TOP 10 books about Forex. Current ranking 2022
Hello. In this article, we will talk about what Forex literature, in our opinion, is most suitable for reading for novice traders. In this top, in addition, there are no less valuable books on self-development that are related to trading on the stock exchange. Smart books about Forex can give almost universal strategies for making money even for novice traders. Thanks to the literature about Forex in this material, you can feel a strong charge of motivation because you will know how, almost immediately after reading the first book, you can earn consistently over a long distance, and not from time to time. In these Forex books, examples of profitable trades are carefully considered, which will allow beginners not to repeat possible mistakes.
All the books in this article are divided into three categories, namely the psychology of the exchange game, books that teach the right career building, and textbooks directly about all kinds of Forex trading types, technical and fundamental analysis.
Barbara Rockefeller “Technical Analysis for Dummies”
Probably you have seen or read at least one book from the “for dummies” series. The huge advantage of this series is considered to be the fact that from scratch and very strictly it is told about any subject in an understandable language. If you want to learn technical analysis from scratch and after that it is profitable to make deals in the Forex market, then the book "Technical Analysis for Dummies" is well suited for this. The book has a well-understood description of methods for detecting entry and exit from the market and determining the market trend. A huge number of all kinds of charts, charts, and other methods of technical analysis will allow you to begin to understand all the intricacies of this method. An additional advantage of the textbook is that it contains useful information about the cryptocurrency market. Even in many books that are devoted only to cryptocurrencies, there is no given knowledge. This book is definitely one of the best Forex books for beginners, especially if you are not confident.
Gerald Appel “Technical analysis. Effective tools for an active investor”
The author is a well-known theorist and practitioner of technical analysis. The author ran an investment firm that averaged $350 million a year in turnover. Gerald of the book started his own career as an unremarkable broker and in it he writes about how the market works from the inside. The author is the creator of the MACD indicator. This indicator is often used to identify trading signals when the market is stable and there is no definite trend. But it is worth saying that this indicator is not without drawbacks. The MACD indicator may lag behind the market and give irrelevant signals. The book also discusses ways to avoid this. Later, this concept found its way into many similar books about Forex. If you want to gain knowledge that will show you how to predict the behavior of financial exchanges, then the book will certainly be useful! Another advantage of this book is that it tells everything in simple language.
Alexander Elder “Trading with Dr. Elder”
This literature about Forex is written by a psychologist. She is very attractive. Alexander Elder is not only a very competent psychologist, but also an equally successful investor. Human beings are emotional creatures, and emotions in trading are almost always bad. Greed, embarrassment, anxiety, anger, are not helpful. It looks redundant, and you might think that we are writing inappropriately, but we will say this: everyone we know made a significant part of the mistakes at the beginning of their careers due to emotions. I myself, in the same way, because of greed, made mistakes, either I sold the asset too quickly when there were arguments to expect that the price would continue to rise upwards, or vice versa, I sold the asset too late. If, while reading this, you decide that this is not about you, I will say again that I and all the friends of the editorial board thought the same way. As for the value of the book, here is what, in our opinion, is the most important:
- In the book, you can track the chain of thoughts of the author when making an exchange decision, and this is useful and exciting;
- After considering the chain of his thoughts, you can take this as a template for making decisions in specific situations;
- Unlike other forex books, this work provides a system for a quick learning of trading.
Ray Dalio “Principles”
Ray Dalio comes from a poor family and is the founder of the largest investment fund of all time. Ray tells a lot of interesting facts about his becoming one of the most influential people on Wall Street today. In addition, one of the most notable merits of the author is that he found a way to maintain the fund's profitability even during the crisis of 2007-2009.
The author focuses on the fact that failures are inevitable and a sound approach is important in relation to them. And in fact, the book is more about the approach to everyday life and a career in the field of investing, and not about Forex. But, nevertheless, the book also describes unusual phenomena in the financial markets, in particular, when the gold standard was canceled. The next day, it was a Monday, Ray thought the NASDAQ would crash, but nothing happened. Also, the author of the book gives advice on building an investment portfolio and shows frequent mistakes in portfolio compilation, talks about the need to add gold and similar assets of the commodity exchange to the portfolio in order to protect against the risk of increasing inflation.
William Sharp “Investments”
The author is a famous economist and Nobel Prize winner in economics. It is necessary to mention right away that the book is not as complicated as you probably thought. William Sharp has taught students at many renowned research institutes, such as Stanford and the University of Chicago. Sharp also created his own personal firm that advises the largest investors to the wealthiest investors in the West.
