Book 4: “The New Trading for a Living” by Alexander Elder
“The New Trading for a Living” covers an interesting part of trading on the financial markets, focusing on trading as a full-time job and the many things that could go wrong in the process.
The book covers factors, such as stress, FOMO, anxiety over mistakes, as well as broader topics, such as technical analysis and tools, risk management and portfolio balancing.
For traders who are just starting out and have limited experience, the book can be a great guide in explaining the process of arriving at a disciplined regime of trading without jeopardizing your mental health, which can lead to many unforced errors in decision making.
It is also considered as one of the best forex technical analysis books by professionals, which makes it a must read for traders looking to go full-time.
Key themes covered
The book provides a roadmap of some of the most important factors that can affect decision making on the market and focuses heavily on the mental aspect of trading. Among the topics covered in the title, the author analyzes the following themes:
- The Three M’s of Trading - Mind, Method and Money
- The importance of mental clarity - Most traders fail because of psychological factors like stress and anxiety
- Trend identification, support and resistance levels, and candlestick patterns
- The triple screen trading system and how to set it up
- Trading signals, indicators and how to avoid generating false signals. Author advises traders not to rely on too many indicators to avoid confusion
- Risk management and position sizing techniques, such as the 2% and 6% rules
- Identifying entry and exit points on a chart, risk/reward ratios and psychological strategies to maintain discipline
Why you should read it
“The New Trading for a Living” is a well-balanced book that looks at trading through the lens of psychological factors that can play a major role in determining the success or failure of most traders.
The author points out that nervousness and anxiety are some of the most influential factors that cause traders to doubt their judgment and ultimately make decisions they may not be confident in, which often results in losses.
The book also provides thorough explanations of various technical indicators and analysis methods with real-world applications.
Book 5: “The Black Book of Forex Trading” by Paul Langer
“The Black Book of Forex Trading” is among the best FX books you can buy that provides a thorough examination of the currency trading process, the nature of the market and pitfalls to avoid.
The book represents a practical guide designed for retail forex traders who want to develop a structured, disciplined approach to trading.
Unlike highly technical or theoretical books, Langer’s writing is straightforward and focused on real-world trading strategies, mindset, and money management. The book is particularly useful for traders looking to achieve consistent profitability without unnecessary complexity.
Paul Langer places an emphasis on the importance of psychological resilience in the face of market uncertainty, as well as thorough risk management and informed decision making.
Key themes
Similarly to several other books on our list, Paul Langer’s “The Black Book of Forex Trading” also focuses on the psychological aspect of forex trading, as well as the importance of knowing what your expectations are and developing a plan around them.
Other notable themes explored in the book include the following:
- The importance of psychological factors - The author explains how emotions, such as fear, greed and excitement affect the decision making process of traders, causing them to make mistakes, such as overtrading, revenge trading and ignoring stop-losses
- The process of developing a trading strategy - The book emphasizes the importance of technical tools, such as support and resistance levels, candlestick patterns, and moving averages to help traders analyze price data
- Risk management and capital protection using stop-loss and take-profit orders, as well as a clever use of leverage
- A practical guide to trading discipline and how to develop a daily routine you would actually want to follow
- The role of backtesting and forward testing in trading and how to execute them
- How to set realistic goals and focus on risk-reward ratios for long-term success
Why you should read it
Paul Langer creates an easy to follow book of guidelines and best practices that is not bogged down by long, tedious technical jargon, which makes the book highly accessible for even the least experienced forex traders.
The focus on the mental aspect of trading and real-world examples ground the book and make it easy to digest, while providing valuable advice on how to conduct your trading strategy.
Book 6: “Trading: Technical Analysis Masterclass” by Rolf Schlottmann
Another highly-rated book on technical analysis, “Masterclass” by Rolf Schlottmann provides an in-depth approach to technical analysis, as well as the myths behind how professional traders analyze price data.
The book focuses on practical application rather than overwhelming readers with theoretical concepts, making it an ideal book for traders who want to develop a structured, rule-based approach to technical analysis.
Unlike many trading books that focus on indicators, Schlottmann teaches traders how to read raw price movements and market behavior, allowing them to make better-informed trading decisions across different financial markets, including forex, stocks, and commodities.
