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4 Books every forex trader needs to read

Forex trading books are excellent sources of information for developing all types of trading skills. These books cover a variety of concepts like trading psychology and discipline, technical analysis, fundamental analysis, and chart patterns. If you’re serious about trading on an FX trading platform, here are four books that you should read. 

1. Trading In the Zone

Trading in the Zone was written by Mark Douglas, a professional trading psychology coach with decades of forex and stock trading experience. The book focuses on helping traders overcome the self-sabotaging impacts of trading errors. 

He began his book by explaining the nature of technical and fundamental analysis in relation to the trading results most traders achieve. He showed that the reason why most traders don’t make the most of their trading strategies is due to their thoughts and beliefs about the nature of financial market speculation. In order words, the psychological component of trading determines how well technical and fundamental analyses can be utilized. 

According to Mark, the profitable traders have attained a mindset—a unique set of attitudes that allows them to remain disciplined, focused, and, above all, confident despite the adverse conditions.

His book explains the different training errors that traders face and shows how these can be overcome.

Your aim as a trader is to find an edge (trading strategy) and then position yourself to take advantage of whatever the market offers without trying to predict the outcome of each trade. The desire to predict every trade’s outcome can lead to expectations which can lead to emotional attachments to each transaction. Therefore, a solid trading psychology is characterized by a carefree state of mind, and this book helps you achieve just that. If you’ve ever struggled with the fear of missing out, greed, fear of losing, and other trading challenges, then it would help if you read this book.

 

2. Big Book of Chart Patterns 

This book was produced by Trading Tips to help traders understand the most powerful technical analysis chart patterns in the financial markets. Chart patterns are simply the recurring shapes or price presentations that indicate the likelihood of one outcome occurring in place of another. 

They present themselves when the forex market is about to make a significant move; reversals, expansion, and impulse continuations. Before you can use them successfully, you need to study and understand them and this book helps you do that. Popular patterns like double tops and bottoms, head and shoulders, and wedge and continuation patterns can help you to improve your trading results. If you want to learn how to apply them, studying this book would be a great way to start. 

 

3. Candlestick Bible 

Candlestick patterns are price action indicators that show the interaction between buyers and sellers. They’re invaluable tools of technical analysis which indicate the opening price, closing price, and the highest and lowest prices for each time interval. The presentation of a candlestick can be used to predict price movement, known as candlestick patterns. 

The candlestick Bible explains the different patterns and the psychology behind their formation. This information can complement your trading indicators and strategies to improve your win rate and risk to reward ratio. Consider reading this book if you’ve ever struggled with interpreting price action and forecasting price movement. 

 

4. Atomic Habits 

Evidently, you can learn technical and fundamental analyses through ebooks, courses, and lessons. But, knowing them is one piece of the puzzle, and putting them to work is the more significant piece. Besides learning to analyze the markets, you should develop yourself into a profitable trader. This speaks to improving hour discipline and trading habits by adopting the practices of successful traders. 

The book ‘Atomic Habits’ was written by James Clear. It exhaustively explains the compound effect of habits and how small (atomic) changes to one’s daily routine can yield unprecedented results in the long run. This book would help you understand human behavior and adopt a long-term mindset when it comes to learning forex. 

James explained how small daily habits could transform our lives as they add up. This book is extremely valuable for traders because it encourages discipline and healthy daily routines. This mindset is precisely what new traders need because becoming a successful trader is indeed a consequence of the compound effect of relevant experience gathered over time. 

Ultimately, you should read books that encourage your overall development. Improve your trading psychology, discipline, and technical and fundamental analysis because all these would help you become the best trader you can be. 

 

By TIS Staffer
the authorBy TIS Staffer

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