The best learning might not always come from books, but, books certainly are the best way to start. There are hundreds of books for trading and here are some of the best books that you might just need irrespective of how experienced you are.
Books for absolute beginners
There are some excellent books that have been written by renowned authors regarding trading in general.
These books are considered to be the go-to books for anyone that has decided to pursue this skill of trading be it stock trading, forex trading, or crypto trading.
It is often said that the markets are all the same, what differs are the assets that are traded.
This means that markets behave the same, all on the basis of sentiment or trading psychology, as participants are humans after all trading different assets like currency, stocks, or crypto.
There are some concepts and tools that are common among all markets. It is essential that individuals starting on their trading journey know these concepts which will assist them when they trade live.
1. Japanese Candlesticks Charting Techniques
Author: Steve Nison
About: Steve Nison is a well-known technical analyst. He is hailed as the father of the candlestick charting technique. He was one of the first people to get the Certified Market Technician (CMT) charter.
This book by Steve Nison introduced candlestick charting to the world. This book is the product of the many years of research by the author.
The candlesticks being a versatile tool have become a common and basic part of all trading plans. Traders can use candlesticks standalone or even combine them with other techniques and take quality trading decisions.
2. Al Brooks Price Action series
Al Brooks was not a trader from the beginning of his career but took up trading eventually. He traded the financial markets independently.
He went on to write books on topics related to trading on the basis of his years of experience trading the financial markets.
1) Reading Price Charts Bar by Bar: The Technical Analysis of Price Action for the Serious Trader
Author: Al Brooks
About: In this book, Al Brooks highlighted the importance of reading the market on the basis of pure price movements. The book discusses the various patterns and tools based on candlesticks that traders can incorporate into their trading plan.
2) Trading Price Action Trends: Technical Analysis of Price Charts Bar by Bar for the Serious Trader
3) Trading Price Action Ranges: Technical Analysis of Price Charts Bar by Bar for the Serious Trader
4) Trading Price Action reversals: Technical Analysis of Price Charts Bar by Bar for the Serious Trader
Author: Al Brooks
About: In these three books, Al Brooks has laid down certain guidelines, not rules, which traders can incorporate into their trading plans. These are all price action books based on chart patterns, candlestick patterns, trendlines, and other such tools.
Al Brooks mentions certain methods by which traders can spot institutional trends, ranges, and even reversals and how traders can trade them.
Books for forex beginners
Once individuals are adept with various basic concepts and methods of trading in general and have decided to trade the currencies, I suggest reading these books to understand the basics of the forex market. These books are popular works by some credible authors.
1. Currency trading for dummies
Author: Kathleen Brooks and Brian Dolan
About: This book is a hands-on and user-friendly guide that simply explains the forex market. The book discusses everything about the forex market, the various participant, the economics that drives the market.
The book also explains the different types of trading setups that traders can apply to trade foreign currencies.
2. Forex for beginners: What you need to know to get started, and everything in between
Author: Anna Coulling
About: Anna Coulling has vast experience of trading all types of assets stretched over a couple of decades. She is a self-taught trader who has done pretty much well over her impressive trading career and has also taught other traders to get on the right track in their trading activities.
She has authored a couple of books that are respected in the world of trading. This book was written to lay the foundation and provide a framework for traders that are looking to begin trading in the forex market.
Anna has covered almost everything in her book that a trader starting on his trading journey would require. She emphasizes using the knowledge gained in a practical manner, which will reap benefits over time.
3. Pipology 101: Forex for beginner Forex traders
Author: J. Corrado
About: This book directs budding forex traders in the right direction with its concise teachings about the currencies and shortening their learning curve.
Every forex trader must go through a path of learning and training before they begin trading live. This book was thus written to give the necessary beginners education to traders on the basis of which they can then go to become consistently profitable traders.
4. How to Trade Forex with Zero Fear: Easy to learn beginners Forex trading methods
Author: Christo Ricardo
About: Christo Ricardo is a trader himself trading various assets in his trading career. He often found that budding traders would get encouraged to take up trading just to become rich over a short period of time.
With the advancement of the internet, a lot of content is available online and for free which traders learn and expect to become rich overnight.
To close the gap of quality forex education, the author came up with this book. It discusses everything about the dynamics of the currency market while keeping it simple as Christo believes that making things complicated is unnecessary.
5. Forex Trading: The basics explained in simple terms
Author: Jim Brown
About: Jim is a full-time forex trader and has been trading currencies for over a decade. He has traded all types of systems and setups and has developed his trading setups on the basis of which he takes his trading decisions.
He has taught several fellow traders and also engages with the trading community through his blogs and other forums.
This book was written for the absolute beginners in the forex market that do not have a clue about where to begin from. Jim has shared his own methods and has managed to keep all the information crisp and easy to understand.
Books for advanced forex traders
Advanced Forex traders would be those traders that have passed the beginners stage and have had some experience trading the forex market.
