In order to grasp all the relevant aspects of currency trading, a trader should read books that can expand his horizons. Good Forex books are priceless and it is important to find those that will help you form your successful professional background.
We have prepared this article to provide you with the best Forex books for starters in pdf available in 2018. Note that you can download these books for free via forex-library.com website.
Trading For A Living
The first book from our list is called “Trading For A Living”. Written by famous psychiatrist dr. Alexander Elder, this book can deliver truly eye-opening effect on the reader. It explains main factors that constitute successful trading.
Alexander Elder has implemented his professional knowledge to analyze individual trader behavior and look at the financial markets from the standpoint of mass psychology. As one of best Forex books for starters, “Trading For A Living” teaches that the trader sentiment is crucial to analyze Forex market properly.
In addition, the author has devoted a lot of time to explain the trading tactics. Hence, the reader can learn much about chart analysis, see the importance of conducting technical analysis and using various market indicators etc. This information can assist Forex beginners in creating viable FX strategies. Moreover, the “Trading For A Living” educates about major principles of risk and money management. Frankly speaking, this aspect is not only great for newbies to study, but for advanced traders this can be interesting as well.
Lastly, dr. Alexander Elders recommends paying attention to keep the trading record. This part is frequently neglected in other trading books for beginners, but it is essential to analyze the past trades, correct mistakes and set up a plan for next trades.
The book was initially released in 1993, but the new edition came up in 2014. “Trader For A Living” has been updated and now stands out among top beginner trading books. The book is long with 360 pages, but with it the time passes very quickly and you will not even notice.
Technical Analysis from A to Z
Technical analysis is an integral part of Forex trading. This book presents an extreme value for all traders regardless of their experience. As the name of the book suggests, the reader can learn about all facets of technical analysis, get a full explanation of different techniques, technical indicators and other useful analytical tools.
“Technical Analysis from A to Z” was written by Steven Achelis. The author of the book is a prominent investment analyst and portfolio manager with a massive experience in financial markets. This one of the many reasons why his brainchild is considered to be one of the best beginner FX trading books.
Steven Achelis covered the topic of technical analysis with his research, overviews, calculations and practical examples of more than 135 technical indicators. Thanks to this book, FX beginners can discover how exactly each indicator works and why it is important for trading. For instance, one can learn everything about trading tools from the Absolute Breadth Index to the Zig Zag.
The book has proved to be the best manual for FX technical analysis available nowadays. Although it is a bit long with 400 pages to read, “Technical Analysis from A to Z” deserves its place in the top 10 Forex trading books ever written.
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The Interpretation of Financial Statements
Next book to mention in this article is “The Interpretation of Financial Statements”, published in 1937. This masterpiece was written by Benjamin Graham, undoubtedly the most eminent investor of the 20th century. He was the mentor of investing guru Warren Buffett, therefore we highly recommend you to adhere to the words of wisdom that you can find in “Interpretation of Financial Statements”.
The book teaches how to interpret important macroeconomic data to generate a trading decision. In other words, “The Interpretation of Financial Statements” is your definitive guide to fundamental analysis. Fundamental analysis is very often practiced in Forex, so beginners should study the basics of it carefully.
Benjamin Graham draws the attention of the reader to the analysis of a company’s balance sheet, profit statements, earnings record and any other information that plays a pivotal role in making an investment decision. Graham has described several factors that define the overall well-being of any firm.
We should add that Benjamin Graham is most commonly known as the creator of value investing. At his time this approach was innovative. You can clearly notice the footprint of his ideas in “The Interpretation of Financial Statements”.
The book is pretty old, but it does not lose its popularity and relevance even in the year 2018.
25 Rules of Forex Trading Discipline
Now we would like to introduce the short but very useful book written by Douglas E. Zalesky, CEO at eLocal and a professional trader. The author has collected all the imperative rules which the trader has to follow if he aims to succeed in trading currencies. “25 Rules of Forex Trading Discipline” is undoubtedly one of the best Forex books for beginners.
The idea of the book by Douglas Zalesky is that the discipline is the cornerstone of trading efficiency. The rules outline the most common mistakes that traders make. For instance, traders can experience losses because they cannot control their emotions properly, have bad time management which prevents them from entering or exiting the position in time etc. Additionally, the author reveals the secrets of proper trade size that should be set in full accordance with the trading style and risk tolerance of each currency trader.
The profit/loss management tips in “25 Rules of Forex Trading Discipline” first of all address FX beginner traders. Although advanced traders mostly know all these rules, they still can forget something and this is why this book can be great for them too.
The book is relatively new and is easy to read, so do not hesitate to download one of the most recommended books on trading for beginners in pdf.
Mastering the Trade
“Mastering The Trade: Proven Techniques for Profiting from Intraday and Swing Trading Setups” is the full name of the book written by John F.Carter. John F. Carter is the president of Trade the Markets Inc. and also the principal of the money management company Razor Trading. He is an expert in futures trading and this book is the pure reflection of Carter’s experience. On a side note, Carter is often invited to speak at Trader’s Expo and other trading events. Being a well-known figure in trading, his thoughts and recommendations deserve your attention.
“Mastering the Trade” is a must-have book in your personal library and your previous experience at Forex trading is not really significant. However, at least basic knowledge of Forex is needed to understand the content of the book. Let’s discover the fifth book in our best beginner books Forex list.
The trader can learn about various trading strategies, chart setups and read about Carter’s personal trading methodologies. Furthermore, both beginners and more experienced traders can discover money management ground rules and have an insight into the trader’s psychology.
Carter has presented the 5 psychological principles in this book which can transform a novice into a sharp-witted professional trader. Traders can discover how choose the most accurate entry, exit and stop-loss levels for the day trading of Forex, options, stocks, ETFs, 30-year bonds, emini futures and so on. On top of that, the reader can read about feasible risk management techniques to secure the trading capital, which is definitely one of the most important topics for every trader. In addition, John F. Carter strongly advocates for having a powerful hardware and swift trading software. The book mentions various tools and techniques that can help get rid off spam, cookies and other things that decrease the speed of your PC.
“Mastering The Trade” covers FX trading from different angles, including some small things that are usually overlooked by traders. The book has 432 pages to read, but you should surely devote your time to one of the best trading books for beginners.
The Bottom Line
Although having practical trading skills is great, successful FX trading would not be possible if there were no books or trading tutorials. To become a full-fledged currency trader, one should read books that are relevant, present value and can teach something new. In this article, we have provided our top-five list of best books on Forex for beginners. We hope that these books will bring your skills and the overall understanding of the currency trading market on a whole new level.