In order to be a successful trader on the foreign exchange market, one has to be well informed about the way the market actually works. Many books have been written about how to invest smartly and minimize the risk of losing your funds, as well as how to simply start trading right away. These books can really come in handy regardless of your level of experience.
If you are just starting out, they can help you cover the basics of the foreign exchange market, or provide you with assistance if you want to change and upgrade your existing trading strategy. Some also deal with the psychology of the foreign exchange trading which is also an important part of being at the top in the forex market. All in all, they serve as the helpful guides that can assist you in spite of your previous knowledge and help you improve your trading skills.
1. Come Into My Trading Room: A Complete Guide to Trading by Alexander Elder
Come Into My Trading Room is often seen as a mandatory book for all traders. It was written by Alexander Elder, a well-known trader and a psychiatrist and he combined his knowledge from both of these worlds in order to teach experienced as well as inexperienced traders how to invest properly and control their emotions on the way.
This book coaches everyone how to manage their available time and build their winning strategies. Since Alexander Elder is a successful trader himself, his methods are proven and already tested in the foreign exchange market. The psychology and the right approach to trading plays a key role in making an actual profit and Elder covers those thoroughly. So no matter how much trading experience you currently have, Come Into My Trading Room can help you elevate your knowledge or instruct you how to get started if you have zero experience in the world of the foreign exchange trading.
2. Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude by Mark Douglas
Trading in the Zone is another book on this list which focuses on the mental aspects of the trading business. The importance of having a healthy mindset when entering the foreign exchange market cannot be stressed enough and this book offers a clear and in-depth analysis of the steps you need to take in order to train your brain and gain mental strength as well as discipline to overcome various obstacles you might face while trading.
Mark Douglas became a trading adviser and a coach in the early 1980s. He published his first book in 1990 which is called The Disciplined Trader. It was the first book that focused on the psychology of the trading and it is often mentioned as the mandatory read for everyone interested in the foreign exchange market. Trading in the Zone is a follow-up book and since it was published in 2000s, it is more modern and it provides even more information on how to train your mind to think properly and bring your trading to a professional level.
3. High Probability Trading: Take the Steps to Become a Successful Trader by Marcel Link
If you are just starting out and you are trying to get familiar with the foreign exchange market, High Probability Trading is a book for you. Marcel Link really took his time and researched various methods of trading, trying each and every one of them for himself before he became a successful investor and therefore, the advices he offers in this book are from his own experience. He has been active in the market since 1991 and it is clear that the strategies he uses are reliable and trustworthy.
High Probability Trading is written particularly for those who are still planning to start trading in the foreign exchange market and it can be viewed as a handbook for the first couple of months of your trading experience. Having in mind that a trader has to have a good start in order to stay motivated to continue trading and create a quality trading plan from the very beginning, this book can be very useful. It is well written and the steps are easy to follow.
4.Thirty Days of Forex Trading: Trades, Tactics, and Techniques by Raghee Horner
Raghee Horner has been a successful forex trader for over a decade now and Thirty Days of Forex Trading is both a trading journal and an instruction book. It is written exclusively for the beginners and it chronicles one month of Horner’s trading experience. Besides the journaling aspect, Thirty Days of Forex Trading also teaches you the basic concepts you have to learn if you plan on entering the foreign exchange market, as well as various techniques you should use to follow the market changes and utilize them to your advantage.
This book is unique because it shows you how a professional trader works and operates on a daily basis. It may serve as an inspiration for your own trading setup in the future. Raghee Horner does not sugarcoat the market and she explains the realities of the trading business very well. Thirty Days of Forex Trading will help you become a well-rounded trader because the methods which are introduced in this book are easy to follow and really useful when applied correctly.
5. Currency Trading and Intermarket Analysis: How to Profit from the Shifting Currents in Global Markets by Ashraf Laïdi
If you have done a fair share of reading about the basics of the foreign exchange market and you are certain that you possess a solid knowledge of the fundamentals, it is time to move on towards more advanced books. Currency Trading and Intermarket Analysis deals with the history of the market, as well as numerous drivers that influence the foreign exchange market day after day. It lays out the connections between the market’s past performances and shifts, and the way you can use them in order to predict the future movements of the currencies.
This book is straight-forward. There are no chapters about the essentials of the forex trading, but instead the reader is introduced to the pastchanges within the major currencies and the way they repeat themselves from the very beginning of the foreign exchange market. It will help you understand the connections between the currencies and their close ties to gold and oil, alongside with the influence central banks have on the price movements.
Ashraf Laidi has been in the spotlight for more than a decade. His online forex analysis has a large following and he is one of the most popular market researchers out there. Currency Trading and Intermarket Analysis is a useful guide if you plan on bringing your trading strategy to a higher level. The suggestionsLaidi offers in his book are valuable and also easy to apply. Since this kind of the market analysis is captivating to most forex traders, Currency Trading and Intermarket Analysis is simply a great read.
6.Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders by Curtis Faith
Choosing the right trading strategy might be troublesome for some traders and it is good to take a look at different approaches the successful traders tend to use in order to make profit on the foreign exchange market.
Way of the Turtle offers a unique insight into the trading methods used by a group of traders called the turtles. Curtis Faith who is the author of this book is the most successful trader among that grouping. He earned approximately thirty millions of dollars while applying this method and he is an expert in the field of mechanical trading, meaning that he has mastered the art of using the trading software in order to increase his profit.
It is silly to expect to find the layout of a perfect trading plan in this book but instead, you can include the bits and pieces from Way of the Turtle in your own planned strategy and modify them to fit your trading needs. Read about the features and elements Curtis Faith uses and learn as much as you can from his advice. It will most definitely change your view on the foreign exchange market and make you rethink your own standpoint.
Books can be practical companions on your trading journey. Surely, there are plenty to choose from depending on the area you wish to explore. They can help you get started if you are a beginner, or be useful if you aim to become a better trader. But before you start borrowing or buying books, you have to know your goal – do you need a step-by-step guide or something more specific? Once you have determined your needs, start perusing and learning. The more you read and familiarize yourself with the market, the better your results will be.