I usually don’t recommend trading forex, FX, currency exchange, whatever they’re calling it these days. It can be a high risk, high reward investment strategy but, it is less regulated and less understood than conventional forms such as equities. Nevertheless, if you are interested in getting your fee wet with forex, here are five great books to get you started in trading.
This book does a great job of tracking the history of forex and offering a very easy approach for new traders. Dubbed, the old fashioned method, Naked Forex is a way to trade currencies before the internet. The practice advocates simple strategies that have made people money well before charts, graphs and technical analysis ran the show. Most forex traders lose money because they rely on a system or indicators. Let go of all of that and learn how to trade on your own.
I’ve already alluded to it but the forex game is stacked against you. It is targeted towards you because the house stands to make so much off of your gamble. This book takes the stand and lets you behind the scenes from a former forex broker. You may not want to hear it but, this book offers great examples of why you will get screwed over and why you should never trade forex. If you make it out alive, the author does offer some suggestions about how to approach currency trading if you are still convinced it’s for you. This little investment will likely save you lots of money in the future.
If you’re not convinced by the previous book that forex is a dangerous game, Ed Ponsi’s book will offer an alternative. This book takes the approach that there is definitely money to be made in forex, over a course of time and little by little. It does not promise quick riches like so many selling bots and automated trading software (which you should avoid). Instead it offers like patterns and probabilities that have occurred and will occur again within currency pairs and currency trading. I’m not gonna lie, this is a pretty deep and detailed book.
Sometimes only the For Dummies book will suffice. In this case it offers a fair, basic and comprehensive look at foreign exchange. It does not discount any one system such as looking for patterns, using technical analysis or utilizing software. It examines each with the usual pros and cons. The author explains currency pairs and pips with ease, basics that most texts assume you understand. It’s important to know, with forex you are not investing in a currency, you are better against one in a pair. This book will help you understand that.
If you’ve come to the conclusion that forex trading is going to be your living, this is the book for you. In contrast to those annoying Youtube videos promising instant riches, this book builds on the principles and foundations shown in the other books I recommend with a long term and conservative model for constantly making money. One of the highlights is that the book illustrates just about each and every entry and exit point seen possible. There are no tricks or secrets. This just about studying, doing the homework and with time making money. I was surprisingly pleased with the book, although I’m still not such a gifted currency trader.