Forex trading is one of the most popular activities in modernity. It has already attracted thousands of people and the tendency is increasing even more. Forex Trading has become especially popular in the first decade of the 21st century. At first, it was just like a hobby, but once everyone discovered that Forex Trading is actually one of the best ways to invest the money and then benefit from it, it soon brought the whole new wave.
Despite the fact that many people are involved in the Forex business, it is very rare that most of those people understand what are they doing and how the forex generally works. There are many available Forex market guidelines, many tutorials, and websites that promise to teach you forex and promise the smell of some greens to you. Do not believe everything that seems appealing, as Forex is the whole new philosophy, which seeds to be understood and needs to be considered.
There are simple but multiple steps to the summit, which you have to learn. Only after the specific knowledge, you will be able to understand the market, predict tendencies, and become one of the best Forex Brokers ever. In order to assist you in reaching your dream, we decided to make a shortlist of the best Forex Trading Books for you.
Currency Trading For Dummies (Brian Dolan, Mark Galant)
What comes to your mind for the first time, while you are thinking of the financial trading market. Most probably this will be the stocks, commodities, and currencies as well as gold, silver, dollars, Euros, and so on. But what about making money out of money? Or to make it simple, what about making money from the changes that the money and the currencies undergo within the market.
This is called Forex Trading. In short, you make money from your prediction of the exchange rate changes and the volatility of the currencies. While making the right predictions can be extremely beneficial to you, you have to have real deep knowledge about the market, the regulations and have to have a close eye on the daily processes.
It is not only understanding the dollar, but you also have to consider many factors that impact the changes in the dollars. Those can be the prices, the oil, the silver, and the stock market of course. What happens in the Forex Trading, is betting on the direction of the changes of the currency, with the deep knowledge of the outstanding factors and figures. The trading is always made in pairs. This happens as the value of the currency is measured relative to other currencies. Any sliding of the currency towards the dollar, for example, can bring you valid cash.
While many people think that Forex Trading is mainly about luck, and there is no real value in investing your money and time in Forex, the author of the book provides us with a number of arguments that prove the opposite. This is why “Currency Trading For Dummies” can be considered as one of the forex books for beginners. The main thing we have to focus on is the dynamics of the demand and supply or in other words the macro-economics. This concerns the commodities, the forex trading, and of course finding the right factors affecting the currency values.
While reading the book, you will clearly find out the true nature of the market. This is possible through the provided information regarding the rates, the inflation rates, economic fundamentals, and the policies and the governmental regulations. You will also find information regarding the GDP, consumer confidence, and labor statistics. While the book generates most of the information about the market as well as the macroeconomic and delivers a broad knowledge of the field, it is equally interesting for students and for Forex book for beginners. One thing is promised. Once you are done with the Forex trading for dummies book, you will be very far away from being a dummy.
Currency Forecasting: A Guide to Fundamental and Technical Models of Exchange Rate Determination (Michael R. Rosenberg)
This is one of the most authoritative books in the whole Forex Trading history and is considered to be one of the most comprehensive Forex books for trades. As mentioned before the most important in currency trading is to make the right forecast. The right forecasts can only be made with deep knowledge, accuracy, and of course the luck.
While there are many small but very important details in the trading process the Currency Forecasting will outline some of the most crucial ones for you and will give you a lot more specific information regarding the topic. This is where the whole fun begins. Remember your childhood, when you would bet on some unimportant things, like would you get the A in the class or would that girl or boy you liked likes you back, now the strategy remains the same with the small difference. If you win the bet you gain a lot of money, while if you lose you lose like an adult and not like a child.
Almost 400 pages book implies the most important aspects of the trading. I have mentioned above, that it is one of the most authoritative works on the whole subject, and guess what? This is for a reason. The book covers the most crucial and major methods and aspects of the exchange rate forecasting. This means that basically you are reading the life had videos, only for the forex trading.
