Knowledge will be your most loyal ally as you look to tame the foreign exchange market and milk it for pips. There is a lot of information about foreign exchange trading online – a lot of misinformation too. In this article we go over a few interesting books that have the pedigree and the power to strengthen your trading knowledge and ability.
Top Foreign Exchange Trading Books To Read
Trading In The Zone By Mark Douglas – Monumentally respected by some top traders, Trading In The Zone is as much about mastering trading psychology as it is about technical trading. The book explores insightful ways for traders to obtain consistency in what is sometimes a highly random market environment. It also touches upon the real way to look at risk and probabilities.
Currency Trading For Dummies By Brian Dolan – A great read for new traders, Currency Trading For Dummies takes the newbie through the entire process of foreign exchange trading. Logically set out, it starts by going through the basics that the uninitiated, aspiring trader needs to know about before discussing advanced strategy and trading concepts. Good overall introduction to the world of foreign exchange trading.
Encyclopedia of Chart Patterns By Thomas N. Bulkowski – Traders can significantly enhance their profits when they familiarize themselves with the many different chart patterns that the market spits out. While most competent traders know about the usual suspects like double tops, triangles, pennants (and so on), there are many patterns that are far less prominently discussed. This book is the mother of all texts on chart patterns, going through the patterns that markets tend to throw up during both bull and bear runs. Each pattern is discussed in detail, even with historical statistics to show how effective they are likely to be when you see them on your own charts. A must read for pattern enthusiasts.
Day Trading & Swing Trading The Currency Markets By Kathy Lien – As the name suggests, this is one for day traders and swing traders alike. The book arms the reader with the mental and technical tools needed to perfect their day trading and swing trading alike. The author painstakingly goes over several key entry and exit strategies which are very helpful. The author, Kathy Lien, is a well respected trader with a lot of market experience under her belt – you really can pick up a few foreign exchange trading secrets from her and this book.
Reminiscences of a Stock Operator By Edwin Lefèvre – This is one of the most classic investment and trading books of all time. It was first published over seventy years ago, but is as insightful and relevant now as it was when it made its debut. While it is more geared to the stock market, the book itself reveals key insights on how market psychology works, and so is as apt to currency trading as it is to stocks. The book has in fact been recommended in the past by investment legends such as Jim Slater (author of Zulu Principle) as well as Warren Buffet who many believe to be the greatest investor of all time. If it’s good enough for them…