It is not easy to start with forex trading. There is a lot of information you need to absorb before your first trade. There are two possible ways how to learn enough to be capable of executing trades and strategies. You can search the web for online courses and tutorials or you pick up a book or two with all relevant information. The second way will be the topic of our article today. Finding the best forex books for the study is not easy at all. It is almost impossible to pick just one book and think you will find out all you need.
There are a lot of books about forex available, but just a few of them are worth it. Here is our best forex book guide.
We divide forex books in two categories: Educational and Forex Stories Books.
Educational Forex Books
Educational books, as the name state, are books that should teach you everything about the forex. In these books, you will find all the basic information about the forex market, types of trades, and types of instruments (as spot, forward, swap) used on the market.
You will learn what is short and long position, and what type of orders you can use. These books also give you an introduction to technical and fundamental analysis.
Educational forex books give you basic knowledge. The base you can build on during your trader’s career.
Best Educational Forex Books
Anna Coulling; Forex for Beginners
Anna Coulling is a well-known author in the forex segment. Her books rank at first places through different bestsellers rankings.
Her Forex for Beginners book gives you a really wide overview of all parameters you will need in your trading.
It will not teach you how to make profit on trades, but you will get as much as possible starting information.
If you want more detailed and specific information about strategies, the newest technical indicators I would recommend browsing the Investopedia directory.
Simon Kostrava; Forex: How to Quickly Lose a Lot
The second book I would like to recommend is from our colleague and friend. Simon wrote a short book based on his experience.
He witnessed a lot of traders who bites the dust. His book is an infinite list of mistakes that traders do daily.
The clever guys learn from mistakes others do. The not so clever traders learn from their own mistakes.
Except for mistakes, the book offers unique insights into dirty practices used on forex markets. Higher the stakes on the market, the dirtiest the tricks different traders and brokers use.
This book is not very long; however, it is full of useful information which will save you a lot of money.
Forex Real Stories
What you will need most when trading forex is the exact strategy you will employ. You have to choose currency pair or stock you want to invest in; you need to decide about entry and exit point, set stop loss, and eventually take profit order.
All these things you will do either intuitively or you will try to copy others. And now comes the part I like the most: Real stories from real forex traders.
Books that were written by real traders about their forex trading experience.
How do they decide in real-time? What factors influence their decisions.
How do they handle the risks, losses, or profits?
There is no better way to learn than when you get insight into the thinking of real masterminds of forex markets.
You have to be very picky here too. Not every forex guru is also a good writer.
There are many books with great author names with no added value, with no interesting story.
Best Forex Real Stories Books
Jordan Belfort; The Wolf of Wall Street
Everybody knows him, but just a few read his book.
Leonardo di Caprio was excellent in the movie filmed according to the book of Jordan Belfort. That is the reason everybody knows his story.
However, just in his book, you will get the full insight into the story of this talented salesman. It provides more insight into the trading and sales practices employed by his people than the movie.
Moreover, you will learn a lot more about the different types of drug addiction too.
Nick Leeson; Rogue Trader
Nick Leeson’s book was filmed too. However, it never achieved so much popularity as the Wolf of Wall Street.
Rogue Trader is a story of Nick Leeson, who almost solely brought the hundred-year-old Barings bank to the brink of bankruptcy.
Nick Leeson wrote the book during serving his sentence in jail. Maybe that is the reason that the book so well-written.
The author reveals almost everything from his life. From his early days in the banking industry, through his rise into the position that brings a lot of money, till his severe end.
The recollection of the first mistake, followed by the second one and then another one. The end balance is the bankruptcy of Barings bank.
Rogue Trader is an excellent insight into the psychology of a successful trader who starts to be too proud. And it is the thing which can happen to everyone after the first profits show up on the account.
Simon Kostrava, Forex Case Studies
Simon Kostrava wrote also a book that consists of three stories from recent history. All stories are related to the events that brought unusual volatility to the markets.
The subtitle of this book reveals more: Market Turbulence in the Past Decade in the words of Traders.
Subsequently, all these turbulences led to billions of losses or profits, depending on the side you were on.
The first story is about the Swiss National Bank. How they established the floor on EUR/CHF pair and what financial armageddon was caused by its removal.
The second story is about the Brexit referendum day and the market reaction. The third one reveals more about events that happened weeks before Slovakia joined the Euro bloc.
All three stories are written from two points of view. The first one is pretty factual, so you will get a deep overview of what happened when.
The second one is a recount of what happened at dealing floors when events unfolded. How traders saw it and how they reacted.
Do we miss a book about forex you liked? Let us know in comments section.