Learn how to trade forex books

The 10 Best Books To Expand Your Knowledge Of Forex.

Let's use this introductory paragraph as just a bit of a disclaimer. This is by no means a comprehensive list of the "best" forex books. It's hard to say what is "best" because each reader is going to take different things from each piece of work. Not everything will be relevant or necessary to your trading style.

Books are about the best place to build a specific body of knowledge as opposed to internet resources. Why? A book that has been out for an extended period of time, will have been read (and probably reviewed) by several other people. You can quickly eliminate the sub-par books by researching reviews on them. Plus it takes quite a bit more effort to write a book than it does to write a website or a blog article. Not everyone is going to take the time and effort to do it properly - particularly if they are just in it for quick money or to sell you some software or automated trading robot.

So let’s kick off with our list of the 10 best books to expand your knowledge of forex.

"Currency Trading for Dummies" by Mark Galant and Brian Dolan.

Skill Level: Novice.

New traders have to start somewhere. "Currency Trading for Dummies" covers all the basics and essentials presented in an easy to understand way. It's a great platform to start learning how the market works, driving factors, and how to effectively trade. Advanced traders may not take much from it as is implied from it being a 'for Dummies' book, but it may be worth a look to refresh the basics if you've hit a downswing in performance. This book also offers an excellent, easy to understand introduction to fundamental analysis.

"Trading in the Zone" by Mark Douglas.

Skill Level: Moderate.

Psychology and the mind are the greatest hurdles to overcome in successful trading. "Trading in the Zone" aims to debunk several myths and eliminate randomness as being a factor of success. It provides insight on looking past the perceived randomness to make accurate assessments of trading risk based on fact. The misconception of successful forex trading being purely random sabotages the success of many new traders.

"Day and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves" by Kathy Lien.

Skill Level: Moderate.

If you haven't yet found a strategy that speaks to you; this offering from Kathy Lien may be worth a strong look. Kathy presents a number of strategies for longer time frames that span both types of analysis. Her book differs from others in that it does not rehash the essential basics while only briefly touching on the strategies. The focus is more on the strategies where it should be.

"The 10 Essentials of Forex Trading: The Rules for Turning Trading Patterns Into Profit" by Jared F. Martinez.

Skill Level: Novice.

This practical book touches on many important areas for the forex trader such as forecasting and understanding the market, charting methods, insights from an experienced trader, and risk management. As a guide, it's a great platform for the new trader or for an experienced trader to add to their toolbox.

"The Sensible Guide to Forex: Safer, Smarter Ways to Survive and Prosper from the Start" by Cliff Wachtel.

Skill Level: Novice.

"The Sensible Guide to Forex" differs from other books of the type in that it does not rely on high-risk, high-leverage trades to make money. This book is specifically built for the risk-adverse trader. It is written with retail and long-term traders in mind rather than being splashed with material aimed at professionals.

"Enhancing Trader Performance: Proven Strategies From the Cutting Edge of Trading Psychology" by Brett Steenbarger.

Skill Level: Novice.

The psychology game is an important one to win in forex trading. Dr. Brett Steenbarger addresses many psychological points and corrects misconceptions in this piece of work. His body of knowledge on the challenges traders face does come from his own mentoring and coaching activities. It should be noted that this book may not provide a great value to retail traders who do not have the same body of resources that an institutional trader may have through their company.

"Market Wizards" by Jack Schwager.

Skill Level: Novice.

"Market Wizards" is more of a pair of keywords than a title. Jack Schwager has done a couple different "Market Wizards" books that are collections of interviews with successful traders. These books are an interesting glimpse into the personalities and approaches of several successful traders. They may not provide active tutorial or pure educational material; but there is a lot to be learned from those that walked the road ahead of you. Any of this series are a worthwhile read.

"Japanese Candlestick Charting Techniques" by Steve Nison.

Skill Level: Moderate.

An oldie but a goodie, "Japanese Candlestick Charting Techniques" is considered a must have by many technical traders. Steve provides excellent insight into the application of candlestick charts with other technical indicators to forecast market movements. It can be a difficult read for the trader without good knowledge of the basics but is definitely worth looking at further down the road. Candlesticks and their formations at particular levels can you tell you a lot about what the market wants to do.

"Trade Your Way To Financial Freedom" by Dr. Van Tharp.

Skill Level: Novice.

Dr. Van Tharp's various books provide valuable insight into the basis of formulating winning strategies, interviews with top traders, and many of the challenges that traders will face. The popularity of his work is the reason it appears on this list. There are many that agree that his work is beneficial. However, there is considerable criticism that the work is purposefully drawn out with far too many "suggestions" to buy additional products. In many ways, it is more of a marketing tool than it is an educational tool. Bear that in mind should you decide to spend money on his work.

"Trading With Intermarket Analysis, Enhanced Edition: A Visual Approach to Beating the Financial Markets Using Exchange-Traded Funds" by John J. Murphy.

