Forex trading books are an excellent resource for trading education and motivation. Some trading books have inspired me to keep trading during discouragement and disappointment. Other books have given me deep insights and lightbulb moments on my Forex trading journey.
I have read many trading books over the years. Let me share with you the best books available.
The Top Forex Trading Books
These books are the most outstanding. They are perfect for Forex trading and ideal for new and experienced traders. They're not ranked in any particular order.
'Come Into My Trading Room' Dr. Alexander Elder
This book is not Forex-specific, but everything covered in Come Into My Trading Room applies to trading Forex.
The book is highly insightful.
My most memorable part of the book is the author's (Dr. Alexander Elder) three M's. These are Mind, Method, and Money.
Mind: This section focuses on successful traders' mindsets and contains excellent advice for overcoming trading emotions and dealing with trading psychology—a must-read for all Forex traders.
Method: This part of the book covers trading strategy and the importance of having a trading system or a set of rules to follow when trading financial markets. The book doesn't teach any Forex-specific trading strategy, but the principles of developing a trading system apply to Forex trading.
Money: The final section teaches about risk and money management.
Summary: Come Into My Trading Room is well-rounded and provides many profound insights into various aspects of trading.
Ideal for:
Trading Psychology
Trading Strategies
Risk Management
My Rating: 9/10
Purchase:
“Amateurs look for challenges; professionals look for easy trades. Losers get high from the action; the pros look for the best odds” - Quote, Come Into My Trading Room.
'Naked Forex' Walter Peters
This is the book if you need a Forex trading book about price action trading.
Walter Peters has been a renowned Forex trader in the industry for years. His book focuses on naked trading, i.e., trading using pure price action. The book goes into detail about support, resistance, and Japanese Candlesticks.
Naked Forex is an easy read and contains many clear charting examples. It is an excellent study guide for learning to trade using price action. It is a simple read that is easy to pick up and put down as needed.
The book also has a section on risk management and trading psychology.
Summary: It is a technical book covering price action trading strategies with clear examples.
Ideal for:
Trading Strategies
Price Action
My Rating: 9/10
Purchase:
"Long before computers and calculators, trading was handled without complex technical analysis and indicators. Trading was old school—based on using only price charts—and it was simple, profitable, and easy to implement" - Quote, Naked Forex
'How I Made $2,000,000 Trading the Stock Market' Nicolas Darvas
How I Made $2,000,000 Trading the Stock Market is a motivational and inspirational read.
The book follows Nicholas Darvas, a ballroom dancer who trades part-time. His trading strategy and story, from failure to success, are covered in detail.
Nicholas trades part-time while trying to manage his full-time job - the circumstances of many wannabe traders.
The publication is one of the cheapest trading books available - ideal for those buying trading books on a budget.
Summary: An inspirational, motivational, and educational read.
Ideal for:
Trading Strategies
Motivation
My Rating: 8/10
Purchase:
"I developed a tremendous frustration. Instead of blaming my own stupidity, I invented different reasons for my failures. I started to believe in "They." "They" were selling me dear. "They" were buying stock from me cheap. I could not, of course, tell anyone who "They" were—but that did not stop me from believing in them. Fighting "Them"—these grey ghosts at the back of the mind —made me reckless. I became stubborn. Even though stocks went on beating me, each time they hit me I just wiped off the blood and came back for more" - Quote, How I Made $2,000,000 Trading the Stock Market
'Pitbull: Lessons from Wall Streets Champion Day Trader' Martin Schwartz
Another inspirational autobiography.
Follow Martin Schwartz and his journey to become one of Wall Street's legendary traders.
The book is insightful, educational, inspirational, motivational, and simply spectacular!
This book covers the story of someone who hesitated to commit to trading but experienced massive success once he did.
Please, please, please read this book!
Summary: Read a genuine trading journey from beginning to end - a trading success story.
Ideal for:
Motivation
Trading Psychology
Day Trading
My Rating: 10/10
Purchase:
"The best way to stop a losing streak is to STOP! STOP THE LOSSES, STOP THE BLEEDING. Take time off and let your intellect take charge of your emotions; the market will be there when you return" - Quote, PitBull: Lessons from Wall Streets Champion Day Trader
'Market Wizards: Interviews with Top Traders', Jack D. Schwager
Perhaps the most famous trading book of all time.
The book contains interviews with some of Wall Street's most successful traders; Paul Tudor Jones, Richard Dennis, Ed Seykota, Marty Schwatrz, and many more. The interviewees trade stocks, futures, and Forex.
This is not a technical book or study guide. However, it is incredibly insightful.
Successful traders will tell Market Wizards is a must-read.
The book is larger than most, so it is a hefty read. I suggest using it as late-night or casual reading rather than a serious study.
Summary: Learn from the best traders all in a single book!
Ideal for:
Motivation
Market Insights
My Rating: 10/10
Purchase:
"Throughout my financial career, I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don’t take a hard look at risk, it will take you” - Quote, Market Wizards
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