Forex Book

The New Sell and Sell Short: How To Take Profits, Cut Losses, and Benefit From Price Declines is a 2nd edition of his not very popular trading book titled Sell and Sell Short. This one is timely piece of trading education that can be of a great help during current times of recession and bearish markets out there. If you’ve read some of the best-selling books by Alexander Elder (which I strongly recommend doing): Entries and Exits, Trading for a Living, Come into My Trading Room, you should already know that Dr. Elder knows what he’s talking about and knows how to tell it to the traders, so that they would learn something really useful and helpful. This book unites his emotional and psychological studies with the most sophisticated trading methods to create a strategy to trade by selling and selling short. Of course, not everything here can be applied successfully to Forex market, but it still contains many lucrative lessons for all types of traders.

Attacking Currency Trends: How to Anticipate and Trade Big Moves in the Forex Market is the first trading book by the expert trader Greg Michalowski. While there are tons of Forex books about short-term trading, swing trading and scalping, this guy aims something bigger — Greg talks about capturing profit from the long-term trades — big fish of the Forex market. To get to the point where it’s possible, the author offers quite a simple but yet powerful trading system. The first part of the book is dedicated to some general introductions and recommendations regarding how to trade Forex. The second part is about some exact technical methods proposed by Michalowski and his own instructions for trade execution. This book may be useful to traders that are still looking a strategy that would fit their personality.

Diary of a Professional Commodity Trader: Lessons from 21 Weeks of Real Trading is general master-plan for a successful Forex trading system. Peter Brandt is an experienced trader and an author of several trading and psychology-related books. In this work, he makes emphasis on the commodity and currency trading (despite what the title would suggest, commodities here also include some of the Forex currency pairs). The book is divided into four chapters. The first one is an introduction to the author’s principles and ideas. Unlike many other books on Forex, it doesn’t make an introduction into the market itself. The second part is dedicated to the actual characteristics of the successful trading plan for commodity markets with a lot of chart pattern examples and various how-to‘s. The third part is the actual five months of trading applying the principles laid out earlier in the book. The final part, the fourth one, offers a wrap-up of the whole book, summing up the example conclusions and offering some ideas for the assessment of a trading system performance.

Way of the Turtle or The Secret Methods that Turned Ordinary People into Legendary Traders talks about principles derived from the famous Trading Turtles experiment proposed and conducted by Richard Dennis more than 25 years ago. The book is written by one of the Turtle Traders — Curtis Faith. The experiment has successfully showed that the a newbie trader may taught trading skills quite fast and that almost everyone can trade profitably given these necessary skills. Way of the Turtle offers the main ideas behind the original Turtle Rules offered by Richard Dennis with various additions and development from Curtis Faith. Like the original Turtles experiment intended, this book will also teach you everything you need to become a successful financial trader even without a previous experience in the field. If it has worked some people in late 20th century, why won’t it work for you now?

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 Daily Trading Coach or 101 Lessons for Becoming Your Own Trading Psychologist is a trading psychology book written by a clinical psychologist and active trader — Brett N. Steenbarge. The author is famous for his writings on psychology of trading. The book is assembled in form of lessons (with exactly 101 of them), each showing some important self-discipline practice or a trait that can be used in trading. The Daily Trading Coach can be recommended to all traders, disregarding the experience level, as this book can really improve one’s market performance. It won’t teach you trading, but instead it discusses everything related to discipline and emotions: from the process of practicing in trading to coping with stress to self-coaching processes. Of course, you have to be quite open-minded and eager to work on yourself if you want to benefit from this book, but it’s definitely worth both that and its price.

Super Trader (Make Consistent Profits in Good and Bad Markets) by Van K. Tharp is a complete-guide type of book that tries not to be specific in regards of particular markets but rather shows what are the components of a successful trading strategy and, more precisely, a real Super Trader. If you’ve read Tharp’s previous book Trade Your Way to Financial Freedom, you should know that, although he isn’t a professional trader, Tharp is a great coach in trading. He studied a lot of successful systems and traders and knows what it takes to become one of them. This book will show you how to prepare yourself psychologically, how to develop a good trading plan and then a trading strategy, how to use the position sizing properly and finally how to avoid the popular mistakes in trading. Super Trader can be called a must-read for traders of all markets.

Pring on Price Patterns is a book written by Martin Pring, which he calls a definitive guide to price pattern analysis and interpretation. The book starts off by offering some basic explanations — for example, why the patterns work at all. The author also introduces some supporting concepts that will help in pattern trading. Then Martin proceeds to the traditional patterns — such as the rectangles, triangles and head-and-shoulders, giving a lot of explanations. After that, the information about the short-term patterns composed just of 1–3 bars is given (inside bars, outside bars, reversal patterns, etc.). Finally, Pring offers some conclusive consideration regarding how to use those patterns best. This book can barely be called a super encyclopedia about patterns but it’s definitely a good guide to get yourself into chart pattern trading and become successful in this area.

Elliott Wave Principle (Key To Market Behavior) is a book that covers the most misunderstood and yet the most powerful chart analysis technique — Elliott Wave theory. A.J. Frost and Robert Prechter did a great job by writing this book to introduce the concept of Elliott Waves and techniques that can use them in trading. The first half of the book is an explanation and description of what is Elliott Wave theory — how do they look like, of what parts are they composed, how different wave forms look like, what Elliott Wave patterns exist and why some are important and others aren’t. The second part of this book is dedicated to actual application of the described waves and their various forms in practice — and not only in trading! What’s so great about Elliott Waves is that they can be used in any market — stocks, Forex, futures, bonds — simply everything. It’s not a simple technique, there’s nothing easy in detecting and marking the waves correctly, but if used professionally, it can give you a significant advantage over other market participants.

