Forex Book

School of Pipsology is a PDF version of the free on-line web course by BabyPips.com. It’s intended for the various groups of traders from the complete newbies to the traders with some good experience. Of course, it’s quite useless to the expert and professional traders as it covers mostly the basic things, but its College chapter brings some interesting and less popular topics to the reader’s attention, so even well-practiced Forex traders will find something worth there. The whole learning process here is broken up into Pre-School, Elementary School, Middle School, High School and College chapters resulting in 248 pages of study. The language of the book is very easy (sometimes too easy), so one can learn from it with a really low amount of the basic knowledge.

Trading Chaos is one of the greatest trading books from one of the greatest writers and the leading theoretician of the dynamic trading — Bill Williams. If the only tools that you use to trade are the «linear» ones — like moving average, RSI, MACD etc. — then you will definitely revise your trading style after reading this book. Going from nature and its laws to market and its connection with natural laws, Bill Williams will lead you through 5 levels of trader’s proficiency and expertise. This book is worth reading even for tough and experienced traders who think that they know everything. New trader that starts from this book will encounter significantly less mistakes and problems during his practical course.

The Market Guys’ Five Points for Trading Success is a general financial trading book that professionally teaches reader the major points of trader’s successful behavior. The authors of this book — AJ Monte and Rick Swope are both professional traders, experienced analysts and long-time trading teachers. Their book adheres to their trading philosophy — Keep It Super Simple (KISS). They try to understand something difficult (e.g. Forex trading) in a super simple way. And they also try to make their readers use this philosophy in trading. Their main five points of success are: following the trend, finding support level, waiting for pivot points, protecting position and acting for result.

Special Report on Money Management — if you don’t have enough time and patience to read a more comprehensive work by the same prominent trading financial author — Trade Your Way to Financial Freedom, then this book will be useful to you. It holds the money management essentials including many financial trading styles — percent of margin, percent volatility, fixed amounts etc. Van  K. Tharp is a recognized expert in the risk management and his books influenced many traders, especially in Forex trading, where the proper money management is often more important than the entry and exit signal systems. The Special Report on Money Management also describes the methods of developing your own money management strategy that could be applied to various market conditions.

Getting Started in Currency Trading — a well composed Forex book that goes from the very beginning of the acquaintance with the currency trading market, continues through the all known techniques of Forex trading and finishes with the abundant list of appendices and references that might appear useful even to a very experienced trader. Notable chapters of the book include: getting started in Forex, the history of Forex market, Forex terms, selecting a Forex broker, mechanics of Forex trading, trading calculations, fundamental analysis, technical analysis, money management and psychology, trading tactics, record keeping, situation management and some advanced topics. Appendices include the following information: list of the world currencies and symbols, exchange rates, information on euro, time zones and global banking, central banks and regulatory agencies. Apart from common reference list, this book also offers a list of Forex trading related websites.

Mastering the Trade — a 2005 book by John F. Carter, the experienced trader, trading teacher, innovator and maybe even scientist. Mastering the Trade like many others covers almost all topics related to trading and tries to teach a reader everything that according to the author’s opinion is required to be a successful trader. But this trading book covers also such rare topics as hardware and software for trading, pivot points, trading on the market opening gaps, scalping and other such interesting aspects of trading. Actually this book will not only help you "master the trade„, but, if you are professional trader, it will open your eyes on many new things that you probably haven’t seen or thought about before. Two of the best chapters of this book are about compiling the intraday trading plan and the trader’s “business plan" — a definite must-read for every Forex trader.

Forex Patterns and Probabilities explains the trading strategies for trending and range-bound markets, one of which Forex is, according to the author of this Forex book, Ed Ponsi. The book starts of with the basic explanations of what the Forex market is, its unique features and its similarities with the other financial markets. The main two parts of this book explain how to trade successfully on the trending Forex market and during the nontrending periods on the market. The final part can be considered the most interesting one (especially if you are already fluent in Forex technical analysis and other must-learn entities of the trading); it share Ponsi’s little secrets of the professional trading and teaches on how to behave in the various extraordinary situations that can happen to a Forex trader. This Forex book also features a glossary of the currency trading terms, but it’s so small that it doesn’t carry any special interest in it.

