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 Top 10 Forex  Trading Books [Free Download]

Here are some of the top forex trading books to help you on your Forex journey. Forex Trading is a rewarding and exciting profession.

Forex Trading is a rewarding and exciting profession. Unlike your average office job, trading is unlikely to tyre you. Every trading day is unique and presents you with fresh obstacles. It is simple to understand why people desire to participate, given the presence of relatively decent rewards.

However, you shouldn’t expect your forex journey to be easy—it is far from that! This is a very tough career, and you should be ready for many unexpected twists and turns.

To ensure that you set yourself up for a successful trading career, you should start correctly. During the first few weeks, you should invest the majority of your time to research and making sure that you understand trading.

This will require a significant amount of reading. So having a list of the best books to read would be helpful. So, keep reading to learn about the best trading books for beginners.

We provide a heads up to the top best forex trading books. Below is the list of such books –

  1. FOREX TRADING: The Basics Explained in Simple Terms ( Get this book )
  2. The Death of Money: The Coming Collapse of the International Monetary System ( Get this book )
  3. How to Start a Trading Business with $500 ( Get this book )
  4. Forex Trading Money Management System ( Get this book )
  5. FOREX: Using Fundamental Analysis & Fundamental Trading Techniques to maximize your Gains ( Get this book )
  6. Foreign Exchange Option Pricing: A Practitioner’s Guide ( Get this book )
  7. The Black Book of Forex Trading ( Get this book )
  8. Forex: A Beginner’s Guide To Forex Trading, Forex Trading Strategies ( Get this book )
  9. The Simple Strategy ( Get this book )
  10. Currency Trading For Dummies ( Get this book )

#1 – FOREX TRADING: The Basics Explained in Simple Terms

forex book
by Jim Brown

Main Points

It is of great use for those who have started trading foreign exchange and require appropriate guidance, given the abundance of information on the internet. It is a good book for gaining understanding from the very basics. The author has also mentioned one of his trading systems and the indicators without any further costs associated.

The essential concepts and principles have been covered in a direct manner and in a simple language. Examples that traders encounter in their daily work have also been highlighted for the readers to have a practical understanding.

#2 – The Death of Money: The Coming Collapse of the International Monetary System

forex trading book
by James Richards

Main Points

The US dollar has been the centrepiece of the world economy since World War II, and its performance can have a ripple effect on the financial condition of other countries around the globe. This book is a fast-paced look at the financial future, taking into consideration the greed of the financiers, the incompetence of the central bank, and the dangers of over-reliance on the US Dollar as the reserve currency.

The 2008 global financial crisis has haunted the US economy, and the FED is paying the price for helping the bankers. It is forced to print money to create inflation to offset the deflationary effects of the debt overhang from the banking crisis.

The government’s borrowing ability is required to come as a saviour to Wall Street. The drawbacks of devaluation due to excess printing, reducing the intrinsic value, have also been extensively mentioned. The author relied on two assumptions to arrive at the theories presented: 

  • The recession of 2007-08 has been structural, and the central banks have been using the wrong tools, assuming it is a cyclical situation.
  • Gold is the only “true money.”

Neither of the assumptions has been sufficiently supported by this book. However, it is written in simple language, and one can expand their financial understanding by linking the basic financial knowledge with the prevailing economic situation in the world.

#3 – How to Start a Trading Business with $500

forex book
by Heiken Ashi Trader

Main Points

Most of the new traders who start their business have very little means of raising capital. This best forex trading book focuses on a realistic way for private traders to become full-time traders with limited capital.It provides step-by-step guidance on how to approach the trading business with a capital of as low as $500.

