Trading books will sharpen your Forex trading skills.
Remember, you are not a genius.
To succeed as a trader, you have to model the processes that have been used by successful traders.
The best way to achieve this is by reading the best trading books that are available out there.
But, you will come across thousands of such books.
So, which ones should you read?
That is what I will be telling you in this article.
I have read hundreds of books…
So, I will recommend the best ones to you.
Of course, I can’t attach copies of these books on this page for you to download them.
Just go to the nearest library and borrow them, or you purchase them from the top online book stores.
Let’s dig deep into discussing these books…
Best Inspirational Trading Books from Successful Traders
To succeed as a trader, you need to know what the most successful traders do.
You can discover the processes that they use to trade and model them to suit your trading goals.
The following are the best trading books for interviews and biographies…
This book is full of interview with successful traders and is one of the most recommended books in the trading business.
Some of the interviews included in this book tell of how a trader managed to turn $30,000 into $80 million, the T-bond futures trader who turned $25,000 into $2 billion, and the hedge fund manager who has managed to earn 30% returns each year for the past 21 years.
Such interviews will help you know what such traders did to make it.
You can then customize their processes and apply them in your trading strategies.
But, what is it that I like about this book?
Let me tell you…
This book features interviews with legendary traders like Ed Seykota, Paul Tudor Jones, Richard Dennis and others.
There is nothing I can think of in the book and say that I don’t like.
It is the perfect book that every trader MUST read.
So, who is this book for?
If you have interest in trading, I will recommend you to read this book.
However, if you are a newbie trader, you may not enjoy reading this book as it requires a basic understanding of technical terms.
In that case, you may consider getting a simpler book suitable for newbie traders.
The New Market Wizards
This book is a follow-up of the earlier Market Wizard book and is written in a similar format.
The difference between the two books is that this book focuses on American traders while the earlier book focusses on traders from all over the world.
Nonetheless, the book provides immense value to traders.
The major reason as to why I like this book is that it contains conversations with top American traders.
The book is full of questions that anyone with interest in financial markets will want to pose to the trading superstars.
The trading wizards share their trading insights in an informative, invaluable, and entertaining way.
However, this book may not be the ideal book for newbie traders.
It requires one to have an understanding of the technical terms used in trades.
If you’ve some understanding about these terms, this is the right book for you.
Pit Bull: Lessons from Wall Street’s Champion Day Trader
This book is a very entertaining read.
It shares the story of Martin Schwartz, who began the trading journey as a fundamental analyst but couldn’t make it with that approach.
He then moved to technical analysis and found a breakthrough, earning up to $1.8 million in his first 2 years of trading.
He later became a champion trader, whose killer instinct earned him the name “Pit Bull.”
What makes me like this book is the fact it’s an entertaining book to read.
You will get a few laughs as Martin Schwartz shares his trading journey, both the ups and downs that he experienced.
He also shares the people and places he discovered along the way, and the tricks and techniques that he used to make his millions.
So, what is it that I don’t like about this book?
There is nothing negative that I can point out in this book.
It has been one of the most inspirational books in my trading journey.
So, who is the right person to read this book?
If you are looking for a story that can inspire you as a trader, this is the right book for you.
The book is very entertaining and easy to read.
However, this book is more of a biography.
If you want to know more trading strategies and how to implement them in your trades, this may not be the right book for you.
However, this book will give you all the rules that you need to adhere to in order to become a market wizard.
Reminiscences of a Stock Operator
If you ask a number of successful traders about the book they will recommend to you, the Reminiscences of a Stock Operator will appear most.
It is a biography of Jesse Livermore, in which he tells of how he speculated the financial markets.
You will learn how he grew his trading techniques after he began trading at a young age.
It’s an interesting read, helping you know how Jesse Livermore managed to make his millions, and sometimes going even broke.
The best thing about this book is that the experiences of the author are what most traders can relate to.
That’s why it is a MUST read for each trader.
Best Trading Books for Trend Following
Trend Following is a great trading strategy that each Forex trader must learn.
It involves trading based on the price movement.
This strategy can scale well even if you have a $100 million-dollar trading account.
It is a strategy that has been used by most successful traders.
If you want to learn more about this trading strategy, consider reading the following books…
The Ultimate Guide to Trend Following (Free)
This book will let you know more about trend following.
The good thing with the book is that you won’t be left confused because of the use of technical jargon.
The author has made it clear for traders to understand, using a language that even a layman can understand.
This trading book will teach you the trend following strategy that you can use to profit in bull and bear markets.
The trend following strategy involves a number of secrets.
The book shares the key secrets that have made this strategy profitable for the last 200 years.
The book will also give you an inspiration through powerful trading tips from Ed Seykota, who returned 250,000% over a 16 year period.
What makes me like this book most is that it helps traders learn how to ride big trends using a simple technique ignored by most traders.
Also, the author does not include much technical jargon, hence, even newbie traders won’t get stuck when reading the book.
It is the right book for traders, whether experienced or newbies, who need to learn more about the Trend Following trading strategy.
