20 Must Read books on trading by legendary traders
Monday, March 19, 2018 12:07
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Trading is all about learning and then experimenting with it. Either you learn from your own bad experience or you learn from those who already have made a lot of money from trading. Here are few must-read books on trading if you want to learn to trade.
We all are in the learning stage, if you want to be successful at trading then you will need to continuously learn.
You need to create a model which is used by the successful traders, the best way to create your own trading model is to read the best trading books.
there are hundreds and thousands of books there, so which one should I read?
Well, I have read about 50+ books in my 13 years old trading career.
I cannot share the PDF of these book as it will be against copyright law.
But you can sure ask your friends or if you wish, you can purchase them directly from the links below.
Market Wizards
This book showcases the interviews of successful traders, some of these traders have turned $30,000 into massive $85+million. This book is highly recommended books for those who want to have stocks trading as a business.
Another interview tells about a hedge fund manager who has managed to average 30% returns every year for past twenty-one years and a Treasury-bond futures trader who converted his $25,000 into $2 billion!
Good about this book:
Interviews in this contain most successful traders like of Paul Tudor Jones, Michel Steinhardt, Ed Seykota, Marty Schwartz, Tom Baldwin, Richard Dennis, and etc.
Bad about this book:
I didn’t find any.
Who should read this book?
A highly recommended book for anyone interested in trading. However, if you have just started your trading career, you may not like reading this book as it requires a basic understanding of technical terms.
The New Market Wizards
This is a next version of the previous Market Wizard book and is written in the same format. The only difference is this book is, it focuses only on American traders, whereas the previous book had traders interview from all around the world.
However, the value it provides is unparallel.
Good about this book:
Same as above.
Bad about this book:
Same as above.
Who should read this book?
A highly recommended book for anyone interested in trading. However, if you have just started your trading career, you may not like reading this book as it requires a basic understanding of technical terms.
Pit Bull: Lessons from Wall Street’s Champion Day Trader
This book is a storyteller,
It shows the picture of the Martin Schwartz, whose trading career is full of ups and downs. He started trading stocks with fundamental analysis but didn’t find any success with it.
Then, he moved to technical analysis where he became successful at and made multimillion in first 2 years of trading. He made $1.8million in those two years.
This is the story of Martin Schwartz who rose from a lowly pit trader to champion trader, to hedge fund master.
Good about this book:
This book, the way it is written is a good entertainer. Martin Schwartz was a very disciplined trader.
Bad about this book:
There’s nothing I can think of.
Who should read this book?
If you’re looking to be an intraday trader and has been in trading for a while then you should read this book. But if you are looking to learn trading strategies then you will get bored as it is more of an autobiography then a trading manual.
Reminiscences of a Stock Operator
If you ask a successful trader which book will he recommend, there are chances that Reminiscences of a stock operator will appear in his must-read list. That’s just how good this book is.
This is a biography of Jesse Livermore, one of the most successful traders of his time, on how he speculated in the financial markets. He started trading at a very young age and took trading as a career opportunity, this book also teaches about his successful trading style.
This book will give you goosebumps as you will discover how he lost and made millions of $$$ and few times he got bankrupt too.
If you read this book, again and again, you will possibly learn new strategies which you didn’t see before.
Good about this book:
In this book, you will experience what all challenges all trader’s faces and lessons are too good as it makes sense in real time trading situation.
Bad about this book:
The book is not at all for a new trader (if it is your day one of as a trader.), as it has many technical terms which may be difficult.
Who should read this book?
If you are looking for a book on trading knowledge along with a good trading story, then this is a book for you. This book is not for those who are looking for trading techniques as it more of a biography than a how-to book.
How to Make Money in Stocks: A Winning System in Good Times and Bad
The author is one of the greatest and most successful stock traders of his time, achieved a staggering return of 5000% in over a 25 year period. The book has sold over 2 million copies worldwide.
The book has trading strategies which can help you avoid the 21 most common investor mistakes.
Good about this book:
The CAN SLIM system created by the author is a widely used system even today. It is easier to learn and understand even for those who have very little fundamental analysis background.
Bad about this book:
Didn’t see any.
Who should read this book?
If you want to learn how to trade stocks using both technical and fundamental analysis, then this book is for you. If you are a commodities/forex trader then this book won’t help you much.
Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market
Mark Minervini is American trader, one of the most successful traders in stock Market. His technique of trading has averaged him 220% per year to accumulate a massive 33,500% compounded return in total. He was able to achieve 3 digit returns for 5 years in a row.
The method of trading which he follows is called SEPA system, which teaches how to profit from trading, pick IPO’s, avoid high-risk situations, when to buy and when to sell.