However, this foreign exchange trading book will not highlight how to rapidly expand the business to a large target, say $100,000. Some of the other important components of the book are:

  • How should one acquire and smoothly implement good trading habits?
  • How to be a Disciplined Trader
  • Social Trading
  • Communication skills with the broker
  • How to be a Professional Trader
  • Maximize returns from the available $500 and make it feel like a very large amount.
  • Trading activities for a Hedge Fund

#4 – Forex Trading Money Management System

Forex Trading Money Management System
by Don Guy

Main Points

This book contains a simple theory provided by the author, which reverses the FOREX market movement with a simplified money management system and aids in maximising profits.

The cover of the book highlights this difference, which shows the performance of the market with and without the system. It is popularly called “Roulette Trader Money Management,” which implements reverse engineering to magnify profits while simultaneously reducing drawdown in most of the scenarios.

The author once visited a casino in Las Vegas, whereby he made a loss of $2000 while playing Russian roulette. In order to counter the same, this system was established to ‘Crush Financial Markets like a Professional Gambler.’ This system can be automated and can be used manually as well.

After developing the system, the author returned to Las Vegas with $20 and turned it into a profit of $500 in a time span of 1 hour, which was locked in by the automatic profit locking mechanism, and the same was applicable in financial markets as well.

The cover page will itself highlight how the profit is almost four times greater, and the maximum drawdown is only about one-third the size.

#5 – FOREX: Using Fundamental Analysis & Fundamental Trading Techniques to maximize your Gains

by Dave Matias

Main Points

This edition will lay its focus on the importance of fundamental analysis in the movement of the FX markets. Fundamental analysis is the foundation of trading and a primary driver of FX flows, as well as providing one with unique practical knowledge and understanding.

The market is very volatile in nature and is sensitive to any kind of micro and macro releases, so making use of such fundamental analysis is of high importance. Though one should not neglect technical analysis, one needs to keep a blend of both these analyses. This book will highlight the following aspects:

  • Fundamental Trading Myths
  • How can macro and micro events influence the market?
  • Bonds and currencies
  • In fundamental trading, practical examples and models are used.
  • Global Market Flows, as well as other critical trading concepts
  • Trade and capital flow in relation to the FX market

#6 – Foreign Exchange Option Pricing: A Practitioner’s Guide

by Iain J. Clark

Main Points

This publication will cover all the aspects of FOREX options from the point of view of a financial practitioner and contains all the essential information that a trader or quantitative analyst is required to possess while working in a bank or a hedge fund. It covers the theoretical mathematics aspect as well as the comprehensive coverage of implementation, pricing, and calibration.

The content is developed with inputs from traders and real-life examples. It will also introduce the more commonly requested products from the FX options trading desks along with various models capturing the risk characteristics essential for accurate pricing of the products. Another aspect covered is the numerical methods required for calibration of these models, a crucial component in practise but often neglected. Robust treatment is given to the following features:

  • Precise market conventions for FX volatility management.
  • Adjustment for settlement and options delivery delays
  • Pricing Vanilla and Barrier options contracts in volatile markets
  • three-factor, long-dated FX model
  • Numerical calibration techniques for all the models under consideration.
  • Adopting variable approaches for strongly path-dependent options using either partial differential equations or Monte Carlo simulation

This guide is critical for comprehending FOREX options in the context of the real-world market. 

#7 – The Black Book of Forex Trading

by Paul Langer

Main Points

The contents of this edition are crafted after multiple years of testing and getting fingers burnt in the volatility of the financial market. One can follow the success stories of those who have made it big in the financial world, but few will understand the skills and swiftness one learns after going through failure, and this book highlights the same.

This book is targeted for beginners to intermediate traders who are still struggling to make it big in the trading world and can be equipped with rugged tactics to handle complex situations as well. It will cover the 3 main areas in Forex trading:

  • How to build a definite winning strategy while adhering to personal lifestyles and needs.
  • Ways to optimise and maximise gains without taking unnecessary risks.
  • Traders are required to take control of their emotions and biases while executing and follow a few simple steps to be followed while trading.