Trend Following: Learn to Make Millions in Up or Down Markets
This book has helped many traders to start their Trend Following journey.
It puts it simple for traders to understand the concept of Trend Following and explains how hedge funds use this strategy to make millions.
It includes the track record of these hedge funds, which helps prove the validity of Trend Following.
So, why do traders like this book?
What makes most traders like this book is the fact that it explains the Trend Following methodology with backing by real evidence based on actual results.
It also includes a section for conversations with big Trend Followers like David Harding, Bill Dunn, Keith Campbell, and others.
However, the book doesn’t give an exact strategy that can help you get started as a trader.
This means that you will have to do further research from other books.
If you want to get started with the Trend Following strategy, this is the ideal book for you.
However, if you are a day or swing trader, it is not the right book for you.
The Complete Turtle Trader: How 23 Novice Investors Became Overnight Millionaires
This book features a story of a group of random people that was selected for a special trading program.
They took a 2-week crash course about trading and were left alone afterwards.
But what will shock you is the outcome of this…
They made millions.
This book reveals the story behind this in terms of what these people did and the trading strategy that they used.
From this book, you will learn the power that comes with teaching ordinary people a system that they can use to make extraordinary money.
You will realize that great trading is a skill that can be taught to anyone.
Because the people chosen for the trading platform were novices with no trading background.
So, what do I like most about this book?
Let me answer you…
What appeals to me most is the fact that the book is easy and very appealing to read.
It also goes deep into the trend following methodology to discuss entries, exits, risk management and other important aspects.
There is nothing in this book that I can say that I don’t like.
So, who is the right person to read this book?
This book is a good read for any trader who needs to get started with Trend Following.
However, it is not a good book for day and swing traders.
Such traders should look for another material to get knowledge from.
Following the Trend: Diversified Managed Futures Trading
This is the first book written by Andreas Clenow explaining how Trend Following, a simple trading strategy, can consistently beat a buy and hold approach.
Clenow gives the full details of his trading strategy along with his backtested results.
The book gives a comprehensive insight about the strategies behind the rising trend following futures industry from the perspective of a market participant.
All strategies that have seen the success of this industry have been discussed, including complete trading instructions and rules on how to replicate the performance of the successful hedge funds.
The book includes both the positives and the negatives of trend following, putting you in a potentially highly profitable roller coaster ride.
What makes me like this book most is that Andreas Clenow backs his claims using a statistical evidence and backtested results.
He also takes you through the trades that the strategy would have executed as well as the psychological aspect of trading.
Note all of this is represented in a year by year basis.
I can’t point out to anything negative with this book.
But, who should read it?
The author targets traders who need to learn more about the trend following strategy.
If you want to get started with this strategy, this is the best book for you.
If you’re a trend following trader and you need to gain more knowledge about the strategy, it’s a good book for you.
Best Technical Analysis Books
You can’t become a successful trader without knowing how to perform technical analysis.
The fact is, there are hundreds if not thousands of technical analysis books available for you, but most of them are not worth your time and money.
So, let me give you the list of technical analysis books that focus mainly on what matters to you…
The Ultimate Guide to Price Action Trading (Free)
This book will take you through everything that you need to learn about Price Action trading.
Why only Price Action trading?
Because you MUST NOT know each technical indicator, candlestick pattern, or chart pattern to remain a consistently profitable trader.
You only need to understand the basic stuff, that’s it!
These have been discussed in this book.
Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications
The author wrote this book in a textbook style, covering the essentials of technical analysis such as candlesticks, chart patterns, etc.
You will learn how to analyze charts and identify the patterns in them.
What appeals to me most about this book is that it’s easy to read and straight to the point.
This is not the case with most other technical analysis books that you will find online and in libraries.
But, what is it that the book doesn’t present well?
Here it is…
I don’t like how the book tries to put it that all you need to become a successful trader is technical analysis.
The fact is that there is much to becoming a successful trader than only technical analysis.
The Art & Science of Technical Analysis: Market Structure, Price Action & Trading Strategies
This is a great book in that it takes the traditional technical analysis and gives it a new direction by combining it with statistics.
The author of the book, Adam Grimes, has backtested the different chart patterns to help you know the ones that can give you an edge in the market and the ones that can’t.
The most appealing thing with this book is that it helps traders know what works and what does not work in technical analysis.
If you know you are a trader, this book is a MUST read for you!
Stan Weinstein’s Secrets for Profiting in Bull and Bear Markets
This book was written by Stan Weinstein back in 1988.
It is full of practical trading knowledge that you can apply on markets or timeframe that you are trading.
What makes this book unique from other books is that it shares practical trading concepts and techniques instead of just theory.
Also, it includes a quiz section at the end of each chapter, helping you assess yourself and learn even more.
This makes it a MUST read for all traders.
Best Day Trading Books
Day trading is fast paced and requires trader to make quick decisions, which is not the case with trades involving higher timeframes.
