TOP 10 best books for Forex brokersJulius Conley 25 / August / 22 Visitors: 186
Welcome. In this article, we will talk about which Forex literature, in our opinion, is best suited for studying by novice traders. In this top, in addition, there are no less useful books on self-development that are related to investments. Smart books about Forex give almost universal methods of earning money even for novice traders. Thanks to the books about Forex in this rating, you can feel a powerful charge of motivation because you will understand how, almost immediately after studying the first book, it is quite possible to calmly earn income over a long distance, and not from time to time. In these Forex tutorials, examples of profitable trades are shown in detail, which will allow novice traders not to repeat common mistakes.
All the books in this article are divided into three subgroups, namely the psychology of the exchange game, textbooks that teach a reasonable career building, and textbooks directly about various Forex trading strategies, technical and fundamental analysis.
Stephen Forbes, Nathan Lewis and Elizabeth Ames “Inflation. What is it and how to deal with it.”
The work was published in April 2022. Taking into account modern realities, books of a similar kind for Forex are all the more useful for analyzing the modern market. Its creators are some of the most respected and famous experts in the stock markets. By the way, Steve Forbes works as the chief director of the magazine of the same name. Second author Nathan Lewis is one of the most famous publicists and experts in the field of monetary policy. Elizabeth Ames is a famous journalist who has written for Fox News and many others.
The authors of the book say that the prevailing views on how the modern US economy should be arranged are irrelevant. Steve Forbes says that until the economic and political elites understand this, the problem with increasing prices will get worse. This information already puts this book in the best for a broker. The errors in US political circles that the authors describe also exist in many other Western countries, so this has implications for the financial system of most of the world as a whole.
Benjamin Graham “The Smart Investor”
Despite the fact that this work is probably in 95% of all book reviews, we still have to leave it out. Books about traders are good, but even better if these works are written by elite experts. The information in in the book gives the knowledge of fundamental analysis from the guru. Benjamin Graham is known as Warren Buffett's mentor. Buffett even named his own first son Benjamin.
According to the author, the securities market is the best way to make a profit and recommends finding companies that are undervalued. Or those corporations that have already passed their own peak of profitability, but still have noticeable value. Warren Buffett describes this method with the metaphor of a cigar that has few puffs but can still be smoked. To understand the real value of a corporation, you can compare the price of its shares with the reporting of the company. Again, this book is not about Forex.
A lot of investors claim that this Forex book is the bible of fundamental analysis. You can’t do without it, even if you are very good at technical analysis, since not all market situations can be seen purely with the help of charts and other methods of technical analysis.
Tony Turner "Short Term Trading: A Beginner's Guide"
In the book, the author begins the story with the history of the world's leading stock exchanges. Then the author touches on the topic of how the largest speculators think. The author examines the role of emotions in trading. The author goes on to say that his book about Forex should not be the last one you need to read in order to successfully grow and earn on Forex and emphasizes the need for further self-improvement.
The author says that you need to set goals in your career according to the scientific method that he shows in the book. Turner insists that it is extremely important to be able to take responsibility, otherwise an inexperienced trader will not be able to make difficult but profitable decisions.
Then the author begins to analyze the main concepts of short-term trading. Tells how to identify an uptrend, how market cycles work, why some cycles replace others. The author shows examples of market signals for entering and exiting the market. In addition, Tony Turner explains where to get the information that will be used in both types of analysis.
Gerald Appel “Technical analysis. Effective tools for an active investor”
The author is a well-known theorist and practitioner of technical analysis. The author ran an investment brokerage company with an average annual turnover of $300 million. The author of the book started his career as an unremarkable broker and in the book he writes about how the market functions from the inside. He is the creator of the MACD indicator. This indicator is often used to identify trading signals at a time when the market is calm and there is no clear trend. But it is worth saying that this indicator is not without drawbacks. The MACD indicator may lag behind the market and show irrelevant signals. The book also shows steps to avoid this. Later, this concept found its way into many similar books about Forex. If your goal is to get concepts that will allow you to predict the behavior of currency exchanges, then the book will definitely be useful! Another advantage of this book is that it tells everything in an accessible language.
Barbara Rockefeller “Technical Analysis for Dummies”
It is possible that you have seen or read any book from the “for dummies” series. The strongest advantage of this series is that it is told from scratch and in a fairly structured way about any subject in simple language. If you want to learn technical analysis from scratch and then successfully trade in the Forex market, then the book “Technical Analysis for Dummies” is perfect for this. The tutorial has a fairly clear description of the solutions to identify entry and exit from the exchange and explain the market trend. A large number of various charts, charts, and other methods of technical analysis will enable you to understand all the basics of this method. An additional advantage of the book is that it contains rare information about cryptocurrencies. Even in the most famous textbooks, which are devoted only to cryptocurrencies, there is no such knowledge. This book is definitely one of the best about Forex for beginners, especially if you are not confident.