Getting through the beginner’s phase does not mean the end of learning, it rather means that traders will have to learn various complex things that will allow them to further improve in their trading activities.
I am listing some books that such traders can grab hold of and read in order to take the next step in their trading career.
1. Currency Forecasting: A Guide to Fundamental and Technical Models of Exchange Rate Determination
Author: Michael R. Rosenberg
About: Michael Rosenberg is an acclaimed expert in the field of trading. This book is the most authoritative work on this subject. It is a step above the basics of the forex market as it discusses major methods of forecasting the exchange rate of the currencies.
The book also mentions certain strategies that some of the top traders use. The book involves a theoretical discussion about the combination of fundamental and technical analysis which can further be used as a structured framework in order to make trading decisions.
2. A Three Dimensional Approach To Forex Trading: Using the power of relational, fundamental, and technical analysis
Author: Anna Coulling
About: This book was one of the first books authored by Anna Coulling. This is the second book of hers that we recommend traders to read.
Anna has discussed the functioning of the forex market which can be forecasted with the combination of relational, fundamental, and technical analysis.
This is the three-dimensional approach that traders can take in order to capitalize. The author discusses combining this approach with multiple time frames and multiple chart analysis.
Anna has also mentioned that the forex market is the heart of the financial world and how the different markets such as the bond market, stock market, and commodity market are all reflected in the forex market.
3. Beat the Forex Dealer: An Insider's Look into Trading Today's Foreign Exchange Market
Author: Agustin Silvani
About: Through this book, Agustin intends to give individuals an insight into the world of professional forex trading. Trading the forex market is a grueling experience where new traders are tested to their limits as well as where experienced traders are tested for their ego and money-making techniques.
The book discusses the day-to-day mechanics of the forex market and also mentions some of the methods that can be used to successfully trade this market.
The author repeatedly states that nothing in the currency market comes easy and that the only way to survive in this market is by actually having some trading experiences and learning from them on the way to be being a successful forex trader.
4. Currency Trading and Intermarket Analysis: How to Profit from the Shifting Currents in Global Markets
Author: Ashraf Laïdi
About: The author of this book, Ashraf has been a lead forex strategist at the CMC markets, which is one of the leading forex and commodities brokers. He has extensive experience in the analysis of the various markets that have an influence on the macro level.
Ashraf discuss the links that the forex market has with the interest rate, commodities, and equities and also the importance of analysis of the global macro scenario in order to trade in the forex market.
He lays down the tools that traders will require in order to interpret the financial and macro nuances and also shares the experiences he has gathered of the years he spent in this field.
5. Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves
Author: Kathy Lien
About: Kathy Lien is the Director of Currency Research at a renowned forex firm. She has actual hands-on analysis and trading experiences in the forex market and has sought to share all that she has learned in her career through this book that she has authored.
Kathy discusses the interrelation between the technical and fundamental analysis and the strategies that traders can apply in the forex market in order to make profits.
She mentions that traders can apply a more fundamentally oriented approach in order to compete with the traders that trade for banks. These strategies would include inter-market relationships, news releases, central bank interventions, interest rate differentials.
6. ForeX Trading for Maximum Profit: The Best Kept Secret Off Wall Street
Author: Raghee Horner
About: Raghee Horner is a respected forex trader as well as a forex educator. She has developed various forex trading systems that she has used to profit on price movements over the years and has also taught this skill to fellow traders.
Raghee looks to highlight the importance that the Dollar and the United States have on the forex scenario as well as the growing interest of forex trading in the country.
She goes on to state that the forex market is an attractive market to trade due to a large number of participants, hence providing massive liquidity that makes trends reliable and long-lasting.
Through this book, she shares her techniques and trading systems that traders can utilize irrespective of their level and make their trading journey a successful one.
7. Adventures of a Currency Trader: A Fable about Trading, Courage, and Doing the Right Thing
Author: Rob Booker
About: Rob Booker has traded the currency market himself and knows what struggles traders face when in the pursuit of profits. Through this book, he has shared all that he experienced during his trading journey which traders can enjoy reading as well as learn from.
Rob discusses the methods by which traders can improve their trading activity. It not only emphasizes the right trading setups or strategies but also other aspects like risk management and psychology.
He also mentions some of the mistakes he made during his trading career and how he could have avoided the consequences had he done things right.
This book is a good read for traders that have experience in the forex market as they will be able to relate to it and be aware of the hard truths of the business.
8. How to Make a Living Trading Foreign Exchange: A Guaranteed Income for Life
Author: Courtney Smith
About: Author Courtney has extensive experience in trading the markets and has developed his own systems for trading as well as managing risk.
Through this book, he shares some forex setups which traders can apply. He discusses some of the setups that he uses to enter trades and also for exiting.
Courtney also mentions methods to keep psychology in check while trading.
