I am often asked about my top recommended Forex trading books, and this post is my answer to those queries.
The following books are not technical, and most of them don’t contain specific ‘how-to’ instructions.
Instead, they’ll shift your trading paradigm, which is much more valuable to your growth as a trader.
So without further ado, and in no particular order, these are my top 5 recommended Forex trading books.
My Top 5 Recommended Forex Trading Books
1) Fooled by Randomness
This book fundamentally changed my perspective of, and ultimately my approach to, the “arcane” art of trading.
The main topic of the book revolves around the question:
How can we tell if trading success is due to skill, rather than luck?
Consider a group of 10,000 traders, with each trader having a 50-50 chance of making or losing 15% in any year.
At the end of each year the losing ones are kicked out of the game.
After the first year, 5,000 traders would have made money.
After seven years there would be 78 traders who were profitable every single year, and made a return of more than 105%… And yet all of this is due to random chance.
If these folks then go off and start their own hedge funds, they’d probably attract a lot of investors. People would not know that their trading “skill” was entirely based on luck.
This dilemma is a central tenet of my trading philosophy today, and is what ultimately led to my seach for a trading edge.
While I don’t necessarily agree with all the conclusions of the book, many of the concepts in it have fundamentally changed my perspective of trading.
This is a book that will make you think – I found myself pausing at various points to process the ideas I was reading about.
Some people find Taleb to be arrogant, but I personally found his writing to be refreshing and humorous. It’s rare to find a book that is both educational and enjoyable.
This is a book I’ve re-read multiple times over the years, and even today I’m still walking away with new insights every time I pick it up.
For less than $20, this book is one of the best investments I’ve made in my trading education.
2) What I Learned Losing a Million Dollars
This book has one central lesson to teach, and it’s a crucial one.
I won’t spoil the book by telling you what it is, but I’ll say this: The lesson itself isn’t new, but the way its explained, is.
And that makes all the difference.
In the first few chapters I found myself thinking, “yeah, yeah, I know this already”…
But further into the book, the author explains how he came to the conclusion. And that was the game-changer that clicked a few things together in my head.
I caught myself thinking, “wow, I’ve never thought about it in that way before… now it makes so much sense! I finally get why it’s so important to __________.”
You might have heard the saying: Your trading strategy isn’t really important.