Technical Trading Tips and Techniques by 
Learning to trade forex effectively is like learning any other important skill. It takes lots of practice, experience, and knowledge. The practice and experience aspects of it are completely up to you. Free forex demo accounts are plentiful, and allow you to practice trading in a realistic environment with a real-time price feed.
Knowledge, on the other hand, can be acquired from several different sources. First of all, there are great online sources of knowledge like FXstreet.com, which provide education and analysis to help guide your development as a trader.
Another very important aspect of gaining knowledge is through reading books on trading. There are many trading books out there, but in my opinion, only a select few can truly impart the necessary knowledge to help you become a better trader. I own a library of almost all of these books, and two of the best forex trading books out there are written by my esteemed fellow FXstreet bloggers, Rob Booker (Adventures of a Currency Trader) and Dirk Du Toit (Bird Watching in Lion Country). Other than these, I have a shortlist of general trading books that have helped me a great deal in honing my trading skills. In no particular order, they are as follows:
- Trading for a Living by Alexander Elder
- Trade Your Way to Financial Freedom by Van K. Tharp
- Come Into My Trading Room by Alexander Elder
- High Probability Trading by Marcel Link
- Trading in the Zone by Mark Douglas
- Mastering the Trade by John F. Carter
- Japanese Candlestick Charting Techniques by Steve Nison
- Technical Analysis of the Financial Markets by John J. Murphy
- Market Wizards by Jack D. Schwager
- The New Market Wizards by Jack D. Schwager
- Reminiscences of a Stock Operator by Edwin Lefevre
- Elliott Wave Principle by A.J. Frost and Robert R. Prechter, Jr.
- How Technical Analysis Works by Bruce M. Kamich
- Street Smarts by Laurence A. Connors and Linda Bradford Raschke
- How I Made $2,000,000 in the Stock Market by Nicolas Darvas
- Technical Analysis Explained by Martin J. Pring
Do you have other favorites that I’ve missed? If so, please comment.
- James
James Chen is the Chief Technical Analyst at FX Solutions, a leading Forex broker. He is also a registered Commodity Trading Advisor (CTA) and a Chartered Market Technician (CMT) Level 3 candidate. At FX Solutions, Mr. Chen writes daily currency analysis, conducts forex trading seminars, and has authored numerous articles on currency trading and technical analysis for major financial publications. His upcoming book, Essentials of Foreign Exchange Trading
Hi James:
I think you should include “Beat the Odds in Forex Trading: How to Identify and Profit from High Percentage Market Patterns” (Wiley Trading) by I. R. Toshchakov.
That’s a fine book that adds a fresh perspective on how price moves in different trading session!
Hi James,
For anyone just starting out in trading (particularly Forex trading) then ‘Technical Analysis of the Currency Market’ by Boris Schlossberg - Wiley Trading - is an excellent foundation book.
Boris starts with a history and the evolution of currency trading and then lays out the basics of fundamental and technical analysis. He presents a variety of strategies and all important money management techniques in a straightforward, easy to understand way.
I have found it an excellent starting point and a good ongoing reference book for reinforcing learning.
Regards,
Lizzie
Hi D Bista and Lizzie,
Yes, I agree with both of you. I have those two books as well. Thanks for your suggestions!
- James