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As an endeavor, trading goes back to the age-old beginning of commerce. Fortunately, throughout the years, many successful traders have written about their experiences and mistakes so that those newer to trading do not need to repeat them.
A list of recommended forex trading literature would have to include books on trading in general, because regardless of what market you are watching, traders of every discipline share the same overall experience.
Classic Books on Trading in General
Reminiscences of a Stock Operator, Edwin Lefevre - The first book on trading that comes to mind would have to be “Reminiscences of a Stock Operator” by Edwin Lefevre. Based on the life of Jesse Livermore, this classic book captures the attitudes and mindset of one of the most successful traders of the first half of the 20th century. Although forex was still in its infancy then, the book still gives you a good idea of what goes on in the mind of a trader.
Two more recent bestsellers provide a useful perspective on trading for aspiring or seasoned traders alike. “The Market Wizards” and “The New Market Wizards” by Jack Schwager both contain excellent interviews with some of the world’s top traders. Together, they give extraordinary insight both into the traders’ psychology, as well as into how to profit in specific markets and how such top market players developed their trading systems.
Another fascinating book on trading is “The Complete Turtle Trader” by Michael Covel. The book recounts the famous story of the Turtles — a group of traders that were trained in trend-following by master trader Richard Dennis. He began this experiment as a result of a bet made with colleague William Eckhardt, and it became wildly successful. Nevertheless, some of the subjects of the experiment were not as profitable as others given the same opportunity. The book also lays out the principles and trading rules of the experiment and offers highly-educational reading for anyone serious about trading.Good Books on Forex Trading
Once you have obtained a general sense of the overall trading experience, you might want to check out: “Currency Trading: How to Access and Trade the World’s Biggest Market” by Philip Gotthelf. This book provides a complete overview of the forex market and gives the reader numerous ways to take advantage of the endless fluctuations in the forex market. Both new and seasoned forex traders alike will benefit from the trading advice given in this book.
Furthermore, “Begin Forex” by Gideon N. Louw can be a useful book for those who have no forex market experience whatsoever. The book shows forex trading newbies the fastest way to get started trading the forex market and includes instructions on how to use forecasting tools. The book also covers what technical indicators to watch to start you on the road to making money in the forex market.Further Reading on Technical Analysis and More
Although many other books are available on the subject of forex and trading, be sure that your reading on the subject includes an overview of technical analysis. This set of techniques that use past price action to forecast the future direction of prices has become an essential subject for any trader to get a grasp of, no matter whether they wish to trade in the forex, stock or commodities markets.
Most seasoned technical analysts would agree that the bible of technical analysis is “Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications” by John G. Murphy. This book gives a complete overview of all major market and is an invaluable resource for both new and professional traders.
Many other fine books on trading can be found, and the New York Institute of Finance publishes an especially good collection of books on markets and trading. Remember, the more you know about the subject of trading and the market you have chosen to participate in, the more prepared you will be when you make decisions as a trader. Basically, when it comes to trading, knowledge is power.
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