Must Reads!

Must Read Trading Books

There are a wealth of books and other reading materials on trading out there, but listed below are some of the books that i particularly rate and have influenced my trading over the years. Don’t feel you need to read them all, though i have marked those that are genuine ‘must reads trading books’ in my opinion.

Remember there is also a lot of free material out there on the internet and i must admit that i’ve found YouTube.com to be a very handy learning resource indeed!

All the books below are available from Amazon – just click on the book images.

 

How I Made $2,000,000 In The Stock Market by Nicolas Darvas

How I Made $2,000,000 In The Stock Market by Nicolas Darvas, is undoubtedly my favourite trading book of all. Simple and brilliant. Darvas was a professional dancer (which he never gave up) who taught himself to trade stocks during the late 1950’s. The principles he discusses, which can be applied to any market, cover pretty much every aspect of successful trading as he recounts his journey from hopeless beginner to one of the most successful amateur traders in history. The key learnings from this book include; the importance of setting and adhering to your trading strategy rules, setting and keeping to stop losses, riding your winning positions (not taking profits too soon) and keeping a healthy distance from market noise i.e. – ignoring the financial press & broker tipping services etc.

Perhaps most amazingly Darvas amassed his fortune whilst all the while performing on tour in some of the furthest reaches of the world, relying only on simple telegrams to and from his broker with price data and trading instructions. Darvas makes a point of attributing much of his success to this separation from the market, allowing him to keep his focus.

It is a very short book, a very easy read and worth its weight in gold in my opinion. (Must Read)

Way Of The Turtle - Curtis Faith

Way Of The Turtle by Curtis Faith, recounts the famous experiment conducted by guru trader Richard Dennis in 1983 where he took handful of hopefuls who had never traded before and tried to turn them into expert traders, with varying degrees of success. Curtis Faith was only 19 when he joined the program but finished as the most successful ‘turtle’ by a mile making millions in the process. This simple and very straightforward written book discusses all aspects of becoming a successful trader including strategies, risk management and perhaps most importantly, trader mindset and the importance of discipline and sticking to the rules. Its a very quick and easy read but the messages within are extremely powerful and as ‘on the money’ today as they ever were back in 1983.

Mastering The Trade - John F Carter

Mastering The Trade by John Carter, is one of my favourite trading strategy books. The books contains a multitude of strategies and examples of their use in a variety of markets and time frames. None of the strategies are particularly new or unique in my opinion, but then every strategy ever devised is really only a variant of either a bounce or a break trade anyway, but the way John explains and packages them up makes them easy to understand, follow and hopefully apply yourself. As with most trading books there are sections on trader psychology, risk management and also some entertaining narrative and wider trading discussion pieces. The book does assume some basic trading knowledge on behalf of the reader and hence i wouldn’t recommend to anyone literally just starting out.

 

Trading In The Zone - Mark Douglas

Trading In the Zone by Mark Douglas, is arguably the ‘go to’ book for trading psychology. This text and also Mark’s other well known work ‘The Disciplined Trader‘ looks purely at how to achieve the correct and therefore winning mindset that all successful traders have.Winning traders understand and accept that taking losses is part of the job and sticking to the strategy rules, even after a run of losses, is more important than the strategy itself. Trading, is as any successful trader will tell you 80% psychology! (Must Read)

 

Bets And The City - Sally Nicoll

Bets And The City by Sally Nicoll, is a light hearted quick read novel charting Sally’s first forays as a beginner into the murky world of amateur trading. This book was what started it all off for me and i haven’t looked back since! This book is not going to tell you how to trade or reveal anything that will make you a better trader as such, but what it will do, through often comically insightful plot twists, is give you some insight into the ups and downs, trials and tribulations of learning to trade that all new traders are guaranteed to experience!

 

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