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Trading Strategy Book 2 weeks 6 days ago #201

Day trading books can teach you about strategy, risk management, psychology, and a great deal about technical analysis. Unfortunately, librarians and book retailers aren’t day traders. This makes tracking down the best books somewhat challenging. Fortunately, this page has broken down and collated the best books for beginners, top books for particular assets, as well as detailing how different formats can best suit your individual needs.

Best eBooks For Day Traders
ETX eBook Library
ETX Capital deliver a broad library of ebooks for traders to use. From technical analysis to global trends, there are ebooks that can help you whether you trade forex, commodities or stocks. All the resources are free and are well worth making use of.

Day Trading Books For Beginners
When you decide to take the plunge into trading, you swiftly realise how complex strategies, charts, patterns, platforms, and fees can get. This is all the more reason to utilise the resources around you to hit the ground running. The best books for beginners keep it simple and offer step by step guides on how to choose stock, implement strategy and manage your capital and risk.

Below are 3 of the top books for beginners.

1. A Beginner’s Guide To Day Trading Online, Toni Turner
Written by a trader and educator, the book gives clear direction and is also up to date with industry developments. You’ll get a detailed overview of risk management, technical analyses, plus how to set up a trading plan. Recent Editions have been renamed “A Beginner’s Guide To Short Term Trading”

The book is also a fantastic learning tool because it’s packed full of quizzes and checklists. The author also runs through all the basic jargon, whilst somehow managing to keep you engaged. It’s great for the day trader specifically because it distinguishes between short term and long term trading, the benefits, the risks and the concepts you need to focus on.

“A Beginner’s Guide to Day Trading Online” on Google Books

2. Start Day Trading Now: A Quick And Easy Introduction To Making Money While Managing Your Risk, Micheal Sincere
Written from the perspective of an experienced trade, this book centres on technical analysis and also offers some invaluable money management lessons. It initially centres on charts, patterns, and indicators. You’ll then be walked through the practicalities of making your first trade.

You also get the benefit of hearing from interviews with experienced traders, hopefully enabling you to avoid any of the pitfalls they fell down at. Plus, at less than 200 pages this book is an easily digestible read for the aspiring trader.

“Start Day Trading Now: A Quick And Easy Introduction To Making Money While Managing Your Risk” on Google Books

3. Day Trading For Dummies, Ann C Logue
Although the author’s not a trader, her book is diverse, covering a wide range of topics, making it ideal for those who want to get a broad initial understanding. This book is less of a guide and more information on every day trading topic under the sun. You won’t get detail, but that also means you shouldn’t get lost. This all makes it one of the best books on trading for beginners.

If you had to answer ‘what’s the best books for beginners?’ All of the texts above would top the list. They give you the platform you need to start, as well as somewhere you can turn to for answers as you get going.

Remember, good day trading books for beginners keep it straightforward. They walk you through the entire process, from choosing a stock and strategy, to psychology and risk management.

“Day Trading For Dummies” on Google Books

Best Books
For those looking for more detailed books that offer in-depth technical analysis, advanced strategies, and comprehensive information on all things day trading, there are a number of books you can turn to.

Below we have collated the top 10 books, taking into account reviews, ease of use and comprehensiveness.

1. High Probability Trading: Take the Steps to Become a Successful Trader, Marcel Link
This book centres on the notion of only making trades when the odds are in your favour, so it delves into how you set up your trades, and what to look for to know exactly what to trade and how much.

The author calls on years of successful experience in the markets and you can benefit from his trial and error approach to avoid future mistakes yourself. It’s well written and to the point, making it worthy of a spot on this list.

“High Probability Trading: Take the Steps to Become a Successful Trader” on Google Books

2. The Truth About Day Trading Stocks, Josh DiPetrio
Whilst many books sing about the potential riches, Josh DiPetrio emphasises day trading is not a get rich quick scheme. His writing is easy to follow and you can tell he genuinely wants to make you aware of the dangers, and advise you on how to manage them.

There are some essential lessons you can glean from this book and you get the resounding feeling you’re getting the truth from the first chapter until the last.

