TOP 10 best books about Forex and investments
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Welcome. In this article, we will tell you about what Forex literature, in our opinion, is most suitable for teaching novice traders. This TOP also contains no less smart books on self-development that are related to investments. Good books about Forex can provide almost universal tactics and strategies for making money even for beginners. Thanks to the books about Forex in this material, you will be able to feel a tangible boost of motivation because you will know how, immediately after studying the first book, you can safely earn over a long distance, and not periodically. In these Forex tutorials, examples of profitable trades are considered in detail, which will allow novice traders not to repeat typical mistakes.
All books in this article are divided into three subgroups, namely the psychology of the exchange game, books that teach competent career building, and textbooks directly about all kinds of Forex trading strategies, technical and fundamental analysis.
Barbara Rockefeller “Technical Analysis for Dummies”
Probably you have heard or read at least one book from the “for dummies” series. A significant advantage of this series is considered to be the fact that it is clear and fairly structured about any subject. If you want to learn technical analysis from the very basics and start trading profitably in the Forex market, then Technical Analysis for Dummies is a good book for that. The tutorial has a well-understood description of how to find entry and exit from the exchange and determine the market dynamics. A huge number of different charts, charts, and other methods of technical analysis will enable you to begin to understand all the nuances of this method. Another advantage of the textbook is that it contains valuable information about the cryptocurrency market. Even in the most famous textbooks, which are devoted only to cryptocurrencies, there is no such knowledge. This book is one of the best about Forex for beginners, especially if you doubt yourself.
Edwin Lefebvre “Memoirs of a Stock Operator”
I know that this book is present in almost every article about literature for a novice Forex trader, and yet this is not surprising, because the main character is not Edwin Lefevre himself, but a real person whose name was Jesse Livermore. He mastered a long way, suffered many failures. Any inexperienced trader can significantly facilitate his personal development as a earning Forex player and avoid many mistakes that will cost dearly.
I will briefly describe the most significant information from the textbook, and I will leave the full training and analysis of errors in the chain of thought when searching for Jesse Livermore's solution to you.
- Do not open trades when there is no sure opportunity to earn;
- If you do not use the Scalping tactics, then under such circumstances you can wait until the financial instrument continues to grow in value, despite if you already think it is necessary to sell it;
- Try to avoid uncertainty when open trades. Do not suffer losses due to the fact that you did not adapt to the market dynamics in a timely manner;
- Don't go against the market trend without a very good reason;
- Do not experiment with large lots;
William Sharp “Investments”
The author is an outstanding economist and Nobel Prize winner in economics. It must be said right away that this literature is not as difficult to read as you might think. The author has taught at many prominent research institutions, such as Stanford and the University of California. Sharp also formed his own firm that provides personal advice and advice to the largest investors in the world.
Obviously, this is not the kind of literature that you need to study first. Nevertheless, if you are looking for the best books on Forex, then you should definitely fix it in your notebook. Here are the most valuable information from it:
- Sharp mathematically proves that in order to extract more profit, you need to take risks more often;
- William Sharp formulated the Sharpe ratio of the same name, which helps to understand the ratio of earnings for risk;
- The author advances the thesis that it is necessary to balance between highly risky instruments and trading with commodity exchange instruments, mostly non-ferrous metals.
Alexander Elder “Trading with Dr. Elder”
This literature about Forex was created by a psychologist. She is very attractive. Alexander Elder is not only a smart psychologist, but also an equally successful trader. Human beings are emotional creatures, and emotions in trading are almost always bad. Thirst for profit, embarrassment, fear, irascibility, provoke losses. This may seem redundant, and you may think that we are talking inappropriate, but we will say this: everyone we know made a significant part of the mistakes at the start of their careers due to hurtful feelings. I myself, in the same way, made mistakes because of greed, or I sold the asset too hastily when there were reasons to believe that the price would continue to go up, or vice versa, I closed the deal too late. If reading this you think that this is not about you, I will remind you once again that I and many familiar editors thought the same way. With regards to the content of the book, here is what, in our opinion, is the most valuable:
- In the textbook, it is easy to follow the chain of thought of Alexander Elder when considering an exchange decision, and this is necessary and exciting;
- After analyzing the chain of his ideas, you can take this as a decision template in some situations;
- Unlike other forex books, this work provides a system for quickly mastering trading.
Nassim Taleb “Fooled by chance. About the hidden role of chance in business and in life.”
- A lot of things happen in the world by accident;
- Don't look for patterns where they don't exist.
