List of Top 10 Forex Trading Books
As technology and communication have advanced to unscaled heights and no boundaries are existing between countries, foreign exchange has become an inseparable part of the economy today. We provide a heads up to the top best foreign exchange trading books. Below is the list of such books –
- FOREX TRADING: The Basics Explained in Simple Terms ( Get this book )
- The Death of Money: The Coming Collapse of the International Monetary System ( Get this book )
- How to Start a Trading Business with $500 ( Get this book )
- Forex Trading Money Management System ( Get this book )
- FOREX: Using Fundamental Analysis & Fundamental Trading Techniques to maximize your Gains ( Get this book )
- Foreign Exchange Option Pricing: A Practitioner’s Guide ( Get this book )
- The Black Book of Forex Trading ( Get this book )
- Forex: A Beginner’s Guide To Forex Trading, Forex Trading Strategies ( Get this book )
- The Simple Strategy ( Get this book )
- Currency Trading For Dummies ( Get this book )
Let us discuss each of these forex trading books in detail along with its key takeaways and reviews.
#1 – FOREX TRADING: The Basics Explained in Simple Terms
by Jim Brown
Key Takeaways
It is of great use for those who have started trading Foreign exchange and require appropriate guidance, given the abundance of information on the internet. It is a good book for gaining understanding from the very basic. The author has also mentioned one of his Trading systems and the indicators without any further costs associated.
The essential concepts and principles have been covered in a direct manner and a simple language. Examples that traders encounter in daily work have also been highlighted for the readers to have a practical understanding.
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#2 – The Death of Money: The Coming Collapse of the International Monetary System
by James Richards
Key Takeaways
The US Dollar has been the centerpiece of the world economy since World War II, and its performance can have a ripple effect on the financial condition of other countries around the globe. This book is a fast-paced look at the financial future, taking into consideration the greed of the financiers, incompetence of the central bank, and dangers of over-reliance on the US Dollar as the Reserve currency.
The 2008 Global Financial crisis has haunted the US economy, and the FED is paying the price for helping the bankers. It is forced to print money to create inflation for offsetting the deflationary effects of the debt overhang from the banking crisis. The Government borrowing ability is required to come as a savior to Wall Street. The drawbacks of Devaluation due to excess printing, reducing the intrinsic value have also been extensively mentioned. The author has made 2 assumptions for arriving at given theories:
- The Recession of 2007-08 has been structural, and the Central banks have been using the wrong tools, assuming it is a cyclical situation.
- Gold is the only ‘true money.’
Neither of the assumptions has been sufficiently supported by this book. However, it is written in simple language, and one can expand their financial understanding by linking the basic financial knowledge and the prevailing economic situation in the world.
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#3 – How to Start a Trading Business with $500
by Heiken Ashi Trader
Key Takeaways
Most of the new traders who start their business have very little means of raising capital. This top forex trading book highlights a realistic way of how one can become a full-time trader with limited capital, including private traders. It provides a step by step guidance on how to approach trading business with a capital of as low as $500. However, this foreign exchange trading book will not highlight on how to expand the business rapidly to a large target, say $100,000. Some of the other important components of the book are:
- How should one acquire and smoothly implement Good Trading Habits
- How to be a Disciplined Trader
- Social Trading
- Communication skills with Broker
- How to be a Professional Trader
- Maximize returns from the available $500 and make it feel a very large amount
- Trading activities for a Hedge Fund
#4 – Forex Trading Money Management System
by Don Guy
Key Takeaways
This book contains a simple theory provided by the author, which reverses the FOREX market movement with a Simplified money management system and aids in maximizing profits. The cover of the book highlights this difference, which shows the performance of the market with and without the system.
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It is popularly called as ‘Roulette Trader Money Management’ which implements reverse engineering to magnify profits while simultaneously reducing drawdown in most of the scenarios. The author has once visited a Casino in Las Vegas, whereby he made a loss of $2000 while playing Russian roulette. In order to counter the same, this system was established to ‘Crush Financial Markets like a Professional Gambler.’ This system can be automated and can be used manually, as well.
Post developing the system, the author returned to Las Vegas with $20 and turned it into a profit of $500 in a time span of 1 hour, which was locked in from the automatic profit locking mechanism, and the same gets applicable in financial markets as well. The cover page will itself highlight how the profit is almost 4 times greater, and the maximum drawdown is only about one-third the size.
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#5 – FOREX: Using Fundamental Analysis & Fundamental Trading Techniques to maximize your Gains
by Dave Matias
Key Takeaways
This edition will lay its focus on the importance of Fundamental Analysis in the movement of the FX Markets. Fundamental Analysis is the base of trading and a primary driver of FX flows and also provides one with the practical knowledge and understanding, which is unique. The market is very volatile in nature and is sensitive to any kind of micro and macro releases and hence making use of such Fundamental analysis is of high importance.
Though one should not neglect Technical Analysis, one needs to keep a blend of both this analysis. This book will highlight the following aspects:
- Myths of Fundamental Trading
- How can Macro and Micro events influence the market
- Currencies and Bonds
- Usage of Practical examples and use of models in Fundamental Trading
- Global Market Flows and other Important Trading Concepts
- Trade and Capital flow in relation to the FX market.
#6 – Foreign Exchange Option Pricing: A Practitioner’s Guide
by Iain J. Clark
Key Takeaways
This publication will cover all the aspects of FOREX options from the point of view of a Finance Practitioner and contains all essential information that a trader or quantitative analyst is required to possess working in a bank or a hedge fund. It covers up the theoretical mathematics aspect as well as the comprehensive coverage of implementation, pricing, and calibration.
