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Successful traders all tend to have one trait in common; a thirst for a continuation of knowledge and growth in their abilities.
Whether you focus on technicals, fundamentals, or psychology, there is always room to grow.
As markets evolve over time, the trader must evolve with it by challenging their intellect, perseverance , and drive to succeed.
Whether you are completely new to the world of finance and Forex trading, or a seasoned veteran, there are always new things you can pick up to up your trading game.
Take on the perspective of these pros, take these words of wisdom to heart, and it can not only improve you as a person, but help your profit margin as well!
I’ve been asked by a lot of my followers to put together a list of my my most recommended books.
So, this is a list of my Top 10 Forex Trading Books for Forex Trader in 2020!
Number one on the list is one of my favorites and is considered a classic in the world of trading – definitely pick this one up if it’s the only book you get.
Grab these books and start flexing those trading muscles to level up your trading today!
Chances are if you’ve asked me for a book recommendation before, this book made the list.
We all know that at the end of the day YOU are you’re biggest asset and liability in trading.
If you’re looking to take on your own psychology, and build a winning attitude and mindset, this is the book for you!
” Douglas uncovers the underlying reasons for lack of consistency and helps traders overcome the ingrained mental 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.” – Amazon
This book description from Amazon gives a perfect summary of what you can look forward to.
This book has stood the test of time and will continue to do so, inspiring future generations of traders to come!
I get a lot of questions about candle sticks and the best book to read to gain some knowledge on them.
This is it!
This book is regarded by some as the bible for candlesticks.
This is a must read for anyone that wants an in-depth understanding of the price action, patterns, and movement that candlesticks show.
“A form of technical analysis, Japanese candlestick charts are a versatile tool that can be fused with any other technical tool, and will help improve any technician’s market analysis. They can be used for speculation and hedging, for futures, equities or anywhere technical analysis is applied. Seasoned technicians will discover how joining Japanese candlesticks with other technical tools can create a powerful synergy of techniques; amateurs will find out how effective candlestick charts are as a stand-alone charting method. In easy-to-understand language, this title delivers to the reader the author’s years of study, research and practical experience in this increasingly popular and dynamic approach to market analysis. The comprehensive coverage includes everything from the basics, with hundreds of examples showing how candlestick charting techniques can be used in almost any market.” -Amazon
As a visual learner I really admire how many real world and charting examples this book provides.
It’s one thing talk about theory but Nison’s book does a fantastic job of diving deep into charts and providing example after example.
I only recently discovered this book, and boy have I been missing out!
Michael Rosenburg is a former Meryll Lynch currency analyst and offers a lot of fascinating insight in this book.
This book does get highly technical and is probably geared towards someone a little bit more advanced in their market knowledge.
If you’ve ever wondered how banks, institutions, and economists get their price projections for currencies, this book will expose you to a lot of their methodology.
This Book “Provides graduate and advanced undergraduate students, as well as international investors and policymakers, with an explanation of the fundamental and technical forces driving exchange rates over time. The book recommends that investors adopt an integrated approach to currency forecasting that combines fundamental-based with technical-based exchange rate models.” – News, Inc. Portland, Or.
As the most expensive book on the list and the availability getting more and more scarce, you may have better luck renting this book from a library.
If you have the resources to buy a copy, it’s well worth the cost!
This book has a lot of raving fans and chances are you’ve probably seen it on the desk or shelf of whatever traders you follow on social media.
This book does a fantastic job of covering a wide array of technical analysis topics and goes into a good depth of knowledge on each of those topics.
” This outstanding reference has already taught thousands of traders the concepts of technical analysis and their application in the futures and stock markets. Covering the latest developments in computer technology, technical tools, and indicators, the second edition features new material on candlestick charting, intermarket relationships, stocks and stock rotation, plus state-of-the-art examples and figures. From how to read charts to understanding indicators and the crucial role technical analysis plays in investing, readers gain a thorough and accessible overview of the field of technical analysis, with a special emphasis on futures markets. Revised and expanded for the demands of today’s financial world, this book is essential reading for anyone interested in tracking and analyzing market behavior.” -Amazon
If you’re looking for a solid book to expand your technical knowledge and expertise, this is the book for you!
Mark Douglas on the top 10 list twice?
You bet your sweet patootie!
This book was actually written before Trading In The Zone and is an equally good read.
“One of the first books to address the psychological nature of how successful traders think . The Disciplined Trader is now an industry classic. In this ground-breaking work published in 1990, Douglas examines the causes as to why most traders cannot raise and keep their equity on a consistent basis, and brings the reader to practical and unique conclusions as to how to go about changing any limiting mindset. The trader is taken through a step-by-step process to breakthrough those queries, and begin to understand that their very thoughts may be limiting their ability to accumulate and succeed at trading.” – Amazon
Douglas tackles the thought processes behind decision making using personal examples and stories to drive his points home.
Do yourself a favor and pick up both of these fantastic books by Mark Douglas!
If you’ve ever wondered about the psychology of trading then this book is for you!
