Anyone interested in Forex trading usually does not start from the scratch. First of all, you have to study. You search the web for information and you are looking for the best forex books with useful tips.
Choosing the best Forex books is not easy at all. You have plenty resources available and pick just one book is a pretty difficult task. I personally read a lot of books but few of them had really serious information value. A lot of them were written just for the writer obsession.
There are two types of books about the forex and investing. Educational Forex Books and books which rewrite the story of real situations from financial markets.
Educational Forex Books
Educational books should educate you as much as possible. You will find all needed information about the execution of trades in a formal way there. You will find out what is the spot, forward, swap. What is the short and long position, and what type of orders you can use. You will get basic information about interest rate differential and habits on forex markets. You will also get a quick overview of types of technical analysis and fundamental analysis.
Basically, you will get the base for your trading. The minimum required information you need to start your trading. Of course, I recommend starting with demo trading at first.
Best Educational Forex Books
I would recommend just two educational forex books.
Anna Coulling – Forex for Beginners
First one is from well-known Anna Coulling. Her books rank at first places through different bestsellers rankings. Her Forex for Beginners book gives you a really wide overview of all parameters you will need in your trading.
Anna Coulling; Forex for Beginners
It will not teach you how to make a profit on trades, but you will get as much as possible starting information. If you want more detailed and specific information about strategies, newest technical indicators I would recommend to browse Investopedia. Investopedia.com is the ultimate source of detailed information also for banking professionals. As financial instruments are more complex these days, no-one knows everything. But Investopedia is the most complex information source you will find on the web.
Simon Kostrava – Forex: How to Quickly Lose a Lot
Secondly, before you start to trade with real money, I will recommend reading another short book. There are so many scam brokers out there you should be aware. There are so many mistakes you can do when trading. And you have to know, that in real trading every, even small, mistake will cost you money. It is always better to learn from mistakes others already made and not from your own.
Book from Simon Kostrava Forex: How to Quickly Lose a Lot provides unique insights about dirty practices used on forex markets. Higher the stakes on the market, dirtiest the tricks different traders and brokers use. This book is not very long, however, it is full of useful information which will save you a lot of money.
Books: Forex trading stories
What you will need most when trading forex is the exact strategy you will employ. You have to choose currency pair or stock you want to invest in, you need to decide about entry and exit point, set stop loss and eventually also take profit order.
All these things you will do either intuitively or you will try to copy others. And now comes the part I like the most. Stories of real traders. The real case about the strategy and about decisions they had to make. What influenced them most, how they come to the final decision, what was the outcome of their decision. There is no better way how to learn as when you get insight into the thinking of real masterminds of forex markets.
But also here you have to be very picky, not every forex guru is also a good writer. There is a lot of books with great author names with no added value, with no interesting story.
Best Forex Books with real stories
I read a lot of books about forex trading and here are my personal picks. Best forex books according to Books Guru. All three consists of real stories which happened on the markets. Two of them I personally prefer the most, the third one is a big bestseller, however, I have some reservation about it.
Jordan Belfort; The Wolf of Wall Street
Everybody knows him, but few read his book. Leonardo di Caprio was excellent in the movie made according to a book of Jordan Belfort and because of the movie, everybody knows his story. I read also that book and I was fascinated by the story of a talented salesman. It provides more insight into the trading and sales practices employed by his people than the movie. But if you look for real trading stories, look another way. After finishing the book you will know much more about different types of drug addiction than about trading strategies.
Jordan Belfort; The Wolf of Wall Street
Nick Leeson; Rogue Trader
Another book which was a base for a movie, however not so famous like The Wolf of Wall Street. Nick Leeson is the trader who almost solely brings hundred years old Barings bank to the brink of bankruptcy. The book is well written, as the author had enough time for writing during serving his jail term. It shows how idealistic young banker rises through the ranks to get himself into the position when he earns a lot. And then he made the first mistake, which is followed by next mistake and next … The end you probably know, the Barings bank went bust. This book is a good insight into the psychology of successful trader who starts to be too proud. And it is the thing, which can happen to everyone after first profits show up on the account.
Simon Kostrava, Forex Case Studies
This book from Simon Kostrava is the second part of his book Forex: How to Quickly Lose a Lot, I already mentioned. Forex Case Studies is a pretty boring title, but it hides three stories from recent past which brought unusual volatility to the financial markets. And subsequently also billions of losses and profits to the traders. The subtitle reveals more. Market Turbulence in the Past Decade in the words of Traders.
You will get look at what happened when Swiss National Bank established the floor on EUR/CHF currency pair and what financial armageddon they start with the later removal of that floor. The second story is about the Brexit plebiscite day and day after and how markets reacted. The third story reveals little-known events which happened during Slovakia entry to Eurozone.
All three stories are written from two points of view. First one is pretty factual, so you will get a deep overview of what happened when. The second one is the recount of what happened in dealing rooms when events unfolded. How traders saw it and how they reacted. You will get pretty good feeling about traders thinking.
All three books mentioned above worth reading.
If you want to look for more forex books or other books, feel free to search our allmybooks.org database.