TOP 10 best books about Forex and investments for brokers and those who are interested. Ranking 2022
Hello. Today we will tell you about what Forex literature, in our opinion, is most suitable for reading by novice traders. In this top, in addition, there are equally smart books on self-development that are related to trading. Good Forex books show almost universal tactics and profit making strategies even for novice traders. Thanks to books about Forex in this rating, you can get a powerful boost of motivation because you will know how, almost immediately after studying the first book, it is quite possible to earn money quietly over a long distance, and not periodically. In these Forex tutorials, examples of profitable trades are demonstrated in detail, which will allow beginners not to repeat typical mistakes.
All textbooks in this article are divided into three categories, namely the psychology of trading, books that teach intelligent career building, and textbooks directly about all kinds of Forex trading strategies, technical and fundamental analysis.
Tony Turner "Short Term Trading: A Beginner's Guide"
In the textbook, the author begins the book with the history of the world's largest stock exchanges. Then Tony Turner touches on how wealthy traders think. Turner considers the role of emotions in trading. The author goes on to say that his Forex book should not be the only one you need to read in order to successfully move forward and trade Forex and focuses on the need for further development.
The author argues that it is necessary to fix goals in a personal career according to the correct methodology that he gives in the book. The author insists that it is extremely important to be able to take responsibility, otherwise a novice trader will not be able to make difficult, but profitable decisions.
Then the author analyzes the main terms of short-term trading. Tells how to notice an uptrend, how market cycles occur, in connection with which one cycle replaces another. The author discusses examples of market signals for entering and exiting the market. In addition to everything, Tony Turner advises where to look for information that will be used in both types of analysis.
Barbara Rockefeller “Technical Analysis for Dummies”
Probably you have seen or read at least one book from the “for dummies” series. The huge advantage of this series is considered to be the fact that from scratch and quite consistently talks about any subject in easy language. If you want to learn technical analysis from scratch and start making profitable deals in the Forex market, then the book “Technical Analysis for Dummies” is well suited for this. The book has a fairly clear description of the methods for detecting entry and exit from the exchange and determining the market trend. A huge number of various charts, charts, and other methods of technical analysis will allow you to understand all the intricacies of this method. Another advantage of the book is that it contains valuable information about the cryptocurrency market. Even in many textbooks that are devoted only to cryptocurrencies, there is no given knowledge. This book is certainly one of the best about Forex for beginners, especially if you doubt yourself.
William Sharp “Investments”
The author is a well-known economist and Nobel Prize winner in economics. It is immediately necessary to mention that this literature is not as difficult as you might think. The author has lectured at many prominent research institutions, such as Stanford and the University of Chicago. In addition, Sharp has formed his own company that provides personal and recommendations to the largest investors in the West.
Without a doubt, this is not a job that you should master first. But still, if you are looking for the best books on Forex, then writing it in your diary definitely makes sense for you. Here is the main information from it:
- Sharpe mathematically justifies that in order to earn more profit, you need to take more risk;
- The author derived the Sharpe ratio of the same name, which allows you to understand the ratio of earnings for risk;
- William Sharp argues the thesis that it is necessary to maintain a balance between highly risky instruments and trading in commodity exchange commodities, mainly non-ferrous metals.
Gerald Appel “Technical analysis. Effective tools for an active investor”
Gerald Appel is a recognized theorist and practitioner of technical analysis. Gerald Appel ran an investment brokerage company that averaged $300 million a year in turnover. Gerald of the book began his career as an ordinary broker and in the book he talks about how brokerage companies work from the inside. He is the creator of the MACD indicator. This indicator is often used to determine trading signals at a time when the market is stable and there is no clear trend. But it is important to say that this indicator is not without flaws. The MACD indicator may not keep up with the market and identify irrelevant signals. The tutorial also describes ways to avoid this. Subsequently, this technique was included in many similar books about Forex. If you want to master the knowledge that will show you how to predict the behavior of currency exchanges, then the book will no doubt be useful! Another plus of this book is that it tells everything in an accessible language.
Edwin Lefebvre “Memoirs of a Stock Operator”
I saw that this book is in almost every article about books for a beginner Forex trader and despite this, it is not surprising, because the main character is not the writer himself, but a real trader who was known as Jesse Livermore. He has come a long way, made many failures. Any novice trader can significantly facilitate his development as a full-fledged market player and not make many mistakes that will cost dearly.
I will briefly summarize the most important information from there, and leave the full training and analysis of errors in thinking when searching for Jesse Livermore's solution to you.
