In this article, I’ll teach you how to become an independent trader by taking forex trading books serious. Don’t you wish you could place buy or sell orders confidently without any external influence? I bet you wish. I’d point out to you some of the best forex trading books that can help you become a better trader.
However, it comes at a cost, it might not necessarily be money but in all you do, make sure you are purchasing this knowledge with your passion. Otherwise, it would amount to nothing.
Anyone who has ever had a stint in the forex market knows that one of the hardest things anybody could ever undertake in their life is trading, yet people are motivated to trade. Many a times, this motivation stems out of the fact that billions exchange hands every single trading day.
I‘m guilty here! In my early days, the money motivated me but what I wasn’t told was that; out of these billions exchanging hands, a larger million of the people at the end were frustrated because they were losing their money to some other millions of the people at the other end. It wasn’t all that rosy after all.
Forex trading is hard! Yes, but I bet you any other thing worth living for is harder. One of the things you can do to swerve about 10% of the difficulty level is to find a mentor, but it comes at a cost not many people can afford. Irony is many of the people who can afford mentors won’t attempt trading (after knowing how lethal the market is) because they make their monies somewhere else.
It could actually turn out to be good news eventually if you cannot afford a mentor; because nothing beats making mistakes on your own and learning from them. Nothing beats making mistakes on your own and learning from them; that is how you go from noob to pro at a faster pace.
Forex trading books are some of the best mentors out there.
Top notch forex trading books you need to read to master trading.
Forex trading Secrets by James Dicks:
This is not one of my best forex trading books but I put it first because it is very good for people with little or no knowledge and experience with the forex market. The author oversimplifies the concepts in trading with deep explanation for easy comprehension. James writes in simple language. His book contains trading basics from A-Z.
Trading in the zone by Mark Douglas:
This in my own opinion is one of the greatest books ever written about trading. I wish it was the first book I read even before opening a demo account. Mark brings to bare the true state of the markets, that is, how perilous it is. He lets you understand the risks associated with trading and shows you ways to prepare for it. It’s all about trading psychology. If you are like how I was years ago, thinking loses were bad, this is one of the forex trading books I will recommend to you.
The Disciplined Trader by Mark Douglas:
Yes. Mark Douglas again! His books transformed how I perceived the markets so my bias is clearly for him. The title explains the content of the book. Yet another great piece that deals with the psychological aspect of trading. You might have the perfect strategy but without a sound mind, you’d wish you never came across trading. If you’re still struggling with your emotions after reading “trading in the zone” then the Mark is ready to kill your struggles with this great.
Want to build a strategy for yourself but don’t know how? You can find your way out with these four forex trading books.
Naked Forex by Walter Peters & Alex Nekritin:
A book that is honest about how trading with indicators can hurt your account. You might have heard about price action but if you’re not so sure what it is, this book is all about it. It is pure price action and it gives potent examples of trades that can be executed without any fluff of indicators whatsoever.
The Candlestick Course by Steve Nison:
A simple google search would retrieve a lot about candlesticks; the problem is what you might find is not totally exhaustive. There are many candlesticks you need to know about than the ones you already know. If you’re interested in building a greater part of your strategy around candlesticks, this is the book you need. It goes in depth and exhausts everything candlesticks to your understanding. I actually credit this book for my lesson on candlesticks.
Technical Analysis by Charles D. KirkPatrick & Julie R. Dahlquist:
Technical analysis would come way simpler after consuming this book. It is all about technical analysis A-Z ; a super exhaustive book. This book is a 700-page book so you might want to get near your coffee. However, the “lazy” thing is that you might not need every single chapter in there since some of the concepts are not used in trading forex. A good way to approach this one is by finding the areas of interest in the table of contents.
Candlesticks Fibonacci and chart pattern trading tools by Robert Fischer and Jens Fischer:
This is also another good book on technical analysis. Just as the title infers, it talks about candlesticks, Fibonacci, chart patterns and also outlines a great way to analyze trends. You can substitute it for “technical analysis” but mind you, it is not as exhaustive.
I have listed below other great forex trading books I enjoyed reading merely for the pleasure of it in no particular order of importance. I believe you will enjoy them too and learn some great lessons from them as well. Trust me, it will be worth your while.
Fooled by Randomness by Nassim Nicholas Taleb:
I value this book first for the style of writing employed by the writer even before the great trading lessons one can learn from it. It contains priceless witty relatable stories. Basically, it informs you about the random nature of the markets and lets you decide the kind of trader you would want to be with respect to risk. An instance in it caught my mind so much that I made a long note about it, I will make it available soon. Edit; finally “soon” is here; you can read more on this instance here.
Stock Market Wizards by Jack D. Schwager:
It comes in many editions but this is the only one I’ve read and you might want the find the latest. It is not forex just as the title implies but it is still trading anyway. This book details interviews the author had with some trading greats and the lessons and insights he gives in there are timeless. These traders talk about everything from failure-success-failure, psychology, strategies and a whole lot. It is in fact a must read for every aspiring trader.
The Complete Turtle trader by Michael W. Covel:
Does “turtle” traders ring any bell? Ever come across the names Richard Dennis and his partner William Eckhart? If no, they are traders who took people with no trading track records whatsoever and trained them to become trading gurus. By gurus, I mean they made millions out of trading years later. Richard got to prove that great traders are made; not born. In this book, the author goes in-depth on the true story.
Come into my trading room by Dr. Alexander Elder:
A repository of great trading knowledge is exactly what the author is from what I got from the book. This book covers everything trading from the basics, psychology, risk management, strategy and a whole lot. What caught my attention the most is how Alex treats the topic of money management exceptionally in chapter seven. It is a must read.
The New trading for a living by Dr. Alexander Elder:
Alex is an exhaustive author in the sense that he covers all the key topics necessary for making a profitable trader. This book encompasses basic trading knowledge to pro trading knowledge through the eyes of Alex. Nothing more, nothing less. Albeit, it shares a lot of similarities with “come into my trading room”, obviously because of the same author; it is still a good read.
One good trade by Mike Bellafiore:
Do you like great stories that are not fiction? This is one! We mostly only know about trading from the retail end but this book tells it from the proprietary end. It details the journey of about a dozen traders who made it with prop trading by using totally different approaches.
You will get to know how people with “weird” backgrounds got into the firm and earned a decent living for themselves. There are also practical examples of a couple or more who could not make it and why. This book can get you to a prop trading firm if you’ve never been to one but are interested in visiting.
There’s no easy way to trade but if you stick to the hard path for long, it becomes easier. As a trader or an aspiring one, you should never stop learning as it is with every venture if you want to be part of the best. I personally enjoyed writing this lesson because of the gold I was able to mine out of these books.
Not all of them are necessarily forex trading books, but trading is similar across board. The knowledge in there is priceless; but only if you put it to good use. I’d be really grateful if you can recommend some good trading books to me as well, in the comment section.