Applicable to all financial markets and not just forex, this book provides an easy-to-understand overview for using technical analysis. This includes chart patterns, trendlines , indicators, and support and resistance levels. Technical analysis uses price charts as the primary input for making trading decisions. For beginner traders, this book could be a good place to start for learning terminology and basic market analysis concepts.
Currency Trading for Dummies – Brian Dolan and Kathleen Brooks
The ‘For Dummies’ book series introduces complex topics in a simple way. This book provides everything a beginner needs to know about the forex market, including understanding currency pairs, how forex operates, helpful tools, risk-management, how to succeed and the characteristics of successful traders.
This book is more focused on the basics, and not as much on actual forex trading strategies, so click the link to learn more in-depth practises.
The New Market Wizards – Jack Schwager
The author interviews multiple successful traders, asking them about their trading system and what makes them profitable. This trading book is an eye opener for different trading styles and how they can all be effective. There is no single right way. Each trader interviewed found what worked for them and then perfected the method. Also consider reading Unknown Market Wizards by the same author.
Trade Your Way to Financial Freedom – Van K Tharp
This book is applicable to all trader, not just within the FX market. It focuses on how to design a trading plan and making sure your strategies are well thought out and tested. As you accumulate knowledge and ideas about how you wish to trade, this book helps you figure out how to use that knowledge to create a personalised plan for how you will trade. View this as a workbook, with most of the chapters laying out steps to complete before moving on.
The Art of Currency Trading – Brent Donnelly
This book provides the inside scoop on how a bank trader places trades and manages risk. The book primarily focuses on fundamental analysis, as opposed to technical analysis , which looks at news and economic conditions to help determine where prices could go. The author provides several forex strategies as well as guidance on managing risk and position sizing. The author uses a conversational style, so a real benefit of this forex trading book could be seeing how a professional thinks and dissects a trade.
Day Trading and Swing Trading the Currency Market – Kathy Lien
Kathy Lien frequently appears on Bloomberg and CNBC to provide forex analysis. This book focuses on both fundamental and technical analysis trading methods to help traders on their trading journey. It covers methods that can be used for short-term trades (day trading) and longer-term trades (swing trading). The book has been updated since its original release in 2008, and it is now in…
Read More: IOX-FX – 15 Forex Trading Books Every Forex Trader Should Read For