Trading Books And Further Resources
I am always being asked by new and developing traders about where best to find additional resources, books and educational programs. It’s a great idea for traders to always be further developing themselves. There are many trading books out there that will help you expand your skills and education. This list highlights my favorite books that every trader should read, broken down into 3 different categories:
(1) Day Trading (2) Swing Trading (3) Trading Psychology
Of these, trading psychology books are the most important. It does not matter what type of trading you are doing. It is a typical mistake to focus exclusively on the technical aspect of trading and trading strategies. Often, beginner traders who fail to make money in the markets get frustrated and go out and try to learn more about how the markets work, study new strategies, adopt additional technical indicators, follow some different traders, and join other chatrooms. They don’t realize that the main cause of their failure is often their own psychology: a lack of self-discipline, the making of impulsive decisions and sloppy risk and money management – not their technical knowledge. You are the only problem you will ever have for your trading career and, of course, you are the only solution to this problem. The correct trading psychology is something that you can learn, and nobody has been bestowed with it at birth. That is why you should read, study, and focus on improving it.
Well, obviously, I am biased toward this book, I have written it myself. I read many books, watched countless hours of trading videos, and paid tens of thousands of dollars for trading courses.
This practical book is the summary of what I have learned over many years. If you are in my chatroom, you will see that I use the book’s strategies every single day. I hope you learn from it and that it adds value to your day trading career.
Author: Dr. Andrew Aziz
Well, obviously, I am biased toward this book too, I have written it myself. This book begins with an in-depth look at the necessary tools of the trade including scanner, software and platform; and then moves to practical advice on subjects such as how to find the right stocks to trade, how to define support and resistance levels, and how to best manage your trades in the stress of the moment. An extensive review of proven trading strategies follows, all amply illustrated with real examples from recent trades. Risk management is addressed including tips on how to determine proper entry, profit targets and stop losses.
If you want a recommendation for a book about day trading other than my own book, consider reading this volume. Rumor has it that this is also a good guide to launching a successful career in trading, but I have not read it yet.
In High Probability Trading Strategies, author and well-known trading educator Robert Miner skillfully outlines every aspect of a practical trading plan – from entry to exit – that he has developed over the course of his distinguished twenty-plus-year career.
The result is a complete approach to trading that will allow you to trade confidently in a variety of markets and time frames.
Author: Brian Pezim
Swing trading is a type of trading in which you hold positions in stocks or other investments over a period of time that can range from one day to a few weeks or more. If you are a beginner trader, this book will equip you with an understanding of where to start, how to start, what to expect from swing trading, and how you can develop your own strategy based on your personal goals. If you are a trader with some existing experience, this book will give you some insights on the author’s approach to swing trading, rules that I follow and some strategies that I have used over the years to make profitable trades.
Author: Dr. Alexander Elder
I also have this book on my shelf. It’s a classic “must read” for any trader.
Although there is discussion about day trading in its pages, this book is more useful for swing traders. There’s excellent tips on risk management, self-control, and clear rules that both day traders and swing traders should follow.
This book also provides the knowledge, perspective, and tools needed for developing your own effective trading system.
Author: Omar Bassal
I’ll confess, I’m not a fan of the For Dummies series of books. I was disappointed after reading several of them earlier in my trading career. But this book is something else.
Omar Bassal is a billion-dollar fund manager in the Middle East who has written an excellent practical book for all of us. Even though it’s been some time since I first read this book, I still go back to it when I need more information for my swing trades.
This is an excellent resource to start with if you believe day trading does not fit with your schedule and personality and you are instead giving some thought to swing trading.
Author: Dr. Brett N. Steenbarger
Dr. Brett N. Steenbarger is one of the top trading psychologists and he has been writing trading blogs and books for many decades now. I am currently reading this book of his. It’s a great book! It’s simply written, motivational and with unique content that leads any trader, novice or experienced, along the path of self-coaching to become a better trader.
This is a must-have addition to any trader’s bookshelf. I’ll certainly be recommending it to all of my friends. And I am sure I will read it at least 3 times. For real! This is definitely one of the very few books out there that is worth re-reading every once in a while.
Author: Dr. Brett N. Steenbarger
Another great book by Dr. Brett N. Steenbarger. As mentioned earlier, trading psychology is one of the few topics that is of equal importance to day traders and other kinds of traders. Many Wall Street firms hire trading coaches, but what about us retail traders? This and the previous book provide a coach in print, accessible 24/7 no matter what the market is doing. You will understand the ways in which psychology is applied in real-world trading as well as learn practical tips to permit you to immediately see improved results in your trading. Please read these two books, they are not only beneficial to your trading career, but they will also help you in all aspects of your life.
This is an outstanding book. Mark Douglas wrote this book in 2001 and it is destined to become a classic on trading psychology – the book remains a bestseller to this date. Mark, a veteran trader, writes about why most traders lack consistency and he helps traders overcome their mental habits that cause them to make the most common mistakes including: chasing the stocks, fear of missing out, greed. He teaches traders to look beyond the random outcomes of the market to understand the true meaning of risk, and to be comfortable with the “probabilities” of market movement that govern all market speculation. The audiobook is amazing. The narrator is Walter Dixon, and I fell in love with his voice!
Mark Douglas passed away in 2015, but his wife continues his work.
Author: Zack Zarr, Ph.D.
Forex Trading is different from the stock market trading in the sense that a centralized exchange does not exist. The structure of Forex Market has been and still remains vague to many people. The world of Forex trading belonged to the big banks and institutions until not long ago when retail traders became able to trade currencies.
In this book, Zack shares his experience of over ten years in Forex Trading. He explains how to start a Forex Trading account, tools to place orders and some basic yet fundamental strategies to trade currencies. He paves the way for a fundamental change in your mindset towards analyzing the charts.
This book is a stepping stone into the journey of Forex Trading. Learning the concepts described in this book prepares you to think in the mind of big institutional traders who never lose money in the market.