Top 5 Books Every Forex Trader Should Read

Foreign exchange, also known as forex, can be pretty intimidating even for seasoned investors who are used to getting their hands dirty. Luckily, there are lots of forex books out there that cover currency trading from top to bottom. You can find anything from beginner-level introductions on forex to advanced techniques based on both fundamental and technical analysis. And if you’re wondering which books are worth your time, the following are some of our recommendations. Have a read and discover some of the most useful trading tips from real experts and professional traders.

1. Forex Trading: The Basics Explained in Simple Terms, by Jim Brown

Jim Brown is a renowned author in the currency trading field, having written several books on the forex market that cater to beginners and seasoned traders alike.

If you would like to begin forex trading, the book is a good starting point. It covers technical analysis, fundamental analysis, and trading psychology comprehensively, giving you a complete understanding of what it takes to be a successful trader.

The book is notable for its author’s clear and concise language. It covers the basics, including defining forex and forex markets, outlining strategies for entering and exiting trades, discussing trading psychology, explaining forex pairs, identifying locations for trading foreign currencies, and providing tips for selecting a broker. In addition, the author presents his own trading strategy, which a novice can use or adapt as a starting point for developing their own personalised approach.

2. Day Trading and Swing Trading the Currency Market, by Kathy Lien

Kathy Lien is the managing director of BK Asset Management and a regular guest on major news networks like Reuters, Bloomberg and CNBC. Lien provides a clear and concise explanation of both the fundamental and technical aspects of forex trading, including what drives currency pairs.

The third edition of this book includes the latest statistics, data, and analysis of recent events, giving readers an up-to-date understanding of the rapidly-changing foreign exchange market.

The book covers technical and fundamental strategies that allow individual traders to compete with bank traders, including those involving intermarket relationships, interest rate differentials, option volatilities, and news events.

She also provides detailed coverage of the technical analysis methods used by professional forex traders in their daily work. By understanding how interbank forex markets work and providing strategies from famous traders, the book equips traders with the necessary knowledge to compete with big players. With online trading platforms offering retail traders access to the interbank foreign exchange market, this book serves as a comprehensive guide for individuals looking to succeed in forex trading on their own terms.

3. Currency Trading for Dummies, by Brian Dolan

Currency Trading for Dummies is a great resource for new traders looking to learn about forex trading. The book offers straightforward and readable guidance on trading currency and explanations of the mercado forex. Even experienced traders who require a quick review of the fundamentals will find it useful. The financial media regularly refers to it as a reference. The book was first published in 2011, and the new edition was co-written by Kathleen Brooks, Forex.com’s research director, and Brian Dolan, Forex.com’s former chief currency strategist.

The book consists of five parts that cover the basics of forex trading, analysing financial data, market sentiment, the driving forces behind currencies, and executing a trading plan. Each part contains detailed chapters that provide a comprehensive understanding of how to begin trading in currencies. The authors, Brooks and Dolan, are experienced traders who provide practical advice and tips that are essential for success in the currency market.

For those who want to stay current with the latest policies and tax regulations, Currency for Dummies has subsequent editions that provide updates. Additionally, these newer versions highlight both successful trading strategies and outdated ones that traders should avoid. Forex Trading for Dummies is an invaluable resource for anyone interested in currency trading, from beginners to seasoned investors who want to improve their skills.

4. Market Wizards: Interviews with Top Traders, by Jack D. Schwager

In his book, Jack D. Schwager asks questions about what makes a trader unique and concludes that a great methodology and strong psychology are key.

His book, Market Wizards, shares the stories and guiding principles of these “super traders” to help readers become successful traders themselves. The book features interviews with well-known traders such as Bruce Kovner, Richard Dennis, Paul Tudor Jones, and Michel Steinhardt, and includes real-life examples of incredible trading successes, like turning $30,000 into $80 million or parlaying $25,000 into $2 billion in a single day. Martin W. Zweig, PhD, editor of The Zweig Forecast, praised the book as one of the most intriguing ever written about Wall Street and confirmed that Schwager had accurately captured the strategies of his trader friends.

5. How to Make a Living Trading Foreign Exchange by Courtney Smith

Courtney Smith’s book provides a general outlook of the forex market and how it works, including 6 forex strategies for generating income. From risk management to trading psychology, the book covers a wide variety of strategies and techniques.

The book offers advice on maximising profits during volatile market swings, which have become increasingly common. Smith has written several other books, including Option Strategies, Third Edition, Commodity Spreads, Seasonal Charts for Futures Traders and Profits Through Seasonal Trading.

If you are starting to trade or are looking for more interesting trading tips, head over to our website for valuable insights written daily by our experts. Our Forex Blog includes a comprehensive variety of articles with a clear analysis of forex market aspects as well as educational content designed to support you in your trading. Additionally, our analysts and experts have designed trading courses, educational eBooks and useful forex trading content to assist you when trading your favourite market. IronFX is a reliable broker with years of experience in the forex industry and is a great place to start your forex career. With dedicated account managers and our customer support team available 24/5, IronFX’s team will be by your side throughout your trading journey.

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