Entries and Exits — an innovative approach to the trading writing by the author of popular books — Trading for a Living and Come Into My Trading Room. This time Alexander Elder invites his readers and fellow traders to join him in the trading rooms of sixteen expert financial traders to learn their strategies, secrets and tips. This books offers 16 different role models of the professional trader to follow. Why would they share their trading methods and strategies? Because they know that knowing a method and strategy is only a part of success. More important is that the author shows why these traders are successful, why their overall behavior should be modeled. Every human person is different, what works for one won’t work for the other, that’s why there are 16 trader models are offered — reader will be able to find those behavioral tactics and trading strategies that would fit his psychological character.

Currency Trader Magazine — a free (almost free) magazine about Forex trading. You can subscribe to this magazine for free at http://www.currencytradermag.com and you will be able to download the new issues. Past issues and separate articles are available for a paid download. Here you can download all past issues of the Currency Trader Magazine. This magazine features very interesting analytical articles, technical analysis of the currency pairs, historical analysis of the certain currency trends etc. Trade examples and the overall monthly market performance analysis can also be found in this magazine. You will also find the financial calendar for the upcoming month and the managed Forex accounts rankings. Unfortunately there are also a lot of advertisements in every issue (and that’s why it’s free).

Japanese Candlestick Charting Techniques is a first book of Steve Nison (a second book is also available) — a man who did a lot to the popularization of the candlestick trading in the financial markets. This book introduces readers to the candlestick patterns, candlestick technical analysis and various issues regarding the Japanese candlesticks that are at least quite interesting to read. The first part of this book presents the methods of reading and interpreting more than 50 different candlestick chart bars and patterns. The second part describes how to combine the tradition Western technical analysis with the power of the candlestick patterns analysis. All candlestick patterns and techniques are supported with the graphical examples. The examples of the market behavior with a pattern analysis for the given period will also help the readers to understand how the candlestick analysis works.

Trade Your Way to Financial Freedom is one of my personal favorite trading books. From this book I’ve learned a lot about position sizing and trading system development. It’s definitely a must read book for almost every financial trader. You’ll learn how to effectively manage your risks and capital according to those risks. From this book you can learn about the expectancy orientated trading and even how to build a trading system that is based on the expectancy. The big part of this book is dedicated to the R-multiples — one of the best indicators of the trader’s money management. Trader’s psychology is also an important topic in some of the book’s chapters. Third part of Trade Your Way to Financial Freedom is about strategy building, entering and exiting the market and the position-sizing strategies.

VanessaFX Advanced Systems — a rather small book that describes the Forex trading system. This strategy works only with Forex market and is quite simple. The whole strategy is based on the EMA crosses (exponential moving averages). There are no explanations of the Forex basics or something else, except the exact strategy and the tips regarding its use in this book. I don’t know would pay for this strategy (yes, it’s a proprietary strategy and a paid e-book), because it’s very unsophisticated and doesn’t look very promising. Anyway, if you are up for testing some new trading strategy this Forex book will be definitely of interest to you. Although the strategy is based on the technical Forex analysis, the author recommends applying some fundamental analysis basic principles to improve your trading results.

Candlesticks, Fibonacci and Chart Pattern Trading Tools reveals the strategy that according to the authors of this book is capable of improving trader’s performance, reducing his risk and increasing his profits. Trading tools are used with conjunction with many vital rules that are explained throughout the book. Any signal should be produced and executed with the extreme precision and accuracy. Not only the candlesticks, Fibonacci levels and various chart patterns should be considered valid systems, but other approaches may be added. One trading approach should be applied to more than 5 various trading products to reach the desired diversification level. Stop-loss, as well as the planned profit target, is a crucial part of any trading signal. A given trading approach should only be used in the appropriate market conditions.