Skill Level: Advanced.

Fundamental analysis is an important component of long-term trading (particularly weeks/months). It can provide insights in immediate movements but fundamental events typically take more time to play out. "Trading With Intermarket Analysis" is aimed at financial players in multiple markets. While not strictly a forex book; it provides valuable insight on how various financial markets work with one another with many principles that do apply to forex.

There are so many books and education materials on forex. Remember that not every bit of knowledge you accrue is relevant or necessary to your strategy. Take everything with a grain of salt, read, research, and test! That's what Demo Accounts are for after all!

Have any suggestions for material you view as mandatory reading? Let us know in the comments!

This post was written by Dennis Heil, a private forex trader from Ventura CA. You can read more articles from Dennis over on his MahiFX author page.

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Forex Trading Tutorial for Beginners.

Make Forex Trading Simple.

Annotation.

What is traded in Forex market? The answer is simple: currencies of various countries. All participants of the market buy one currency and pay another one for it. Each Forex trade is performed by different financial instruments, like currencies, metals, etc. Foreign Exchange market is boundless, with the daily turnover reaching trillions of dollars; transactions are made via Internet within seconds.

What is traded in Forex market? The answer is simple: currencies of various countries. All participants of the market buy one currency and pay another one for it. Each Forex trade is performed by different financial instruments, like currencies, metals, etc. Foreign Exchange market is boundless, with the daily turnover reaching trillions of dollars; transactions are made via Internet within seconds.

Major currencies are quoted against the U. S. dollar (USD). The first currency of the pair is called base currency and the second one - quoted. Currency pairs that do not include USD are called cross-rates.

Forex Market opens wide opportunities for newcomers to learn, communicate, and improve trading skills via the Internet.

This Forex tutorial is intended for providing thorough information about Forex trading and making it easy for the beginners to get involved.

Confirm the theory.

Forex trading Basics for Beginners: Market Participants, Advantages of Forex Market Currency Trading Features: Online forex trading techniques A Sample of Real Trade Analysis Methods Forex Guide: Top 5 Tips to Guide You.

Trading Forex.

Any activity in the financial market, such as trading Forex or analyzing the market requires knowledge and strong base. Anyone who leaves this in the hands of luck or chance, ends up with nothing, because trading online is not about luck, but it is about predicting the market and making right decisions at exact moments. Experienced traders use various methods to make predictions, such as technical indicators and other useful tools.

Any activity in the financial market, such as trading Forex or analyzing the market requires knowledge and strong base. Anyone who leaves this in the hands of luck or chance, ends up with nothing, because trading online is not about luck, but it is about predicting the market and making right decisions at exact moments. Experienced traders use various methods to make predictions, such as technical indicators and other useful tools.

Nevertheless, it is quite difficult for a beginner, because there is a lack of practice. That is why we bring to their attention various materials about the market, trading Forex , technical indicators and so on so as they are able to use them in their future activities.

One of such books is “Make Forex trading simple” which is designed especially for those who have no understanding what the market is about and how to use it for speculations. Here they can find out who are the market participants, when and where everything takes place, check out the main trading instruments and see some trading example for visual memory. Additionally, it includes a section about technical and fundamental analysis, which is an essential trading part and is definitely needed for a good trading strategy.

© IFCMARKETS. CORP. 2006-2017 IFC Markets is a leading broker in the international financial markets which provides online Forex trading services, as well as future, index, stock and commodity CFDs. The company has steadily been working since 2006 serving its customers in 18 languages of 60 countries over the world, in full accordance with international standards of brokerage services.

Risk Warning Notice: Forex and CFD trading in OTC market involves significant risk and losses can exceed your investment.

IFC Markets does not provide services for United States and Japan residents.

Forex Trading Books - Learn to Trade Forex.

The most welcomed way of examining a new field is reading and getting as much information as possible. If you want to learn to trade Forex , this is the right place to start with. IFC Markets presents to your attention various books not only on Forex basics, but also on different aspects of online trading. Being an online Forex broker does not imply providing clients with only trading activities. The company gives high importance to gaining profound knowledge in the given field and be informed on the latest innovations developed in the foreign exchange market and thus trade with more confidence.

Apparently, reading these materials is not enough to learn Forex trading , since any knowledge needs practical usage to become complete. As soon as you complete studying materials and get an overall understanding of Forex trading basics you can open an account and start trading applying your newly acquired knowledge.

Forex Trading Tutorial for Beginners.

What is traded in Forex market? The answer is simple: currencies of various countries. All participants of the market buy one currency and pay another one for it. Each Forex trade is performed by different financial instruments, like currencies, metals, etc. Foreign Exchange market is boundless, with the daily turnover reaching trillions of dollars; transactions are made via Internet within seconds.

CFD Tutorial.

