To the fellow read-aholics out there dying to get their head into a forex trading book, I want to stop you from getting lost in an endless crusade. With so many books to choose from, here I share the books that I found most valuable on my trading journey, so they may spare you the limitless search for knowledge that I had.
Trade Your Way to Financial Freedom
By Van K. Tharp
This is my favourite trading book. My do I like it? It’s comprehensive, has a lot of useful information for trading success and doesn’t get a trader bogged down with technical indicators like a lot of books.
The most important thing I got out of it is about thinking in terms of Risk-multiples (reward to risk). The book is suitable for beginning, intermediate and advanced traders. However a beginner is probably best to start with something less advanced so as not to feel overwhelmed with information.
Trading for a Living: Psychology, Trading Tactics, Money Management
By Alexander Elder
This is a great place for a beginner to start. It gives an overview of money management, trading psychology and technical indicators. The value of this information will become more evident when you’re trading increasingly larger values on a live account.
It’s an excellent book to ease you into the key principles of trading. It’s important when reading it not place too much emphasis on the value of technical indicators. In practice less is more.
Trading in the Zone: Master the Market With Confidence, Discipline and a Winning Attitude
By Mark Douglas
I read this book while on a tropical island beach. Sounds crazy I know. Why wouldn’t I be relaxing with a trashy novel? This book was really great to read when you’re away from the markets and can take the time to fully reflect on your trading experiences and put them into the context of what is said in the book.
This book took my trading to a new level by providing me with beliefs to internalise being detached from individual trades outcomes to let the edge be fully realised in my account. I didn’t take up the very end part where he starts outlining a particular trading style. That is a preference of his and many styles work.
Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit From Market Moves
By Kathy Lien
This is a good book that gives traders an overview of the currency market. A resource so you can have an understanding of the product you’ll trade. However I found the fundamentals of limited value as I’m a technical trader. The information about session movements, correlated pairs and news announcements made the book worthwhile for me.
It’s a must read for someone new to forex or if you haven’t read a forex specific book before. You’ll still need to go elsewhere for knowledge with other essential factors of trading, like a system, money management and trader psychology.
Share your thoughts
Have you read these books? How did they help you? What other books had a major impact on your forex trading? Please do tell in comments below.
And do yourself a favour. BUY NOW and don’t leave let this moment pass with hesitation. Your trading will thank you for it.
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About the Author: I’m Rachel Hunter, TraderRach, a Forex Trader who helps traders achieve the life they love with forex. Be strategic and design your trading business for sustainable success and have fun! That’s my mission. Join many traders’ gaining the edge with “10 Powerful Lessons for Forex Trading Success” plus other goodies. Years of precious learning specially packaged up for you. My background before trading is as a Chartered Accountant and Chief Financial Officer. I know what it takes to make a trading business rock on. It would give me great pleasure to make a difference to your success.