“The Truth About Day Trading Stocks” on Google Books

3. Mastering The Trade, John Carter
This is one of the top books because there is so much detailed instruction on how to set up trades. He leaves no stone unturned as he breaks down numerous strategies and different markets. It’s also well established as one of the go-to psychology books.

If you’re looking for a crystal clear guide to what, how, why, when and where, then this is the book you need. It’s also considered one of the best emini books, calling on real life examples to prove points.

“Mastering The Trade” on Google Books

4. Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market moves, Kathy Lien
One of the best selling day trading books, you get to benefit from the experience of one of the most highly regarded analysts in the forex world. If you haven’t seen her on Bloomberg or CNN, then you’ll enjoy her to the point style.

You’ll gain an insight into conducting accurate market analysis, plus the author’s a solid source of trade ideas. If you’re looking for one of the best forex books, then look no further.

“Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves” on Google Books

5. The Disciplined Trader: Developing Winning Attitudes, Mark Douglas
A lot of good books focus on technical analysis, strategy and risk management, but not so many focus on the complexities of trading psychology. As this book aptly highlights, you can have all the best strategies in the world, but without discipline, you’ll struggle to turn a profit.

The book details why not yielding to your emotions is harder than it sounds and offers you a multitude of tips for keeping calm and getting in the right headspace. You’ll also get on advice on how to document your trade performance and minimise risk.

“The Disciplined Trader: Developing Winning Attitudes” on Google Books

6. Digital Day Trading, Howard Abell
Although not quite making the top 5 books, this text deserves a look in. If you’re looking for an easy to understand book that doesn’t waste words, then this is a sensible choice. The author focuses on market philosophy and delves into his own trading psychology. You’ll also benefit from three interviews with successful day traders, picking up an array of useful tips.

The only thing to point out is that this book was written during the highly volatile period of the dotcom boom, so some information may be outdated.

“Digital Day Trading” on Google Books

7. The Stock Trader: How I Make a Living Trading Stocks, Tony Oz
If you want strategies you can take from the book and apply with ease then this is a good choice. You get a number of detailed strategies that cover entry and exit points, charts to use, patterns to identify, plus a number of other telling indicators.

This book gets glowing reviews and is written in an engaging way, giving it appeal to a wide audience. It’s not surprising then it’s thought to be up there with the best trading books of all time.

“The Stock Trader: How I Make a Living Trading Stocks” on Google Books

8. Range Trading, Micheal Young
If you’re looking for a specific, honed strategy, then this book deserves your attention. The book explains why most strategies such as scalping struggle to overcome high intraday costs and fees. It then offers you a tried and tested alternative, known as ‘range trading’.

This is a self-proclaimed step by step guide, taking a complex system and making it easy to follow. If you’re looking for a high level of detail and an alternative approach, then you’ll see why this one of the best intraday trading books around.

“Range Trading” on Amazon

9. The Simple Strategy, Markus Heitkotter
If you’re looking for widely regarded forex and options books, then this won’t disappoint. The success of this book comes from the clear instructions you get around entry and exit rules, how to capitalise on small intraday trends, plus advice on the software you do and do not need.

In addition, it’s been written so you don’t have to be a rocket scientist to get through it. The author also keeps it light-hearted and engaging throughout, making it one of the must read trading books.

“The Simple Strategy” on Google Books

10. Day Trading Grain Futures: A Practical Guide To Trading For A Living, David Bennett
If you’re looking for specific futures trading books then this deserves a look in. There are no mincing words, it offers you practical advice from page one on how to trade futures effectively.

Firstly, you’ll hear why the author prefers day trading and why the grains futures market specifically. Then you’ll get clear strategies, built on timeless trading concepts, that don’t rely on highly technical and complex indicators. You can also apply the philosophies and strategies found here to any number of intraday markets.

“Day Trading Grain Futures: A Practical Guide To Trading For A Living” on Google Books

Live Webinars And Trader Courses
ETX Capital are currently offering a range of educational tools to traders. They are free to enrol for any traders who have made a deposit of any size. More details can be found here.