Due to its accessibility, “Trading: Technical Analysis Masterclass” is widely considered to be one of the best forex books written in recent years.
Key themes
While a relatively small book, “Technical Analysis Masterclass” touches upon a range of important topics that should not be overlooked by serious traders, such as:
- Understanding market structure, trends, support and resistance levels and supply and demand zones
- Candlestick patterns and chart formations, including doji, spinning tops, pin bars, engulfing candles, etc
- Technical indicators, such as the RSI, MACD, Bollinger Bands and moving averages
- Trend following and reversal trading, including step-by-step setups
- Risk management tools, such as stop-losses, risk/reward ratios and position sizing strategies
- Trading psychology, controlling emotions and building a routine
- Developing a personalized trading plan with entry and exit rules
Why you should read it
If you are a beginner trader that would like to know more about the mechanics of the market and how to effectively use the technical tools at your disposal, Rolf Schlottmann’s book is one of the top choices, as it is accessible, easy to read and not filled with theory.
The focus on practical examples makes it easier to understand the concepts and their real-world applications.
Book 7: “Trading in the Zone” by Mark Douglas
“Trading in the Zone” is a classic among traders that explores the mental and emotional challenges faced by traders. Unlike books that focus on technical strategies or market analysis, Douglas’s work emphasizes mindset, discipline, and probability-based thinking.
Douglas argues that a trader’s success is not determined by their strategy alone but by how well they manage emotions, risk and uncertainty. He introduces the idea that trading is a game of probabilities, and the best traders are those who can execute their strategies without fear, hesitation, or emotional bias.
The book presents a roadmap of how to manage stress and emotions during periods of high uncertainty on the market and how to spot when emotions are elevated on a subconscious level to avoid making mistakes and overtrading because of them.
Key themes
As already mentioned, the book revolves predominantly around the psychological aspects of trading and the importance of mental resilience and realistic expectations on successful trading on any financial market, including forex.
Major themes explored and analyzed in the book include:
- The mental game of trading and the detrimental effects of overconfidence, greed, revenge trading and fear of loss
- The importance of a probabilistic mindset in an uncertain market
- How to overcome fear, analysis paralysis, and when to exit a trade
- The fundamental truths of trading and letting go of certainty and control
- How to develop a winner’ mindset through patience and discipline
- Risk management techniques and ensuring survival in the long run
Why you should read it
“Trading in the Zone” is one of the most interesting explorations of the mental aspect of trading and investing and the pitfalls that follow negative emotions.
The book covers both extremes of the emotional spectrum - Excitement and fear, which can adversely affect the ability of traders to adequately assess the market and make probabilistic decisions.
If you are a beginner trader, or have struggled with confidence in your decisions, this book can help you identify underlying issues and resolve them through a different lens of thinking.
Key takeaways from top forex books every trader should read
- The world of forex trading has produced some of the most interesting pieces of finance literature that can help traders of all experience levels improve
- Most trading books are not strictly technical and can be engaging to read, even for complete beginners who are just starting out on the market
- Most trading books are not focused on a single asset class and stock trading books also apply to fore traders
- The emphasis on psychological factors is prevalent across multiple trading books and authors frequently emphasize the importance of emotional discipline in trading
- The combination of technical knowledge and emotional resilience tend to lead to the best outcomes for traders
FAQ on the best forex trading books
What forex trading books should I read?
There are numerous forex trading books you can read. Some of them are highly technical and explain technical indicators, strategies and the math behind trading. On the other hand, other books provide a more engaging story. If you are interested in the technical aspects of FX trading, you can read “Day Trading and Swing Trading the Currency Market” by Kathy Lien.
Are forex trading books boring?
Some forex trading books are focused on technical indicators and strategies and can be somewhat dull to read. On the other hand, books like “Reminisces of a Stock Operator” have a more fun narrative structure and are engaging to read.
Do I need to read forex trading books?
You don’t necessarily need to read forex trading books in order to further your knowledge in the field, as there are many free and paid courses and materials available all over the internet. You can gain a lot of knowledge by simply following active traders and watching how they trade, why they profit and lose.