Nassim Taleb is a renowned trader and economist. The author is one of the most successful speculators and in his book he writes about Forex and life in general, teaches how to look for the right solutions. The author has released many other bestsellers. His most popular book, The Black Swan, is one of the most popular books in the self-improvement genre. In his book Fooled by Randomness, he talks about why people try to identify patterns where there are none. This book about Forex is not only from the category of self-development, it is valuable to all those traders who want to profitably work in the financial market successfully. It is curious that in the literature there are errors of thinking that even the most experienced and famous speculators make. There are a large number of frequent market circumstances that can provoke you to conclude patterns and thereby cause a series of unsuccessful trades, since you will rely on one expectation, and events will develop differently.
In conclusion, this book will be a good purchase for beginner Forex traders.
Gerald Appel “Technical analysis. Effective tools for an active investor”
The author is a generally recognized theorist and practitioner of technical analysis. The author ran an investment brokerage company that averaged $400 million a year in turnover. Gerald of the book began his career as an unremarkable broker and in it he talks about how brokerage companies operate from the inside. The author is the creator of the MACD indicator. This indicator is often used to fix market signals when the market is calm and there is no particular trend. But it is appropriate to say that this indicator is not without drawbacks. The MACD indicator may lag behind the market and show irrelevant signals. The tutorial also describes methods on how to avoid this. Subsequently, this concept found its way into many other books about Forex. If you want to master the knowledge that will allow you to predict the behavior of financial exchanges, then the book will no doubt be useful! Another advantage of this book is that it teaches in simple language.
Tony Turner "Short Term Trading: A Beginner's Guide"
In the book, Tony Turner begins the book with a history of the world's leading stock exchanges. Tony Turner goes on to talk about how the biggest speculators think. The author talks about the role of emotions in trading. The author also says that his Forex book should not be the last one you need to study in order to successfully grow and trade Forex and emphasizes the need for relentless development.
The author claims that it is necessary to fix goals in a personal career according to the correct methodology that he shows in the book. The author says that it is extremely necessary to be able to take responsibility, otherwise a novice trader will not be able to make difficult, but profitable decisions.
Then the author analyzes the basic concepts of short-term trading. Explains how to identify an uptrend, how market cycles work, why one cycle replaces another. The author shows examples of stock signals for entering and exiting the market. In addition to other things, Tony Turner explains where to get the information that will be applied in both types of analysis.
Benjamin Graham “The Smart Investor”
Although this book is likely to be in 95% of all materials with books, but we cannot but mention it. Books about traders are good, and even more valuable when these works are written by elite investors. The information in the book gives an insight into fundamental analysis from one of the founders of this method. Benjamin Graham is known as Warren Buffett's mentor. Buffett even named his eldest son Benjamin.
The author considers the securities market to be the main source of income and suggests considering companies that are undervalued. Or those companies that have already passed their peak performance, but still have noticeable value. Warren Buffett explains this method with the metaphor of a cigarette that has few puffs, but it can still be smoked. You can find out the objective value of the company by comparing the price of its shares with the company's reporting. Additionally, we emphasize that this book is not about Forex.
Many world-famous experts consider this Forex book to be the bible of fundamental analysis. You can’t do without it, even if you are very good at technical analysis, since not all market situations can be understood only with the help of Japanese candlesticks and other technical analysis tools.
Ray Dalio “Principles”
Ray Dalio comes from a very poor family and runs the largest investment fund of all time. Ray recounts many instructive events from his rise to be one of the top executives on Wall Street today. In addition, one of Ray's most notable merits is that he managed to maintain the fund's profitability even during the 2007-2009 crisis.
The author draws attention to the fact that mistakes are inevitable and that a correct approach is needed in relation to them. And in principle, the book is more about the approach to everyday life and a career in the field of investing and not about Forex. Despite the fact that the book also describes fascinating phenomena in the financial markets, for example, when the gold standard was canceled. The next day, which was Monday, Ray expected the NASDAQ to fall, but nothing like that happened. Additionally, the author of the book gives advice on building an investment portfolio and talks about common mistakes in building a portfolio, says that it is important to add gold and similar assets of the commodity exchange to the portfolio in order to insure against the risk of increasing inflation.
Stephen Forbes, Nathan Lewis and Elizabeth Ames “Inflation. What is it and how to deal with it.”
The work was published in April 2022. Taking into account the current realities, this type of book for Forex is all the more useful for the analysis of the modern market. Its creators are one of the most respected and famous analysts in the stock markets. By the way, Steve Forbes works as the chief director of the magazine of the same name. Co-author Nathan Lewis is one of the world's best-known monetary policy commentators and commentators. Elizabeth Ames is a famous journalist who has written for Fox News and many others.
The authors of the book say that the prevailing views on how the modern US economy should be arranged are outdated. Steve Forbes says that as long as this is not understood in government circles, the problem with increasing prices will increase. This information already puts this book in the best for a broker. The mistakes in US power circles that the authors describe still exist in quite a few other Western states, so this has implications for the financial system of most of the world as a whole.