For some investors, the world of foreign exchange, or forex, seems daunting. However, there are plenty of books are on the subject of currency trading, ranging from basic education on the forex market to advanced strategies based on fundamental analysis and technical analysis. These represent six of the best that have stood the test of time and market ups and downs.
Currency Trading for Dummies, by Brian Dolan
Currency Trading for Dummies is one of the best for beginners, as it presents clear, easy-to-read instructions on currency trading and descriptions of the forex market – and not a bad tome for more seasoned hands who need a quick refresher on the basics. It's also regularly used as a resource by the financial media. Originally published in 2011, the book was written by Brian Dolan, the chief currency strategist at Forex.com, where he oversaw fundamental and technical analysis, and Kathleen Brooks, research director at Forex.com.
Day Trading and Swing Trading the Currency Market, by Kathy Lien
Kathy Lien is a world-renowned currency analyst, BK Asset Management's managing director and a frequent guest on Bloomberg, CNBC and Reuters. Now in its third edition, her book provides a two-pronged approach, offering both theory and actionable learning, with balanced insight into fundamental and technical forex trading strategies designed to generate regular profits. Lien walks readers, step-by-step, through Forex fundamentals — such as long- and short-term factors affecting currency pairs — as well as covering technical analysis trading strategies that professional forex traders utilize on a daily basis.
Currency Forecasting: A Guide to Fundamental and Technical Models of Exchange Rate Determination, by Michael Rosenberg
Written by Merrill Lynch analyst Michael Rosenberg, Currency Forecasting is one of the groundbreaking and definitive works on forex trading. It was first published in 1995, and for decades analysts and traders have turned to Rosenberg's concise, intuitive and brainy text, which combines the macroeconomics of foreign exchange and international monetary dynamics with fundamental and technical analysis. Rosenberg's ability to delineate clear connections between disparate finance and economic factors continues to make Currency Forecasting a go-to guide for currency traders.
Japanese Candlestick Charting Techniques, by Steve Nison
Steve Nison's Japanese Candlestick Charting Techniques is credited with introducing Japanese candlestick charts, now widely used by forex traders, to the Western world in the 1990s. The book provides a lengthy and in-depth education on the versatile technical-analysis tool, which is also often used for futures, speculation, hedging, equities or anywhere that technical analysis may be applied. Nison's gift for practical application expressed in to-the-point and easily understandable language, make his work ideal for traders seeking to up their trading strategy game. As they do, they might want to consult one of the sequels Nison has written: The Candlestick Course, Beyond Candlesticks: New Japanese Charting Techniques Revealed, and Strategies for Profiting with Japanese Candlestick Charts.
How to Make a Living Trading Foreign Exchange, by Courtney Smith
Courtney Smith begins How to Make a Living Trading Foreign Exchange with an introduction to the world of forex, explaining the basics of foreign exchange trading and how the market works. But the largest portion of his 2010 work is devoted to making money, offering six strategies to earn a steady income by trading. He also provides important risk management techniques, as well as material on the psychology of trading, and Smith's unique "rejection rule," a strategy designed to double the profit generated from basic channel breakout systems.
Forex Trading: The Basics Explained in Simple Terms, by Jim Brown
As the title indicates, this book is oriented towards giving beginners the basics. It was authored by Jim Brown, a self-taught, full-time forex trader who became intrigued by currency exchange (and its profits) at a private gathering for stock traders. The text stands out for Brown's clear, concise language – he expresses everything in informal, but well-written English – that, without being condescending, never takes for granted the reader's knowledge. Some of the titular basics covered are:
- the definition of forex and forex markets
- strategies for entrances and exits
- trading psychology
- the ins and outs of Forex pairs
- places to trade foreign currencies
- tips for selecting a broker
Brown also offers up his own trading strategy, for a novice to use – or at least, be inspired by and use as a guideline for creating his own.