With CFD trading, experienced financiers and investors get an opportunity to try themselves in an alternative financial market. CFD is a derivative trading instrument, allowing making profit on increasing or falling asset price without owning that asset.

Learn Technical Analysis.

Technical analysis attempts to understand the market psychology by studying market behavior in the past. If one understands the essence, benefits and limitations of technical analysis, this can give him new skills to become a better trader. As John Murphy states, “Technical analysis is a skill that improves with experience and study. Always be a student and keep learning.”

Articles on Personal Instruments.

GeWorko Method is an innovative approach to the study of financial markets and analysis of their dynamics. In fact, it is based on Forex concept, according to which, one financial asset is quoted against another.

Common Trading Mistakes.

Trying trading for a few weeks and coming to failure traders say that it is impossible to win in it. But the matter is that traders tend to make the same mistakes over and over again. However, most of these mistakes can be easily avoided.

Basics of Dow Theory.

When first entering foregin exchange market (forex market) traders can easily face many losses if they do not use proper forex trading strategies and tools for forecasting the market movement.

Books on Technical Indicators.

According to Bill Williams in order to reach success in the trading field, a trader should know the exact and whole structure of the market. This can be achieved by analyzing the market in five dimensions and taking into account certain Forex indicators.

Tutorials on Chart Patterns.

Trend continuation patterns are formed during the pause in the current market trends and mainly mark the movement continuation. These patterns indicate that the price action displayed is a pause in the prevailing trend.

© IFCMARKETS. CORP. 2006-2017 IFC Markets is a leading broker in the international financial markets which provides online Forex trading services, as well as future, index, stock and commodity CFDs. The company has steadily been working since 2006 serving its customers in 18 languages of 60 countries over the world, in full accordance with international standards of brokerage services.

Risk Warning Notice: Forex and CFD trading in OTC market involves significant risk and losses can exceed your investment.

IFC Markets does not provide services for United States and Japan residents.

The Best Way to Learn Forex Trading.

If you've looked into trading forex online and you've seen an opportunity to make money, you are probably wondering what the best way to learn forex trading might be.

The Importance of Getting Educated.

First of all, let me say that I'm an advocate of getting a forex education. You can find a lot of information on forex here on this site. You should spend some time reading up on how forex trading works, making forex trades, active forex trading times, etc.

The second thing I'll say is nothing beats experience, if you want to learn forex trading, it's the best way. When you first start out, you should open a forex demo account and try out some demo trading. It will give you a good technical foundation on the mechanics of making forex trades and get used to using a trading platform.

A fundamental thing I have learned through experience, and no amount of books or talking to other traders could teach me this, was the value of getting out of the market when your reason for getting into a trade was invalidated. It is very easy for traders to think the market will come back around in their favor. You would be surprised how many traders fall prey to this trap and are amazed and heartbroken when the market only presses further against the direction of the original trade.

The famous and painfully true statement from John Maynard Keynes states, "The market can stay irrational, longer than you can stay solvent." In other words, it does little good to say the market is acting irrational and that it will come around (meaning in the direction of your trade) because extreme moves define capital markets in the first place.

Micro Forex Account.

The downfall of learning forex trading by demo account alone is that you don't get to experience what it's like to have your hard earned money on the line. What I recommend for this, is that you open a micro forex trading account or an account with a variable trade size broker that will allow you to make small trades.

Trading small will allow you to put your money on the line, but be of little risk if you make mistakes or lose money. This will teach you far more than anything that you can read on a site, book, or forex trading forum and gives an entirely new angle to anything that you'll learn while trading on a demo account.

Along with that of course, comes the need to understand what you're trading. New traders tend to jump in and start trading anything that looks like it moves. They usually will use high leverage and trade randomly in both directions, usually leading to loss of money.

Understanding the currencies that you buy and sell makes a big difference. For example, a currency may be bouncing upward after a large fall and encourage inexperienced traders to "try to catch the bottom." The currency itself may have been falling due to bad employment reports for multiple months. Would you buy something like that? Probably not, this is why you need to know and understand what you buy and sell.

Currency trading is great because you can use leverage, and there are so many different currency pairs to trade. It doesn't mean, however, that you need to trade them all. It's better to pick a few that have no relation and focus on those.

Having only a few will make it easy to keep up with economic news for the countries involved, and you'll be able to get a sense of the rhythm of the currencies involved.

After you've been trading with a small live account for awhile and you have a sense of what you're doing, it's ok to deposit more money and make your account bigger. Knowing what you're doing boils down to getting rid of your bad habits and gaining some control over your emotions. If you can do that, you can be successful trading forex.

Managing Risk.

Managing risk and managing your emotions goes hand in hand. When we feel emotional, greedy or fearful, that is when we make mistakes with risk, and it's what causes failure. When you look at a trading chart, you should only see potential, or see nothing; it shouldn't be a matter of excitement.

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If pulling the trigger on a trade feels emotional in any way, you should re-evaluate what you're doing to trade.

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