5 Essential Books to Read Before Entering Forex Trading
Success in forex trading can feel like a feat and a half to anyone who’s just starting out. Having a fundamental understanding of industry terms, trends and techniques might mean the difference between making a profit or watching all your capital go down the drain.
One of the best ways to develop the skills you need is to read as much as you can and learn from the experts themselves. To help you get started, Fair Forex has compiled a list of the best trading books every novice trader should read.
1. Forex Trading: The Basics Explained In Simple Terms by Jim Brown
Jim Brown is one of the most popular authors in the currency trading industry. Forex Trading is the first book in a series written specifically for beginner investors. While it’s a pretty short read, it provides a clear breakdown of the general terms and ideas surrounding forex markets.
The book covers the basics of forex trading including:
- Techniques for entrances and exits
- Basic trading system
- Trading psychology
- The ins and outs of forex pairs, lot sizes, and forex market opening times
- Places to trade foreign currencies
- Tips on selecting a broker
- Free forex trading system replica
This book also highlights Brown’s personal trading system and a video tutorial on how to use it. New traders can apply the practical advice in this book to build their own trading strategy and gain a leg up on the competition.
2. Japanese Candlestick Charting Techniques by Steve Nison
Japanese candlestick charts are a form of technical analysis used by forex traders for speculation, equities, and hedging. For novice traders who want to know more about forex candlestick patterns, Steve Nison’s best-selling book is a good title to start with. Known as the father of modern candlestick trading, Nison offers fresh insights on equities, futures, and hedging in well-written, understandable language.
The comprehensive coverage tackles everything from candlestick basics to practical examples of candlestick charting techniques in different kinds of markets. The book also explores how candlestick charts are utilized alongside other technical tools to optimize technical market analysis.
3. Forex For Beginners: What You Need To Know To Get Started And Everything In Between by Anna Coulling
Anna Coulling is a full-time professional forex trader and author of several books about forex and stock market trading and volume price analysis.
Forex for Beginners is considered by many as an essential primer to forex trading and the concept of risk. It seeks to answer two major questions:
- What is the risk on this trade – low, medium, or high?
- What is the financial risk on this trade?
This book provides a good introduction to forex market forces, currency quotes, and the various types of forex brokers and their systems. By combining the basics of forex trading with in-depth risk analysis, beginner traders can effectively minimize risk and ensure steady revenue.
4. Day Trading and Swing Trading the Currency Market by Kathy Lien
In this widely acclaimed book, Kathy Lien, managing director of FX Strategy for BK Asset Management, tackles the fundamental and technical trading strategies that will help beginner traders maximize profitability.
The book shares powerful insights on:
- Short- and long-term factors that impact trading currency pairs
- Currency correlations and how to utilize them
- The impact of seasonality on the trade market
- Intervention-based trades and macro event-driven trades
- Trading through various market conditions
5. Forex For Ambitious Beginners: A Guide to Successful Currency Trading by Jelle Peters
Unlike the other authors in this list, Jelle Peters is a philosopher and historian who runs his own forex trading website. That said, Forex for Ambitious Beginners is one of the most honest forex trading guides you will come across.
The book describes common mistakes beginner traders make and how to avoid them. It provides insights into candlestick charting, how to protect trading capital, and how to select the right forex trading strategy. Peters gives the readers practical insights without weighing them down with too much information or promising them guaranteed success.
Get started with Fair Forex today
At Fair Forex, we understand the struggle of making your first trade. We know how important it is to work with a broker you can trust – whose services are fair and reliable. Let us help you make informed trading decisions and ensure your long-term success. Call 1-844-600-FAIR to book a consultation today.