Top 5 Books to Become a Forex Trader
For many investors, the world of foreign exchange, or forex, seems daunting and thus is often overlooked or avoided. However, several books are available on the subject of currency trading, ranging from basic education on the forex market to advanced trading strategies based on fundamental analysis and technical analysis.
"Currency Trading for Dummies"
"Currency Trading for Dummies" is a good pick for traders who are just beginning to tackle the world of foreign exchange. Published in 2011, the book was written by Brian Dolan, a veteran of the forex market for more than 20 years, working as a currency trader and market analyst. Dolan was the chief currency strategist at Forex.com, where he oversaw fundamental and technical analysis, and is regularly used as a resource for the latest currency developments by the financial media. The book is one of the best for beginners, as it presents clear, easy-to-read instructions on the forex market.
"Day Trading the Currency Market"
Kathy Lien's "Day Trading the Currency Market" is widely popular among new and burgeoning forex traders. Her book provides a two-pronged approach, offering both theory and actionable learning, with balanced insight into fundamental and technical forex trading strategies designed to generate regular profits. Lien's book also offers extensive and specific information on every aspect of currency markets and foreign exchange trading. Lien walks readers, step-by-step, through Forex fundamentals — such as long- and short-term factors affecting currency pairs — as well as covering technical analysis trading strategies that professional forex traders utilize on a daily basis.
Lien, a world-renowned currency analyst, has decades of experience and an extensive resume. Previously working at JP Morgan Chase & Co (NYSE: JPM), Lien is BK Asset Management's managing director. She is a frequently featured guest on Bloomberg, CNBC and Reuters.
Written by Merrill Lynch analyst Michael Rosenberg, "Currency Forecasting" is considered one of the groundbreaking and definitive works on forex trading. For decades, analysts and traders have turned to Rosenberg's concise, intuitive and brainy piece, which combines the macroeconomics of forex with fundamental and technical analysis. The book was first published in 1995, but it remains a helpful current guide to the currency markets. Rosenberg links international monetary dynamics to what legitimately happens in currency markets. He has long been hailed as a leader among forex analysts, and his ability to delineate clear connections between disparate finance and economic factors continues to make "Currency Forecasting" a go-to guide for traders interested in currency trading.
"Japanese Candlestick Charting Techniques"
Steve Nison's "Japanese Candlestick Charting Techniques" provides a lengthy and in-depth education on Japanese candlestick charts, a versatile technical tool that's very popular among forex traders. The book discusses how candlestick charts are used in conjunction with other technical tools to aid in improving technical market analysis. Candlestick charting is also often used for futures, speculation, hedging, equities or anywhere that technical analysis may be applied. Nison's background, comprised of years of research and study, as well as practical application and his to-the-point and easily understandable language make "Japanese Candlestick Charting Techniques" an ideal read for traders who are seeking a better understanding of forex trading strategy.
"How to Make a Living Trading Foreign Exchange"
Courtney Smith begins "How to Make a Living Trading Foreign Exchange" with an introduction to the world of forex, explaining the basics of foreign exchange trading and how it works. The largest portion of the book is devoted to trading strategies that Smith recommends for making money through forex trading, citing six ways that he touts as ideal for helping traders earn a steady income. Unique to the book is Smith's rejection rule, a strategy designed to double the profit generated from basic channel breakout systems. Smith's book also provides important risk management techniques, as well as material on the psychology of trading.
Forex Beginner Strategies Course
Learn our Exclusive Step-by-Step Forex Strategies and make 50-150+ Pips per Trade!
Welcome to our Forex beginner strategies course. In this course, we provide three simple yet very effective strategies that you can copy that will allow you to earn anywhere from 30-150+ pips per trade.
The Forex strategies contained in this course are very simple to understand and can easily earn you 500 pips per day each.
What will you learn?
