BOOKS THAT CHANGE TRADER’S AWARENESS

There are, of course, basic books on trading offered by virtually all types of sites on stock exchange topics. Many of these books, however, have not been read by those who suggest them or by those who have read about them; they are simply popular to read because they move from one place to another, virtually unchanged in structure. We are offering you a slightly different list of highly useful and entertaining literature. These books are literature, not just trade textbooks. These books are not just valuable to those who are studying trading, but they change your awareness of the market, and sometimes your perspective of your own life.

Incidentally, we will tell you a secret: There is a very popular view among traders that reading books is a waste of time. However, there are 5% who still read them. And by the way, about 5% regularly make big money on the market. There is a very high probability that these are the same people. So, maybe you should start reading?

Art Simpson: Phantom of the Pits

What kind of book this isThis is one of the best books through which you will immediately develop a realistic idea of what is really happening in the market. This book changes the view on trading and trading tactics. Indeed, as the chief consultant and main character of the book notes, the great Phantom of the stock exchange, you need to trade correctly from the very beginning.

Why you should read it: In this book, almost every line is worth its weight in gold. You will immediately begin to see the markets and look at trading in a very different light: not through the template prism of theory, nor through a boastful autobiographical memoir, but through the eyes of one of the best professionals. You will start to have a completely different attitude to failure, and learn how to be prepared for it, how to avoid it and how to handle the market. After reading, you will develop a holistic picture of how trade is profitable and why it is needed. This is very important and very valuable. In addition, you will learn many interesting things about day trading and options — the information that is not usually open to the general public. You probably will not get this “schooling” anywhere else, so be sure to not miss the opportunity and definitely read it. If there are places that are unclear, you can return to this book later, and it will be worth it.

Recommended for: Anyone who wants to look at the market competently, trade wisely and not live in a sea of illusions.

V.S. Safonov: Currency Dealing, or How You Can Earn Money Honestly and Independently

What kind of book this is: This is one of the most accurate books to help you become a trader, just as you evolve as a person, naturally and completely, yet while playing the stock game.

Why You should read it: Here you will find the long-awaited motivation to ensure that you start working, but earning, with some interesting philosophy along the way. Only the bare essentials of theory are provided, yet they are systematically described and extremely simply done so, while everything else is absolutely practical, including specific recommendations that can be regarded as a guide to action. These cover everything from characteristics of a trader’s way of thinking, his character and the nature of decision-making to macroeconomics, graphic and computer analysis. This book tells the story of trading as a game. Trump cards will be revealed, winning techniques shared and you will be told how to create your game system.

Recommended for: Beginners, also for those who are confused and still very much want to understand everything, as well as for those who are inclined to think that trading is a game rather than work, because that way it will be more interesting for you.

Bill Williams: New Trading Dimensions

What kind of book this is: Another amazing book that will completely clear up the minds of traders and increase awareness of exactly how to trade, in a crystal clear and understandable way.

Why You should read it: With this book, you finally realize why you lose money in the market instead of regularly making it. There is too much ambiguity and vagueness in most publications on trading. All this usually generates more questions and it is not very convincing that what is written is actually the truth. With this book, everything is different. Here extremely complex things, such as innovative technical analysis systems, are explained in very simple and interesting language. After all, if the author writes in a bery complicated way, it merely means that he cannot write simply, and hence does not think about whether the reader will understand it, only just how incredibly smart he will look in the eyes of colleagues and critics. “In fact, how can you define what a fractal is and how to use it? The answer to this question can only be found when five differences between black and white are discovered. Can anyone do that? I don’t think so. But if you read this book, you will realize that it is possible. Bill Williams has achieved this, showing the trade community how to highlight that information which the market gives us and how to use it to become an entirely successful trader.” (From the preface of the Science Editor, Russian edition).

Recommended for: Those who want to break from the cycle of standard technical indicators and discover a real working algorithm for profitable trading decisions.

Christopher A. Farrell: Day Trade Online

What kind of book this is: Thanks to this book, you will realize that maybe you are possibly doing something quite different from what you think. You find out that day trading is absolutely not the same thing as trade within a day or intraday trading. This book is a revelation.

