10 Best Forex Trading Books For Success

Why reinvent the wheel when you can learn from the experience of other traders? That’s why we’ve decided to review 10 of the best forex trading books. These cover a wide range of topics, significantly increasing your chances of success. 

Top 10 Forex Trading Books

Below is a quick list and a more in-depth table with specifics of our Top 10 Forex Trading Books:

1. Trading in the Zone: Master the Market with Confidence, Discipline, and a Winning Attitude by Mark Douglas

Many consider Trading in the Zone by author, trader, and coach Mark Douglas the ‘bible’ of trading psychology.  Much of this book focuses on the overlooked psychological side of trading forex. Douglas frequently repeats that being successful is more about your mindset than your method, highlighting how certain emotions and mental barriers work against you.

If you want to learn about the mathematical side of trading, Trading in the Zone also provides in-depth information on market randomness and the nature of markets. The book covers another crucial element in what an ‘edge’ is and why it’s necessary.

2. Forex Patterns and Probabilities: Trading Strategies for Trending and Range-Bound Markets by Ed Ponsi

Forex Patterns and Probabilities is a standout book by professional trader, money manager, and author Ed Ponsi. It provides a balanced mix of effective strategies (specifically targeted R trending and range-bound conditions), straightforward guidance, and practical insights.

A key theme of Ponsi’s work is offering readers the driving forces in forex and specific techniques for entering, exiting, and managing their trades. The author spends considerable time on risk management, covering topics such as protecting your trading capital, position sizing, and stop losses.

The book also focuses on simple, step-by-step approaches based on actual market tendencies and market psychology.

3. How to Make a Living Trading Foreign Exchange: A Guaranteed Income for Life by Courtney Smith

All traders dream of making a sustainable living trading forex. This book covers this very topic, along with the ‘secrets’ of this market. One interesting element of this work is the so-called six money-making trading strategies. Smith goes into great detail about vital, actionable risk management, money management and trading psychology techniques. 

While being as comprehensive and practical as possible, Smith always reverts to the book’s main theme – transitioning from casual trading to consistent income-generating trading.

4. The Forex Trading Manual: The Rules-Based Approach to Making Money Trading Currencies by Javier Paz

The Forex Trading Manual is based on the parallels between driving and trading. Javier Paz’s ultimate message is that while both activities are risky, they get simpler to do successfully. The author emphasises rule-based trading throughout the book to prevent emotional trades and decisions.

While this is among the complex sides of the book, Paz does cover all the necessary basic knowledge for beginners. Various trading tools like MT4 are spoken of, along with the importance of using resources like journaling to analyze performance. Of course, Paz has much for advanced traders with concepts like trading plans, risk management and position sizing.

5. Naked Forex: High-Probability Techniques for Trading Without Indicators by Alex Nekritin and Walter Peters

There has always been a section of the forex community that swears by ‘naked’ trading or trading without indicators. The Naked Forex book is an essential read for those in this enduring movement. 

The core theme of Naked Forex is that price action trading is superior and simpler than indicators. Readers learn about all the intricacies of price action, including candlesticks, patterns, and support and resistance. 

Nekritin and Peters also discuss effective strategies based on these concepts. Additionally, they comprehensively detail trading psychology and risk management principles to complement the art of naked trading.

6. Forex Trading: The Basics Explained in Simple Terms by Jim Brown

The title of this book is self-explanatory and encapsulates what readers should expect. It’s a simple yet essential guide to Forex Trading catered towards beginners.

Among its central themes is demystifying the often complex parts of forex to guide new traders through the trading steps. This covers everything from the fundamentals of how this market works to interpreting the different types of forex pairs. Brown also spends considerable time introducing the go-to trading software MetaTrader 4 (MT4).

Lastly, Brown also details the journey of choosing the best broker, using a demo account and ultimately transitioning into live trading. 

7. Currency Trading For Dummies by Brian Dolan and Kathleen Brooks

The Dummies series always stays true to its brand of non-intimidating guides. The same applies to the Currency Trading version by Brian Dolan and Kathleen Brooks. This body of work is an accessible intro to forex. It focuses on making complex concepts, offering readers the foundational knowledge of this market and how best to navigate it.

Although the book is primarily for beginners, intermediate traders can benefit from the slightly more complex technical and fundamental analysis topics. The authors also focus on methods for avoiding pitfalls and ensuring sustainable trading.

8. Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves by Kathy Lien

Day Trading and Swing Trading the Currency Market is another must-read from Kathy Lien. While the title refers to day and swing trading, it’s a book for all traders. Still, the topics covered are comprehensive and advanced, making any teachings gathered versatile and practical. 

The expert author is able to thoroughly combine technical and fundamental analysis where one informs the ‘how’ and the other the ‘why.’ Furthermore, she packs a plethora of tried-and-tested strategies for different trading strategies. As with other books, risk management is also covered extensively here with actionable tips for managing losses.

