5 Books for Forex Beginners to Consider - TechRound
When you consider the volatile and highly leveraged nature of the global forex market, it should come as no surprise that this entity can be challenging for even experienced investors to navigate. With this in mind, it can be even more difficult for beginners to plot a successful course through continual and daily currency price shifts, but fortunately there are some excellent books that help novices to improve their chances in the market.
Currency Trading for Dummies by Brian Dolan
As the name suggests, this book is tailormade for beginners, as it presents concise and easy-to-read instructions on how to trade currencies in a real-time marketplace. It may even be a potentially viable read for slightly more experienced investors, especially those who may have lost sight of the fundamentals and experienced a recent surfeit of losses. The author also has significant credibility in the sector, having worked as the chief currency strategist at Forex.com prior to its publication in 2011.
Day Trading and Swing Trading the Currency Market by Kathy Lien
Kathy Lien is a world-renowned currency analyst, and widely considered to be one of the best female traders anywhere across the globe. In this book (which is now in its third edition), Lien employs a two-pronged approach that combines both theory and actionable learning, as she explores two specific forex trading strategies and how they can generate profits.
While the intended audience here is a little more niche, the level of detail included and quality of writing makes it ideal for beginners with a clear understanding of how they want to trade.
Japanese Candlestick Charting Techniques by Steve Nison
While the Candlestick chart is now one of the most widely used visual technical analysis tools, much of its popularity is based on this outstanding book penned by Steve Nison.
The literature certainly provided a detailed introduction into the analytical tool, which utilises vertical lines and ‘boxes’ to seamlessly highlight price highs and lows alongside opening and closing price ranges. Now widely used by forex traders throughout the Western world, the tool is also suitable for beginners, across vehicles such as futures, hedging and equities in addition to currency speculation.
How to Make a Living Trading Foreign Exchange by Courtney Smith
Next up is another book that’s perfect for beginners, with ‘How to Make a Living Trading Foreign Exchange’ by Courtney Smith providing an introduction to the world of forex trading and a detailed explanation of how the entity works.
This can help new traders to develop a keen sense of determinism, which can lead to more informed decision making and minimise the risk of executing knee-jerk or emotive orders.
Most of this 2010 work is devoted to making money and optimising profits, detailing six strategies that enable inexperienced and slightly risk-averse traders to earn a steady income in the marketplace.
Even more importantly, the book outlines several actionable risk-management techniques and explores the underlying psychology of trading, making it one of the most comprehensive reads for investors who are new to forex.
Forex Trading: The Basics Explained in Simple Terms by Jim Brown
We close with ‘Forex Trading: The Basics Explained in Simple Terms’ by Jim Brown, which is definitely oriented towards beginners and focuses heavily on the basics of forex trading.
The author here is a self-taught forex trader who has generated significant profits in the market, while his ability to write clearly and concisely delivers easy-to-understand information without ever leaving the reader feeling as though they’ve been spoken down to. Some of the topics covered include the definition of forex and trading psychology, alongside practical strategies for entrances and exits and an in-depth exploration of currency pairs.