Bigger Profits and Smaller Losses focuses on risk, probabilities, and other topics to achieve greater gains and fewer losses. This system is also designed to “pyramid” profits to achieve the largest possible return on investment.
Forex: Using Fundamental Analysis & Fundamental Trading Techniques to maximize your Gains
Written by Dave Matias
While other books may combine basic concepts with fundamental and technical analysis, Forex: Using Fundamental Analysis & Fundamental Trading Techniques to maximize your Gains focuses on fundamental analysis only.
Dave Matias details the various myths of fundamental trading, micro and macro events that influence the market, global market capital flow, and more.
Investment Psychology Explained: Classic Strategies to Beat the Markets
Written by Martin Pring
Trading requires a trader to have a specific personality type or mental state, however, by being consistent anyone can learn the psychological dynamics that drive market prices.
Investment Psychology Explained: Classic Strategies to Beat the Markets explains how to control personal emotions, and discus the common mistakes traders make. It highlights the emotions that drive the decisions behind each mistake, and provides tips on how to take control and avoid issues.
50 Pips a Day Forex Strategy
Written by Laurentiu Damir
50 Pips a Day Forex Strategy offers a detailed strategy perfect for beginners can who never have traded a day in their life, to generate profits of at least 50 pips a day. This book teaches the reader about money management, provides an intro to forex trading, and offers instructions on how to develop winning trading strategies.
Intermediate traders can also learn a lot from the information and strategies provided.
A Three-Dimensional Approach to Forex Trading
Written by Anna Couling
A Three-Dimensional Approach to Forex Trading is a self-published book that answers the question of “where is the market going next”. This book is a rather daunting read, but worth it. The book has proven helpful to new traders and advanced professionals alike and offers a high-level breakdown of the forex market.
Forex for Ambitious Beginners: A Guide to Successful Currency Trading
Written by Jelle Peters
Forex for Ambitious Beginners: A Guide to Successful Currency Trading aims to prevent traders from entering the forex market headfirst without caution by offering a very realistic approach and explanation ensuring the readers understand the various pitfalls that may be faced when trading the forex market.
This book drives home the idea that through consistency, persistence, practice and study, a trader can become successful enough to drive regular profits.
The Black Book of Forex Trading: A Proven Method to Become A Profitable Trader in Four Months and Reach Your Financial Freedom by Doing It
Written by Paul Langer
The Black Book of Forex Trading acts as a reference manual for forex traders to refresh themselves on the most successful systems and tactics that are used by professional forex traders. This book includes a link to over 80 minutes of video content on how to get started with implementing winning trading strategies.
Encyclopedia of Chart Patterns
Written by Thomas N. Bulkowski
For traders who don’t know how to identify chart patterns with ease, this book is perfect. It also explains the ideal entry and exits for each pattern, and what to expect for profits in terms of percentage gained.
Forex Trading: The Bible
Written by Samuel Rees
Forex Trading: The Bible by Samuel Rees is in actuality five books in one and includes a beginner’s guide, a crash course on forex trading, best techniques, tips and tricks, plus an advanced guide for more experienced forex traders.
The Forex Trading: The Bible offers readers a wealth of helpful information that forex traders can put into practice.
Forex Trading 2020: Guide for Beginners. Secrets, Strategies and the Psychology of the Trader to Earn $10,000 per Month in No Time, Manage the Risk and your Money
Written by Norman Davison
This book explains the ins and outs of the forex market, including technical analysis, strategies, and more, but it also touches on newer markets such as Futures or cryptocurrencies.
Naked Forex: High-Probability Techniques for Trading Without Indicators
Written by Alex Nekritin and Walter Peters
Naked Forex: High-Probability Techniques for Trading Without Indicators focuses on using techniques from an era before computer and digital price charts. This book focuses on the basic probabilities of candlestick formations and chart patterns without using any indicators.
Japanese Candlestick Charting Techniques
Written by Steve Nison
Deep-diving into Japanese Candlesticks can really up a trader’s game without the need for indicators and they often give signals on their own, without the need for complex pattern spotting.
Reminiscences of a Stock Operator
Written by Edwin Lefevre
Edwin Lefevre’s book focuses on Larry Livingston, one of the most famous traders of all time. Readers will follow a trading journey that leads through various instances of him being financially broke, and then recovering to accrue a fortune each time.
The biography of Livermore recounts his real-life fame for making and losing several multi-million-dollar fortunes while short selling during the stock market crashes of 1907 and 1929.
The Disciplined Trader
Written by Mark Douglas
In this book, Mark Douglas stresses the importance of a proper trading psychology and discusses how emotions can become the enemy of a trader, and how a trader who has good psychological control, can ultimately be on the winning side.
How to Start a Trading Business With $500
Written by Heiken Ashi Trader
This book over readers a realistic way to become a full time trader with limited capital, as low as $500. The core of successful trading is money management, and this book explains how to do so. The book also includes topics such as:
- Implementing good trading habits
- Communication skills with your Broker
- Maximisation of returns from limited capital
- How to become a Professional Trader
- Trading activities for a Hedge Fund
Trading for a Living: Psychology, Trading Tactics, Money Management
Written by Alexandar Elder
Trading for a Living is based on three M’s: Mind, Method, and Money and helps traders master all of those three areas:
- How to become a cool, calm, and collected trader
- How to profit from reading the behaviour of the market crowd
- How to use a computer to find good trades
- How to develop a powerful trading system
- How to find the trades with the best odds of success
- How to find entry and exit points, set stops, and take profits
Trading for a Living helps traders to discipline their Mind, and shows them the Methods for trading the markets, and shows them how to manage Money in their trading accounts.
Come into My Trading Room: A Complete Guide to Trading
Written by Alexandar Elder
In this book, Dr. Alexander Elder expands beyond the three M’s (Mind, Method, and Money) that he covered in his bestselling Trading for a Living. He shifts focus from technical analysis to the overall management of a trader’s money, time, and strategy.
This book educates the novice and strengthens the professional through expert advice and proven trading methodologies.
Market Wizards: Interviews with Top Traders
by Jack D. Schwager
Market Wizards: Interviews with Top Traders is a bestselling classic that delves into the minds of some of the world’s most successful traders and examines a side of trading rarely addressed – the human side. In the Market Wizards: Interviews with Top Traders some of the world’s greatest traders and investors respond candidly to questions regarding their experiences. A wide variety of personalities and trading methods are represented.
After reading this selection of books, traders will soon be ready to start trading FX currencies. Among the principles all investors should follow is this: Never stop learning.
Frequently Asked Questions
Where do you start to learn forex trading?
A good place to start is forex trading books.
What do you need to know to start forex trading?
A solid understanding of indicators, technical analysis, stocks, charts, market psychology and more – all of these can be learned from good books about the subject.
What is the best book for forex trading?
Here is a list of the 27 Best forex books every trader must read
How difficult is forex trading?
The forex market presents its own challenges and conditions, but forex trading is not more difficult than trading in any other market.
Can you start trading with $100?