A Complete Guide to Technical Trading Tactics is a book dedicated to the less conventional trading indicators such as candlesticks, pivot points and pyramid approaches. It’s not limited with depicting only one strategy; instead it offers the set of loosely connected indicators, techniques and tips that can be used in any financial market — Forex, stocks, commodities etc. The information presented in this book will be found useful not only to the inexperienced or medium level traders, even professional traders will find something of interest and use there. John Person had more than two-decade experience in trading and brokerage when he wrote this book and he talked with many other successful traders during his career. He tried to include all the knowledge he collected into this work.

45 Years in Wall Street — a revision of the stock trading seen through the technical analysis by one of the giants of the mid 20th century’s financial traders and the great contributor to the cause of the mechanical analysis in trading William  D. Gann. He was one of the first trading writers and the author of the quite popular indicators — Gann Lines, Gann Fan and Gann Grid. This book was written when Gann was already a more than a successful trader and acknowledged expert in his profession, the only objective of this book was to share his enormous experience with other traders. Despite this book being about stock trading and some of the methods being somewhat outdated, it can still be considered a great book to understand the most fundamental aspects of the technical analysis and the market trends.

Trading in the Zone is a trading book dedicated to the psychological training of a trader. According its author, Mark Douglas, trader’s mindset should be significantly different than a common real-life mindset. The greatest profits are made in financial trading only by those who switch their minds to a completely different way of thinking that would allow them to overcome some of the biggest problems — the psychological problems of trading. Those problem include: the unwillingness to create any rules for trading, failure to take responsibility for the own steps, addiction to the random rewards from the market, giving oneself to the extern control of the trading rather than the internal control of self. Trading in the Zone is the in-depth look at the challenges that every trader faces daily and that the majority of traders fail to overcome and lose their money and waste their time.

Trading with DiNapli Levels is a trading book by Joe DiNapoli that describes a certain complex technical indicator that he has invented and that is usually called DiNapoli levels. The whole indicator is based on the Fibonacci levels and is some way is just a method of application of the Fibonacci levels to the particular market conditions. This book will be more interesting to the investors or the long-term Forex traders as the indicator is best applied to the position trading rather than the intraday trading. Some knowledge of the technical analysis and the basic indicators is required to properly understand this book. But the method that is given here is explained very well. Knowing Fibonacci levels is a plus, but those are explained in this book too.

TraderBO Divergence System — a free Forex book by the Russian trader, writer and marketer Oleg But. It shows the trading systems using the divergence as an indicator. Although this book is mainly about Forex trading, the strategy it describes can be applied on any financial market. The performance of the strategy is tested on the real market conditions and is proved to be profitable. This book presents a lot of information regarding technical analysis in trading, many related tips and techniques, while describing its main strategy, which is based on the divergence. Being a completely free Forex book, it used also to promote another author’s, this time proprietary, Forex strategy — "5 EMAs Forex System". It’s still worth the time you will spend reading it; the whole book is only 44 pages long including contents, copyrights and other such pages.

The New Technical Trader — this Forex book is about technical indicators. The financial markets change constantly, but the technical indicators remain, and they are still as powerful as they were years ago. The power behind the technical indicators presented in this book is the fundamental mathematics of complex dynamic systems — such as the Forex or other financial market. The indicators in this book are grouped in two main areas — methods of price analysis and methods of risk control (money management). All of the presented indicators are thoroughly described and explained. The authors use tutorials, examples, rules list and various tips for different markets as to how apply these indicators to maximize the technical trader’s performance. The trading system compilation is covered in the last chapter of this book, allowing reader to combine the indicators into one market machine.