9. Trade Like Pro. The Ultimate Trading Kit to Master Supply & Demand: Trade Like Professionals
Author: Jode Lebin
About: Jode has mentioned the hard truths and has busted the various myths that revolve around forex trading in this book. He has traded the markets and has shared his methods in the book.
The author has extensively discussed the methods of demand and supply, which traders can use accordingly.
He intends to provide tools to even the smallest of traders to make it big in the market and has managed to compile all of this vast information in a precise manner.
10. The Advanced Forex Trading Guide
Author: Neil Sharp
About: In this book, author Neil has mentioned everything that traders would require in order to trade the currencies. He has mentioned about how and why of the forex market and the various skillsets that traders require to possess.
Neil has mentioned trading setups and strategies, risk management systems, and some psychology hacks. This combination which once applied can fetch the trader a high level of success in the forex market.
Books on psychology in trading
Wherever people are involved, psychology is involved. The forex market as well as other financial markets are all run on the basis of the sentiment and psychology of the market participants.
Trading is a difficult and lonely job. At times situations will become so grueling that it takes a toll on the psychology of the trader which will lead to the trader taking low-quality trades.
It is very essential for traders to keep their emotions aside and be practical and bulletproof in their trading activities. There are some well-written books on the psychology aspect of trading that discuss managing emotions.
1. The Disciplined Trader: Developing Winning Attitudes
Author: Mark Douglas
About: This book is a classic which first introduced the psychological aspect of trading to the financial world. Mark Douglas having traded the commodity markets himself experienced lots of psychological ups and downs during his trading career.
This business of trading requires traders to be at their best selves. Only a few traders have managed to control their trading behavior and only such traders make it big in this business.
Mark has discussed the importance of controlling one's behavior and attitudes in order to alleviate trading results.
This book allows traders to dive deep into their consciousness and assists them in identifying the psychological barriers that are standing between them and a successful trading career.
This book was published a long time ago but is still considered a bible of trading psychology.
2. Trading in the Zone: Master the Market with Confidence, Discipline, and a Winning Attitude
Author: Mark Douglas
About: After authoring The Discipline Trader in the ‘90s, Mark Douglas came up with another book on the topic of trading psychology which is as good as its prequel.
Mark discusses the lack of consistency that traders show in their trading results and how to identify and overcome them.
He emphasizes traders to do away with certain ingrained mental habits that just pulls the trader down and do no good.
He mentions that traders must think in terms of probabilities as it will allow traders to manage risk better and to keep expectations in check.
3. Traders at Work: How the World's Most Successful Traders Make Their Living in the Markets
Author: Tim Bourquin and Nicholas Mango
About: Tim Bourquin is the co-founder of Traders Expo and the Forex Trading Expo and founder of TraderInterviews.com, and freelance writer, and Nick Mango is an editor. They have compiled this book taking interviews of some of the most successful professional traders.
The book discusses how the new traders keep fantasizing about getting rich in a short period of time when they discover the world of trading.
Just as they begin to get some experience in the game, they come to the realization that the rosy picture is not so rosy after all.
The authors have interviewed some experienced traders asking them the most practical questions about their careers.
To an outsider, a career in the financial world may seem all perfect, but they often do not realize that things are not easy as they seem in this business.
This book will allow readers to know about the various challenges that professional traders face, what the consequences were and they overcame them.
4. Zero Fear Trading: 7 Ways Beginner Traders Can Trade with Zero Fear
Author: J. Pecunia
About: This book is all about projecting the harsh realities of the forex market. The book will not paint a pretty picture or give guarantees of becoming rich from forex but will compel readers to re-think their perceptions of the forex markets.
The book mentions that there is a cutthroat competition among the participants and each time a mistake is committed, consequences follow.
5. Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets
Author: Nassim Nicholas Taleb
About: Nassim Nicholas Taleb is a mathematical statistician, scholar, and former options trader and risk analyst. He is considered to be one of the most prominent writers for the books that he has authored.
This book by Nassim discusses the topic of randomness, and the paramount effect it has on our lives. Almost every action happening in each ones’ life has a good chance of it being largely random.
With respect to trading, the book mentions that the strategies that traders use to profit from price movements are short-lived. Nassim stated that strategies move in cycles and are completely futile unless the risk is managed properly.
Which books have you read?
You here have an extensive list of books and I understand that reading all of them can be a daunting task, but all good things require effort.
It should be noted that mere passive reading of these books will be completely futile, only active reading will make the difference.
You must grasp the underlying meaning of each book which the author is attempting to convey.
You can even take notes of the important stuff that the author discusses, this will help them in revisiting those once the reading is complete.
If you have read any of these books, let me know your thoughts on them. It is quite possible that your interpretation is different and can give a perspective to the book.
Don’t forget to share this blog post with others and also feel free to reach out for any questions or queries and I will make sure to get back to you.