It doesn’t matter if you are a newbie trader or have been in Forex trading for years, you probably know that education is your best bet if you want to be successful as a trader. In addition to reading news and keeping up to date with market developments on a daily basis, if you want to deepen your knowledge and get a glimpse of some of the most influential people in the industry, you might also want to check out the bookstore.
Below we have put together a list of books that are considered must read in the Forex world, so be sure to give them a try. Chances are, you’ll find some tips that will last a lifetime.
Enter My Trading Room: A Complete Guide to Trading – Alexander Elder
Dr Alexander Elder is a professional trader and has written no less than 16 books. This one is considered a classic among traders and for good reason. Instead of focusing on technical analysis, Dr. Elder talks about money, time and strategy management, teaching traders the basics, as well as the secrets of trading.
The book can train beginners and deepen the knowledge of professionals, offering a different perspective on the three M’s of trading (mind, method and money). It even includes a proven money management strategy, explained in detail, along with a guide on how to organize your trading time.
Technical Analysis of Financial Markets – John J. Murphy
If you want to know why most of the time, the the best liquidity in the market is granted by ECN brokers, along with other technical details about each financial market, then immediately pick up John J. Murphy’s book.
This book has won over many fans since its release, and if you follow traders on social media, you’ve probably seen it on their desktops. It provides information on the main technical analysis techniques and why they are so important if you want to become a successful trader.
Currency Forecasting: A Guide to Fundamental Models and Techniques of Exchange Rate Determination – Michael R. Rosenburg
A former currency analyst for Meryll Lynch, Rosenburg brings his impressive knowledge on the matter to this book, providing valuable insight from inside the market. If you want to know the methodology behind how banks and institutions get currency price projections, then this book is for you.
Keep in mind, however, that the author goes into a lot of technical detail, so if you’re a newbie trader you might want to check out other titles on this list first.
The Psychology of the Foreign Exchange Market – Thomas Oberlechner
Trading has a lot to do with psychology, so if you’ve ever wondered what goes through a trader’s mind when making certain decisions, this book is for you.
Oberlechner explains why there might be more than it seems, when it comes to the relationship between information providers and financial decision makers, which makes you wonder if the forex market is in fact all about economy and to be rational. We’ll give you an overview: it’s not.
Trading for a Living: Psychology, Trading Tactics, Money Management – Alexander Elder
Another bestseller from Dr. Alexander Elder, this book is based on the infamous e M’s – mind, method and money and helps traders master every area.
The book aims to teach traders to keep calm and keep their cool when trading, as well as to read the behavior of others in the market. It also explains how to develop a trading system and identify which trades have the best chance of success. And finally, it explains how to identify the best time to enter and exit a trade, what stops and how to use them, as well as how to take and manage profits.
Trading in the Zone: Controlling the Market with Confidence, Discipline and a Winning Attitude – Mark Douglas
Mark Douglas has been a trader and trading coach, as well as an industry consultant for almost 40 years, so when he writes a book on how your mindset influences your trading results, you better read it.
In this book he explains how conflicts and contradictions in thought can wreak havoc even for the most solid of traders. Douglas explains how the human factor can influence the market and suggests exercises you can do to develop the mindset of a winner, all supported by concrete examples.
Trade Your Way To Financial Freedom – Van K. Tharp
In this book, Tharp provides in-depth knowledge of the market, how to trade, as well as how to avoid the most common traps traders fall into. To do this, Tharp focuses on four main elements:
- Be open-minded: do not limit yourself to a single trading system and get to know yourself better before developing your trading system;
- Exit Strategies: Knowing when to enter a trade is one thing, but knowing when to exit a trade can sometimes be even more important;
- Positive expectation: learn to track your transactions and stay focused when things don’t go the way you want them to;
- Create Your Own System: The book shows you some examples of systems from other traders, so you can learn how to develop your own.
Japanese Candlestick Charting Techniques – Steve Nison
If you are struggling to understand and use candlestick analysis, this book is for you. Inside you’ll find a complex explanation of how to use candlesticks to analyze the market and plan your next moves.
The author uses plain language, explaining to beginners and professionals alike how they can take advantage of this powerful technique to make more informed decisions. It also features an abundance of examples of how this technique can be used in almost any market, including Forex.
The book includes everything you need to know about candlesticks, including how to build them and learn the patterns, as well as more advanced information on the technical aspects.
Markus lives in San Francisco, California and is the video and audio game expert on Good e-Reader! He is very interested in new e-readers and tablets, as well as games.