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.

Position Trading (BUY like and Trader and HOLD like an Investor) by Tony Loton is a try to present the the usual “buy and hold” strategy under a slightly different angle. It’s often said that a long-term position is a badly taken short-term position, but Tony tries to turn it upside down by stating that good short-term positions turn into even better long-term positions. This book is not about Forex, as the offered strategy can be barely used in currency trading, but it will work in almost any other financial market available to the online traders. The good part about this position trading book is that the author doesn’t try to push some set of entry rules as a complete strategy; instead, he offers everything that’s necessary for a trading system — from good entry conditions to the money management tricks.

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.

How To Become A Successful Trader or The Trading Personality Profile: Your Key to Maximizing Your Profit With Any System is a trading psychology book by Dr. Ned Gandevani — a Ph.D. in finance and a specialist in trading behavior. With the information presented in this book you will be able to select a strategy or modify some existing system that will be best suited for your personality. All traders are different and what’s good for one isn’t necessarily good for another. Personality-fitting is an important step in any system development. As a trader you are going to spend a big share of your time following the rules of your system — that’s why you’ll want those rules to be in perfect harmony with your psychological traits. How To Become A Successful Trader can be recommended to traders working in all sorts of markets — Forex, stocks, options, commodities, index funds or any other financial market available.

The Ed Ponsi Forex Playbook: Strategies and Trade Set-Ups, as its name clearly suggests, is a book by a very original trading author Ed Ponsi. He’s famous for his unique style of making even the most difficult things as simple as possible, which found its way into his other book Forex Patterns and Probabilities. This book is less general and more specific — several strategies, techniques and set-ups are its topic. Ponsi uses sports game analogies to lead the readers from the very beginning of their way in Forex to being the professional traders. But it’s not only for the Forex newbies, traders of all levels of expertise will find it useful — Ed covers a lot of rare subjects here. I recommend this book to everyone who wants to learn trading Forex for consistent profits.

The Black Swan or The Impact of the Highly Improbable is a second book for the common people by Nassim Nicholas Taleb, a famous crusher of the economic forecast theories. His first book — Fooled by Randomness — was a major success among both the laymen and the financial traders and has lead to many controversies among the latter. The Black Swan is his first book squared with a stronger emphasis on the effect of the low-probability events on everything we know in our life and in particular on the financial markets. It’s hard to overrate this book when recommending it to the traders. In my own opinion, traders shouldn’t even consider starting real account trading without first acquainting themselves with the ideas presented by Nassim Taleb. It’s also one of those cases when the great ideas are presented in a great wrapping — Taleb’s narrative style is fun, interesting and very enlightening.

Robert Miner is a popular trading educator that has developed several successful systems and has used them profitably before sharing them with the public. High Probability Trading Strategies incorporates many of his approaches to the markets, including (but not limited to): Fibonacci retracements, momentum indicators, Elliott waves and multiple timeframes. But this book is great not only for its list of the author’s trading strategies, Robert also talks about the required characteristics of the trader to implement those strategies and become successful. Discipline and understanding of the money management aren’t less important than the actual entry and exit rules. He also offers some real-life examples of various financial traders, so that you could model your own trading style with their help.

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 (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 (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 (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 (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.

How to Make a Living Trading Foreign Exchange (a Guaranteed Income for Life) is a complete guide to Forex trading written by Courtney Smith. The whole book is dedicated to creating a real Forex trader out of a Forex loser. 90% traders lose money, only 10% don’t lose in the foreign exchange market. And only 5% of traders earn profit. The aim of the book is to show how profit can be made continuously and in a guaranteed manner. The book lays out some basic information about Forex trading, goes into trend analysis, shows several very effective trading strategies, talks about risk management and psychological problems of trading and finally tries to help you put this all together to become a really successful trader.

Forex on Five Hours a Week or How to Make Money Trading on Your Own Time is a nice book which main priority is to explain how to become an efficient trader that values his time. There is a rather old stereotype that such endeavor as Forex trading is very time-consuming and that you can’t be successful at it without dedicating a lot of time to learning, studying, analyzing and monitoring the market. In fact, one can become a rather profitable trader spending only a fraction of his time on Forex trading. This can be accomplished by learning only the necessary information and determining your own (fitting your lifestyle and personality) style of trading. After reading this book, you’ll be able to develop your trading plan that will be organized enough to provide with all the necessary instruments to earn profit on the Forex market, but still be able to control the time you spend on it. This book can be recommended to the traders of all levels of expertise, but especially to those of them who wish to become or remain the part-time Forex traders.

The FX Bootcamp Guide to Strategic and Tactical Forex Trading is a complex e-book written by Wayne McDonell to help the Forex traders to go from the “rookie” to “officer” rank in currency trading. This guide is written in a rather humorous military/Forex slang, making it a very easy read, which gives it a big advantage before those boring Forex trading books. FX Bootcamp Guide provides a lot of examples, practical exercises and offers all the information required to trade Forex profitably. It’s just a matter of dedication of the potential trader to read this book and implement the gained knowledge.

Trade Chart Patterns Like the Pros will teach any Forex trader (expert or newbie) when and how to trade using the bare charts, without any indicators or oscillators that are so popular among the pro-wannabes. The 65 chart patterns outlined in this book are all described in details with the real-life chart example to make the understanding easier for all types of traders. Of course, all Forex chart patterns fail sometimes but the point of this book is to show you what patterns to avoid and when to use them for their full profit potential. For each pattern, the entry and exit conditions are provided giving you a an extremely useful tool if you plan to create your own trading strategy from just reading this book. Traders of all experience levels and all financial markets will benefit from it.