TOP 10 smart books about Trading. The current ranking of the best books of 2022
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Hello. In this article, we wrote about what Forex literature, in our opinion, is best suited for studying by novice traders. In this top, in addition to this, there are no less useful self-improvement books that are related to trading. Quality Forex books show almost universal tactics and profit making strategies even for novice traders. Thanks to the books about Forex in this top, you can feel a strong impulse of motivation because you will understand how, almost immediately after reading the first book, you can consistently make profit over a considerable distance, and not periodically. In these Forex tutorials, examples of profitable trades are carefully shown, which will allow novice traders not to repeat possible mistakes.
All the books in this article are divided into three categories, namely the psychology of trading, textbooks that teach smart career building, and books directly about various types of Forex trading, technical and fundamental analysis.
Ray Dalio “Principles”
The author comes from a poor family and is the founder of the largest investment fund on the planet. The author tells a lot of interesting things about his becoming one of the most influential directors on Wall Street of our time. Among other things, one of the most prominent merits of the author is that he managed to keep the company's earnings even during the crisis of 2007-2009.
Ray highlights the fact that mistakes are both inevitable and rational approach is important in relation to them. And in general, the book is more about the approach to life and career in the field of investing and not about Forex. Despite the fact that the book also describes the fascinating phenomena of the financial markets, in particular, when the gold standard was canceled. The next day, it was Monday, Ray was sure that the stock exchange would collapse, but nothing like that happened. Ray Dalio also gives advice on building an investment portfolio and talks about gross mistakes in building a portfolio, talks about how it is appropriate to add gold and other commodity exchange commodities to a portfolio to protect against the risk of rising inflation.
Tony Turner "Short Term Trading: A Beginner's Guide"
In the book, the author begins the story with the history of the world's largest stock exchanges. After that, the author moves on to the topic of how successful traders think. The author talks about the role of emotions in trading. The author goes on to say that his Forex book should not be the only one you need to study in order to successfully develop and trade Forex and emphasizes the need for further self-improvement.
The author claims that you need to set goals in your personal career according to the correct methodology that he gives in the book. The author says that it is very important to be able to take responsibility, otherwise an inexperienced trader will not be able to make difficult, but profitable decisions.
After that, Tony Turner begins to analyze the main concepts of short-term trading. Tells how to identify an uptrend, how market cycles work, why one cycle replaces another. Turner discusses examples of trading signals for entering and exiting the market. In addition, Tony Turner advises where to get information that will be used in both types of analysis.
Stephen Forbes, Nathan Lewis and Elizabeth Ames “Inflation. What is it and how to deal with it.”
The work was published in April 2022. Taking into account modern realities, a similar kind of book for Forex is all the more necessary for studying the modern market. Its authors are some of the most respected and famous experts in the stock markets. For example, Steve Forbes is the CEO of the magazine of the same name. Co-author Nathan Lewis is one of the most respected observers and specialists in the field of monetary policy. Elizabeth Ames is a well-known journalist who has written for Fox News and many others.
The authors of the book say that many points of view on how the modern US economy should be arranged are no longer of practical value. Steve Forbes says that as long as the economic and political elites do not understand this, the problem with inflation will increase. This already puts this book in the best for a broker. Wrong views in the political circles of the United States, which the authors cite, also exist in many other Western countries, so this matters for the financial system of the whole world.
Gerald Appel “Technical analysis. Effective tools for an active investor”
The author is a well-known theorist and practitioner of technical analysis. Gerald Appel ran an investment brokerage company that averaged $300 million a year in turnover. Gerald of the book started his own career as an ordinary broker and in the book he talks about how brokerage companies function from the inside. The author is the developer of the MACD indicator. This indicator is often used to identify market signals when the market is calm and there is no clear trend. But it is worth saying that this indicator is not without drawbacks. The MACD indicator may lag behind the market and give outdated signals. The tutorial also describes methods on how to avoid this. Later, this concept found its way into many similar books about Forex. If you want to learn methods that will show you how to predict the behavior of currency exchanges, then the book will no doubt be useful! Another plus of this book is that it teaches in an accessible language.
Edwin Lefebvre “Memoirs of a Stock Operator”
I saw that this book is present in almost every article about books for a novice Forex trader, and nevertheless, this is correct, because the main person is not Edwin Lefevre himself and not a fictional trader whose name was Jesse Livermore. He has come a long way, made many mistakes. Any novice trader can significantly facilitate his development as a full-fledged stock player and avoid many mistakes that will cost dearly.
I will briefly mention the most significant concepts from the book, and leave the full reading and analysis of errors in the chain of thought when considering Jesse Livermore's solution.