Subjects like the purchasing power, parity, and interest rate differentials as well as the technical analysis, which is also a very important figure in the forex trading. There is one more reason why the book is extremely valuable and what differentiates it from others. While other books are more or less focused on the overall knowledge and provide the reader with the wider picture, this book focuses on details, methods, and technical forex trading strategies. This is important s exactly with the strategies and proper techniques you learn how to manage the risks and how to put them on scales. With this knowledge, you have bigger chances of getting the benefit from the situation and also reducing the risks. The forecasting started and the techniques for combining forecasting strategies into a single powerful method is everything that the book is about.
A Three-Dimensional Approach To Forex Trading (Anna Couling)
This book is one of the clearest examples of how Forex Trading can become work for life. The author of the book, Anna Couling has been trading Forex for 17 years already, and it should be obvious that she is definitely the master of the field. While this being said, it should be no surprise that it is one of the exceptional and practical books about Forex trading.
The book highlights the personal experience and the valuable outcomes of the multiple year works and observations. While there are many things that you can read out, often the personal experience becomes something the most valuable and the most practical.
Just think for a moment what is 3D for you? You have most probably at least once been in the 3D movie theater. Do you remember the feeling you got in there while watching all of the stones flying straight to your face, hearing voices of the actors as if they were sitting just by your side? Everything should have been pretty realistic, otherwise, you have definitely seen poor quality 3D movies. The book itself is exactly just like the movie theater experience. It not only offers real feelings and the real experience of the author but also lets you explore the layers of the market.
In this case, the title of the book can be explained in two ways. One of them is explaining the market layer by layer, while the other is the feeling and emotions you get while reading the book. It is very important to pay enough attention to both factors and to consider both of them as a crucial part of the Forex Trading industry.
A Three-Dimensional Approach To Forex Trading is slightly over 400 pages, which seems like a lot of effort to put, but in the end, it is worth it. As mentioned before the book is published by Anna Couling. Not only she traded Forex for 17 years, but she also began teaching about forex after trading. She decided to share her knowledge and experience with the students and then put everything into a book. The main perk and skill of Couling are having the ability to explain extremely complex financial markets in a clear and easy way.
Due to her unique skill and ability to offer the reader valuable information in a very comprehensive manner, this book is perfectly suitable for the beginners as well as for the advanced traders. Just like some other Forex books for beginner traders, the book provides a high overview of the forex market, and likewise the Forex books for advanced traders, the book also covers the information on what makes the forex market tick. The main goal of the book is to explain to the readers how and why the Forex Market moves at all. And it can be said that the goal has been reached.
While the book has very important and interesting information regarding the trends and tendencies of the primary markets, including stocks, bonds, and commodities, do not expect information regarding any trading strategies. Though, what you should definitely expect is the knowledge on how to play out in the Forex world.
Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves (Kathy Lien)
This is another great example of Forex literature, the great book by the great women author. Kathy Lien, the author of the book offers the reader personal experience and the whole edge generated throughout the years while working in Wall Street. I hope that I do not have to remind you what does working on Wall Street means. Perhaps this is the biggest dream for every trader and at least 90% of the traders want to become the Wolves of Wall Street. So far, the most successful in this, has been Leonardo Dicaprio.
Okay, let’s get back to the subject. This book, just like the 3D approach to Forex Trading is based on personal experience. Kathy graduated from New York University and the next step she took, was heading straight to Wall Street. I think she should have been quite a talented one as she was immediately admitted to the job. Kathy has served as an expert source for the Wall Street Journal as well as Market Watch and Associated Press.
The main focus of the book for Forex traders is on the intermediate and engineers. The main focus of the book Is providing proper strategies and step-by-step through Forex fundamentals for the existing forex market, which is one of the most valuable tips to consider. Besides writing the book, Kathy also provides the readers with the websites and the tutorial videos on trading. Some people better acquire information via visual content, so the video should be very suitable.
