For Beginners

It’s often difficult to begin some new endeavor. In trading it’s often even harder due to the lack of ways to get a good formal education. That’s why the Forex book for beginners are of such an importance. They will introduce a beginning trader to the basics of the markets, lead one through all the important concepts and warn against all the dangers and pitfalls expecting the new traders. Usually, trading books for beginners try to explain many concepts at once and rarely specialize in some specific topic. For a deeper understanding of the markets one should read some other books too.

The 10 Essentials of Forex Trading by Jared Martinez

The 10 Essentials of Forex Trading (The Rules for Turning Trading Patterns into Profit) is a complete Forex trading guide written by a prominent expert in currency market Jared Martinez. Although the book is more suited for the beginner traders, some of the information in it might come to use even for the skilled Forex market operators. The main focus of the book is on the technical indicators and various chart objects (e.g. Fibonacci retracements, support/resistance levels, trendlines, etc.) Fundamental analysis is also covered, though the attention paid to this part can’t be compared with the technical analysis part. In the end, both the money management guidance and suggestions for the further steps are given to the reader. All in all, it’s quite a good book with its own minor disadvantages and average advantages. If it won’t make the next George Soros, it will definitely set you up on a right track, preparing your for a deeper and more complex Forex reading.

The Little Book of Currency Trading by Kathy Lien

The Little Book of Currency Trading (How to Make Big Profits in the World of Forex) is a yet another introductory book on Forex trading but with a twist — it talks about many important things that get overlooked by other writers in the Forex niche. Kathy Lien is a famous trading author and a Forex analyst; she also wrote a rather popular book Day Trading the Currency Market. Who will like this book? Anyone who is new to Forex trading (even if he’s experienced in other types of financial trading) and bored experienced Forex traders who don’t know what to read. You won’t find any holy grail strategies or some super-effective insights in the book, but it will definitely help you understand all the ins and outs of the Forex market and the current situation in the online currency trading. Of course, it’s won’t complete your trading education and if you actually start trading, you’ll have to go for some other books too.

Profiting With Forex by John Jagerson

John Jagerson’s Profiting With Forex (The Most Effective Tools and Techniques for Trading Currencies) is an introductory Forex book that soundly stresses the explanations of the trading system development process. John Jagerson is a commodity trading advisor with a huge experience in Forex education. Many traders that have some basic knowledge will probably be bored with he first half of this book, as there’s little new in the general description of the FX market and the related concepts. But the second half will be of help not only to the new traders, as it goes rather deeply into details of the procedures necessary to build a successful plan for a consistently profitable trading. But the greatest point about getting this book is that you’ll be able to access the restricted part of the author’s educational website for some really helpful Forex videos and podcasts.

Technical Analysis for Dummies by Barbara Rockefeller

Technical Analysis for Dummies (The Simple Way to Read Markets and Manage Investments Like a Pro) is yet another “… for Dummies” book on trading. It’s written by Barbara Rockefeller, who’s a terrific analyst and writer — she often writes for the Currency Trader Magazine and her articles never leave me indifferent. In this book not only does she introduces all the important technical analysis patterns but she also does an important job — Barbara tries to teach the reader of what technical analysis is in itself, how it can be used, why it should be used and what should be done for the technical analysis to work for the specific trader. Yes, of course, there are better books on technical analysis, but this one won’t promise you much — it will just help you to get into the world of technical analysis, which will be one of your best tools in trading.

A Beginner’s Guide to Day Trading Online by Toni Turner

A Beginner’s Guide to Day Trading Online (written by Toni Turner) isn’t exactly about Forex, it’s about all financial trading that can be considered as “day trading” and is available to the retail customers on-line. Toni does a great job describing what creates a successful day trader. Day trading isn’t for everyone but after reading this book one will know whether he can be a good day trader or not and what should be done to organize day trading a profession. Although, as I’ve already said, the book is not dedicated to Forex, the strategies, recommendations and set-ups explained there can be successfully used by the foreign exchange traders with only small fitting changes. Unfortunately, it fails to cover the most important problems of trading — the problems of human psychology.

Currency Trading for Dummies by Mark Galant and Brian Dolan

Currency Trading for Dummies (Your Plain-English Guide to Ins and Outs of Trading the Foreign Exchange Market) is book written by Mark Galant and Brian Dolan for the famous “… for Dummies” series. Like almost all the books from the “.. for Dummies” series it’s great in its way — it will definitely make you understand what Forex is and how traders can earn with, but it won’t make a professional trader out of you. If you are interested in Forex and don’t know where to start — start from this book, but you’ll definitely have to continue your education with some other books before even starting trading real money. Another con of this book is that they do some ads for one of the US brokers, which isn’t know for very honest behavior towards its customers. But you can just not pay any attentions to such ads.

High Probability Trading by Marcel Link

High Probability Trading (Take the Steps to Become a Successful Trader) is a tutorial-style book by Marcel Link. It’s one of those trading books that go through several topics trying to make a successful trader out of a complete newbie, which the read often is. The book lays out all at once — basic concepts, technical analysis, news trading, self-control and discipline, trading set-ups. It’s difficult to say whether it will be worth reading for you. If you prefer to be winning a lot (but for small gains) instead of losing frequently but book huge profits, then this book can be quite helpful. Marcel Link does a great job putting it all together, but if you want a deeper understanding of the topics laid out in this book, it’s recommended to opt for some more specialized books on trading/psychology.

The Currency Trader’s Handbook by Rob Booker

The Currency Trader’s Handbook (Strategies for Forex Success) is a 2006 book on Forex trading written by a very popular author, mentor and Forex guru, Rob Booker. It can be recommended either for the beginners of the currency trading or for those who already know the basics and have fundamental and technical skills but wish to develop a good and effective trading strategy. But the biggest advantage of Rob Booker and this book in particular is that it’s very easy and interesting to read and even those who know nothing about Forex (or even financial trading) will find it fun, amusing and captivating. The book is also very short and can be read in an hour or two without any serious efforts. So, that’s just 1–2 hours of your life for some seriously experienced trading recommendations that can be used for life.

Forex Revolution by Peter Rosenstreich

Forex Revolution is an introduction and a guide into the world of Forex trading, which stands up from the several points of view — the basic, the fundamental, the technical and the professional. The book by Peter Rosenstreich approaches the Forex trading as a daily activity with the advantages and problems that are specific to any type of job, offering his own methods to employ its benefits and neutralize its disadvantages. The history of the currency trading is presented as something very important and is described thoroughly, while the some insights for its future are also given and they certainly deserve your attention. Forex Revolution will be an interesting book to read not only to the Forex beginners (on whom this book is actually aimed) but also to the professional traders that seek to gain more fundamental knowledge about the market.

School of Pipsology

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.

Getting Started in Currency Trading by Michael Archer and Jim Bickford

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.

Forex Patterns and Probabilities by Ed Ponsi

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.

Day Trading the Currency Market by Kathy Lien

Day Trading the Currency Market describes the Forex trading in general, touching almost every aspect of it, but not deepening too far in any of these aspects. Kathy Lien is the experienced trader, Forex consultant and writer and she does her best at introducing the basic principles of trading, analysis and money management to the beginner traders. This book can be useful to some experienced traders that would want to organize their practical knowledge and maybe learn something that they could have missed earlier. Day Trading the Currency Market also offers some useful explanations regarding the various connections between currency market and other financial markets, their influence on each other. The details about each currency and currency pair are also presented to the reader, allowing him to produce a better fundamental analysis decisions in his trading.