Oberlechner takes a look behind the actual psychology in the decision making in trading and risk taking.
One of the things I really like best about this book are the multiple examples of real world experiments, and the discussion of the affect of different ways of thinking.
“This book demystifies the foreign exchange market by focusing on the people who comprise it. Drawing on the expertise of the very professionals whose decisions help shape the market, Thomas Oberlechner describes the highly interdependent relationship between financial decision makers and news providers, showing that the assumption that the foreign exchange market is purely economic and rational has to be replaced by a more complex market psychology.” -Amazon
I don’t see this book discussed very often if at all, and it’s a real shame.
The insights and studies in this book are priceless for traders!
This book has somewhat of a cult following and for good reason.
This book gets rid of indicators and helps to focus in on actual price structure and price structure patterns.
Whether you use indicators or not, the patterns that are discussed combined with price action are worth knowing no matter the strategy you are currently using in your trading.
“Most Forex traders rely on technical analysis books written for stock, futures, and option traders. However, long before computers and calculators, traders were trading naked. Naked trading is the simplest (and oldest) trading method. It’s simply trading without technical indicators, and that is exactly what this book is about.” – Amazon
PS: If you giggled when you read the title “Naked Forex”, you’re not alone…
Word of Advice: Keep your clothes on when trading, it’s not that kind of book!
If you haven’t read any of Brett Steenbarger’s books you are missing out on one of the markets thought leaders on trading psychology.
No matter where you are on you’re trading journey, improving your psychology is the single most effect way to increase your consistency and discipline in your trading.
Brett coaches firms and professional traders world wide on an array of topics and lays many of those same recurring themes and elements he sees to help you master your psychology.
It is rare to see a work like this coming from a clinical psychologist in the finance world, but Brett is a trader himself! His words aren’t just theory and regurgitating psychology texts, he’s actually living the trading life and has first hand experience.
“ While markets may differ in scale, scope, and activity, humans remain human, with all the inherent behavioral tendencies. Studying the market from the human perspective gives traders insight into how human behavior drives market behavior. Trading Psychology 2.0 gives traders an edge, with expert guidance and practical advice. ” -Amazon
With both basic and advanced topics in this book, its a great addition to any trading library!
I wish every trader could get a copy of this book when they first get started in their trading. Not only is it entertaining, but provides some very valuable lessons and knowledge along the way.
If you want an insider view to what goes on in the fast pace world of prop trading, this is a fantastic read!
The trading personalities are on full display in this book as Mike Bellafiore walks through a day in the life of a prop trader and running a prop trading firm. This book is a great example of the diversity that is in the trading world, and yet ho we tend to make the same singular mistakes that bring disastrous results.
While the prop firm in the book is mostly a stock and futures trading firm, the lessons will carry over no matter the category of trading you might participate in.
” In One Good Trade: Inside the Highly Competitive World of Proprietary Trading, author Mike Bellafiore shares the principles and techniques that have enabled him to navigate the most challenging of markets over the past twelve years. He explains how he has imparted those techniques to an elite desk of traders at the proprietary trading firm he co-founded. In doing so, he lifts the veil on the inner workings of his firm, shedding light on the challenges of prop trading and insight on why traders succeed or fail. ” -Amazon
Do yourself a favor and read this book today, and when you’re finished, read it again!
Kathy Lien is another well known investor and trader in the finance world.
This book gets right to the point on strategies to day and swing trade the market to grab profit.
Whether you’re looking for technical or fundamental strategies for your trading, this book has a good mix to get you going.
“Day Trading and Swing Trading the Currency Market gives forex traders the strategies and skills they need to approach this highly competitive arena on an equal footing with major institutions. Now in it’s third edition, this invaluable guide provides the latest statistics, data, and analysis of recent events, giving you the most up-to-date picture of the state of the fast-moving foreign exchange markets. You’ll learn how the interbank currency markets work, and how to borrow strategy from the biggest players to profit from trends. Clear and comprehensive, this book describes the technical and fundamental strategies that allow individual traders to compete with bank traders, and gives you comprehensive explanations of strategies involving intermarket relationships, interest rate differentials, option volatilities, news events, and more.” -Amazon
This is a fantastic book to add to your collection!
There is some fantastic knowledge in the books I’ve laid out above, with the potential to be real game changers for a lot of people
At the end of the day, reading these books is not enough to succeed in the market.
You need to apply this knowledge!
Practice it, hone your skills, and practice it some more.
Action and time drive results.
So get these books, learn, and apply the knowledge you’re taking in!
Did I miss any of your favorite Forex trading books?
Did you love any of the books on the list?
Let us know in the comments below!
Jason (better known as The808Trader) started his trading career in college in 2010. After dabbling in stocks he found his way to Forex Markets. The first 4 years were up and down and it wasn't until he discovered the Ichimoku trading strategy combined with countless hours of chart time that it really clicked. Creating his own unique twist on the system and breaking it down in a simplified, easy to understand way using his engineering background, he has accelerated the path to success for traders around the globe.
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