In my adult age, I started reading a lot, different variety of books, different topics. I really enjoy diving into the minds of writers who dedicated their precious time to writing books that we can surely benefit from.
I find books the cheapest way to steal someone’s expertise on the topic you are into for. Especially when it comes to our business, the business of trading. I sometimes spend hours on Amazon searching for the best books on different subjects on trading, business, psychology, history, and almost everything I am interested in. This search fulfills me and I really enjoy it.
When it comes to trading books, I stopped counting the numbers of books I have read so far. I find it very useful to check how people see and implement their analysis, have a view on a certain market, or simply change or adjust their approach to trading in general.
The ones I have found most useful so far (the list is not complete of course, there are tons of books which I could also recommend and will surely write about them in future) are:
Market Wizards series by Jack Schwager
Mr. Schwager has really added a ton of value to all of us who live and make a living out of trading in any financial market.
Covering stock traders, hedge fund traders, or traders we have never heard of, Mr. Schwager explains the core principles of trading for some of the people we all look up to. In series of interviews traders give examples, explain how they execute their trades, and prepare for their trading week, which when put into a broad perspective, in my opinion, is worth more than gold.
You have the best traders explaining their approach, and you can read all about it by spending 20 or 30 bucks on Amazon. What more you could ask for?
Trading in the zone by Mark Douglas
Do you suffer from a lack of consistency, are your mental habits influencing your trading decisions? If yes, this book is the right book for you.
Mr. Douglas, one of the best market psychologists is teaching us random ways of accepting the markets and our own beliefs and living with the decisions we make when it comes to trading.
I have read his books numerous times and I always come back to them. Why? Every new reading changes my perspective in some areas. I always use a pen and a notebook when reading his books. All the notes I take are pure gold to me and my trading approach.
Go buy this book, you won’t regret it. Trust me.
The Disciplined Trader by Mark Douglas
Ever wondered how successful traders think? If yes, this book is a perfect fit for you. One of the first books ever to be written about a psychological approach to trading, with useful exercises on how to change your limiting mindset when it comes to trading.
You, the reader, are taken through a step-by-step process on how to break from obstacles you will have as a trader.
I enjoyed reading this book, and always come back to it and read it again. If you consider reading it, use pen and paper and take notes.
Japanese Candlestick Charting Techniques by Steve Nison
Bringing the usability of Japanese candlesticks to analysis, Mr. Nison is considered a man who brought the candles we now all use (well maybe not all, but a good 95% of us)to a broader audience.
Mr. Nison’s book is the first-ever to be written about Japanese candles and their usage, meanings, explanations, techniques.
A good read for traders who are looking to upgrade or gain any kind of knowledge about the formation of the candles in the markets. We can thank people like Mr. Nison for making candlesticks we use now an industry standard.
I personally have read this book, and though, it is mostly about patterns that are forming after the price has made some significant gaps (which is not so common in Forex trading), I still find it quite useful.
Trend Following by Michael Covel
Michael Covel is revealing the path of little-known traders who’ve been trading the trend for decades and making more than decent profits on the line. Using charts which successful trend following traders have used, Mr. Covel is explaining the core principle of trend following in trading and the sentence which almost every trader has heard about – ‘’ Trend is your friend!’’ is clearly proven as a working principle in this business of ours.
Over the long term, explanations provided in this book have been proving as a winning approach.
If you don’t fully believe in trend following or are not familiar with this approach to trading the financial markets, I suggest you give this book a try.
In my opinion, it’s worth a try.
Naked Forex by Alex Nekritin and Walter Peters
Though I am not a firm believer in trading the naked charts, I found this book to be quite a good read honestly.
Mr. Nekritin and Mr. Peters, have gone in-depth on explaining pure price data and patterns forming in various situations. They have been trying to prove that naked trading, or the old way trading, is still in a position to beat the technical indicators traders.
And honestly, in some parts of the book, they have the right point of view. As I mentioned, I am a purely technical trader, price is just one of the tools I follow in my trading approach. But this book has some good points in explaining fake-outs or the false breakouts, support and resistance trading, their explanatory writing is easy to understand and use right away. Even if you are a beginner in this field.
Their concepts, which I follow and use, are to always perform a backtest of any trading idea you come across. Which is always a smart way of starting your journey.
And the other one I found pretty useful, especially for the novice, is going in with the higher time frames for trading your account. This is personally how I trade, how I teach people to trade, and how I also think the best approach is to be set.
You as a swing trader are not affected by intra-day movements, news, and can focus on the important parts of your strategy and plan, the trading itself.
In my personal opinion, Naked Forex is a good read and I would personally recommend everyone to go and read it.
Reminiscences of a stock operator by Edwin Lefevre
A fictional novel following a young trader, Jesse Livermore, is considered an investment classic.
The journey of Jesse which started at the age of 15, when he first made $1000, to becoming the biggest and most recognized legend of the Wall Street, this book is a favorite to a lot of traders.
The simplicity, stability in some situations, belief in the system used, and knowledge of the markets he was trading at the moment, is what characterized Jesse’s approach to trading.
I would recommend this book to all traders, novice, intermediate, pro-ones. Go and read it again, if you did!
Or go and read it for the first time, if you didn’t!
Thank me later….