Top 5 best books to read as a beginner in forex trading

Even experienced hands-on investors often find the world of foreign currency, or forex, intimidating.

However, numerous publications on currency trading range from simple introductions to the forex market to complex methods based on fundamental and technical analysis.

These are five of the greatest that have withstood the test of time and the ups and downs of the currency market.

1. Japanese Candlestick Charting Techniques by Steve Nison:

Steve Nison's Japanese Candlestick Charting Techniques is credited with introducing the Western world to this adaptable technical-analysis technique, which is now frequently employed by forex

traders.

The book gives a thorough education on candlestick charting, which is also utilized for futures, speculation, hedging, equities, and any other application of technical analysis.

Nison's work is great for traders who want to improve their trading tactics. They may want to reference one of Nison's sequels, The Candlestick Course, Beyond Candlesticks: New Japanese Charting Techniques Revealed, or Strategies for Profiting with Japanese Candlestick Charts, while they do so.

2. Forex Trading: The Basics Explained in Simple Terms by Jim Brown:

As the title suggests, this book is intended to teach novices the fundamentals. The author is a self-taught forex trader who became interested in currency exchange and its earnings while attending a private
stock trader conference.

Brown's crisp, simple language shines out, never taking the reader's understanding for granted without being condescending. Some of the fundamentals discussed include:

• Forex and forex markets are defined.
• Entrance and exit strategies.
• Trader psychology.
• The ins and outs of currency pairs.
• Foreign currency trading locations.
• Tips for Choosing a Broker.

Brown also provides his trading technique, which a newbie might apply or be inspired by and use as a framework for constructing a personalized one.

3. How to Make a Living Trading Foreign Exchange by Courtney Smith:

Courtney Smith begins How to Make a Living Trading Foreign Exchange with an overview of the forex market and its operation. However, most of this 2010 publication is focused on producing money, with six ways for earning a consistent income through trading. He also offers critical risk management tactics and information on trading psychology.

It explains Smith's one-of-a-kind "rejection rule," an approach designed to increase the
profit provided by basic channel breakout systems.

4. Currency Trading for Dummies by Brian Dolan:

Currency Trading for Dummies is one of the greatest for newcomers. It provides simple, easy-to-understand instructions on currency trading and descriptions of the forex market.

It's a good read for more experienced players who need a brief review of the fundamentals. The financial media frequently uses it as a reference. Brian Dolan, former chief currency
strategist at Forex.com, and Kathleen Brooks, director of research at Forex.com, co-wrote the updated book, first released in 2011.

5. Day Trading and Swing Trading the Currency Market by Kathy Lien:

Kathy Lien is a world-renowned currency analyst, the managing director of BK Asset Management, and a frequent guest on Bloomberg, CNBC, and Reuter's programs. 

In its third edition, her book takes a two-pronged strategy that blends theoretical and applied to learn with a balanced understanding of fundamental and technical forex trading tactics geared to deliver consistent gains.

Lien leads readers through Forex basics, such as long- and short-term factors affecting currency pairs step by step. She also discusses the technical analysis trading tactics expert forex traders use daily.