Good about this book:
The book is much of a trading guide and tells us How-to in the financial markets.
Bad about this book:
I couldn’t find any. But if there would be more examples then it would have been better.
Who should read this book?
If you are focused on stock markets then this book is for you. As you will learn both technical and fundamental analysis. But if you are a commodities/forex trader then this book wouldn’t be of much help.
Stocks on the Move: Beating the Market with Hedge Fund Momentum Strategies
In this book, Andreas F. Clenow will teach you how you can get more returns than that of mutual funds. The stock markets have given returns of 5 – 8% annually, but sometimes you will have to bear a drawdown of more than 50%.
In this book, you will learn on how to lower risk and higher the returns with the help of momentum trading strategies.
Good about this book:
Andreas F. Clenow uses statistical evidence and backtested results on historical data to satisfy his strategies, this is uncommon in advisory and stock broking.
Bad about this book:
Not really bad, but those who hate statistics will hate this book. As it needs some knowledge of statistics.
Who should read this book?
This is for those traders who want to gain knowledge on trading stocks with momentum strategies. For those who don’t trade stocks, this book may not be a good grab.
Trend Following: Learn to Make Millions in Up or Down Markets
This was my first book which taught me, trend following is the simplest way out to make money in any financial markets.
This book is completely written around the concept of what Trend Following is and how the smart money flow in and out of any market. Hedge funds use this technique to make millions of $$$.
In most of my trading analysis, I use trend following technique from this book.
Good about this book:
The book will teach you, the strategies on trend following along with the examples from the past trading ideas. This was the best part I like about this book.
Bad about this book:
Not really, but you will have to put in efforts to try and test the things you learn from this book.
Who should read this book?
Any trader who wants to start with trend-based trading should read this. Also, if you want to do intraday trades, then you can find some other books better than this. But if you are a positional trader and can hold a trade for few days to weeks then go for this book. Its a gold mine for you.
The Complete Turtle Trader: How 23 Novice Investors Became Overnight Millionaires
This book is a truly inspiring story of a group of random people, never traded in stocks. They were given some 2 weeks training and capital to trade the stocks. This was one of the most successful experiments done on wall street.
You know what, those traders made millions of dollars trading.
The book is based on the technique of those traders and how were they able to make millions. Must read from my side.
Good about this book:
This book is simple and very easy to read even for new traders. You will also learn trend-based trading, managing risk effectively, know where to enter and exit, scale up or scale down a trade.
Bad about this book:
I didn’t find any.
Who should read this book?
Beginners who want to learn trend-based trading, this book is for you. It will also support swing trading if positions are carried for few days if not weeks.
Following the Trend: Diversified Managed Futures Trading
This book is written by an experienced trader Andreas F. Clenow. You will learn how a simple trend-based trading strategy can beat others who are just buying and holding. All you need to have a bull and bear strategies to get significant returns in trading.
You will also see, how to replicate the performance of successful hedge funds if you learn a correct trading strategy.
Good about this book:
Book has good examples of past trades and lots of historical data references. This increases the confidence in the trading strategy. You will also learn the psychology and emotions that one faces while a trading position is open.
Bad about this book:
I don’t think, there will be any.
Who should read this book?
Traders who would like to begin on a trend-based trading model. But if you want to stick to intraday trading then check some other books.
Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications
A very well written book on technical analysis, this is moreover like a reference book. Covering all the important principles of technical analysis in detail.
You will learn how to look at charts and how to use technical indicators so that you can plan a strategy.
This book teaches you how to take a confirmed trading decision and with more confidence.
Good about this book:
The book is very straightforward and everything is to the point. Language is simple to understand and you won’t get bored. I still remember I got addicted to this book.
Bad about this book:
After reading this book, you might feel that technical analysis is everything. But in the real world, you will need fundamental and sentimental analysis too. You just cannot rely on technicals to take a trading decision.
Who should read this book?
Beginners who do not have any knowledge of trading and don’t know technical terms.
The Art & Science of Technical Analysis: Market Structure, Price Action & Trading Strategies
This book, written for both type of traders institutional trader as well as a small trader, it showcases different technical analysis tools and techniques for making trading an art. Book has in-depth content to walk you through a collection of trading patterns and technical setups.
It also teaches, how to master the art of being profitable in today’s competitive markets, where we are surrounded by algorithms as well.
Good about this book:
A very honest book, which teaches both what you can and what you cannot do with technical analysis.
Bad about this book:
I don’t think, there will be anything bad.
Who should read this book?
Irrespective of a type of trader, one should read this book.
