Best Forex trading books every trader should read

As a professional forex trader, keeping up to date and learning about new strategies and ways to improve your trading is critical to your long-term success. This self-motivation to improve and lifelong learning is actually very common amongst forex traders. We are often self-taught because of our fascination with the currency markets!

During the years, there were a couple of books that had a profound impact on how I approach my forex trading. These books were eye-openers in one way or another and were books that made me the forex trader I am today. This list of best forex books are my top recommendations for you to read and improve your forex knowledge.

 

If you’re in a hurry and just want one great book recommendation that will have the biggest impact on the way you trade, pick this one:

Trading in the Zone by Mark Douglas

It will be the best investment in your trading career you’ve ever made.

 

Note: I also wrote about the best non-trading books
that will still help you become a better trader (and improve your life!).

 

The best Forex books list:

 

1 . Japanese Candlestick Charting Techniques – Steve Nison

Steve Nison is arguably the “grandfather” of candlesticks in the Western world, he is the one deemed responsible for bringing Japanese candlestick charts (which some say go back to the late 1800s in Japan) to the Western trading world.

In his book, he gives some background on the Japanese candlestick charts and how he found out about them from a Japanese broker. Then, he quickly goes into describing all the different candlestick patterns, with well illustrated examples. The second part of the book goes into using candlesticks with other techniques such as eliott wave, trendlines, moving averages and more.

This is THE definitive book on candlestick charting and candle patterns. If you want to know more about price action, this book should be the first one to pick up. I highly recommend it. Read more.

 

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Forex Metatrader 4 EA editor

MT4 Expert Advisor Forex Course Intro

This article is part of a series. Here are the other parts:

 

The best MetaTrader 4 (MT4) expert advisor development course you’ll find on the web!

Here’s why: my MT4 expert advisor course will teach you how to transform your trading plan into a fully automated algorithmic trading system. What sets this course apart from others is its practical approach: I will provide you with real-life examples (including code!) on how to tackle actual scenarios. You will learn how automating your trades can help you lift your trading into profitability!
Backtesting a MT4 expert advisor

What this course covers

  • What is automated or algorithmic trading and why should I use it?
  • How to use the MetaEditor and Expert Advisors
  • Create your own Expert Advisor (EA)
  • Backtest your EA to validate your idea
  • Practical implementations for common scenarios, such as trailing stops, crossovers, dynamic position sizing, working with custom indicators and much more!

 

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Forex trading plan

The ultimate forex trading plan guide

Building your trading plan will be by far the most important part of your forex trading success. Too many forex traders are currently entering trades without a clear vision or goal in mind. They have a fear of missing out. They have a “feeling” that their trade is going to be the winning one, raking in loads of pips! When it turns out that the charts didn’t go their way, the first reaction is to quickly try again and forget the losing trade. Keep in mind that the fading affect bias is a powerful cognitive bias! This approach eventually leads to losses, pushing profitability even further away.

These traders lack a trading plan, a well-defined description of the “what” and “how” of their trading business (notice how I said business. You should treat it as such if you want to take forex trading seriously!). In this post, I will guide you through the steps needed to make such a trading plan, and give you a template of how a trading plan could look like.

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Getting started with Forex trading

If you’re reading this, it’s safe to assume you have an interest in forex trading. Maybe you’ve heard about forex from that friend working in finance or maybe you have an interest in currency markets yourself. One thing is clear: you want to know more about it! But where do you start? There are so many brokers, types of trading software, trading accounts, …

It’s easy to lose track of everything when you’re just starting out, so I’d like to show you some good starting points to get you going quickly.

Forex brokers

Choosing a broker can seem daunting. To help you out, I’ve written an article that shows what to look for when choosing a broker. I’ve been using Pepperstone as my forex broker and I’m very happy with them. If you’re looking for a reliable broker, they come highly recommended.

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Forex broker charts

Choosing a forex broker

Finding the right forex broker can be a challenge if you don’t know where to look.  There are so many brokers available, all with their own offers trying to lure you in.

 

Note: I’ve been using Pepperstone for a while now, and I’m extremely happy with them. I use their Razor ECN offering, which offers super low spreads (often 0 on EURUSD) and their service is absolutely top notch. If you’re looking for a good and reliable forex broker, I’d recommend checking them out. The Pepperstone link is an affiliate link. If you enjoy the content of this site and you’re looking for a broker, please consider Pepperstone as you can get the first 20 trades free when you sign up. The commission I receive helps me run this site. Thanks!

 

When choosing a broker, it’s therefore useful to look at the following criteria:

 

Low spreads

The spread of a currency pair is the difference between the buying price and the selling price of that currency pair. Most forex brokers don’t work on a commission basis, and the spread is how the brokers actually earn money when traders make orders. Different brokers will offer different spreads, and it’s worth looking into which brokers offer the lowest spreads on the currency pairs you’re planning to trade with the most often. A useful website to check a lot of broker spreads for the most common currency pairs can be found here.

 

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