Five Of The Best Books To Learn How To Trade Forex
Knowledge is power, and nowhere is this more evident than in the world of forex trading.
Whilst all types of trading will require a wide knowledge range in order to be successful, passing an instant funding prop firm test to ensure that you can cash out your hard-earned gains requires a particularly wide knowledge base.
There are many sources to access this, from mentors to online accounts of what worked for other people, but books are the best way to learn.
With that in mind, here is a small selection of the many books available that can help boost your knowledge of trading forex.
The Little Book Of Currency Trading
Written by Kathy Lien, The Little Book of Currency Trading is the ultimate beginner’s guide of how to trade in the forex market, explaining the minutiae of opportunities available to traders of all levels of experience.
She explains the various types of strategies you can take in forex, from short-term aggressive day trading tactics to longer strategies that can help you to achieve success.
What makes the book so useful is how much it focuses on the fundamentals. It explains not just the common behaviours of currencies but also why forex markets behave the way they do.
This means that just beginners but traders at all levels can get something out of it.
Six Days In September
Whilst the last book focuses on forex trading in the abstract, Six Days In September chronicles the biggest forex trade in history and its short-term and long-term effects.
Many people know the basics of Black Wednesday when George Soros and Stanley Druckenmiller undertook a forex short sale so audacious it would later be claimed that the pair “broke” the Bank of England.
Six Days In September shows just how powerful forex is, and can be somewhat aspirational for just how effective the right forex strategy can be.
Whilst much of the book focuses on the aftermath, and how this event alongside the Maastricht Treaty would lead to sweeping changes in both British and global politics, it also highlights the power the forex market has and how with the right tactics forex trading can cause tectonic shifts.
Japanese Candlestick Charting Techniques
Candlestick charting is a fundamental part of many analytical trading techniques, but this particular guide comprehensively explains why candlestick charts matter and how you can interpret them to make the right decision in the forex market.
The best way to trade is to understand why people use the techniques, charts and tools they use to manage their portfolios, and the book on candlestick charts explains how they work, why they matter and how you can apply them to every possible market.
The candlestick method is far from limited to forex, of course, but understanding how people read financial charts is critical to success in trading currency pairs.
Forex Trading: The Basics Explained In Simple Terms
Jim Brown has an entire series of books on how to effectively learn to trade forex, all of which are highly recommended as a way to build up your skills.
However, the best choice for absolute beginners is his primer on forex trading, which covers all of the fundamental concepts you need, from how currency pairs work to the basics of trading
psychology and why people who lack mindfulness struggle to make a profit in forex.
It is a good start for beginners, although naturally it is best used as a foundation to develop your own trading strategy, which the book also helps with.
Of course, there is further scope for analysis, and one of the greatest gifts of the Jim Brown series is that it has books available for forex traders at every level, so the basics can serve as a foundation for a much greater base of knowledge.
The Death Of Money
Despite its apocalyptic title, The Death of Money is a fascinating analysis of the forex market following the abandoning of the Gold Standard and the new monetary order that came as a result.
Much like how Six Days of September explained the most audacious forex trade ever made, The Death of Money explains through rigorous analysis how the forex market has fundamentally changed, particularly following the fall of the Soviet Union.
In some respects the analysis is dated, it only just picked up Black Wednesday, did not factor in the Euro and did not even consider that Russia would default on the rouble in 1998, which would itself create a financial crisis that would destroy Long Term Capital Finance and set the seeds for the Great Recession.
However, it also highlights the evolution from how money is managed and why forex has transformed as much as the currencies themselves have.