What are the top 10 forex trading books?
Discover our analysts’ top 10 forex trading books. With titles covering everything from technical analysis to trading psychology, you’ll find the resources you need to make the most of volatility in 2022 and beyond.
Will Hall-Smith | Senior financial writer , London.
The top 10 forex trading books.
Technical Analysis of the Financial Markets by John J. Murphy Trading in the Zone by Mark Douglas The Alchemy of Finance by George Soros Market Wizards by Jack D. Schwager Day Trading and Swing Trading the Currency Market by Kathy Lien The Black Swan by Nicholas Taleb Bollinger on Bollinger Bands by John Bollinger Japanese Candlestick Charting Techniques by Steve Nison Trend Following by Michael Covel America’s Bank by Roger Lowenstein 1.
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Technical Analysis of the Financial Markets by John J. Murphy.
‘Technical Analysis of the Financial Markets’ covers everything you need to know about technical analysis – from basic trading concepts to advanced indicators. Written in 1998 by John J. Murphy, a former director of Merrill Lynch, it has come to be regarded as a bible for traders – so much so that it was nominated by more analysts than any other title in this top 10.
The book includes more than 400 charts to bring technical analysis to life, and sections to help you put what you’ve learnt into practice, making this a ‘must read’ for traders of all levels.
Trading in the Zone by Mark Douglas.
‘Trading in the Zone’ by Mark Douglas explores the key psychological attributes that are required to become a successful trader, and explains how you can develop them. It is considered a leading book in the field because it includes a number of practical techniques that can be used to control emotional responses.
While these techniques shouldn’t replace your plan or analysis, they could help you execute strategies more efficiently and minimise losses.
The Alchemy of Finance by George Soros.
In ‘The Alchemy of Finance’, George Soros explains his approach to trading and introduces ‘reflexivity’ – the theory that fundamentals can be influenced by prices. While this contradicts standard economic thought, Soros claims it has given him an edge over other traders during the course of his career.
First published in 1986, the book provides traders with a fascinating insight into the mindset of one of the most successful traders of all time – years before he triggered Black Wednesday.
Market Wizards by Jack D. Schwager.
‘Market Wizards’ by Jack D. Schwager is an anthology of interviews with the world’s best traders, in which they reveal what separates them from the masses and tell the stories behind their biggest trading coups.
It shows that success isn’t determined by luck, but instead depends on one’s ability to develop a solid trading plan and the right mental attitude.
Day Trading and Swing Trading the Currency Market by Kathy Lien.
‘Day Trading and Swing Trading the Currency Market’ by Kathy Lien provides traders with a range of technical and fundamental strategies that can be used to find overbought and oversold markets. These include strategies involving interest rate differentials, intermarket relationships and news.
The book was revised and updated in 2022, ensuring the content is applicable to today’s markets.
The Black Swan by Nicholas Taleb.
In ‘The Black Swan’, Nicholas Taleb explores the impact of unpredictable events and how they tend to be rationalised after they have occurred. His central idea is that most financial models are deeply flawed because they fail to account for these events, leaving traders exposed to unnecessary risks.
The book serves as a reminder to prepare for the unexpected, and to take steps to minimise the potential downside of every trade.
Bollinger on Bollinger Bands by John Bollinger.
As its name suggests, ‘Bollinger on Bollinger Bands’ is John Bollinger’s guide to his eponymous indicator. In it, he describes how to use the tool properly and avoid common traps, and explains the complementary fundamental analysis techniques that can help confirm how markets are likely to move.
The book also explains the market conditions that drove the development of the indicator, and three methods that can help traders make full use of it.
Japanese Candlestick Charting Techniques by Steve Nison.
First published in 1991, ‘Japanese Candlestick Charting Techniques’ by Steve Nison equips the reader with everything they need to analyse candlestick charts. For experienced traders, Nison details how to confirm candlestick readings using popular technical analysis tools, while those new to trading will learn how to use candlesticks in stand-alone analysis.
The book includes hundreds of examples and details practical steps towards using the methods explained in a live environment.
Trend Following by Michael Covel.
‘Trend Following’ by Michael Covel explains how traders can track prevailing market movements to profit, even during times of great uncertainty. Fully updated following the market crash of 2008 – when trend followers were able to beat expectations – Covel outlines a technical system that traders can use to speculate on a range of markets.
The book includes practical tips designed to get the reader thinking and acting differently, maximising their chances of executing a successful trend-following system.
America’s Bank by Roger Lowenstein.
‘America’s Bank’ by Roger Lowenstein explores the events that led to the formation of the Federal Reserve (Fed) in 1913. For many years, the idea of an American central bank was highly divisive, with many people holding deep-seated suspicions of bodies that sought to make countrywide interventions. However, this changed following the panic of 1907 – a financial crisis that saw the New York Stock Exchange lose around 50% of its value.
Lowenstein’s book tells the story of that crisis and the events that followed, focusing on the four key characters at the heart of the story. While readers are unlikely to garner any specific trading tips, it provides fascinating insights into the history of the Fed.
Want to see more recommended trading books?
Our analysts have looked beyond forex to uncover the top 10 trading books of all time, helping you to make the most of your time on the markets – no matter which asset class you choose to trade.
If you want to learn more about forex, you can open a demo account to practise trading with $10,000 in virtual funds. You’ll also gain access to a range of free online courses through IG Academy.
1 These forex books were recommended by our in-house analysts, client managers, dealers and financial writers as part of a survey for our top 10 trading books guide.
This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy , available on our website.
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IG Analyst Publication date : 2022-12-01T15:00:05+0000.
Will Hall-Smith, Publication date : 2022-07-28T09:32:04+0100.
Patrick Foot, Publication date : 2022-04-20T09:28:27+0100.
Anzél Killian, Publication date : 2022-02-18T14:02:00+0000.
John Bollinger, Publication date : 2022-01-29T10:22:02+0000.
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