Digesting literature surrounding your chosen topic is essential if you want to, at the very least, stay at the same level as your fellow traders. But, unfortunately, there isn’t one definitive set of best books for forex trading. Even if there was, it isn’t a good idea to base your strategy on a handful of forex books.
Forex books range in difficulty from highly analytical publications about specific patterns, such as the evening Doji star, to more general titles for beginners. The best book on forex trading will start by showing you how to find your feet. Secondly, it will guide you on how to operate in a live and volatile market. These are the two primary goals for any forex trader just starting. There are hundreds of publications that claim to be one of the best books for forex trading. However, finding out the best book to learn forex trading involves hours of research.
One of the critical things about the best forex books is that you can research the authors easily. In addition, you can ascertain their qualifications. Once this research is complete, you can make a more informed decision on whether the forex book suits your strategy.
Today we will examine a range of these books. This is so you can decipher which is the ideal one for you to supplement your trading psychology and strategy. Then, you will be able to build a better picture regarding your best books for forex trading.
Currency Trading For Dummies
The best books on forex trading differ depending on the level you trade at. Another factor is the quality of experience you hold. For example, suppose a professional trader who has been in the industry for over two decades is looking for the best books on forex. In that case, they will likely aim for literature in a more specialised field within the sector.
This is arguably one of the best books for forex trading because it is written for a broad, generic audience. Those looking to obtain a base knowledge don’t need to look any further than this book.
If you’re starting in the market, books such as Currency Trading for Dummies is one of the top choices. It explains topics succinctly without overusing jargon or using superfluous language. There have been several editions of this book. The authors of the book, Brian Dolan and Kathleen Brooks have decades of trading experience between them.
Although you can find some solid tips on how to trade forex as a beginner while browsing the internet, there’s so much information online that has become saturated and borders on conflicting. The beauty of purchasing acclaimed top forex books is that they have a proven track record, have been thoroughly edited, and have sold millions of copies.
This may not be one of the best books for forex trading if you have more substantial market knowledge. However, if you want to find out how it works, then this is one of the forex beginner books that is an essential read.
The Alchemy Of Finance
Like any market you want to turn into a successful venture, following a well-trodden path that successful forex traders have forged is a good idea. The best currency trading books are often penned by people with a proven track record in the industry. George Soros, arguably the most successful forex trader of all time, wrote this particular forex book.
For many professionals, this is the best forex book. Soros operates right at the top of the business and has a strategy that has proven to be a success over several decades. Whether this is one of the best books for forex trading is subjective. We aren’t going to definitively say the best books for forex trading because it depends on the type of literature you are looking to explore.
Books on forex trading strategies range in complexity. Somebody with the skill and experience of Soros is a voice that should be listened to if you’re serious about trading forex. Initially written in 1987, it explores the underlying themes that drive the market.
Examples Of Underlying Market Driving Factors
Plenty of beginner traders get tied into chart analysis, ultimately allowing it to dictate their moves. Some aspects of the book are slightly dated, as it is over 30 years old. For instance, it doesn’t explore the impact of algorithmic trading, which is now one of the most prominent features in the forex market.
While it is true that you do need to understand chart analysis, it needs to make up part of a more comprehensive strategy where you can understand what drives the market. Sociopolitical issues, world events, and the strength of the economies are all critical criteria in what creates market sentiment.
The best books about forex will show you the critical things to look out for and what can drive your strategy. Books on forex trading for beginners will help you understand the market, but books like The Alchemy of Finance will help shape your strategy as you move forward.
Although Soros wrote the book in 1987, it gives an insight into his fascinating methods. For example, five years after the successful release of this book, he executed one of the most profitable forex trades of all time.
The Black Swan
Sticking to the theme of books that focus on the underlying driving factors that shape the forex market, Nicholas Taleb’s book looks into the subjectivity of human decisions and how logic doesn’t always drive the market.
Books on forex trading vary from highly technical to broader components. The Black Swan isn’t necessarily the best book on forex. However, it is one of the best forex trading books. This is because it shows that unseen market conditions play a vital role, regardless of your strategy.
Black swan events seem to take traders by surprise and cause a colossal market shock. The theme of Taleb’s book, as an ex-trader himself, was to ensure that you implement risk management strategies when a black swan event develops.
Ironically, it published in April 2007, as the early stages of the 2008 financial crisis started to pick up momentum. This event would wipe nearly $5 trillion off the global stock market and result in millions of people becoming unemployed.
The importance of effective risk management is critical when trading forex. You can brace yourself for the impact of a forex market downturn in many ways. For example, you can remove emotions from your trading by setting take profit and stop loss limits. One such example is dollar cost averaging which is effective and widely used.
Settling on the best books for forex trading that help you navigate the market more efficiently is a personal task. Many of the best books on trading forex are simplified versions of a complex market. A professional trader would likely consider the best forex trading book as something much more technical.
You could sit down with two professional traders and ask them what the best forex trading book is. Theoretically, they could say two completely different types of books, and neither would be incorrect. Such is the vast range of available books written about this particular topic.
Speaking to those in the industry about their best forex trading book would also be a great start. This is because you will get a bigger picture of what strategies work. You will also realise the critical pieces of knowledge to take away. Discussions like this help settle your choice for the best books for forex trading.