Mon. Oct 26th, 2020
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4 Best Forex Trading Books For Beginners

The biggest question for new Forex traders like you is where to start. With the plethora of information available online like articles, blog posts, videos, courses, and eBooks, you can easily get overwhelmed that even picking out a book is a big decision. So, in this post, your work got cut out for you as we have named four of the best Forex trading books for beginners that will surely get you going in your trading journey.

1. Naked Forex


The number one this list is Naked Forex: High-Probability Techniques for Trading Without Indicators by Alexander Nekritin and Walter Peters, Ph.D. This book is best for those who are starting and either hate the idea of relying on indicators or simply want to develop a trading system without it.

Do you even know what indicators are? And have you used them before? Well, with this book, you don't have to worry about that.

Naked Forex Cover

It's called "naked trading" because the book teaches a trading methodology that relies solely on candlestick patterns, price "zones," and price action, which means that strategies are entirely devoid of indicators.

It's ideal for those who are completely new to trading and find the practical use of indicators to be confusing. Still, it can also be useful for those who have some trading knowledge but are just not big fans of charts convoluted with indicators.

Understandably, not everyone can dedicate time to go deep into the math behind the Wilder Method for calculating the Relative Strength Index or the Williams Alligator Indicator, so the book's simplified way of developing a trading system will be an easy digest for most newbies.

What don't we like about the book?

Some of the common candlestick patterns have been renamed, which can be confusing to traders who are already familiar with their standard names. For example, "pinbars," "engulfing patterns," "double tops," and "double bottoms" are changed to "kangaroo tail," "big belt," "wammies and moolahs."

Overall, we rated this book a 4/5.

Naked Forex Cover

Naked Forex

Naked Forex: High-Probability Techniques for Trading Without Indicators by Alex Nekritin and Walter Peters


2. The Little Book Of Currency Trading


When you talk about getting an in-depth overview of currency trading, then this book by Kathy Lien will do just that.

It would be the first book that beginners should buy if they don't have a clue about what Forex trading actually is. The book tackles most of the concepts novice traders should be equipped with to get started trading, i.e., the fundamentals that fortify a robust framework for a future in trading.

The little book of currency trading

The book is also structured in a way that its easy for readers to retain the main information of each chapter.

Some of the topics the book covers are the mechanics of trading, how the currency market moves, and who moves it, news trading, trading mistakes, avoiding trading frauds, trading psychology, high-probability setups, and lots more.

It's filled with real-life examples, events, and stories so that new traders find a practical use for each lesson.

Can readers with a little Forex background read it too?

Traders with some knowledge of currency trading can also benefit from this book because it reinforces what they already know and perhaps adds some information that they might've missed out.

What don't we like about the book?

The book is almost complete for every new trader except for the fact that it doesn't include what most newbies are in search of -- technical strategies. Lien does a terrific job explaining basic Forex concepts, but the technical strategy that she covered in Chapter 8, the Bollinger bands, could have been elaborated further.

Overall, we rated this book a 4.5/5.

The little book of currency trading

The Little Book Of Currency Trading

by Kathy Lien


3. Trade the Price Action - Forex Trading System


The third one on the list is a book written by Laurentiu Damir. It made the countdown, but this book is part of a series about price action trading offered by Damir.

This book specifically discusses a strategy that new traders can employ right away. Like Naked Forex, the strategy that Damir teaches here is also absent of indicators save for the 200 EMA, which Damir uses as a gauge to determine what the majority of traders are paying attention to.

Trade the Price Action - Forex Trading System

And, similar to Naked Forex, the book is ideal for those who are not too keen on the idea of using technical indicators in their analysis. Damir's book is excellent for those who have already gained enough basic knowledge about Forex but are looking for something more actionable.

The book is only 60 pages long, so it gets into Damir's strategy right there and then. But despite the short length of the book, it still manages to squeeze in key principles about trading that new traders should know by heart.

It also introduces the concept of trends and their importance in Forex trading. Some of the topics it covers include Fibonacci retracements, support and resistance, and candlestick patterns. And, Damir fuses all of that and puts forward an easy-to-follow step by step guide for readers.

What don't we like about the book?

The book could have been a bit lengthier and touched on a few more key concepts about trading. It's a beginner's level book, but the trader should at least have some familiarity with how currency trading works. Also, the book could have explained more strategies that Damir employs himself, but that is perhaps reserved in his other books that are part of a series, as mentioned earlier.

Overall, we rated this book a 3.5/5.

Trade the Price Action - Forex Trading System

Trade The Price Action

Trade The Price Action - Forex Trading System by Laurentiu Damir


4. Japanese Candlestick Charting Techniques: A Contemporary Guide to the Ancient Investment Techniques of the Far East, Second Edition


The last one that we have here is by Steve Nison or aka the father of modern candlestick charting.

