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Which books are worth reading
Forex literature? Many beginners, eager for knowledge, asked me where to start. What books are worth reading? Which publication is the best? Or maybe an e-book? Which will help him understand what Forex is and how to invest on it? What technique should be used?
The number of books and their thematic diversity can make you feel dizzy. It cannot be said that a book or e-book is a waste of time. You can get something out of each of them. However, we all have a limited amount of time ... So to meet your problems, I decided to write this article, which should to some extent help in the selection of readings, both at the beginning of the investment adventure and at its later stage.
There are several problems:
- I haven't read all the books on this subject, so I'm not able to name the best one. At most the best or rather the most interesting in my opinion that I have ever "swallowed". Swallow because I only read books myself for educational purposes. To learn something - I'm from this new generation :-).
- It is impossible to indicate the best investment-related position. It is such a broad field, consisting of many elements, that it is impossible to choose the "best" one.
- Everyone can perceive reality differently, including investing. Therefore, not all elements of trading will be as interesting to him as for the other person.
- The number of types of technical analysis prevents. Everyone will choose something for themselves. One trader will be interested in the geometry of the markets and fibonacci sequences, someone else will choose classic AT or pure Price Action.
Therefore, instead of focusing on subjective rankings, I will present books that, in my opinion, are worth reading. At the beginning, my favorite which I always gladly return to. By the way, direct links to the online bookstore Maklerska.pl.
WARNING! Each Forex Club customer is entitled to 5% rebate on each item from Maklerska.pl. More details
Steve Nison "Candles and Other Japanese Chart Analysis Techniques"
The position has already been years, however, it has not lost its relevance. The author presents in a friendly way the entire ideology of using candle charts. All formations supported by transparent examples are discussed. Like everything that is already on the net, but it offers something much more. The whole mass of additional information on combined candles, the significance of their occurrence and looking at the wider context together with the volume make everyone who wants to work on candles should read it. Preferably a few times.
Other, described Japanese analysis techniques (eg kaga charts) I would treat more as a curiosity than something worth focusing on. These charts are just such a rarity that not many platforms offer them.
Van Tharp “Stock Exchange, Freedom, Money. The Speculator's Guide "
A very interesting book, which will make us aware of the importance of capital management, will show the difference between a system and a strategy, and will teach us to build both of these things. It is true that I am opposed to the statements "do not risk more than 2% of your capital per transaction" or "do not use too much leverage" because this should depend on our individual preferences about the propensity to risk. A large lever is also not bad - on the contrary - it is a beautiful invention that simply gives us great opportunities, and it is only up to us how we use them. Therefore, you have to be flexible with the information contained therein. Written in not the simplest language, however, it is worth trying to get through it. I like to check it out myself sometimes.
Alexander Elder "The profession of a stock market investor"
Very popular reading. Personally, I do not recommend reading the whole thing. I would limit myself to the first 80 pages where we focus on the psychological aspects of the market, both from the perspective of the individual and the crowd. Very nice and wisely presented - I think it's the result of the fact that Elder is a psychologist by education :-). Further on, the author focuses on the description of the basics of technical analysis and its indicators. In my opinion, it was better and more interesting for Murphy, who I will also write about.
READ ALSO: Book review: Occupation Investor Stock Exchange. A new shot
John J. Murphy "Technical Analysis of Financial Markets"
If we take this book in hand, we can be quite shocked. Some call it the "bible of technical analysis." I think it is right and it is not only about the dimensions. A comprehensive and interesting description of all the basic techniques of classic technical analysis and the most popular indicators used in AT in one place. Even if we do not plan to use them, I think it is worth realizing that such tools exist, what they look like and at least more or less how they work (without going into details).
Paweł Danielewicz "Fibonacci Geometry"
Paweł Danielewicz can be considered the main promoter of the so-called "Harmonic trading" in Poland. What is the mentioned harmonic trade? Simply put, it is a market analysis using numbers from the Fibonacci sequence, examining various structures and systems of prices. Some consider it an abstract, others see it as a magical method and a way to profit and gain an advantage over the market. If anyone is interested in this method of technical analysis, I doubtlessly think that he will not be disappointed after reading Danielewicz's book. Sometimes it may seem to us that we have a photo album in our hands instead of a book :-). There is a lot of examples and graphs. It is true that mainly from the Polish stock market, and not the currency market, but it does not really matter. While reading it, I recommend that you analyze the market and learn to find the patterns presented. The more the better. It is not easy at first. After "passing" this reading, if we feel that this is what interests us and we know English in not the worst degree, I recommend getting all Scott Carney's books. I think it is enough to write that he is the creator of the website www.harmonictrader.com :-).
Richard Yamarone “Economic Indicators. Investor's Guide "
If someone is not too drawn to technical analysis and is more interested in macroeconomics and economic indicators, he should definitely read it. The author describes all the most important macro indicators from the American economy. Apart from the descriptions and their characteristics, there is something more, namely a detailed explanation of how they are counted, how to read them, what information they actually provide us with and how we can use it. This gives us a big advantage. We will not have to rely on the analyzes and comments of experts (and sometimes "experts"). We will know what is actually happening in the economy, having our own opinion on this subject. You do not need to be a graduate of economics to understand what is written there, so I can confidently recommend it to everyone - both people who are just starting their adventure with trading and more experienced investors.
Mark Galant, Brian Dolan "Forex for smarts"
A popular series of books, especially abroad, "... for dummies". There are already items on almost every topic. The currency market was not left out. Although the title sounds not very serious and professional (after all, we want to become such investors - professional, serious and, ultimately, also wealthy), I think it is worth taking a look at. Written in simple language, it allows you to quickly learn the basics of the FX market. We won't learn to invest from it, or we won't learn about secret techniques, and even charts are rare there. We will learn where the main financial centers of the world are concentrated, what trade looks like, who is involved in it, and we will also learn the basic terminology without which we can not move. All the things that everyone should know are gathered in one place, but would be afraid to ask :-). I recommend it mainly to beginners. Others may be bored with it.
Nicolas Darvas "How I Made $ 2 in the Stock Market"
The true story of a stock market player, considered the bestseller. It can be treated more as a reading to relax, while at the same time, while reading between the lines, we will learn certain lessons. A lot of psychological threads, discussed mistakes made by beginners, as well as the presentation of how the trade in the stock market looked many years ago. It makes us realize how great progress we have made and how much we now have easier. Its significant advantage is the fact that everything is based on the author's personal example. It's good to read and it will not be wasted time.
To sum up, there are many books worth attention on the market. The fact that a good item was not included in the above list does not mean that it is not worth reading. You can learn something from each. Remember that the art of trading is a very individual field. You must be able to translate the knowledge gained from books into your own preferences and possibilities (skills, financial and time resources, predispositions). Let us not treat the information contained in the reading as sacred - these are more guidelines than simple guidelines. Let's think for ourselves and be flexible. I believe that even without reading a single item, you can do well in the currency market. However, you have to think, analyze and practice a lot. Because there is nothing more valuable than the practical experience gained.