- 3 beginner-friendly Forex strategies capable of earning you 500 pips per day each
- Strategies work across a number of time-frames including short-term, intraday and swing trading
- Watch live trade examples with results to show you how to use these strategies
- Exclusive MT4 indicators with entry/exit signals to find profitable trading opportunities
About the Forex Beginner Strategies Course
This course contains 5 strategies that were developed by a professional forex trader with over half a decade experience trading these markets. First of all, let us explain how we develop a strategy here at investoo.com. The first step is to define what we want and how we will achieve it. This can be either a range bound strategy or a trend following strategy but we define this and choose the right tools (indicators) to accomplish the expected results. Next we need to choose the time frames that are optimal for the strategy and then maximize its potential by tweaking the parameters of the indicators we use.
This allows us to get the best entries and profits out of every single one of the signals given by any of these 5 strategies. Every single strategy is backtested with real historic price action on at least 3 major currency pairs for at least 3 month worth of data feed.
Why is backtesting Forex Strategies so important?
Backtesting is the most important step when creating a new automated system or strategy. Let us walk you through the steps involved in its production.
First of all we create the rules with the indicators that we have chosen. Then we look at the signals given by this new system in real time, this is called immediate forward testing. Once we have tweaked the rules so the strategy produces the signals we desire we need to know how these rules have been paying off in the past: This is called backtesting.
Without a real backtest we will be offering rules that we know are profitable but without any real data supporting our claims. After backtesting them we can know for sure their actual win rate, how they behave in off hours, during high impact events or even know on which currency pairs they are more profitable.
This is why backtesting is so important and this is why we take it very seriously here at investoo.com
- Why should we trust these Forex strategies and custom indicators?
Anyone can come up with a strategy using 3 or 4 indicators, literally anyone. The difficult thing about it is to come up with a strategy that makes sense, in which the indicators don?t just signal buy or sell but they accomplish a purpose.
We have taken our time developing them, we have tested different variations of indicators and parameters to find the ones that worked the best for the signals we were looking for. We have the data to support it.
Each and every single one of these strategies is different and serves a different purpose for different market conditions and trade styles.
- How do I choose the right Forex strategy for me?
Choosing a strategy is like choosing the right color for your car. You already know you want to get to your destination faster you just need one that feels ok and goes with your style. Trading with semi-automated or fully automated strategies is just like this. You know you want to profit from the markets; you just need to know how. Maybe your path is through trend trading strategies, maybe your style is more of a reversal kind of trade, whichever is the case we have the strategy for you.
We recommend you go through every single one and test them out. Just then you will realize which one you feel more comfortable with, which one makes more sense to you, which one is going to make you money on the long term.
Before you start these lessons we believe it?s important for you to know the rationale behind each strategy.
Daily Pivots Forex Strategy
This Strategy was developed for day trades only. It aims to profit from reversals at very defined areas of support and resistance. This strategy is perfect for traders that don?t have much time to trade and are looking for quick intraday moves to profit from.
3MA and PSAR Forex Beginner Strategy
This strategy produces signals in every market condition and on any instrument available. It?s a simple stop and reverse system that will allow you to profit from corrections and reversals at any time of your session.
Ichimoku Cloud System
The Ichimoku cloud system was developed to maximize the profitability of one of the most uncommon indicators out there: the ichimoku cloud. The signals produced with this strategy depend on the time frame you are using to trade from. We believe the signals from the hourly to daily charts are the most powerful and have the highest win ratio.
Ultra Trend Following Forex System
Behind every great trader is a great trend following system. This system was developed for us to be used by any type of trader out there. Newbies and experienced traders will be able to quickly find the best trends and get excellent entry points to profit from big moves.
Donchian Channel Breakout System
Do you know how hard it is to take a trade right when the market starts to move? Do you feel like sometimes you are leaving money on the table because you weren?t able to take that position? We know how that feels and that?s why we have developed this strategy that focuses on breakouts and momentum.
With the DCS you will get signals every time there volume coming into the market and breaking the previous ranges, lows or highs, giving excellent entries for quick profits on intraday moves. This strategy can also be used as a swing trading system but we believe it works better on the shorter time frames.