Courses are delivered by in-house experts at ETX, and an independent trading company. This ensures a rounded service for those who have enrolled. Most courses and webinars are delivered online.

Alternative Formats
Thanks to the wonders of technology you can now get day trading audiobooks and ebooks. Audiobooks are ideal for listening to whilst you’re driving, on the treadmill, or when you simply want to block out the noisy kids. They also allow you to take notes whilst you listen, or apply the information in real-time on your platform.

You can also get books in pdf, as free downloads. Just like ebooks, having these open in a separate window whilst you trade allows you to easily follow instructions and put into practice what you’re reading. You’ll also have something you can quickly refer back to with just a click of the mouse.

Trading Log Books
These popular day trading books are an extremely useful tool that many people overlook, to their detriment. They will allow you to keep a detailed record of all your trades. These can then be used to check back to when you’re looking for patterns, or when you want to backtest a potential strategy. Some essentials to note down are the following:

Entry date
Equity symbol
Entry price
Total purchase price (including commission)
Number of shares purchased
Initial stop loss
Profit target
Exit price
Total sale price (including commission)
Profit/loss (total sale -total purchase)
Profit/loss % ({total sale – total purchase}-1)
Trading Order Books
These serve a different purpose from the bestseller trading books outlined above. An order book is an electronic list of buy and sell orders for your specified security or instrument, organised by price level. You’ll be able to see which brokerages are buying or selling the stock and whether the market is being pushed by institutions or retail investors.

This will help you make informed and accurate decisions. They are also useful because they reveal order imbalances, giving you an indication as to the assets direction in the short term. If for example, there was a significant imbalance of buy orders, this may signal a move higher in the asset as a result of buying pressure.

Different Markets, Different Texts

If you want day trading books for the UK, Europe, U.S, and Canada then all of the books above will be relevant and applicable to markets close to home. But, if you’re looking to delve into markets on the other side of the world, you may want to look for books specific to that region.

If you’re looking to get into the Indian stock market, for example, you’ll want books specifically for day trading in India. One of the best books on day trading in India, which is also written by Indian authors is ‘Intraday Trading Ki Pechan’, by Ankit Gala & Jitendra Gala. Alternatively, ’How To Make Money Trading With Charts’ by Ashwani Gujral also scores highly in recent reviews of trading books.

If you want books with an Australian slant and also written by an Australian author, then you may want to look at ‘Why Gold Matters’, by Peter J. August. ‘Adaptive Analysis for Australian Stocks’ by Nick Radge also scores highly in reviews.

Final Chapter

Finding online books, in general, is relatively easy, but finding the right one for your needs isn’t always straightforward. Before you make your purchase, consider precisely what you want to learn. Are you looking for strategies books, books on forex, psychology, or for beginners? Do you want a step by step guide, or do you just want to hear stories and advice from successful traders?

Once you know that, decide what format will make the information easy to digest and straightforward to apply, hardback, ebook, pdf or audiobook. It’s also always worth checking reviews of the supposed ‘best trading books’, just to be sure you’ll get precisely what you’re looking for.

Source: www.daytrading.com/books

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Last edit: by Jena_Arabinda.

Trading Strategy Book 2 weeks 6 days ago #202

Top 5 Books for a Budding Professional Trader
Many people would like to learn how to become successful traders, whether via stocks, commodities, options, foreign exchange (forex), or all of the above. Unfortunately, trading and investing are not subjects commonly addressed in either high schools or colleges in the United States.

Fortunately, a wealth of excellent books is available on every aspect of trading for those with the desire and motivation to teach themselves the craft of trading.

These books, and many others, can provide in-depth information on the complexities of investor trading from basic how-to tips to the psychology behind making investments. Visit your local bookstore or library to find these books and others on financial topics.

Reminiscences of a Stock Operator
"Reminiscences of a Stock Operator," written by Edwin Lefèvre and published in 1923, is possibly the single most recommended book for aspiring traders and investors.

The book is a fictionalized account of the life of the man considered by many to be the greatest stock trader of all time, Jesse Livermore, presented as the main character, Larry Livingston, in the book.