Stan Weinstein’s Secrets for Profiting in Bull and Bear Markets
This book is authored by Stan Weinstein, in his book he showcases his own methods. Methods that have produced decent returns and moreover profitable trades for him. The book seems too old, but this old is Gold.
The trading knowledge this book provides can be applied in any financial markets and on any timeframe.
You will learn on how to refine your entry level, know when to sell, Short selling, spotting bull and bear trends.
Many of the risk management concepts that I use in my analysis are taken from this book.
Good about this book:
A simple book which teaches you basic trading principles and techniques. Also, at the end of each chapter, there is a quiz to check how well you have understood.
Bad about this book:
Examples are too old, stocks which are used for examples are not even traded today. But couldn’t find anything bad in this book.
Who should read this book?
Recommended for all, but not for intraday trading.
One Good Trade: Inside the Highly Competitive World of Proprietary Trading
A book authored by Mike Bellafiore, he is a co-founder of a proprietary trading firm in New York City.
The book shows how a proprietary firm does trading in markets. As more than 50% of total trading volumes on equities is carried out by the proprietary firm. These firms do not have clients, they trade for themselves with there own capital.
Book teaches how to find the correct stocks for trading.
Good about this book:
Book tells us how a proprietary trading desk operates and how do they end up being so successful than individual traders. The trading data of these firm is extremely rare to find in the real world.
Bad about this book:
Fewer examples, especially on stocks selection.
Who should read this book?
Not limited to any particular group. But proprietary traders will have the advantage over other traders.
Forex Price Action Scalping
A book authored by Bob Volman, an independent forex trader himself. In his book, you will learn the famous price action trading, multiple examples with complete insights.
There are hundreds of trading setups, principles discussed in detail in this book, if you want to be a scalper, you should grab this book immediately.
Good about this book:
The book covers scalping trading strategies in depth. You will also learn the psychological behavior of the trader when he is in trade. You will learn how to take fast trading decisions. Multiple time frame analysis is covered so nicely in this book, you can learn it quickly.
Bad about this book:
Examples cover mainly EUR/USD pair, but strategies can be applied to all major forex pairs.
Who should read this book?
Those who like to take trade right from looking at charts, then this book is recommended. But if you are a trader of type buy right and sit tight, then simply ignore this book.
Mind over Markets: Power Trading with Market Generated Information
In this book, you will come across a new term ‘Trading with Market Profile’.
Market profile is a technique of chart reading, but the difference is it also has time factor considered.
The base idea in this book is to trade on the information the market is providing to us. On analyzing it, the trader must have a proper directional conviction before placing an order.
The book is not about some silly indicators or studies, but its a gem in itself.
It also tells, when we should NOT take a trade.
Good about this book:
Book’s concept of Market Profile is genuinely useful if learned and implemented correctly. You will predict market more accurately than others.
Bad about this book:
Truly none, but it would have been better if more examples were presented.
Who should read this book?
The book is for those who want to try their luck in the futures market and want to do day trading. If you are a positional trader, then it may not be the best buy.
Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves
Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves
In forex trading news play very important role in price movements. In this book, you will learn how these fundamental data will affect the currency prices.
Also, you will know which are important news events which you should pay more attention so that you can take that opportunity in a better way.
Not only fundamentals, but this book includes trading strategies based on technical analysis as well.
Good about this book:
Explanation of fundamental analysis is given in points, so even a newbie trader will understand.
Bad about this book:
The technical analysis part is not much focused, as this book can be said a pure fundamental analysis book. So if you are buying it for learning only technical analysis then simply ignore it.
Who should read this book?
Forex traders, for those who are a newbie or a well-experienced trader. But the focus is mainly on day trading and swing trading along with fundamental analysis.
Beat the Forex Dealer: An Insider’s Look into Trading Today’s Foreign Exchange Market
Do you know, Warren Buffet′s office had lost $850m betting on the dollar, even George Soros’s short yen bets has cost him $600m not once but twice in 1994.
This book will take you into how the Forex market works. It will also give you an idea why the different type of traders take such positions in the market.
The loss rate in Forex trading is 90%, so it is important to know why traders lose money.
You will also learn, even before taking a trade the odds are already stacked against you as a retail trader.
Good about this book:
Language in this book is pretty straightforward, teaches how forex trading and its participants work.
Trading strategies are many, it will help you to create your own.
Bad about this book:
Few of trading strategies are not even valid in today’s environment. But others are still good to pick.
Who should read this book?
Forex traders, irrespective of trading style.
Note: I’ll earn a referral fee if you purchase from Amazon but it comes at no extra cost to you.
The post 20 Must Read books on trading by legendary traders appeared first on OurNifty.com.
Source: https://ournifty.com/must-read-books-trading.html
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