- There is no point in opening trades when there is no clear opportunity to make money;
- If you do not use scalping tactics, then in this case you can wait until the asset still grows in price, despite if you already consider it necessary to sell it;
- Avoid uncertainty with open trades. Do not lose profits due to the fact that you did not quickly adapt to the market dynamics;
- Go against the trend for no good reason;
- Do not experiment with weighty lots;
Benjamin Graham “The Smart Investor”
Despite the fact that this book, most likely, is in 95% of all materials with books, but we cannot but add it to the top. Books about traders are useful, but even better if these works are written by wealthy investors themselves. The information in the book will give knowledge of fundamental analysis from a practitioner. Benjamin Graham is known as Warren Buffett's teacher. Warren even named his first son Benjamin.
The author of the book does not consider Forex, but the stock market, as the best source of profit and suggests considering firms that are undervalued. Or those corporations that have already passed their peak of profitability, but still have noticeable value. Warren Buffett describes this method with the analogy of a cigarette, which has few puffs, but it can still be smoked. To understand the real value of a company, you can compare the price of its shares with the reporting of the company. Let us emphasize once again that this book is not about Forex.
A considerable number of investors believe that this Forex book is the bible of fundamental analysis. It’s hard to do without, even if you are quite good at technical analysis, since not all trading situations can be seen only with the help of charts and other technical analysis tools.
Stephen Forbes, Nathan Lewis and Elizabeth Ames “Inflation. What is it and how to deal with it.”
The work was published in April 2022. Given the current realities, this type of book for Forex is all the more necessary for understanding the modern market. Its creators are some of the most respected and famous stock market analysts. For example, Steve Forbes is the CEO of a magazine of the same name. Second author Nathan Lewis is one of the world's most respected publicists and monetary policy experts. Elizabeth Ames is a well-known journalist who has written for Fox News and many others.
The authors of the book write that many views on how the modern US economy should be arranged are outdated. Steve Forbes states that as long as this is not understood in government circles, the problem with increasing prices will increase. This already puts this book in the best for a broker. Wrong views in US government circles that the authors cite still exist in many other Western countries, so this matters for the financial system of most of the world as a whole.
Alexander Elder “Trading with Dr. Elder”
This literature about Forex is written by a psychologist. She is very helpful. Alexander Elder is known as not only a very competent psychologist, but also an equally accomplished stock player. We are emotional beings, and emotionality in trading is almost always bad. Greed, embarrassment, fear, irascibility, are not useful. This may seem obvious, and you may think that we are writing too much, but we will answer this: everyone we know made a significant part of the mistakes at the beginning of their careers due to hurtful feelings. I myself, in the same way, made mistakes because of greed, or sold the instrument too hastily when there were reasons to think that the value would continue to go up, or vice versa, I sold the asset too late. If, reading this, you decided that this does not affect you, I will emphasize once again that I and all the editors I know thought the same way. As for the meaning of the book, here is what, in our opinion, is the most valuable:
- In the book, it is easy to trace the chain of thoughts of the author when making an exchange decision, and this is valuable and interesting;
- After thinking about his chain of reasoning, you can take this as a template for making decisions in certain situations;
- Unlike other forex books, this work shows the concept of effective trading education.
Ray Dalio “Principles”
The author comes from a poor family and is the head of the largest investment fund of all time. Ray recounts many fascinating facts about his rise to being one of the top men on Wall Street today. In addition, one of the most significant achievements of Ray Dalio is that he found a way to keep the company's earnings even during the crisis of 2007-2009.
The author draws attention to the fact that failures are inevitable and a sound approach is required in relation to them. And in principle, the book is more about the approach to life and career in the field of investing, and not about Forex. Despite the fact that the book also discusses interesting phenomena in the financial markets, for example, when the gold standard was canceled. The next day, it was Monday, the author of the book thought that the NASDAQ would fall, but nothing similar happened. Ray Dalio also gives advice on building an investment portfolio and shows frequent mistakes in portfolio compilation, says that it is appropriate to add gold and similar commodity exchange commodities to the portfolio in order not to suffer from the risk of increasing inflation.
Nassim Taleb “Fooled by chance. About the hidden role of chance in business and in life.”
- A lot of things happen in the world by accident;
- Don't look for patterns where there are none.
Nassim Taleb is a prominent trader and economist. The author is one of the most successful traders and in his book he writes about Forex and life in general, teaches how to make the right decisions. The author has also written many other bestsellers. His most read book, The Black Swan, is one of the most popular books in the self-improvement category. In his book Fooled by Randomness, he analyzes why people tend to see patterns where they don't exist. This book about Forex is not purely from the category of self-development, it is valuable to all those traders who strive to work successfully in the financial market correctly. It is curious that in the literature there are errors of thinking that even the most advanced and famous speculators make. There are many common market situations that can lead you to infer patterns and thus set off a chain of losing trades as you rely on one set of expectations and events play out differently. In conclusion, let's say that this book for novice Forex traders will be a great gift.
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