If you’re a day trader, you will be required to use tools and techniques that are different from what traders using other timeframes are using.
I am referring to stuff like order flow, market profile, depth of market, etc.
Let me give you the list of books that will help you learn this…
One Good Trade: Inside the Highly Competitive World of Proprietary Trading
This book is written by Mike Bellafiore, one of the co-founders of a proprietary trading firm in New York City.
In the book, the author talks about the ingredients to successful trading.
The book will help you know why some traders succeed while others fail.
This is common in every financial market.
The book will also teach you how to make sense of order flow and use the knowledge that you acquire to your advantage.
The book is entertaining read, giving you real insights into the world of proprietary trading.
A large percentage of other books don’t talk about this.
So, who is this book for?
It’s a nice read for anyone who is a trader, most probably the proprietary traders.
This trading book will help you know price action trading in depth.
The book solely focuses on price action trading and is written by an independent forex trader named Bob Volman.
Bob Volman shares great insights into price action trading and the trading thought process.
The most interesting thing with this book is that it discusses price action trading in great depth than other books.
After reading, you will gain insights that you have never gained before.
However, the book is wordy and you may have to repeat a paragraph 2 or even more times to understand what it’s trying to say.
If you are the kind of trader who trades using a chart, I will recommend you to read this book because it discusses concepts and techniques that are applicable in all markets and timeframes.
Mind over Markets: Power Trading with Market Generated Information
This book gives traders an essential knowledge on how they can trade using Market Profile.
You must be asking yourself…
“What is Market Profile?”
Well, here is the answer…
It’s a type of chart interpretation that considers the time factor.
The benefit of the Market Profile is that it tells traders what type of day it will be, whether it’s a trend day, a range day, high volatility day, etc.
With the above knowledge, you can come up with a plan for the trading day.
This will increase your chances of running a profitable trade for the day.
So, what makes me like this book?
It’s a unique book in that it discusses Market Profile in depth, something you can’t find easily on other books.
However, the book lacks practical examples on how to apply this knowledge and benefit from the financial markets.
It is a good book for futures day traders.
However, if you don’t belong to this category, this is not the right book for you.
Best Forex Trading Books
The Forex market differs a bit from the stock market.
It allows traders to go short/long, trade 24/5 and begin their trading journey with as little as few hundred dollars.
So, as a forex trader, you must read these books…
Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves
This book discusses the impact of fundamental data on currency markets.
It will teach you the most important news release that you should pay attention to.
The book also includes a number of technical trading strategies that you can use to trade the Forex market.
What you will like most about this book is how it explains Fundamental analysis in a simple step by step manner.
However, the book does not provide a logic or statistical validity prove that the technical trading strategies work.
If you are a forex trader who relies on fundamental analysis, you can benefit immensely from this book.
Beat the Forex Dealer: An Insider’s Look into Trading Today’s Foreign Exchange Market
This trading book will help you understand how the Forex market works by explaining the Forex market participants and the reasons as to why they trade.
The book can give you the reasons as to why the odds are stacked against you and the best way to apply specific trading strategies to level the playing field.
What will appeal to you most about this book is how it explains the concepts by which trading strategies work.
However, the book was written some time ago, hence, some of the strategies in the book aren’t applicable in the Forex market today.
Best Systems Trading Books
Systems trading provides a great way to trade the markets since the rules are fixed and you don’t have to second guess yourself.
It’s not easy for any trader to find systems that work and with proven backtest results.
However, there are a number of books that give you this information.
Let’s discuss them…
Unholy Grail – A New Road to Wealth
It’s rare to find a book that discusses a trading system that is backed by results.
However, the Unholy Grail is different.
It discusses a total of 7 trading systems that work in the markets.
Each trading system has been backtested for 10 years across different market conditions.
The most interesting thing about this book is that it includes easy-to-understand trading systems that anyone can use in the markets.
It’s a good book, but all its trading systems rely on one concept, that is, Momentum and Trend Following.
It would have been good if the author discussed other trading methods.
Short-term Trading Strategies That Work
This book focuses on trading the Exchange Traded Funds (ETFs).
The book has specific trading rules that come with backtested results for each trading system.
The book appeals to most traders because it teaches them on how to use the RSI indicator to time the market pullbacks.
However, it would have been great if the author of the book showed the performance of each trading system on a monthly basis so as to know the “ups and downs” of each trading system.
Mean Reversion Trading System: Practical Methods for Swing Trading
This book discusses Mean Reversion trading and gives the different techniques that traders can use to trade it.
It’s unique from other books in that it discusses the different methods to trade Mean Reversion, which is rare.
Traders are also provided with the code for each trading system, allowing them to do their own backtesting.
However, it’s bit difficult to read for the layman.
It requires the readers to have a background in statistics and programming.
It’s a good book for Systematic Mean Reversion traders.
Always remember the following…
- There are different trading books available for you.
- However, not each book is worth your time and money.
- Choose the book that will help you achieve your trading goals.
- In this article, we have compiled a list of the best books for you.