- It is impossible to enter into transactions when there is no sure opportunity to make a profit;
- If you do not practice the Scalping strategy, then under such circumstances you can wait until the financial instrument still grows in price, despite the fact that you already consider it necessary to sell it;
- Try to avoid uncertainty with open positions. Do not lose profit due to the fact that you did not adapt to the market dynamics in time;
- Don't trade against the trend without good arguments;
- Do not experiment with large lots;
Benjamin Graham “The Smart Investor”
Despite the fact that this book is probably in 95% of all book reviews, we still should not add it to the top. Books about traders are good, but even more useful if these works are written by wealthy experts themselves. The information in the book gives insight into fundamental analysis from the guru. Benjamin Graham is known as Warren Buffett's teacher. Warren even named his first son Benjamin.
The securities market is the main way to make a profit and offers to consider firms that are undervalued. Or those firms that have already passed their peak performance, but still have significant value. Warren Buffett describes this method with the metaphor of a cigarette that has few puffs but can still be smoked. You can find out the objective value of the company by comparing the price of its shares with the company's reporting. Let us emphasize once again that this book is not about Forex.
A lot of investors are convinced that this Forex book is the bible of fundamental analysis. It is impossible to do without, even if you are quite well versed in technical analysis, since not all market situations can be seen purely with the help of charts and other methods of technical analysis.
Alexander Elder “Trading with Dr. Elder”
This literature about Forex is written by a psychologist. The book is very interesting. Alexander Elder is not only a highly qualified psychologist, but also an equally qualified investor. Creation people are emotional, and emotionality in trading is almost always unprofitable. Greed, embarrassment, nervousness, rage, are not helpful. It looks obvious, and you may think that we are writing too much, but we will answer this: everyone we know made a significant share of mistakes in the first months of their career due to hurtful feelings. I myself, in the same way, because of the desire to earn more, made mistakes, or sold the instrument too hastily when there were reasons to think that the value would continue to go up, or vice versa, I closed the deal very late. If, reading this, you think that this is not about you, I will remind you once again that I and all the editors I know were wrong in the same way. As for the meaning of the book, here is what we think is the most interesting:
- In the textbook, it is easy to analyze the author's reasoning when considering a trading decision, and this is necessary and exciting;
- After analyzing the course of his ideas, you can take this as an example of decision making in some situations;
- Unlike other forex books, this work shows the concept of effective trading education.
Barbara Rockefeller “Technical Analysis for Dummies”
Most likely, you know or have read any book from the “for dummies” series. The strongest advantage of this series is that it is told from scratch and in a very structured way about any subject in an understandable language. If you want to learn technical analysis from scratch and after that profitably trade in the Forex market, then the book “Technical Analysis for Dummies” is perfect for this. The textbook has a well-understood description of methods for identifying entry and exit from the market and explaining the market trend. A large number of all kinds of charts, charts, and other methods of technical analysis will enable you to begin to understand all the intricacies of this method. Another advantage of the book is that it contains useful information about cryptocurrencies. Even in some textbooks that are devoted only to cryptocurrencies, there is no such knowledge. This book is one of the best about Forex for beginners, especially if you are not confident.
William Sharp “Investments”
The author is an elite economist and Nobel Prize winner in economics. Initially, it is important to say that the book is not as difficult as you might think. William Sharp has taught at many renowned research institutions, such as Stanford and the University of California. Sharp also created his own personal company, which advises the largest investors to the largest investors in America.
Obviously, this is not a book you need to master first. However, if you are looking for the best books on Forex, then it definitely makes sense to record it in your diary. Here are the most valuable information from it:
- Sharpe mathematically justifies that in order to extract more profit, you need to take more risk;
- William Sharp formulated the Sharpe ratio of the same name, which allows you to understand the ratio of earnings for risk;
- William Sharp substantiates the thesis that it is necessary to balance between high-risk instruments and trading assets of the commodity exchange, mostly precious metals.
Nassim Taleb “Fooled by chance. About the hidden role of chance in business and in life.”
Main theses:
- A lot of things that happen in the world are completely accidental;
- Don't define patterns where they don't exist.
Nassim Taleb is a well-known speculator and economist. Nassim is one of the most successful speculators and in his book he writes about Forex and life in general, teaches how to practice the right decisions. Nassim has also published many other bestsellers. His most popular book, The Black Swan, is one of the most famous books in the self-improvement genre. In his book Fooled by Randomness, he talks about why people tend to label patterns where there are none. This book about Forex is not only from the category of self-development, it is valuable to all those investors who seek to profitably make money in the financial market successfully. It is interesting that in the literature there are errors of thinking that even the most experienced and famous investors repeat. There are many recurring market conditions that can lead you to infer a pattern and thus cause a series of bad trades, as you rely on the same conclusions and the events unfold differently. In conclusion, let's say that this book for beginner Forex traders will be an excellent acquisition.
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