Certain other aspects which are covered are:

  • Combatting struggling market scenarios
  • Start earning money on a consistent basis.
  • Tactics to become a successful trader in 4 months
  • ensuring that one’s financial freedom can be planned within the specified boundaries and limitations
  • Gain sufficient confidence to trade with the appropriate knowledge and numbers in place.

The book is small in size, but the knowledge it imparts is invaluable and can be applied in complex situations for an extended period of time. 

#8 – Forex: A Beginner’s Guide To Forex Trading, Forex Trading Strategies

forex trading books
by Matthew Maybury

Main Points

It will focus on 2 broad areas: one is a beginner’s guide to FOREX trading; and the other is best strategies for high profit and reduced risk.

The beginner’s guide provides a blueprint to build a trading plan with the use of Forex and how one can maximise their earnings with the same. It will highlight the absolute basic components towards an introduction to the $2000 billion forex market. This foreign exchange book enhances how an individual should strive to create a pool of money depending on their financial needs over a period of time for certain events like marriage, retirement, etc. One can gain a profit margin in the range of 70–90% by following the simple rules of the FOREX market.

The second aspect will focus on the best Forex trading strategies for high profit and reduced risk. One can become an expert in FOREX with the use of several different strategies required to be a successful trader. Additionally, for an experienced trader, they can explore a strategy that must not have been encountered before. Hence, if one is a reader to gain knowledge of foreign exchange or as a daily task, this book will teach the following:

  • The Basics of Forex Trading
  • Determining and understanding market trends
  • Strategies such as Moving Averages, Price Action, Candlesticks, Turtles, Scalping, etc.
  • Reducing the risk of loss
  • Smart Street tactics to survive choppy market conditions

#9 – The Simple Strategy

by Markus Heitkoetter

Main Points

This top forex trading book is a powerful trend-following day trading strategy for the trading of futures, stocks, ETF’s, and Forex. The popularity has increased for the following reasons:

  • The Clear Entry Rules are based on specific indicators such as the MACD, whether they are above the zero lines or not, and the entries are easy to identify and execute.
  • One will have a clear idea of when to exit the market at the time of taking the position. This way, one can manage the quantum of risk to be assumed for the sizing of the positions and money management. One can also keep the trade on auto-pilot once the entry order is filled, keeping the trade management to a minimum and thereby reducing costs.
  • Taking advantage of small intra-day trends: Trading can be executed on the beating of a pulse, and one may not necessarily wait for the trading day to be completed. This forex trading book will offer tips to tackle such situations as well.
  • Sophisticated trading software is not required. A simple charting software with basic capabilities is required for plotting range bars, Bollinger Bands, MACD, and RSI. One is not required to purchase any proprietary indicators or expensive charting software.

#10 – Currency Trading For Dummies

forex trading book
by Kathleen Brooks

Main Points

This is a user-friendly guide explaining the functioning of the FX market and how one can benefit from the same. It offers an easy-to-follow introduction to the global FOREX market, which explains the size, scope, players, and other major economic drivers that influence currency values and how to interpret the data and events in a channelized manner. One will explore various trading styles to construct a concrete strategy and a game plan for execution. The areas to focus on are:

  • The Currency Trading convention and its tools
  • Providing an insider’s look at key characteristics of established and successful currency traders.
  • Understanding the importance of organisation and preparation
  • offering guidance on the pitfalls of trading to be avoided and rules to manage various kinds of risks.

This best forex trading book will go to the root levels of trading and will enhance the mechanics of trading on how the currencies are traded, paired with currencies, understanding price quotes, how the global trading day flows, and so on. Subsequently, one can put their knowledge and intuition to the test by getting a practise trading account with an online foreign brokerage before actually putting money in the real market.

Final words

That’s our list of 10 interesting Forex Trading books for both new and experienced traders. We hope that these reference sources can help you have a deeper understanding of the forex markets and gain some of the best tips and practices for your trading journey.

If you know another useful forex book, please share its name with other readers via the comment section below.