We have prepared a review of the best trading books. The featured authors are market practitioners or "biographers" of famous traders. In their works, they talk about the theory and psychology of trading. The fact that trading has ups, downs and work on mistakes.
Attention! This article is for informational purposes only and does not contain recommendations or calls to action.
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John Murphy – actual trader, technical analysis expert. Murphy has been on the financial market since the 60s of the XX century.
In his work "Technical Analysis of Financial Markets" Murphy examines the theoretical foundations of technical analysis and methods of their application in practice. The book can be used as a basic guide to technical analysis for both futures and stocks and other instruments.
The book will be useful for beginners and experienced market participants. Murphy reveals the basic principles of the Dow theory, considers the types of charts, teaches how to build and understand it. The author of the work "Technical Analysis of Financial Markets" speaks of volume and open interest as additional indicators of market analysis.
Murphy considers long-term charts and commodity indices, moving averages, oscillators, intraday pip-figure charts, standard methods for measuring them. Attention is also paid to Elliot's theory, Fibonacci numbers and even money management.
One good trade
Mike Bellafiore – an actual trader, co-founder of the prop-company SMB Capital. Professionally trades on the stock exchange for over 18 years.
In his book One Good Trade, Bellafiore talks about balancing risks with likely rewards in trades. The author examines the process of choosing stocks, pays attention to reading the stock trades history.
One of the highlights of One Good Trade is the emotional component of trading. Bellafiore writes how to learn to control yourself and avoid spontaneous trades. The ethical aspects of trade are also taken into account.
The book features stories of traders who have succeeded or failed and left the industry.
Reminiscences of a Stock Operator
Edwin Lefebvre - journalist, combined work on the stock exchange with literary activities. Lefebvre's works are devoted to various aspects of stock trading.
Lefebvre's most popular work is Reminiscences of a Stock Operator, a fictional biography of trader Jesse Lauriston Livermore. The hero of the book tells about his life, work in a brokerage office, the first steps in trading.
The "Reminiscences of a Stock Operator" describes the theoretical and practical aspects of trading on the stock exchange. Attention is paid to the psychology of the crowd, the peculiarities of the formation of demand and trading.
In Lefebvre's book, there are no clear rules for trading. Lefebvre takes a look at the psychological challenges that every trader faces and talks about overcoming them. "Reminiscences of a Stock Operator" was included in the golden fund of literature for stock traders.
Jack Schwager has put together two very popular books on trading: "Market Wizards" and "The New Market Wizards." Both books consist of interviews with some of the most successful traders of the past half-century, such as Paul Tudor Jones, the billionaire founder of Tudor Investment Corporation. It is often argued that the best way to learn any craft or occupation is to be mentored by people who have already attained success in the field. The book of Schwager offers readers the opportunity to pick up some mentor-like advice from very successful traders.
The Disciplined Trader
"The Disciplined Trader: Developing Winning Attitudes" written by Mark Douglas in 1990, addresses the subject of the psychology of trading, the mental discipline that is required in order to be a successful trader. One of the strengths of the book is the fact that, although it addresses a subject that might appear complex to some readers, but it’s a very clear and easy read. Douglas does an excellent job of describing the basic mindset and attitudes that are essential for traders.
Remember that trading book can’t guarantee trading success. The book can help you avoid mistakes, but first of all it all depends on the trader. Comment, share, and suggest trading books that have helped you in your trading. Gradually, we will add the review with new books about trading.
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