The content is developed with inputs from traders and real-life examples. It also will introduce to the more commonly requested products from the FX options trading desks along with various models capturing the risk characteristics essential for accurate pricing of the products. Another aspect covered is the numerical methods required for calibration of these models, a crucial component in practice but often neglected. Robust treatment is given to the following features:
- Precise Market conventions for FX volatility management
- Adjustment for settlement and delayed options delivery
- Pricing of Vanilla and Barrier options contract under volatile conditions
- Three-Factor long-dated FX model
- Numerical Calibration techniques for all the models under consideration
- Adopting variable approaches for strongly path-dependent options using either partial differential equations or Monte Carlo simulation.
Connecting the mathematically robust theory with live practical scenarios, this guide is essential to FOREX options in the context of the real-life market place.
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#7 – The Black Book of Forex Trading
by Paul Langer
Key Takeaways
The contents of this edition are crafted after multiple years of testing and getting fingers burnt in the volatility of the financial market. One can follow the success stories of those who have made it big in the financial world, but few will understand the skills and swiftness one learns after going through failure, and this book highlights the same.
This book is targeted for beginners to intermediate traders who are still struggling to make it big in the trading world and can be equipped with rugged tactics to handle complex situations as well. It will cover the 3 main areas in Forex trading:
- How to construct a definite winning strategy adhering to the personal lifestyles and requirements.
- Ways to optimize and maximize gains without taking unnecessary risks.
- Traders are required to take control of their emotions and biases while execution and follow a few simple steps to be followed while trading.
Certain other aspects which are covered are:
- Combatting struggling market scenarios
- Start earning money on a consistent basis
- Tactics to become a successful trader in 4 months
- Ensuring one can plan their financial freedom within the specified boundaries and limitations
- Gain sufficient confidence to trade with the appropriate knowledge and numbers in place.
The size of the book is relatively less but the knowledge it imparts is significantly irreplaceable and can be adopted under complex situations for a long period of time.
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#8 – Forex: A Beginner’s Guide To Forex Trading, Forex Trading Strategies
by Matthew Maybury
Key Takeaways
It will focus on 2 broad areas: one is a beginner’s guide to FOREX trading, and the other is Best strategies or High Profit and reduced risk.
The beginner’s guide provides a blueprint to build a trading plan with the use of Forex and how one can maximize their earnings with the same. It will highlight the absolute basic components towards an introduction to the $2000 billion forex market. This foreign exchange book enhances how an individual should strive to create a pool of money depending on their financial needs over a period of time for certain events like marriage, retirement, etc. One can gain a profit margin in the range of 70-90% following simple rules of the FOREX market.
The second aspect will focus on the Best Forex Trading Strategies for high profit and reduced risk. One can become an expert in FOREX with the use of several different strategies required to make a successful trader. Additionally, for an experienced trader, they can explore a strategy that must not have been encountered before. Hence, if one is a reader to gain knowledge of the foreign exchange or as a daily task, this book will teach the following:
- Basics of Forex Trading
- Determining and understanding Market Trend
- Strategies such as Moving Averages, Price Action, Candlestick, Turtle, Scalping, etc.
- Reducing the risk of loss
- Street smart tactics to survive choppy market conditions.
#9 – The Simple Strategy
by Markus Heitkoetter
Key Takeaways
This top forex trading book is a powerful trend-following day trading strategy for the trading of futures, stocks, ETF’s, and FOREX. The popularity has increased due to the following reasons:
- Clear Entry Rules are based on specific indicators such as the MACD above the zero lines or not, and the entries are easy to identify and execute.
- Clear Exit Rules whereby one will have a clear idea to exit the market at the time of taking the position. This way, one can manage the quantum of risk to be assumed for the sizing of the positions and money management. One can also keep the trade on auto-pilot once the entry order is filled, keeping the trade management to a minimum and thereby reducing costs.
- Taking advantage of Small Intra-day trends: Trading can be executed on the beating of a pulse, and one may not necessarily wait for the trading day to be completed. This forex trading book will offer tips to tackle such situations as well.
- Sophisticated Trading Software is not required: A simple charting software with basic capabilities is required for plotting Range Bars, Bollinger Bands, MACD, and RSI. One is not required to purchase any proprietary indicators or expensive charting software.
#10 – Currency Trading For Dummies
by Kathleen Brooks
Key Takeaways
This is a user-friendly guide explaining the functioning of a FOREX market and how one can benefit from the same. It offers easy to follow introduction to the Global FOREX market, which explains the size, scope, players, and other major economic drivers that influence currency values and how to interpret the data and events in a channelized manner. One will explore various trading styles for constructing a concrete strategy and a game plan for execution. The areas to focus on are:
- Currency Trading convention and its tools
- Providing an insider’s look at key characteristics of established and successful currency traders.
- Understanding the importance of organization and preparation
- Offering guidance on the pitfalls of trading to be avoided and rules to manage various kinds of risks.
This best forex trading book will go to the grass root levels for trading and will enhance the mechanics of trading on how the currencies are traded, pairing of currencies, understanding price quotes, how the global trading day flows, and so on. Subsequently, one can put their knowledge and intuition to test by getting a practice trading account with an online foreign brokerage before actually putting money in the real market.
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Here is the guide to Forex Trading Books. Here we provide the list of top 10 forex trading books & a sneak peek in what those books reviews & key takeaways. You may refer to the following books to learn more –
