When you’re a new trader one of the best things you can do is to enhance your experience and education by learning as much as you can about trading.
Whilst a great place to start is with demo accounts and simulated trading platforms, another great resource that is often overlooked is books.
Below we’ve compiled our list of the 6 best forex trading books for beginners for exactly that reason.
Over time a number of different books about forex trading have been published and some of the very best contain invaluable information, advice and the beginnings of strategies that beginners can take with them as they develop their trading skills to become successful.
Related: Take your trading from novice to expert with our free complete guide to how to become a top proprietary trader.
The best forex trading books for beginners
- Trading in the Zone by Mark Douglas (Prentice Hall Press, 2001)
Douglas has been trading for over 20 years and is a well-known author, speaker, trader and coach. He knows that the markets are impossible to predict so why fight it? Instead of blaming his losses on “bad luck,” Douglas teaches traders how to focus on their own behavior in order to achieve victory. In this book Douglas takes traders through an exploration into understanding risk by uncovering some underlying reasons for lack of consistency among investors.
Traders will learn how to overcome ingrained mental habits which cost themselves money through Douglas’ rigorous myth busting of the market, all without feeling like every trade will be profitable or safe because there’s no such thing as safety when entering the market!
Related: Learn the best ways to trade Forex.
- Market Wizards: Unknown Market Wizards by Jack D. Schwager (Harriman House, 2020)
Unknown Market Wizards is an engrossing read that reveals the human side of trading through a series of interviews with successful traders. Perhaps the best twist of all is that none of the traders interviewed are well known – they are simply every day traders who have achieved incredible success (such as one trader who turned a $2,500 account into $50 million!).
Schwager intertwines his trademark knowledge with a sensitive interview style that encourages the Wizards to reveal the scintillating accolades of their training, experience, tactics, strategies, as well as their failures. The result is a can’t-put-down collection of trading wisdom with insights that will improve any trader that reads it.
- Market Wizards: Interviews with Top Traders by Jack D. Schwager (Wiley, 1992)
Before beginning his Unknown Market Wizards series, Market Wizards: Interviews with Top Traders is Schwager’s first, best-selling foray into the world of trader interviews. Deemed as a classic, Interviews with Top Traders attempts to delve into the minds of some of the most successful traders in history including Richard Dennis and Tom Baldwin.
Through thought-provoking questions and insightful explanations, Schwager attempts to give all traders the ingredients to consistently work financial magic in the markets and achieve the success of those before them.
- Reminiscences of a Stock Operator by Edwin Lefevre (1923)
Marked as a trading classic, Reminiscences is a fictionalised account of the life of a securities trader named Jesse Livermore. Modern day traders should not be put off by the book’s age either – Reminiscences is considered to be to trading what Plato’s The Republic is to politicians as it continues to offer evergreen insights into trading.
The fictionalised account details the story of the protagonist’s progression from day trading in New England’s “bucket shops” to becoming a market speculator, a market maker, a market manipulator and finally onto the heights of Wall Street where he experiences the highs and lows Wall Street famously has to offer. Through Livermore’s story, traders learn his many lessons alongside him and in Jack Schwager’s Market Wizards, Reminiscences is regularly referenced as a major source of learning material by a majority of the traders interviewed.
- Currency Trading for Dummies by Brian Dolan (Brooks, 2015)
The For Dummies series is popular and well-renowned across a number of different topics, sectors and industries and for good reason: The information and advice within the books is seasoned, easy to understand and important.
Currency Trading for Dummies is one of the best beginner’s books on trading currency. It presents clear, easy-to-read instructions and descriptions about forex markets in a simple to understand manner that even more seasoned hands will find helpful when they need a quick refresher course on some basics.
Originally published back in 2011 by Brian Dolan who was formerly chief strategist at Forexcom until he retired, Currency Traders For Dummies has been updated with an introduction from Kathleen Brooks director of research at Forexcom which gives it fresh relevance.
- Forex Trading: The Basics Explained in Simple Terms by Jim Brown (2015)
This book is a bible for beginners, giving them the basics in an easy-to-read manner. The author became intrigued by forex trading after attending a private gathering for stock traders and decided to make it his profession. Brown’s authoritative but not condescending text stands out from others because of its clear prose that never assumes prior knowledge on behalf of the reader.
In addition to these fundamentals, Brown offers up his own strategy as inspiration or at least as guidance when creating one’s own personalized approach and covers a number of vital Forex topics such as:
- Definitions of the Forex and Forex markets
- Entrance and exit strategies
- Trader psychology
- A full guide to forex pairs
- The best places to trade foreign currencies
- Useful tips for selecting a broker
New to trading?
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