There is no alternative way to reading trading books to be a successful trader. Reading them will enable you to understand the market precisely and introduce you to legendary history traders.
This article lists the top ten FX trading books that every trader should read at least once in their lifetime. However, novice traders often seek suggestions to sort the best books that will help to reach their goal of becoming successful market participants.
The top ten trading books
A person who has decided to embark on the path of mastering the FX market and who wants to learn the rules and nuances of successful activity on it must first familiarize himself with the theoretical material. Only then will it be helpful to proceed to its practical application to avoid many stupid mistakes and monetary losses. However, the books are valuable for beginners and any market participant who wants to improve in exchange trading. We suggest that you familiarize yourself with the ten best books.
1. The Alchemy of Finance by George Soros
The first book on our list is “The Alchemy of Finance.” The author of this book is legendary trader George Soros. He explains specific fundamental influences such as recent times’ political and economic history that impact the price.
This is a groundbreaking book. Soros debunks the myth of “market efficiency,” according to which all factors are embedded in the price of a particular asset. He argues that economics and stock markets do not reflect reality because they are influenced by thinking participants whose actions affect the results.
Soros called this “the theory of reflexivity” and contrasted it with the traditional theory of equilibrium in economics, which, in his opinion, is based on false premises.
When applied to the stock market, reflexivity can manifest in one of the following variations: the stock price reflects investors’ expectations regarding their future performance, which may be wrong. These expectations affect the price. In turn, the price affects the fundamentals and investor behavior. This reflective connection can lead to a self-reinforcing tendency.
As an illustrative example, Soros compares the stock market to a beauty pageant, where the winner is not the most beautiful participant but whom most people consider to be beautiful.
2. The Art of Currency Trading by Brent Donnelly
The second best forex trading book on our list is “The Art of Currency Trading.” The author of this book is Brent Donnelly, a successful interbank FX trader for more than 20 years. He shares his specific tactics and strategies to make profits from the marketplace.
This book contains an insider view of driving the FX that helps understand macro-finance, behavioral finance, technical analysis, and efficient risk management concepts of trading. Understanding this book will enable options to master the foreign currency exchange market and achieve long-term financial success.
3. Technical Analysis of the Financial Markets by John J. Murphy
It is the third book on our list, “Technical Analysis of the Financial Markets.” The author of this book is John J. Murphy, a former director of Merrill Lynch. The publication year is 1988. Many traders consider this book a Bible to the traders as many analysts nominate this book to be on the top list. It contains more than 400 charts and thousands of traders’ concepts and analyses besides applications of the stocks and futures markets.
The main theme of the book:
- Fundamentals of technical analysis and charting.
- What you need to know about trends and constituent charts.
- Price patterns, including continuation patterns and reversal patterns.
- Time cycles, market indices, trading strategies, and tactics.
The book is supplied with several hundred examples of graphs with explanations. The second edition will introduce you to Intermarket relationships, candlestick charting, stock rotations, etc., with examples for better understanding.
4. Currency Trading for Dummies by Kathleen Brooks, Brian Dolan
“Currency Trading for Dummies” is the fourth-best book on our list. The authors of this book are Kathleen Brooks and Brian Dolan. You can consider this book as a user-friendly guide to be a part of the FX market besides explaining the working procedure of the FX market.
This book includes an expert guideline to forex trading and tools, insider observation, and characteristics of successful traders. It also provides mechanisms to avoid the pitfalls of currency trading and risk management ideas.
5. Trading in the Zone by Mark Douglas
We list “Trading in the Zone” as the next top-best book on our list. The author Mark Douglas the key psychological attributes of successful traders and the paths to achieve that. You can consider this book as a leading one that contains techniques to control emotional trading.
However, reading this book can prevent emotional trading and reduce losses without replacing your trading method. This book will increase your confidence and build up a winning attitude within you.
6. Japanese Candlestick Charting Techniques by Steve Nison
Steve Nison, the author, introduces the next top book on our list, which is “Japanese Candlestick Charting Techniques.” This book will introduce you to popular Japanese candlestick patterns that you can use on any financial asset, such as currencies, commodities, securities, stocks, etc. Hedging, equities, futures trading, etc., anywhere technical analysis is applicable, you can use knowledge from this book.
This book is an outcome of the authors’ years of experience, research, and study.
7. The Way of the Turtle by Curtis Faith
“The Way of the Turtle” is the next top recommendable trading book on our list. Curtis Faith is the author of this book who introduces a group “Turtles” in this book. A group of 23 ordinary people became legendary traders within a short time and made millions.
This book contains the step-by-step actions of that group that you can use on your trading and become more successful. This book includes the trading rule to diversify your investments and limit your risk exposures.
8. The Price in Time by Gabriele Fabris
The next recommendable top trading book on our list is “The Price in Time.” Gabriele Fabris is the author and the publication year is 2019. This book contains techniques for understanding charts, Fibonacci retracement tips, placing stop-loss explaining where and why, trade and money management tips, the importance of closing and opening price, etc.
This book contains information that will help you make more precious and accurate entry and exit positions.
9. Market Wizards by Jack D. Schwager
It is the next best trading book on our recommendation list. The author Jack D. Schwager interviews top traders who have achieved high and outstanding indicators. The material will allow you to touch the secrets of virtuoso traders, market wizards. He interviews top money makers including Richard Dennis, Bruce Kovner, Michel Steinhardt, Paul Tudor Jones, Tom Baldwin, Marty Schwartz, Ed Seykota, and more.
A critical idea of the material is that all professionals trade in their way. But several criteria unite them all: a professional approach to trading, iron discipline, unshakable faith in your method. This work will destroy the illusions of all skeptics who believe in the randomness of winning on the exchange. The author will prove that such accidents do not happen. The systematic earnings of these traders are stubborn proof of the possibility of succeeding on the exchange.
Several traders are the book’s heroes; they use only technical analysis, the other is fundamental, and some combine everything. A superficial level of presentation and clarity of the material will be of interest to novice traders, will serve as excellent motivation and proof that nothing is impossible, especially in trading.
10. The Black Swan by Nicholas Taleb
The last best trading book on our top ten list is “The Black Swan.” The publication year is 2007, and the author is Nicholas Taleb. This book includes investigating various factors, such as human errors, risks, uncertainty, probability, luck, etc. In this book, the author explains everything we know that we don’t know.
The Black Swan will surely change the observation pattern that you are looking or thinking about the world. It contains much information from the rising of religions to our personal lives. It is a landmark book in the world of financial trading.
Finally, the list above contains some best books in the world of financial trading. Reading these books will change your pattern of thinking and participating behavior in the financial market. There are many other books you may read to develop your trading skills.