This book, which is also noted as simply a good read, is one of the few attempts at a detailed biographical account (albeit fictionalized) of one of the famous investors in stock market circles in the early 20th century and provides interesting insights into Livermore's self-education as a trader. The book is also filled with numerous pearls of wisdom on trading that are still often quoted today, such as, "Always sell what shows you a loss and keep what shows you a profit."

The Intelligent Investor
Benjamin Graham's "The Intelligent Investor" is considered the classic text on value investing, which is still one of the most popular basic investing strategies and the underlying principle of hundreds of investing strategies developed since Graham's book was first published in 1949.

This book holds the distinction of being touted by famed investor Warren Buffett as the best book ever written on the subject of investing, and as one of the primary sources for his own education in trading stocks. In the book, Graham presents his core investing philosophy of identifying the intrinsic value of an investment and then looking to buy into it at a price below that value.

Market Wizards
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. Schwager's books offer readers the opportunity to pick up some mentor-like advice from very successful traders. The interviews offer both interesting biographical information on the interviewees and exposure to a wide variety of investing strategies.

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.

Although many other books have since been published on this subject, Douglas' book is still considered a "must read" classic text on trading psychology. One of the strengths of the book is the fact that, although it addresses a subject that might appear dauntingly complex to some, it is a very clear and easy read.

Douglas does an excellent job of describing the basic mindset and attitudes that are essential for traders. Douglas subsequently penned another very popular book on trading psychology, "Trading in the Zone."

Trader Vic II: Principles of Professional Speculation

This book, written by Victor Sperandeo, is not as well known as many books on trading but is a favorite of many traders who have read it. In the book, Sperandeo puts forth an investment strategy that is based not on specific market events or company-specific metrics but on analysis of the general direction of the economy as driven by factors such as the fiscal policies implemented by the Federal Reserve and tax policy.

Sperandeo argues that identifying the basic direction in which such policies will inevitably drive the economy enables traders to determine the most probable overall market direction, as well as specific market sectors that will thrive.

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Trading Strategy Book 2 weeks 6 days ago #203

Top 5 Trading Books to Improve Market Strategies
Trading is as much about psychology as it is about developing a solid strategy. Without the mental fortitude to stick to a plan, the most great-conceived strategy in the world won’t do you any good. Successful traders not only develop and master a strategy, but they also become more familiar with their own psychological qualities (such as discipline and patience) and develop them, which allows them to be more effective in implementing their strategies.
A variety of books can help traders take steps towards understanding psychology from an investment perspective.
1. Trading in the Zone
Written by Mark Douglas, this is a must-read for anyone who is struggling to attain consistency in the market. The author provides a roadmap for overcoming many trading issues.
This book includes addressing personal preferences to explore short-cuts, being easily controlled by fear or greed, and getting distracted. These qualities often cause traders to act irrationally even when they know better. In simple language, the book explains why and how these issues occur, and how to approach them to keep them from happening.
If you’d like to learn about the psychology of trading, you should beginning work to understand trading practices, techniques, and jargon before reading this book, so you can fully grasp the topics covered.
2. Market Wizards
It is probably the most popular trading book of all time, and many successful traders recommend reading it. It contains interviews of some of the world’s most successful traders in which they share their experiences — usually extreme profits gained from just a small amount of capital. The same traders also share their mindsets, goals, struggles they faced when first starting out, and is an inspirational read to each aspiring trader out there.
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.
3. The Intelligent Investor
Benjamin Graham’s “The Intelligent Investor” is considered the classic text on value investing, which is still one of the most popular basic investing strategies and the underlying principle of hundreds of investing strategies developed since Graham’s book was first published in 1949.
This book was promoted by famous investor Warren Buffett as the best book ever written on the subject of investing, and as one of the primary sources for his own education in trading stocks. In the book, Graham presents his core investing philosophy of identifying the fundamental value of an investment and then looking to buy into it at a price below that value.
4. Sway: The Irresistible Pull of Irrational Behaviour
Written by Ori and Rom Brafman, “Sway” is a rare page-turner in the non-fiction genre.
In the book, the authors tackle problems many traders are aware of yet seem powerless to prevent. They include why it can be so hard to get out of a losing trade — even investigating into why people stay in personal relationships, relating it to the trials of trading.
The book explores issues of which traders are often unaware. The authors examine how danger and risk affect the decision-making process and their relevance in facing the risks of the financial markets.
The material also addresses such concepts as diagnostic bias — an inability to see beyond an initial hypothesis despite evidence to the contrary, and the chameleon effect — a person’s habit of taking on qualities that are assigned to them. All of these psychological twists can have a substantial effect on traders.
The research and anecdotes in this book can also teach the reader about hidden motivators that drive decision making, which in turn may help them make more informed decisions as a trader.
5. Reminiscences of a Stock Operator
Even famous books can maintain their relevance over several generations. First published in 1923, this book by Edwin Lefèvre is based on legendary trader Jesse Livermore. Combining rich storytelling with a deep insight into what it takes to trade successfully (and actions that can ruin a trader), the material can be read over and over again, offering new or different insights each time as you build familiarity with the subjects.
If you are an experienced trader already seeing positive results, not trading well, or just starting your trading journey, this book has something for you. In it, you’ll follow the trading career of a life-long trader, whose experiences might just be the insight you need to help you through the struggles you are facing, or have yet to encounter.