Obviously, this is not a book you should read first. However, if you are looking for the best books on Forex, then it definitely makes sense to record it in your diary. Here are the most valuable information from it:
- The author mathematically proves that in order to earn higher profits, it is necessary to take risks more often;
- William Sharp came up with the Sharpe ratio of the same name, which allows you to understand the ratio of profit for risk;
- The author advances the thesis that it is necessary to keep a balance between highly risky assets and trading in commodity exchange instruments, mostly precious metals.
Edwin Lefebvre “Memoirs of a Stock Operator”
I am sure that this book is in almost any article about books for a beginner Forex trader and despite this, it is not surprising, because the main person is not Edwin Lefevre himself, but the real trader whose name was Jesse Livermore. He has come a long way, made many failures. Any inexperienced investor can greatly simplify his personal development as a full-fledged market player and not make many mistakes that take a lot of money.
I will briefly summarize the most important theses from the book, and leave the full reading and study of errors in the chain of thought when searching for Jesse Livermore's solution.
- It makes no sense to enter into transactions when there is no clear opportunity to make a profit;
- If you do not use the Scalping technique, then in this case you can wait until the financial instrument continues to grow in price, despite the fact that if you are already convinced that you need to sell it;
- Try to avoid uncertainty when open trades. Do not lose money because you did not adapt to the market trend in a timely manner;
- Go against the market trend for no good reason;
- Don't experiment with large lots;
Benjamin Graham “The Smart Investor”
Despite the fact that this work is likely to be in 95% of all articles with books, we still should not add it to the top. Books about traders are great, but even more valuable when these works are written by wealthy investors. The information in it gives an understanding of fundamental analysis from a practitioner. Benjamin Graham is known as Warren Buffett's mentor. Warren even named his first son Benjamin.
The author of the book does not consider Forex, but the stock market, as the best source of profit and recommends looking for companies that are undervalued. Or those firms that have already passed their own peak of profitability, but still have noticeable value. Warren Buffett explains this method with the metaphor of a cigarette that has few puffs but can still be smoked. You can find out the true value of a corporation by comparing the price of its shares with the company's reporting. Additionally, we note that this book is not about Forex.
A considerable number of investors believe that this Forex book is the bible of fundamental analysis. It is impossible to do without, even if you are quite well versed in technical analysis, since not all trading situations can be seen purely with the help of Japanese candlesticks and other concepts of technical analysis.
Stephen Forbes, Nathan Lewis and Elizabeth Ames “Inflation. What is it and how to deal with it.”
The book was published in April 2022. Given the current realities, this type of Forex book is even more needed to study the modern market. Its authors are some of the most respected and famous stock market analysts. For example, Steve Forbes is the CEO of the magazine of the same name. Co-author Nathan Lewis is one of the world's most respected observers and monetary policy experts. Elizabeth Ames is a famous journalist who has written for Fox News and many others.
The authors of the book say that the widespread points of view on how the modern US economy should be arranged are irrelevant. Steve Forbes argues that as long as this is not understood in government circles, the problem with increasing prices will get worse. This information already makes this book the best one for a broker. The misconceptions in the political circles of the United States, which the authors describe, also exist in many other Western countries, so this has a bearing on the financial system of the whole world.
Nassim Taleb “Fooled by chance. About the hidden role of chance in business and in life.”
- A lot of things happen in the world by accident;
- It makes no sense to identify patterns where there are none.
Nassim Taleb is a prominent stock trader and economist. The author is one of the most successful speculators and in his book he writes about Forex and life in general, teaches how to make smart decisions. The author has released many other bestsellers. His most read book, The Black Swan, is one of the most popular books in the self-development genre. In his book, Fooled by Randomness, he analyzes why people tend to label patterns where they don't exist. This book about Forex is not just from the self-improvement genre, it will benefit all those players who want to successfully work in the financial market successfully. It is noteworthy that the textbook describes the errors of thinking that even the most experienced and prominent traders make. There are many common market events that can lead you to infer a pattern and in this way cause a series of bad trades, as you rely on one inference and the events unfold differently. As a result, we recall once again that this book for beginner Forex traders will be a good acquisition.
Tony Turner "Short Term Trading: A Beginner's Guide"
In this literature, the author begins the story with the history of the world's largest stock exchanges. Tony Turner goes on to touch on how wealthy speculators think. The author analyzes the role of emotions in trading. The author also says that his book about Forex should not be the only one that you should study in order to successfully develop and earn on Forex and emphasizes the need for further self-improvement.
The author says that you need to fix goals in your career, according to the scientific method that he cites in the book. The author insists that it is extremely necessary to be able to take responsibility, otherwise a novice trader will not be able to make difficult, but profitable decisions.
After that, Tony Turner goes over the main concepts of short-term trading. Explains how to notice an uptrend, how the market cycles, why one cycle follows another. The author gives examples of trading signals for entering and exiting the market. In addition to everything, Tony Turner tells where to look for information that will be used in both types of analysis.