The 6 Best Trading Books to Read This Winter

If you're starting as a trader or already well along your journey, you know how difficult it can be to trust you're doing the right things.

11:33 28 November 2022

If you're starting as a trader or already well along your journey, you know how difficult it can be to trust you're doing the right things. As a newbie trader, you tend to doubt yourself and second-guess most decisions before taking action, which can be stressful and cost you time and money. However, reading trading books can help you learn from other traders' experiences and give you a perspective that would otherwise take years of trial and error. 

Over the years, there have been fantastic books written by traders and other professionals in the industry, giving invaluable insights into trading. For instance, John Hull's fundamentals of options trading provide an excellent account of how to avoid pitfalls and make money trading options. So, if you're on one of the UK trading platforms, here is a list of six books you should read to improve your skills. 

Fundamentals of Futures and Options Markets (John Hull)

John Hull is a Financial Professor of Derivatives and Risk Management at the Joseph L. Rotman School of Management. He is also a well-known derivative and risk management expert respected in trading circles. His book boils down options and futures without using too many numbers and gives real-life examples that are easy to follow. 

Reading this book will help you prepare for the arduous options trading industry and help you better prepare to manage your risks. Furthermore, if you're already an established trader, John's book will help you get a clear perspective of your trading by using clear and simple-to-understand real-life strategies. 

Currency Trading for Dummies (Brian Dolan)

Brian is a two-decade veteran of the currency markets and has seen and done it all. He's also a frequent contributor to significant TV broadcasts in the US and knows a thing or two about the forex markets. This makes him the perfect author to write about how people with no experience in currency trading can start and quickly get up to speed. 

His book is easy to read and includes industry hacks on analysing, identifying, and using trading tools to increase efficiency.

Day Trading and Swing Trading the Currency Market 3rd edition (Kathy Lien)

Kathy is a long-time trader who is also a co-founder at BKforex.com and the managing director at FX Strategy. And other than being an excellent trader, she's a diligent and loyal author who keeps updating her materials as her knowledge in the industry advances and trends change. However, the third edition has the most current information; you should make a point of reading if you can't read all three. 

Kathy's book has invaluable nuggets for all-level day and swing traders, and it will teach you how to use analytical tools to analyse and create trading strategies. 

The Black Book of Forex Trading (Paul Langer)

Paul has been a full-time trader for over eight years. He wrote this book to share his favourite trading tips and tricks that he uses in the forex market. However, the book is primarily about managing traders, even though it touches on how to get started as a beginner trader. 

Furthermore, Paul's account of risk management is eye-opening and will undoubtedly give you more ideas to increase your profit potential. 

Forex for Beginners: What You Need to Know to Get Started (Anna Coulling)

Anna is another authoritative voice in the currency markets. She is a trader with over two decades of experience, with a track record to match. She is also very talented with words and dilutes complex subjects in the currency markets into easy-to-read and understandable concepts for anyone. Her book clearly explains how to analyse currency markets, CFDs, and ETFs, and it will be an invaluable tool if you're eying any of those instruments. 

The Little Book of Currency Trading: How to Make Big Profits in the World of Forex (Kathy Lien)

Another entry for Kathy on this list is her take on currency trading. She gives tips and tricks on profitability in trading currencies, CFDs, and ETFs. It will also expound your knowledge of what drives the global currency trade and leave you in a better situation to analyse and strategise in the market. Furthermore, Kathy gets into risk management concepts, and reading this book will leave an overall more rounded trader.