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Trading Strategy Book 1 week 6 days ago #224

Reading a book(s) won’t make you a successful day trader. You might gain some knowledge about day trading, but that has nothing to do with being successful.

It common knowledge that 95% of traders fail. Maybe it’s 90%, who cares what the % is, it’s a big number. Why is this? Do you think they didn’t read enough books or their reading comprehensive is low.

It’s your perspective.

Your perspective influences your decisions and how you come to conclusions. If you see someone drinking a glass of water and they put it on the counter unfinished, is it half empty or half full. Nearly all say half empty. What if instead you see them filling it with water halfway. Half full or half empty? Most say half full. We respond based on the action we see. Filling a glass of water and stopping half way, means it’s half full because you were filling it. The opposite for drinking. This is based on your perspective. So what does this have to do with trading and being a successful trader.

Half full and half empty is like up and down in the market. You see the market going up or down, or I should say expect or predict it going up or down based on your perspective. If something has gone up too much, it has to come down or vice versa. You have been trained to buy low and sell high. But low and high are all a matter of perspective. If I told you the price of MSFT stock was $129 and AMZN was $1950, and nothing more, and asked you to tell me what this means to you. Your initial reaction is MSFT has room to run and AMZN is topping out. Your brain processes the difference in price as one being low and the other high, and $1950 is a big number for a stock price. Your only perspective if absolute price. In this case, the fact of the matter is, MSFT is at all time highs, and AMZN is a $100 less than it’s all time high. It’s all a matter of perspective. Ask yourself, would you buy MSFT at all time highs or would you say…it’s too high, and is probably coming down, because what goes up, comes down. Would you now be more inclined to buy AMZN because it’s below its all time high, and since MSFT made a new high, AMZN probably will too. See how your perspective can change with more information. Now think about all the shit that goes on in your daily life, and all the things that have impacted your life and shaped who you are. All of this comes into play when you are trading.

As someone who is part of the 5%, I can tell you why I am successful, and it’s not because I am smarter or better than anyone reading this. I was not a top high school or college student. Yes, I got a college degree and had a very successful consulting career, but none of that has anything to do with my success as a trader. I stunk it up my first couple of years trading. I probably threw my laptop across the room more than once. But…I am smart enough to figure shit out, and recognize when I don’t know something. I don’t try to convince people I am right or know what I am doing, when I don’t. I assume you know more than me until I figure out you don’t. I listen, more than I speak. You want to know why woman are better traders than men, because they pull over and ask for directions. Men, refuse to ask for directions so they go the wrong way, and then look for excuses or reasons why they are not wrong. It’s the way we are hardwired. We expect to win, to be right and have this “losing is not an option” attitude, we will not admit failure. We are doomed, because trading is not a sport or a game. The market is designed to take as much money from you as possible, and make you feel as much pain as possible. It’s an equal opportunity ass kicker. It knows how you think, how you will react under a given set of conditions, where you will put your stops (most don’t even use stops), it understands the herd mentality, so it’s betting against you and you don’t even know it. It wants you to win a little and lose a lot.

