Professional brokers strongly recommend "newbies" to read and analyze forex trading books in order to have a deeper understanding of the foreign exchange market and apply that obtained knowledge in practice using their educational trading account - a demo one. When it comes to choosing the right source of information, it’s crucial to be picky. You should always stand for qualitative information provided by the ones who are well-versed in trading and know all the traps and pitfalls of the global market. You’re just at the very beginning of this journey, and there are those who have been buying and selling for years, so it’s probably better to consider following their step-by-step recommendations. One day, you will become a real pro with significant results. It just takes your responsibility and readiness. That’s the rule that applies to everything we want to achieve.
You’re just at the very beginning of this journey, and there are those who have been trading for years, so it’s probably better to consider following their step-by-step recommendations.
The importance of forex education
In order to know something, you should learn it first. You can’t drive a car safely without knowing theory and practicing it; with trading, it’s the same. Educate yourself to trade with confidence. It’s possible to make trading a source of constant earnings only if you understand the fundamental principles of financial flows in the interbank foreign exchange market, as well as have the ability to analyze the fast-changing situation and respond quickly to incoming signals.
There are really meaningful words said by American investor Warren Edward Buffett, "Risk comes from not knowing what you’re doing". You should clearly define your goals from the very beginning and make this "definement" your "new normal". At this stage, it will be more than enough to understand why you want to trade and what you should do in order to feel yourself confident in trading.
If we think of education as a tool, it guides traders to optimal systems, best practices, and solutions. Following the time-tested rules will help you to make informed trading decisions instead of impulsive and emotional ones, which can often lead to serious and failing consequences. The thing you should always prioritize is quality. Quality over quantity - think of it as your everyday rule. The more you learn about trading, the better you will understand what kind of content is worth your attention. Before you start buying and selling, it’s important to understand how the market works, and this is where practice takes a step forward. So, let’s get down to the best forex trading books for beginners.
"Risk comes from not knowing what you’re doing."
American investor Warren Edward Buffett.
Top 5 forex trading books for beginners
Let us make it more simple for you. Here we’ve gathered the books that will guide you through the first steps in trading. Read and analyze every single page to gain ground.
Currency Trading for Dummies by Brian Dolan
You should definitely be grateful to Brian Dolan and Kathleen Brooks for this hands-on guide to forex market world which is considered to be one of the best forex trading books. Currency buying and selling is profitable, but it also has rapidly fluctuating aspects. The forex market is where everything changes every single second. Money can be made or lost in the blink of an eye; at the same time, currencies can reflect significant trends that last for days, weeks, and even years.
How to keep up with its dynamic? Currency Trading For Dummies is your solution where you'll get professional guidance.
In this book, you will find an easy-to-follow introduction to the financial market with the explanation of its size, performance, and participants; get an understanding of how the currency values can be influenced; learn about different types of trading styles that will lead you to the defining of your own strategy and plan. Here is what you can also find in this currency trading book:
- How to manage risk
- How to trade majors (major currency pairs)
- Currency quotes characteristic
- Key characteristics of currency pairs
- Explanation of rollovers and interest rates
- Guidance based on various trading pitfalls
- Importance of being disciplined and organized
Forex Trading: The Basics Explained in Simple Terms by Jim Brown
Being a self-taught and full-time forex trader, Jim knows what's what in trading. This book is a good start for those who are lost in the forest of incomprehensible information that prevails on the internet today. Here you will start with the well-explained basics of everything you need to know for your level. Also, as a bonus, the author offers his own buying and selling strategy for beginners that will allow to trade with more confidence and, in the course of work, develop your individual one.
That’s the book that explains complex things in a very clear and comprehensible way. Reader’s level of expertise is not taken for granted here and this is what makes this book just exceptional. This one will provide you with:
- Explanation of what the forex market is and how it works
- Tips for choosing a reliable broker
- Strategies for entrances and exits
- Places where you can trade currencies
- Details you need to know about currency pairs
- Buying and selling psychology
How to Make a Living Trading Foreign Exchange by Courtney Smith
Here the reader gets a detailed explanation of what forex is and how all the processes are interconnected to each other there. You can easily consider this book as a guide to the revealed forex market subtle aspects and tips on how to make it the source of income. Newbies will find six profitable trading strategies, including the author’s exclusive Rejection Rule that will double the earnings of the basic channel breakout system. Lofty promises on the title are really supported by the solid information in this book. Be ready to find out the following:
- How to exit positions at critical levels using two peculiar strategies
- High-level risk management techniques
- How to maximize profits during volatility
The .4x Trader's Manual: The Mandatory Guide To Successful Foreign Exchange Trading by Jonas Navardauskas
This is where you’ll find 120 diagrams that provide explanations of the key trading concepts. The book is the result of the author’s everyday practice that involved in-depth technical analysis education, so you can be sure that you’ll get the best from it. This guide is a good choice for complete beginners and more experienced traders who find it challenging to maintain their positions profitable. By providing insights into the key points of account management in combination with the successful methods of market analysis - the .4x Trader's Manual is your reliable guide that brings efficient information to light. Here is what you’ll get:
- Introduction to foreign exchange trading
- Understanding of the market structure and its tendencies
- Real-time analysis with market indicators
- Real examples of trades with the detailed explanation
Profiting With Forex: The Most Effective Tools and Techniques for Trading Currencies by John Jagerson
All the advantages that the forex market can bring to everyone who wants to be a part of a big game are here: high volatility, 24/5 buying and selling, increased leverage, money-making opportunities, various strategies, tax incentives, and the list goes on and on. Written by two trading experts, this forex fundamental analysis book will guide you through the economic principles, techniques, and in-depth technical analysis so you can get to the desired top. Readers will have a great chance to discover why the forex market is considered to be the perfect supplement to stock investing. That’s the book where you will also find the following:
- 150 illustrations and figures
- Explanation of important buying and selling concepts
- How the forex market is changing and adapting to the world realities
- Factors that influence the global market the most
- Fundamental tools for monitoring market changes
- Technical analysis to understand the market sentiment
Don’t ignore the importance of education. The books will give you the basics of forex trading. This is where you will be introduced to the technical and fundamental analysis, strategies, and patterns that have a direct impact on the success of your orders. Remember, theory always goes hand in hand with practice. There is an opportunity to start using a demo account where you can see the real market inside out without any risks of losing money since it’s fake there. So, that’s the chance to practice, make mistakes and learn to become one of those who will write his/her own book on trading. The world is your oyster.