There are certain subjects covered in the book that you should expect. One of the first steps the book will guide you through is the explanation of how the forex market works in general. The formation of the market, the dynamics of the market, and what forces the market to move. The next step is to give you the information on how to make proper plans from short term swings. This is very important, as you will often be able to witness the short term swings in the market, and it is better to be prepared for it. Short terms swings can be the ones you benefit the most in a short period.
Just like the Currency Forecasting, the book by Kathy Lien also provides the reader with the strategies of making a profit. The great thing about those strategies is that they are time-tested, meaning that they should work with the highest accuracy in the market. Moreover, you can expect to find some information regarding the skills, to navigate overwrought or oversold markets. This is not every book can boast with and this is not something every trader is aware of, which puts you in a better position.
Last but not least part of the book covers the topic of examination of currency pairs. This is something very important to understand as this information will outline your forecast and will be your main tool for benefiting from the market movement. Overall, the Day Trading and Swing Trading the Currency Market is one of the must-read books about the Forex Industry, which will definitely raise your awareness regarding the existing reality of the market.
How to Make a Living Trading Foreign Exchange (Courtney Smith)
There are some books, among the literature for Forex traders, that talk for themselves and do not need any further explanation. This is one of the cases. The book by Courtney Smith is perhaps one of the most important books dedicated to the industry. This might also be the book, which will provide you with most of the information and grant you the available knowledge about the forest market.
Just like any other book, the first thing you will get to know is the market itself and the structure of the market. The book provides a nice introduction module about the world of forex, which explains how the market works in general. The author is the chair of the Investment Mentoring Institute, which is devoted to investor education. Besides, Courtney Smith is also the Chief Investment Officer of the money management firm. By saying this, it should be claimed that the author definitely knows his job.
The book is mainly devoted to making money and providing the right strategies for making the right money. There are six solid strategies offered in the book, that are all time-tested and have positive results. Those strategies are your guarantee for a steady income for a lifetime. The book also provides important risk management techniques, which are essential while entering the forex world, which is highly dependent on luck. This means that you have to do everything you can in order to play your part, and then may the odds be in your favor.
Besides the techniques, another very crucial topic discussed in the book is psychology of trading. This might be the most valuable information you will ever come across in the Forex Trading related book. This includes the information about Smith’s unique “rejection rule”, which is the strategy designed to double the profit generated from the basic channel breakout systems. If this was not enough, then take into consideration that discipline is another great chapter of the book, which is followed by investor psychology, three practices that benefit all investors.
To be short, once you are done reading the book, you should already have enough information to make the forecast, enough courage to make the right decision, and enough analysis to benefit from your forecast.
Adventures of a Currency Trader: A Fable about Trading, Courage and Doing the Right Thing (Rob Booker)
The last but not the least book on the list is the Adventures of a Currency Trader. The book was published back in 2007 and is a favorite Houston-based trader. This particular book is none like any other on the list. It is completely a different genre and it proves once again that the information and the story can be told in various ways and still heard by many people.
In spite of the fact, the book is more like Si-Fi it is might be suitable for the trader of any level. The book has the perk of attracting the beginner as well as an experienced trader. The novel is mainly based on proving the devices and principles, though it is not a how-to book. The main character of the book is Harry Banes, who sees the forex world through his fictional eyes.
The main advantage of the book is that it is simultaneously entertaining as well as informative. If you are not the one who is looking for technicalities of the market and how-to manual, then this book should be the right choice for you.
Conclusion
There are many books dedicated to Forex Trading literature. Some of them are how-to manuals, while others provide readers with wider information, and some of them even look like the adventures of the Huckleberry Phin. This is all good if you are interested in the forex. Many people make the mistake in the very beginning when they think that they know what the FOrex market is and how to enter. The reality is that it is way more complicated than it seems.
The list of books that we have provided is the most essentials of the Forex world. Those books will not only raise your awareness toward forex trading but will also give you general knowledge about economics and the nature of the market. You should also acknowledge that not all strategies and techniques work for all of the traders. Thus, try to figure out what is the best choice for you. Just make sure to be at least more accurate than the weather forecast is, and may the odds be in your favor.
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