So here is what I figured out and made me successful. I was focused on making money. I didn’t realize that my focus on making money was my problem. I would enter a trade and focus on how much I wanted and expected to make….just like everyone else (the 95%). When I changed my perspective, it all clicked.

I went into my trades expecting to lose. Yes, I had profit targets, but I looked at what could go wrong, and assumed it would, and if it did, had a plan to get the fuck out. I began to understand that for me to make money I had to give the market some money too. There is no beating the market. I learned that this is a money management game, and that trading was just the thing I was doing, but the making money was not in the trading per se, but the money management.

My view of money was changed. I quit focusing on money and looking at my P&L, and instead only the trading. If I lost $1000 on a trade, I saw it as me saving $2000, because I used to be down $3000 and hoping and praying my trade comes back, before capitulation, and rarely did it come back. When I lose money now, I see it as part of the process, and don’t really care or think twice about it. When you care about the money, your perspective is jaded because you are placing value on the money, when you should be focused on the trade. As a trader, I follow rules and don’t break them. In my daily life, I break rules. If the speed limit is 55, I go 70. If I park near the exit door at Home Depot, I go in through it, not the entrance. If I am in a hurry, and swinging by my house to pick something up, I will park facing the wrong way along the curb. But in trading, I follow rules because they keep me in the game, and make me money.

If I told you I lost $318,000 last year in the market, would you say I am success? What if I also told you I made $650,000 too. These are random made up #s people. Who is more successful, the person who won 80% of their trades or the person who only won 40%. Believe it or now, probably the person who only won 40%. Here is why. The person who wins 80% of the time, closes out their position as soon as they are profitable because of the fear of losing…which is why they have a high win loss ratio. They see green and they grab the profits. When they see red and have a loser, they expect it will become green because they win 80% of the time. When that position goes against them they hang on, and hango and continue hanging on…until it’s so far gone, they have no choice but to get out. That one loser wipes out 6 or 7 winners, because the winners are small. If you asked 10 unsuccessful traders what their win loss ratio was, most would be around 50%. They won and lost the same %. Statistically this is where most traders should end up..actually it’s slightly higher win ratio because most traders play the long side, and the market is biased to the upside, so these factors contribute to a higher % of winners.

Control what you can control. You control how much you lose, not how much you win. Forget that you are losing money, and look at each trade in terms of points or ticks. At the end of the week, I evaluate myself on how many points I earned. I can not tell you how much money I made, because I don’t focus on it. I will look at profits at the end of the month. I don’t allow it to become part of my decision making process during the month. Lets say I had a $25,000 monthly goal, and after 2 weeks, I am at $30,000, do you think that would affect my trading for the next 2 weeks? What if I was at $5000, how would that affect my trading? Instead trade your plan, focus on the trading, and ignore the money. Sounds easy, but it’s very hard because you are trading to make money.

What makes trading for a living so hard, is that it has to pay the bills and feed the family, so when you have a loss or two, your stress level goes up, because of the uncertainty associated with trading. On your next trade, you are up $1000, but your profit target is $3000, you may close that trade too early because you don’t want to lose the $1000. You will also let the loser run because you want to give it every chance to come back, and you don’t want to have a 3rd loss, and the pain of watching your account drop again is too much…unless you are an experienced trader. You understand that you are expected to have winner and loser, and that around 50% of your trades will be loser.

Ignore the money. Accept that losses are part of the processes and necessary for your success. Ignore win / loss ratio, it doesn’t mean shit. Keep your loses small. Take lots of small loses and never allow a lose to exceed you lose limit. You will not go broke taking small loses. Think of it as 3 steps forward, 2 steps back, over and over and over. Good luck

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