The Candlestick Course is a handbook of candlestick chartist. And if you are not the one, after reading the book you’ll probably become a devoted follower of Japanese candle charting and trading. According to Steve Nison candlesticks display the current demand and supply situation on the market, show trends better than the common bar charts. According to the author, trading signals (especially reversal signals) are depicted better and recognized easily using the candlestick charting. The good news for all bar traders is that common bar patterns popular in the Western trading style can easily be transferred to candlestick charting. This course will help you determine the patterns on any type of market — commodities, stocks, Forex, bonds etc. Any timeframe can be targeted with candlesticks — from a 1 minute Forex scalper’s trading to the long-term weekly charts of the government bonds.

The Taylor Trading Technique — a really old book about trading. It was written in 1950 and presents its technique examples mostly on the grain trading, which was quite popular those days among small traders (mini traders now). Although it might seem very outdated — both in terms of the strategies and methods and in terms of language it is written in, this book can be an interesting read for those who are interested in history of trading and how some types of modern trading techniques evolved from archaic forms described in Taylor’s book. George Douglas Taylor was a professional trader and also an apologetic supporter of the trading theory, which according to him was as important as the practical skills. This book describes the 3-day method (it’s mentioned as the Book Method). This method presumes that the financial markets move in three-day cycles (similar to the modern Elliot Waves). Those cycles are recognized by the patterns of up- and down-trends. Some of the modern traders still use the techniques described in The Taylor Trading Technique.

Surefire Trading Plans — it’s a popular Forex book that teaches the basics of the professional Forex trading. It won’t show you the basics of the trading; you won’t find a glossary or the some common EMA strategy in this book. It’s intended to for those who have already tried trading and know something about Forex. Surefire Trading Plans is about knowledge of how to build your own Forex trading plan, the most important parts of Forex trading and the real-life examples of the successful trading plans. The whole dedication to the plans in trading is not random. According to Mark McRae (and I agree with him on this issue) the success of the Forex trader is in a great extent dependent on the money management. And there can’t be any good money management with a plan, at least in the financial trading. This Forex book will help both with money management and with the real strategies that can be used with your own plan for trading.

Rapid Forex — Forex Surfing — is a one of the first and the most popular "become rich soon with Forex" books. It has the basics of Forex trading, technical and fundamental analysis, strategies, strategy development, broker advices etc. Being not very specialized in something particular it still has its own idea, which is quite interesting and potentially useful to any Forex trader: Forex trading should be like surfing the waves. When there are good waves in the ocean one has a chance to surf successfully — so is with trading — when there are good conditions on market, one should try to trade there. Catching a wave or knowing where the trend or the reverse is in Forex is also very important. When a skillful surfer is doing his work he does it smoothly and without any emotional stress. Professional Forex trader should trade calmly and know accurately where he will enter a position and where he will close it.

Profitable Candlestick Trading is another trading book about Japanese candlestick trading. Like the others presented here it extensively explains the candlestick patterns and their usage in technical analysis. Stephen Bigalow is thoroughly convinced that the candlestick charting significantly surpasses the all other methods of technical analysis. Japanese candlesticks are the effective tool to extract the profits from all kinds of markets. The only thing that should be done to use this method successfully is to gain the understanding how the candlestick signals work. The educated trader should know not only how certain signal formed by candlestick pattern looks like, but also the inner logic of the reasons that formed this signal. The main idea of the book is that the signals are created by the change in the investor sentiment, thus understanding the signals gives you an advantage before the investors en mass.

Money Management — as its title obviously suggests, is a book about managing money and risks in the leveraged financial trading and investing. Dave Landry presents a rather short book composed of four main parts, each of them dedicated to one topic: Controlling Risks and Capturing Profits, Rules of the Road, Insights from the Pros, Pro Traders Share Their Lessons. Two advantages this book on money management has compared to other trading books on this topic — it is short (it’s really hard to cover such an extensive topic as money management in about 20 pages) and it’s based on experience of the real traders. Two last parts of the book are in the form of dialogs of the author and some professional financial trader. Money Management by Dave Landry is a good book to get the most important information on the money management before starting trading Forex for real.