The idea of being able to make a fortune by just sitting behind your desk and clicking a few buttons is appealing to all of us. However, more goes into being a successful trader in the forex market. It takes a lot of dedication and willingness to learn to fully understand how the market functions and how to recognise opportunities to make good trades.
Luckily there is a lot of information available on the internet and in books written by reputable traders who know what they are talking about. Here are some of the highest-rated books on foreign exchange trading that will help get you on the right track to becoming a successful trader.
Technical Analysis of the Financial Markets - John J. Murphy
Technical Analysis of the Financial Markets by John J. Murphy was written in 1998, but don’t think this means that it is irrelevant or outdated. This book explains the fundamentals of the stock market very clearly and thoughtfully. This book is so highly regarded that it has more nominations by analysts than any other book on this list.
Understanding the fundamentals is imperative for beginners trying to grasp how the forex market functions. Without this knowledge, novice traders will go into the market blind, with no real idea of what to look for or how to recognise a good trade. This book also explains how to do your own technical analysis, an essential skill for any successful trader. It also helps you set realistic expectations for what you can expect on your journey as a trader so you don’t become impatient and make rash decisions that can hurt your growth in the long run.
Trading In The Zone - Mark Douglas
Mark Douglas wrote Trading In The Zone to explore the psychological aspect of the market and what attributes in a person make them a successful trader. The reason this book is so popular is that not only does it discuss the impact of the mind on your decisions as a trader, but it also explains ways you can control your emotions.
This is extremely useful for traders looking for techniques to remain calm and not allow emotions to take over and affect their decisions. In the long run, this will enable traders to be more consistent with their plays as the only components factored into decisions are good technical analysis and knowledge of the fundamentals of trading.
The Alchemy of Finance - George Soros
The Alchemy of Finance by George Soros is an interesting book about how to look at the market. It offers a unique perspective that prices can influence the market's fundamentals. George Soros had an incredibly successful career exploring a different approach to understanding market functions.
It is a fascinating read that will help readers open their minds to changing the way they think and not be as one-dimensional with their thought processes. After all, seeing how to spot something others haven’t is crucial to recognising good opportunities in the forex market.
Market Wizards - Jack D. Schwager
Market Wizards by Jack Schwager is a collection of interviews with the most successful traders in the world. This book dives into everything from what makes an excellent trader to the best traders and how you can become more successful in the market as an individual.
The discussions are with some of the top traders across the globe, so it is clear that they know what they are talking about. Learning from the best is never wrong when trying to improve yourself. This book discusses essential fundamentals such as a clear plan for trading and the type of mindset you should adopt whilst you trade.
Day & Swing Trading The Currency Market - Kathy Lien
If you are looking for a book that explores different strategies for trading, then Day trading and Swing Trading the Currency Market by Kathy Lien is an excellent place to start. This book goes into depth about performing effective technical analysis to spot opportunities for a good trade. This book was also revised in 2016, so it is up to date with the current markets and still applicable to traders today.