Nassim Taleb “Fooled by chance. About the hidden role of chance in business and in life.”
- A lot of things happen in the world by accident;
- Don't define patterns where they don't exist.
Nassim Taleb is a prominent trader and economist. Nassim is one of the most successful speculators and in his book he writes about Forex and life in general, teaches how to practice the right decisions. The author has also written many other bestsellers. His most famous book, The Black Swan, is one of the most respected books in the self-improvement category. In his book Fooled by Randomness, he describes why people tend to label patterns where they don't exist. This book about Forex is not just in the category of self-improvement, it is valuable to all those investors who want to profitably trade in the financial market successfully. It is noteworthy that the textbook describes the errors of thinking that even the most advanced and prominent investors make. There are many common market situations that can push you to conclude patterns and in this way cause a series of unsuccessful trades, since you will rely on one conclusion, and events will develop differently. In summary, we repeat that this book for beginner Forex traders will be an excellent acquisition.
Alexander Elder “Trading with Dr. Elder”
This literature about Forex is written by a psychologist. The book is very interesting. The author is known as not only a very competent psychologist, but also an equally skilled trader. We are emotional creatures, and emotions in trading are almost always bad. Greed, doubt, fear, anger, are not useful. This may seem redundant, and you may think that we are talking too much, but we will answer this: everyone we know in the early months of their careers repeated a significant proportion of mistakes due to harmful feelings. I myself, in the same way, because of the desire to earn more, made mistakes, or sold the asset too hastily when there were arguments to believe that the value would continue to grow upwards, or vice versa, I sold the asset too late. If reading this you thought that this is not about you, I will emphasize once again that I and many friends of the editorial office were wrong in the same way. As for the content of the book, here is what, in our opinion, the most interesting:
- In the textbook, it is easy to follow the author's thoughts when considering an exchange decision, and this is valuable and exciting;
- After analyzing the chain of his reasoning, you can take this as an example of decision making in some situations;
- Unlike other forex books, this work shows the concept of fast trading learning.
William Sharp “Investments”
The author is a famous economist and Nobel Prize winner in economics. It is important to note right away that this literature is not as difficult as you probably thought. The author has taught students at many prominent universities, such as Stanford and the University of Chicago. Sharp also founded his own personal firm that advises the largest investors to the wealthiest investors in the world.
Without a doubt, this is not the kind of literature that you need to master first. However, if you are looking for the best Forex books, then you should definitely write it down in your diary. Here are the key pieces of information from it:
- The author mathematically proves that in order to get more profit, you need to take risks more often;
- William Sharp came up with the Sharpe ratio of the same name, which helps to understand the ratio of earnings for risk;
- The author substantiates the thesis that it is necessary to keep a balance between highly risky instruments and trading instruments of the commodity exchange, mainly non-ferrous metals.
Ray Dalio “Principles”
Ray Dalio comes from a poor family and is the founder of the largest investment fund on the planet. The author tells many instructive facts from his becoming one of the main people on Wall Street of our time. In addition, one of Ray's most notable merits is that he managed to maintain the company's profitability even during the 2007-2009 crisis.
The author focuses on the fact that failures are inevitable and a sound approach is required in relation to them. And in fact the book is more about the approach to life and career in the field of investing and not about Forex. But, nevertheless, the book also describes unusual phenomena in the financial markets, for example, when the gold standard was canceled. The next day, it was Monday, Ray expected that the stock exchange would collapse, but nothing similar happened. In addition, the author of the book gives advice on the formation of an investment portfolio and shows frequent mistakes in building a portfolio, talks about the importance of adding gold and similar assets of the commodity exchange to the portfolio in order to protect against the risk of increasing inflation.
Edwin Lefebvre “Memoirs of a Stock Operator”
I am sure that this book is in almost any article about literature for a novice Forex trader, and despite this, it is justified, because the main character is not the author himself, but a real person whose name was Jesse Livermore. He mastered a long way, suffered many failures. Any inexperienced trader can significantly ease his own development as a full-fledged Forex player and avoid many mistakes that will cost dearly.
I will briefly summarize the most important theses from the textbook, and leave the full reading and study of errors in thinking when considering Jesse Livermore's decision.
- You should not make deals at a time when there is no sure opportunity to earn money;
- If you do not practice the Scalping strategy, then you can wait until the financial instrument continues to grow in price, even if you already think it is necessary to sell it;
- Try to avoid uncertainty when open trades. Do not suffer losses because you did not adjust to the trend in time;
- Don't go against the trend for no good reason;
- Do not experiment with large lots;