TOP 10 useful books about Forex. Current Ranking 2022
Welcome! In this article, we will talk about which Forex literature, in our opinion, is better than others for studying by novice traders. In this top, in addition to literature about Forex, there are no less useful books on self-development that are related to trading on the stock exchange. Quality books about Forex can provide almost universal tactics and profit making strategies even for beginners. Thanks to the books about Forex in this material, you can get a tangible boost of motivation, you will understand how you can consistently earn over a considerable distance, and not periodically. In these Forex tutorials, examples of profitable trades are carefully considered, which will allow novice traders not to repeat common mistakes.
All books about Forex in this article are divided into three subgroups, namely the psychology of the exchange game, textbooks that teach competent career building, and textbooks directly about different Forex trading strategies, technical and fundamental analysis.
Alexander Elder “Trading with Dr. Elder”
This literature about Forex is written by a psychologist. She is very helpful. Alexander Elder is known not only as a highly qualified psychologist, but also as a no less successful stock player. People are emotional creatures, and emotionality on the stock exchange almost always ends badly. Greed, embarrassment, nervousness, rage, provoke losses. It looks so understandable and you may think that we are writing inappropriately, but we will say this: everyone we know, in the first months of their career, repeated a significant part of the mistakes due to strong emotions. I myself, in the same way, because of the desire to earn more, made mistakes, or sold too hastily when there were reasons to expect that the price would continue to go up, or vice versa, I sold the asset too late. If, reading this, you think that this is not about you, I will say again that I and many of my friends from the editorial office thought the same way. Regarding the meaning of the book, here is what, in our opinion, is the most important:
- In the book, you can track Alexander Elder's thoughts when making a trading decision and this is useful and exciting;
- After analyzing the chain of his thoughts, you can take this as an example of making a decision in some situations;
- Unlike other forex books, this work shows a system for quickly mastering trading.
Ray Dalio “Principles”
Ray Dalio comes from a very poor family and is the founder of the largest investment fund on the planet. Ray describes many exciting events from his rise to being one of the most powerful men on Wall Street today. In addition, one of Ray's most notable merits is that he was able to keep the fund's earnings even during the 2007-2009 crisis.
The author draws attention to 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 work in the field of investing and not about Forex. But, nevertheless, the book also describes interesting phenomena in the financial markets, for example, when the gold standard was canceled. The next day, it was Monday, the author of the book expected that the stock exchange would fall, however, nothing of the sort happened. Ray Dalio also gives advice on building an investment portfolio and talks about frequent mistakes in portfolio compilation, talks about the appropriateness of adding gold and similar assets of the commodity exchange to the portfolio in order to hedge against the risk of increasing inflation.
Nassim Taleb “Fooled by chance. About the hidden role of chance in business and in life.”
- A lot of things that happen in the world are completely random;
- It makes no sense to identify patterns where there are none.
Nassim Taleb is a well-known speculator and economist. Nassim is one of the most successful players and in his book he writes about Forex and life in general, teaches how to make smart decisions. The author has also published many other bestsellers. His most famous book, The Black Swan, is one of the most popular self-improvement books. In his book Fooled by Randomness, he describes how people tend to identify patterns where there are none. This book about Forex is not purely from the genre of self-development, it is useful to all those players who want to successfully earn money in the financial market successfully. It is noteworthy that in the literature there are errors of thinking that are repeated even by the most advanced and prominent traders. There are a large number of repetitive market events that can provoke you to conclude patterns and thus cause a series of unsuccessful trades, since you will rely on one expectation, and events will develop differently.
Summarizing, let us remind you once again that this book for beginner Forex traders will be a good acquisition.
Tony Turner "Short Term Trading: A Beginner's Guide"
In the book, Tony Turner begins the story with the history of the world's largest stock exchanges. The author then touches on the topic of how wealthy speculators think. Turner analyzes the role of emotions in trading. The author also says that his book about Forex should not be the last one that you should study in order to successfully grow and earn on Forex and focuses on the need for further self-education.
The author argues that you need to set goals in your career according to the scientific method that he cites in the book. Turner says that it is extremely important to be able to take responsibility, otherwise an inexperienced trader will not be able to make difficult, but profitable decisions.
Then Tony Turner gives an overview of the main terms of short-term trading. Tells how to notice an uptrend, how market cycles are arranged, in connection with which one cycle replaces another. The author gives examples of market signals for entering and exiting the market. In addition to everything, Tony Turner advises where to look for information that will be applied in both types of analysis.
