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Best Forex Trading Books
Forex trading is a vast and complex topic - and there are many different ways to learn how to understand the Forex market and how to trade it effectively. These include practice, chatting with fellow traders, videos - and books.
Books can really lay a solid foundation for your forex education. With books, you can start from the very beginning and learn at your own pace. Here are some of the best forex trading books available to help guide you on your journey toward becoming a successful forex trader.
In this article, we will take a look at the best forex books for:
- Beginners: showing the ropes of forex trading
- Mid-Level traders: focusing on making sense of more advanced topics like price action and scalping, and are thus better suited for traders who already have some forex experience
- Advanced traders: requiring a solid grounding and experience in forex
Want more trading tips? See our blog on 3 Best Forex Trading YouTube Channels.
Best Forex Trading Books for Beginners
The best forex books for beginners take you from the very basics to a level of knowledge where you can comfortably trade a demo account and even begin to trade a real account. Here are some of the best forex trading books for beginners.
Book #1: Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves (Wiley Trading), 3rd Edition
This book by Kathy Lien covers the very basics of the forex market to some pretty advanced topics. The book leads the reader through 33 chapters of basics, fundamental and technical strategies and currency profiles for each of the major currencies.
Book #2: Currency Trading for Dummies (Brian Dolan)
Dummies books often get a bad reputation for, well, being bad—particularly when it comes to technical topics. But they often lay things out in a very simple way. When they are written by someone with a good understanding of the subject, they can be a very good introduction to something new. That’s what Currency Trading for Dummies is.
Best Forex Trading Books for Mid-Level Traders
The best forex books listed below cover more advanced topics like price action and scalping. Price action is essentially the study of the price without the aid of technical indicators. Scalping is a risky endeavor that seeks to turn a profit from a lot of small trades as opposed to larger profits on fewer trades.
It is a significant time commitment to give the market the attention it needs when scalping in order to find these fleeting opportunities for quick, but small profits. It also demands a broker with good execution to avoid slippage that could negatively affect your bottom line.
Here are some of the best forex trading books for mid-level traders:
Book #3: Naked Forex: High-Probability Techniques for Trading Without Indicators (Wiley Trading Book 534) (Alex Nekritin)
Naked Forex is all about trading using price action, without technical indicators. This is technical trading in its purest form and was the normal method for technical traders in the days before computers and calculators were ubiquitous. There is nothing necessarily challenging to a beginning trader in this book, but it might be rewarding to come to with a thorough grounding in technical indicators first so the essentials of reading candlesticks and chart patterns are covered.
Book #4: Forex Price Action Scalping: an in-depth look into the field of professional scalping (Bob Volman)
Scalping is an advanced topic, due to its risk and the necessity of near-flawless execution to make it worthwhile. This title provides hundreds of setups and includes the price action principles that underlie each trade. The author, Bob Volman, is an independent trader who manages his own accounts and his writing belies someone who uses the techniques he writes about on a daily basis.
Best Forex Trading Books for Advanced Traders
These advanced forex books offer a big-picture view of the global markets, not just the forex market, but the entire macroeconomic perspective. This view can be disorienting for those new to forex trading, particularly if they are not familiar with the instruments involved - so we’d recommend having some significant experience before tackling these books!
Here are some of the best forex books for advanced traders:
Book #5: Currency Trading and Intermarket Analysis: How to Profit from the Shifting Currents in Global Markets (Ashraf Laidi)
This book covers currency trading within the context of other markets. It is particularly useful for those who wish to develop an understanding of the fundamentals that drive the forex market. It is also helpful for traders wanting to expand their portfolios to include other financial instruments, such as stocks and commodities.
The author, Ashraf Laidi, was the head FX strategist at CMC Markets, a UK-based global broker. Laidi covers the forex market and its interaction with commodities, equities and interest rates. This book is notable for its lack of filler material. From start to finish, all of its contents are relevant and valuable to understand the subject at hand.
Book #6: A Three Dimensional Approach to Forex Trading (Anna Coulling)
This book gives you an easy-to-understand perspective on how all the different markets fit together. If you strive to understand the macro-economic factors that drive the interaction between all markets, including the forex market, the analysis provided by this book can be invaluable.
Make no mistake, it covers many different financial instruments. But as it goes through market sentiment, bonds, commodities and equities, it is building up a model for explaining entire economies. After the forex market is covered, bonds are related to commodities, equities and currencies. Finally, these pieces are all put together in an explanation of the fundamentals of global economies. As the title reflects, the goal of the entire analysis is to give a perspective that is useful for forex trading.
Some have found this book to be a suitable introduction to forex trading. However, others may find the macro-economic view that it offers bewildering without a little background into what all of these instruments are and how they operate.