9. The Art of Currency Trading: A Professional’s Guide to the Foreign Exchange Market by Brent Donnelly

Seasoned interbank FX trader and author Brent Donnelly sees currency trading as an art which you can master. He employs proven strategies and techniques used in his journey to succeed. This book is a progressive gem starting with the basic concepts and gradually advancing to the advanced stuff. 

The first central theme is an in-depth insider’s perspective on what actually drives forex prices. Donnelly also expands on combining fundamentals, technical analysis, behavioural finance, and risk management while trading. He then explores practical setups to generate consistent profits before rounding off with trading psychology and instilling discipline.

10. Forex Fundamental Analysis: The Essence of Forex by David Carli

Forex Fundamental Analysis is a bold, modern take by author David Carli on the superiority of fundamentals over technical analysis. The writer hopes to drill in a mindset shift where one views a forex pair as a battle of two economies. Thus, readers should expect comprehensive insights into various economic data, ranging from interest rates to even bond markets. 

Carli’s participation as a former fund manager also shines through when he dives deep into market sentiment. One will learn how large players like central banks influence currency prices and align your strategies with them. As a professional trader, Carli also uses his experience to emphasise long-term trading over short-term ones. Thus, he discusses risk management in forex at length.

How Can A Forex Trading Book Help You Learn To Trade?

A well-written trading book can help you learn to trade forex by you:

• Grasping the basics: Books like Currency Trading for Dummies break down many advanced topics in forex using simple yet effective language. They summarise what is usually tons of information and ultimately provide a solid foundation. 
• Mastering trading strategies and techniques: Strategy is one of the defining elements of trading forex. Books are the perfect avenue for covering this versatile topic in the most comprehensive way.
• Receiving structured learning: Books organize knowledge in a well-structured manner, allowing you to learn step-by-step rather than overwhelming yourself with random information from the net.
• Becoming more advanced: Books provide structured, in-depth knowledge covering sophisticated topics necessary to master trading.

What Are The Pros And Cons Of Forex Trading Books?

Pros:

• In-depth knowledge: Books are meant to provide detailed information on a wide range of key, complex forex concepts.
• Expert insights: Books should offer valuable tips, real-life examples, and proven techniques when written by experienced traders.
• Self-paced learning: One can learn at their own pace, revisit sections for clarity, and adapt the material to their schedule.
• Timeless principles: Even from older books, core trading principles remain relevant.

Cons:

• Lack of interactivity: Unlike online-based courses or programs, books lack interactive elements and direct feedback from a real trader or mentor.
• High time consumption: Reading requires significant time, which might be a drawback for some people.
• Information overload: Some books can be overwhelming (especially for beginners) with excessive jargon and complex strategies.
• Quality variance: Not all books are well-written – some may contain outdated or ineffective strategies.

Overall, books can be a valuable aid in any trader’s journey. However, they should be complemented by hands-on, practical experience with trading software or platforms.

How Expensive Are Forex Trading Books?

A forex trading book can range from free to $100+. It depends on factors like:

• Author’s popularity or reputation: As with any media, an author’s popularity and reputation determine the value of their work. They can command higher prices if they are well-known in the trading community.
• Depth of content: Books that cover more complex topics or specialised content like Forex Fundamental Analysis are generally pricier. Conversely, simpler books like Currency Trading For Dummies cost less.
• Year of release: Generally, the older a book is, the cheaper it is. For instance, the oldest book in this list (released in 1989) costs at least $15. Meanwhile, the books released in the 2010s or after will often set you back more in price.
• Retailer: Platforms like Barnes & Noble are known for their high-end pricing book pricing. Thus, buying on sites like Amazon is best as the costs are competitive.

For saving tips:

• Check second-hand marketplaces like eBay, ThriftBooks, or online trading forums.
• Explore online courses or free materials offered by forex brokers, which often include booklets or guides.
• Consider audiobooks or digital versions, which are often cheaper than physical copies.

Books vs Online Trading Courses

All in all, one isn’t intrinsically better than the other. Fortunately, traders can combine the two. There are benefits to books in that they are cost-effective, provide in-depth knowledge, and allow one to learn at their own pace. Meanwhile, courses are great due to their interactivity, real-time feedback, and practical demonstrations.

Books vs. Live Trading Experience

A book can only take one so far. What truly matters is live trading experience. Traders often read books years into their careers to gain new, specialised knowledge. However, it must still be applied in live scenarios, dealing with the tough emotions and the risk of losing money in real market conditions.

As with courses, the most effective approach is to use books for your theoretical base while still focusing on live trading (through a demo account) for your practical base.

Learn Forex With The WR Trading Mentoring

Getting acquainted with books is an affordable, accessible way to explore the complex world of forex. The list of titles discussed here is beneficial for trading mastery and caters to traders with different aspirations.

We also spoke on courses and how they can work hand in hand with books. Still, some courses (even video-based and interactive ones) may lean too much on theory. That’s where we solve this problem at WR Trading.

The key to trading success is in practical applications and effective trading strategies that provide high reward potential, low risks, and minimal time. Our trading education also includes private coaching and mentorship from an expert trader!

Frequently Asked Questions on Forex Trading Books