This book isn't specifically about Forex trading, but about candlestick charting. Nison, in this book, talks about how to read and interpret Japanese candlesticks and all their patterns. He makes a case for candlesticks and how they stand out against bar and line charts because of the depth of detail they provide.

Japanese Candlestick charting techniques

You'll learn how to spot trading signals, potential price reversals, trend continuation, and other important cues by observing candlesticks.

There is also a part in the book where he also combines the wisdom of the East and the wisdom of the West by showing examples of how trading indicators developed by Western traders make a perfect blend with candlesticks.

If you want to dive right into this book, we recommend that you finish at least the three other books in this list first because the level of detail available in this book is extensive and can be overwhelming. And, without the prior knowledge that you can extract from the other books, you could get detracted from finishing it.

Japanese Candlestick Charting Techniques is more like a bible in case you get lost in the interpretation of the patterns you see on the chart.

What don't we like about the book?

There is nothing much to dislike about the book other than the difficulty of retaining the meaning behind each candlestick pattern. Because there are so many patterns to learn about, it may be confounding to a new reader to memorize each of them, so a book that would reinforce what a trader can extract from this book would be helpful.

Overall, we rated this book a 4.5/5.

Japanese Candlestick charting techniques

Japanese Candlestick Charting Techniques

Japanese Candlestick Charting Techniques: A Contemporary Guide to the Ancient Investment Techniques of the Far East, Second Edition by Steve Nison

Conclusion


So, there you have it. That's four of the best Forex trading books that we believe are suited for beginners. By reading all of these books, you'd have adequate knowledge about what currency trading is and the basics of using fundamental and technical analysis. Now, it doesn't mean that after you've taken in all the information contained in these books that you'll be profitable right away. Nothing could be further from the truth. Your best teacher for you will still be your experience. So, as you go along your trading journey, make sure you are wary of your mistakes, and keep track of your progress.


11 thoughts on “4 Best Forex Trading Books For Beginners

  1. Overall naked forex is a great book for those who are either new to forex or price action trading or are currently trading price action unsuccessfully. There are three parts to this book. The author is trying to explain some well know technical analysis patterns on his own terms. Great read

  2. hello, it is a great and nice feeling to know that someone will create a great website like this and also create a write up on an article like this. these are really great books. i am new in forex trading and i will need all the help i can get. thank you  for this great post.i appreciate it

  3. Hello Intellinvestors

    That’s a very informative and encouraging article for me as a person because I’m a newbie in trading. 

    I actually first heard about Forex Trading a decade ago. I tried learning from books in a self-training program. Then I encountered concepts like Bollinger bands, Candlesticks, Bullish and Bearish trends- volumes of concepts! It became too complicated. I abandoned the whole concept after losing money.

    Your recommended books seem like they could be simpler to use. I get The Little Book of Currency Trading to begin with.

    . Boniface

    1. Hi Boniface, well it can be difficult to begin with those topics. You might want to understand the entire concept of forex trading first. Try the little book of currency trading before you dive into more technical analysis concepts

  4. Many thanks for the informative and educative post about Forex Trading Books. Thanks also for giving me the opportunity to discuss the topic. Your post has a lot of things to learn. I had no idea about the Trade the Price Action – Forex Trading System, but after reading your article I got to know about Trade the Price Action – Forex Trading System. I will read all these books when I get my time. 

    I will share the post with my friends. I will tell them to read these books to ear knowledge about this subject.I hope that those who read your article will definitely benefit and share their experience with you. I also want to tell the readers to read the article fully. Thank you again for the helpful review.

  5. Thanks for sharing these amazing forex trading books for beginners. I wish I knew these books earlier, it would have made the whole process as smooth as I am thinking. I love the second book considering the fact that it made use of real life stories and situations too. These high ratings is a proof that these books are worth checking out.

  6. Hey there, 

    I work for a company that deals with stock exchanges and I’ve wanted so bad to learn more! I have some information, but I really need beginners info so I can put it all together and get a real understanding. So thank you for these recommendations! 

    I find the Japanese Candlestick Charting Techniques a very interesting choice and am pretty curious about it. 

    Thanks again!
    Anna 

  7. Hi 

    You are so right. Often when there is too much information out there, you get more confused and swamped at the same time. One book says one thing and another says another, and you are not any wiser. You look for guidance and then your review of the 4 best books on forex trading falls on my lap and some clarity comes about. I am glad that these books tell you the investor on what to do and expect, and I bet if you read and practice what they say that eventually, you will get good at it.

    It may still be risky but that’s the forex market for you.

    Thanks

    Antonio

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