Interesting Books/Ebooks about Forex Trading

This is good for running EA…

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I started with ‘Currency Trading for Dummies’ and it really helped me. You can give it a shot.

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Thanks.

I wish more members would add name of the books that greatly influence them and help them in their forex journey.

It is all about learning. It doesn’t matter which way of learning you choose.

Please I need this book, pls

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You can find most of these books in Amazon. :+1:

Kathy Lien’s book I finished reading earlier this month. I found it invaluable. She works in the industry and she was working in FXCM (atleast when the 2nd edition was released).

The author stresses on knowing both Fundamental and Technical Analysis as a key to successfully trading. My key takeaways:

  1. An outline of fundamental currency forecasting models (Purchase Power Parity, Balance of Payments, etc). A high level view on what they are, how they attempt to forecast prices, their strengths and weaknesses.
  2. The role of economic news releases on data and how they affect markets in Pips on average for context.
  3. How specific trading times affect the market (Asian/European overlap, European/American overlap, Frankfurt/UK powerhour) and how to use that to your advantage to trade.
  4. Actionable Technical setups with well explained graphs and very clear and concise trading rules.

Above points were what affected me the most, but Kathy explains a lot more and everyone who reads the book will see things differently. It was also interesting to observe how much stress she puts on protecting capital. In most of her trading strategies she splits half her position at 1:2 Risk/Reward to lock capital and let’s the other half run (trailing stops mostly). It’s also her #1 rule in the 10 rules she’s put in her book.

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Just finished it. It’s a really good book. Especially the Third Part on psychology. Walter Peter’s has a background in psychology and was, in turn influenced by another psychiatrist/trader (Alexander Elder). In fact his mention of Kangaroo Tails is a direct reference to Alexander Elder’s naming convention for the same pattern. He also acknowledges the influence in an interview in the “Trading Heroes” YT channel.

TBH, I was really put off by the first 1/3rd of the book. The author appeared very pseudo science like, he promotes his website where he can and he’s taken established candlestick patterns, added a few more rules to them and given them funkier names. Some examples on the top of my head are:

Big Shadows = Engulfing candles with extra rules.
Wammies/Moolahs = Double tops/Bottoms with extra rules.
Kangaroo Tails = Hammers/shooting stars with extra rules.

In all fairness, the strategies and trading rules are explained and broken down really, really well. With a lot of graphs that explains the logic outlined in the trading rules very clearly. By making it that simple he leaves no room for ambiguity.

The Second and third part the books really shines. Emphasis on hard work, diligent practice. Why good trading is boring trading and it’s supposed to be like that. Why back/testing builds confidence in your trading and how that correlates to a decisive and healthy psychology during trading. Many, many golden nuggets of wisdom.

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This was the OG of candlestick trading books. It’s included in the bibliographies of other books too. Like the Currency Trading for Dummies (already recommended in thread) and the universally lauded Technical Analysis of the Financial Markets, John Murphy.

I read an outdated copy (the first edition in 1991) and I think the latest edition is in the early 2000s. Steve Nison also has another candlestick book for forex trading and a new book out in 2012 too that might be worth checking.

But most of the books I’ve read so far (I’ve read about 8 so far) have been influenced and cites this one as an important reference for candlestick theory.

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Wow. I’ve got the book for more than a year now but haven’t started it yet. :slight_smile: My bad. Ok, this may inspire me to read it asap. :slight_smile: Thanks

Looks interesting…
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John Murphy’s book is a must read I think. While I was researching the book I found it was a recommended read either for the CFA or CMT courses. You’ll also find other authors citing this book as reference material for some of the concepts outlined in their books, like this one.

This was the third book I read (Currency Trading for Dummies > Candlestick charting techniques) and I thought it’d be very intimidating. It wasn’t. I was wrong. John Murphy does a fantastic job breaking down complex stuff into simpler, digestible information. I honestly enjoyed reading this book. It was fantastic.

The bibliography and citations to other books I found very, very useful as well. For e.g. I wanted to learn more about Elliott Wave Theory based on what I read in the book so I decided to get the AJ Frost & Robert Prechter book for further reading because that covers the subject matter in more detail.

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Thanks for sharing

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