By Paul Langer
When I started trading everything seemed almost like black magic, a world of graphics, numbers, and mysterious indicators. How could it be possible to actually “make” real money from graphics on the screen? Although very quick I learned that it was much easier to lose it than to earn it.
At the time I didn’t have a Best Forex Trading Books list from someone I could trust, which I believe, would have been invaluable.
As novice traders it is sometimes daunting to think that all the “price movement” represents millions of Dollars, Euros, Swiss Franks, or Yens coming and going from one person to the other.
We tend to believe that we stand no chance against the big names like banks and institutional traders that are praying on us from some glass and steel office on Wall Street or The City.
I know there’s a big debate on whether trading is gambling or investing, or even something you can do seriously to make a living. I believe that all these books will help you better understand where that fine line is.
Since we’re working with leverage, we have to always be very careful and develop a strategy that takes advantage of that power without putting our account too much at risk (there’s always a risk), and here is when having the right mindset can be invaluable.
Lessons from the Grand Masters of Forex Trading
By reading how all these legendary traders and investors managed to find their way to survive and thrive, I am sure that you will be inspired, and entertained, you will learn a lot, and above all become a much better trader.
Trading can be lonely sometimes since it’s always a very personal choice to enter a trade or not. It’s our analysis and knowledge, but also our personal problems and psychology every time we press the “buy” or “sell” button.
You will also see, that these amazing traders are normal people, and they struggled a lot to find success. Much of it can be attributed to hard work, discipline, and determination. Something that most of us can achieve if we really put our minds to it.
This list is not comprehensive, there are so many amazing trading books out there, but they are the ones you should read if you are interested in trading.
Most of them are not specifically forex trading books, but that doesn’t make them any less valuable to any aspiring trader, since they contain timeless lessons for any trader.
So What is The Best Forex Trading Book?
Yes, I am blatantly promoting my own book here, and I know that many of you readers on this blog have already read it and that’s why you are here in the first place, but I do believe it has value, especially for beginners. It’s mainly my personal story, and I am not in any way shape, or form at the level of the other traders on the list, nor do I claim this is the best book on Forex trading. But in the book, you will find a very structured and simple trading strategy that will help you get started and untangle some of the myths surrounding trading. You will also read the story of a normal guy who managed to learn to trade successfully for a living.
Mark Douglas’ “Trading in the Zone” is a timeless masterpiece that delves into the psychology of trading. Douglas emphasizes the significance of mastering one’s emotions and developing a disciplined mindset to achieve consistent success in the forex market. By understanding the psychological pitfalls that hinder traders, this book empowers readers to cultivate a winning attitude and execute trades with confidence. I am personally a big fan of the 8th chapter of the book when he speaks about how our beliefs are actually what can make or break our careers as traders.
John J. Murphy’s “Technical Analysis of the Financial Markets” is a comprehensive guide to understanding the principles of technical analysis. From chart patterns to indicators, Murphy provides invaluable insights into analyzing market trends and making informed trading decisions. Whether you’re a novice or an experienced trader, this book equips you with the essential tools to navigate the complexities of the forex market.
Edwin Lefèvre’s classic masterpiece, “Reminiscences of a Stock Operator,” offers timeless wisdom gleaned from the experiences of legendary trader Jesse Livermore. Through captivating anecdotes and profound insights, Lefèvre explores the psychology of trading and the importance of adaptability in the face of market fluctuations. This book serves as a beacon of inspiration for traders seeking to glean wisdom from the trials and triumphs of one of history’s most renowned investors. This book has a special place on my bookshelf since it was the first trading book I ever read. It gave me a unique perspective, and his story is truly amazing. I have the Audible version of this one and try to listen to it at least once a year.
In “Market Wizards,” Jack D. Schwager interviews some of the most successful traders of our time, unraveling their strategies and philosophies for achieving consistent profits. From Paul Tudor Jones to Bruce Kovner, Schwager provides readers with a rare glimpse into the minds of trading legends. Through these interviews, traders of all levels can glean valuable insights and refine their approach to forex trading. This one is so amazing because of the many interviews and different points of view from other traders, if anything I understood that trading is not a one-size-fits-all, but there’s room for all kinds of personalities and we all can be successful if we put in the time and effort.
Another gem from Mark Douglas, “The Disciplined Trader,” focuses on the importance of discipline in trading. Douglas explores the psychological barriers that hinder traders from realizing their full potential and offers practical strategies for overcoming self-destructive behavior. By instilling a sense of discipline and self-awareness, this book empowers traders to cultivate a winning mindset and achieve long-term success in the forex market.
Alexander Elder’s “Trading for a Living” is a comprehensive guide that covers all aspects of trading, from psychology to risk management. Elder emphasizes the importance of mastering oneself before attempting to master the market, providing readers with practical techniques for developing a robust trading plan. Whether you’re a novice trader or a seasoned investor, this book offers invaluable insights to help you thrive in the competitive world of forex trading.
Conclusion, or why you need to read this list of books:
You don’t need to read all these books at once, or even study them deeply to become a successful Forex trader, but if you do, and if you take the time to digest each one of these titles from my list of Best Forex Trading Books, I believe you will approach the markets with different eyes, much like I did, and you will have a lot more confidence to start trading in a way that fits your own personality and style, also avoiding some of the most common mistakes we all tend to do when we start trading.
In the end, we don’t come to the markets to be right, to show our knowledge or how hard we can work, since this is really an anonymous world of decisions, where nothing, or nothing we can do with our limited resources as retail traders has a signature.
It doesn’t matter how hard or how little you worked or how genius your trading idea is, once you hit the “buy” or “sell” button, it will go to the countless trades that populate de ledgers of trades. So our only goal in the end is to make money and prove to ourselves we can do it on our own terms.
1 Response to "7 Best Forex Trading Books to Reach Your Goals in 2024"
Hello Paul,
Good read, thanks for sharing. I was hoping to see you more on Youtube doing analysis this year. Love your trading style. Cheers