Barbara Rockefeller “Technical Analysis for Dummies”
It is possible that you have heard or read any book from the “for dummies” series. The huge advantage of this series is that it is told from scratch and quite consistently about any area in an understandable language. If you want to learn technical analysis from the very basics and after that make profitable trades in the Forex market, then the book "Technical Analysis for Dummies" is well suited for this. The tutorial has a very clear description of the methods for detecting entry and exit from a trade and fixing the market trend. A huge number of different charts, charts, and other methods of technical analysis will allow you to begin to understand all the basics of this method. Another advantage of the textbook is that it contains valuable information about the cryptocurrency market. Even in some textbooks that are devoted only to cryptocurrencies, there is no such knowledge. This book is definitely one of the best Forex books for beginners, especially if you are not confident.
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 today's realities, this type of Forex book is even more necessary to understand the modern market. Its creators are some of the most respected and well-known stock market analysts. For example, Steve Forbes works as the CEO of the magazine of the same name. Second author Nathan Lewis is one of the world's most respected publicists and monetary policy experts. Elizabeth Ames is a well-known journalist who has published on Fox News and many others.
The authors of the book write that many views on how the modern US economy should work are outdated. Steve Forbes says that until this is realized in government circles, the problem with inflation will get worse. This already makes this book the best for a broker. Wrong views in the US power circles, which the authors cite, also exist in many other Western countries, so this has a bearing on the financial system of the whole world.
William Sharp “Investments”
The author is a well-known economist and Nobel Prize winner in economics. Initially, it must be said that this literature is not as difficult as you might think. The author has taught students at many renowned research institutes, such as Stanford and the University of California. In addition, Sharp has formed his own firm that advises the largest investors to the largest investors in the West.
Surely this is not the book you need to study first. Nevertheless, if you are looking for the best books on Forex, then fixing it in your notes definitely makes sense for you. Here is the main information from it:
- Sharp mathematically justifies that in order to extract higher profits, you need to take more risk;
- The author came up with the Sharpe ratio of the same name, which allows you to understand the ratio of profit for risk;
- William Sharp promotes the thesis that a balance must be struck between high-risk instruments and commodity trading, mainly precious metals.
Benjamin Graham “The Smart Investor”
Despite the fact that this work, most likely, is present in 95% of all articles with books, but we cannot but mention it. Books about traders are good, and even more valuable if these works are written by wealthy experts themselves. The information in it will give knowledge of fundamental analysis from one of the founders of this method. Benjamin Graham is known as Warren Buffett's teacher. Warren even named his first son Benjamin.
Securities market, the best source of profit and recommends considering companies that are undervalued. Or those companies that have already passed their peak of profitability, but still have noticeable value. Warren Buffett describes this method with the analogy of a cigar that has few puffs but can still be smoked. You can find out the objective value of a company by comparing the price of its shares with the company's financial statements. Additionally, we emphasize that this book is not about Forex.
A considerable number of investors believe that this Forex book is the bible of fundamental analysis. You can't do without it, even if you are well versed in technical analysis, since not all market situations can be seen purely with the help of charts and other methods of technical analysis.
Edwin Lefebvre “Memoirs of a Stock Operator”
I am sure that this book is present in almost any article about books for a beginner Forex trader, and despite this, it is not surprising, because the main character is not the author himself and not a fictional trader who was known as Jesse Livermore. He went through a thorny path, made many mistakes. Any inexperienced trader can make it much easier for himself to become a full-fledged market player and avoid many mistakes that take a lot of money.
I will briefly summarize the most significant theses from the book, and leave the full reading and analysis of errors in thinking when making Jesse Livermore's decision.
- You cannot open trades when there is no sure opportunity to make a profit;
- If you do not practice scalping tactics, then under such circumstances you can wait until the financial instrument still grows in value, even if you are already convinced that you need to sell it;
- Avoid uncertainty with open trades. Do not lose profits due to the fact that you did not quickly adapt to the market dynamics;
- Don't go against the market trend without a good reason;
- Do not experiment with large lots;
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 ordinary broker and in the book he talks about how the market works from the inside. The author is the developer of the MACD indicator. This indicator is often used to capture trading signals when the market is stable and there is no definite trend. But it is worth saying that this indicator is not without flaws. The MACD indicator may not keep up with the market and give outdated signals. The tutorial also covers steps to avoid this. Later this technique got into many other books about Forex. If you set yourself the goal of mastering the concepts that will allow you to predict the behavior of world markets, then the book will definitely be useful! Another plus of this book is that it teaches in an understandable language.