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.
On a different note, I have been using a few different Amazon services that I strongly recommend. Kindle Unlimited for unlimited reading of millions of eBooks, Amazon Prime for fast 2-day shipping (no minimum purchase limit) and Audible for listening to audiobooks while I am running or driving. I highly recommend trying them, at least for their free trial period (you will find a link to their free trial below).
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.
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: 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.
Authors: Kathy Lien and Boris Schlossberg
Do you think it’s impossible to become a millionaire by trading? Or that Wall Street is too difficult to win against?
This book interviews 12 real and ordinary individuals around the world who have worked hard to become millionaire traders. They reveal how you can beat Wall Street at its own game.
It is filled with in-depth insights and practical advice. Traders who are interviewed in this book trade in all of the markets: stocks, ETFs, currencies and Forex, options, and commodities. This book introduces you to the paths they’ve taken to capture considerable profits.
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: Mike Bellafiore
As retail day traders working from our home office, we are competing against professional traders in proprietary firms. Mike Bellafiore is the co-founder of one of them: the New York City-based SMB Capital. Just like with retail trading, the world of prop trading is mentally and emotionally challenging.
I was interested to know who I am competing against, and what is going on inside of these firms. In his book, Mike Bellafiore shares the principles and techniques that his desk of traders are using every day at his firm.
This is not a technical book, and you don’t learn any specific trading strategy or tips from it. He talks about the challenges of prop trading and provides insights on why professional traders succeed or fail. A good audiobook!
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.