5 Best Must-read Forex Trading Books For Traders

The forex market can be daunting even for experienced, practical investors. As a trader, what you need to remember is that there are many factors to consider and many steps to follow to successfully trade forex, as forex is not a get-rich-in a second industry. Success takes time, patience, perseverance, ambition and dedication. In this process, reading "right" books can help, assist and guide you on how to become profitable forex traders.

Although there are many books talking about currency trading, covering the range from basic introduction to advanced market strategies based on fundamental and technical analysis of forex, not all books are as good as described in the book. So as a trader who hasn't read forex books before, where should you start? For that reason, we've picked five books that have passed the test of time and the ups and downs of the market from a wide selection.

1. Japanese Candlestick Charting Techniques, Second Edition Hardcover – Steve Nison

He introduced this versatile technical analysis tool, which is now widely used by forex traders, to the Western world. This book provides a long-term and in-depth educational candlestick chart, which is also used for futures, speculation, hedging, stocks, and any other places where technical analysis might be applied. Nissen's job is ideal for traders looking to improve their trading strategy game.

2. Currency Trading for Dummies – Kathleen Brooks and Brian Dolan

Currency Trading for Dummies is one of the best options for beginners. It provides clear and easy-to-read forex trading instructions and forex market descriptions. In fact, this book isn't bad for veterans who need a quick refresher on the basics. It is often used as a resource by the financial media. 

3. How to Make a Living Trading Foreign Exchange: A Guaranteed Income for Life – Courtney D. Smith

This book explains how the market works through an introduction to the forex market. But the book is mostly talking about making money, offering six strategies for earning a steady income through trading. He also provides important risk management tips and materials on trading psychology. It includes an explanation of Smith's unique "Rejection Rule" a tactic designed to double the profits generated by the basic channel breakout system. 

4. Day Trading and Swing Trading the Currency Market – Kathy Lien

Kathy Lien is a world-renowned currency analyst, managing director of BK Asset Management, and a regular guest on Bloomberg, CNBC, and Reuters.

Her book takes a two-pronged approach, combining theoretical and actionable learning with balanced insight into fundamental and technical forex trading strategies to generate fixed profits. Lien guides readers step-by-step through forex fundamentals analysis, such as the long-term and short-term factors that affect currency pairs. She also introduces technical analysis trading strategies that professional forex traders use every day.

5. Currency Forecasting: A Guide to Fundamental and Technical Models of Exchange Rate Determination – Michael R. Rosenberg

First published in 1995, the concise, intuitive and intelligent contents of the book attract analysts' and traders' attention. It combines fundamental and technical analysis of macroeconomic forex and international currency dynamics. Rosenberg's ability to draw clear connections between different financial and economic factors continues to play a role in currency forecasting.

Trading does not guarantee you to be a millionaire in one night. Every trader has his own trading needs and goals.

Traders should note that while these books are referential and informative, successful trading lies not only in the theory that makes trading more successful, but also in the practical aspects of forex trading in a live trading environment.