Why You should read it:The author claims that at least 95% of all traders who read the book will be shocked. From the text it becomes clear how day traders work, how they get richer and how you can join their ranks. You will already have a clear idea that by the end of the year you will get much richer.

Recommended for: Everyone who completes any day trade transaction. Now you will not just click Buy and Sell, but understand what you are doing and earn very well.

Ryan Jones: The Trading Game. Playing by the Numbers to Make Millions!

What kind of book this is: This is another shock, making you simply look at stock trading as a numbers game. As paradoxical as this may sound, this approach actually gives phenomenal results. It is a fascinating and very interesting book from a very enthusiastic person.

Why You should read it: The author almost completely abstracts away from any trading methods and systems, of which there are now many. He approaches market trading as a system of deals with equal chances. It does not matter in the least what you were guided by, or when you opened a particular transaction. More importantly, it is not how you traded, but what result was obtained. You can create complex trading systems, use an unrealistic number of indicators, apply technical and fundamental analysis, and still remain in the red. The author has felt this, and decided to treat every transaction as a collection of numbers. The results are surprising. What is described in this book proves what appears at first glance to be unthinkable: how you can have more loss-making transactions than profitable ones (even at a ratio of 70 to 30), but still be in the black! You can find out how this is possible by reading The Trading Game to the end.

Recommended for:Those who believe in the magic of numbers (which is also called money management) and who want to know why unsuccessful trading virtually does not exist, only unqualified capital management.

Tom Joseph: Practical Applications of a Mechanical Trading System Using Simplified Elliot Wave Analysis

What kind of book this is: It is something like The Da Vinci Code: the key to the great Elliott trading system, which many believe simply does not work.

Why You should read it: In order not to be among those 90% of traders who refuse to use analysis using the Elliott Wave because it allegedly never works. More than half of this analysis, in general, consists of intricate rules, which many interpret in very different ways, and often incorrectly. However, the author managed to find a clue to this, what is essentially encryption, and to make a clear and simple model that helps to consistently earn with the help of these waves.

Recommended for: Those who have ever heard of Elliott Waves. After reading, you will be able to not just talk about them, but also about how you managed to earn so much money using them.

Robert Fisher: Fibonacci Applications and Strategies for Traders

What kind of book this is: This is one of the most essential books for any educated person, whether he is a trader or just interested in how the world around him works. This is a simple explanation of how the Galaxy, radio, beauty of waterfalls and trading are interconnected. At the core of it all is the Fibonacci sequence.

Why You should read it:To learn what other traders cannot do. Barely 10% of all traders can properly trace Fibonacci lines in the terminal. They cannot because they do not understand what they are doing or why. This is a brilliant book that will lay claim to being your favorite title on such topics. Here, a direct relationship between space, mathematics, and price behavior is described, which can be measured and found in nature. This was discussed by Thomas Aquinas, and calculated by Fibonacci. After reading, you will learn to distinguish between graphics drawn in the terminal from real ones. Now, it will be easy for you and not a single dishonest dealing center can deceive you.

Recommended for: Those who want to not just trade, but to see a logical continuation in the price movements of all that surrounds us. And, of course, precisely predict where the price is going.

Kenneth L. Grant: Trading Risk: Enhanced Profitability through Risk Control

What kind of book this is: This is an amazing guide on the art and science of managing risk effectively and appropriately.

Why You should read it: To avoid reading ten books on the topic and save yourself time, and you need it to implement the risk management program that the author helps to compile. You will know how to protect your money and easily increase your level of income. If you follow these tips, you will not be disappointed and you will in no way regret the time that you spent reading this necessary and highly interesting book.

Recommended for: Everyone who does not want to lose money, but instead increase it.

Curtis Faith: Way of the Turtles

What kind of book this is: “We are going to grow traders just like they grow turtles in Singapore.” Sounds unclear and interesting? Then read on!

Why You should read it: This book reads like a fascinating novel. Two trading gurus argued whether great traders are born or made. And as a result, a surprising trading experiment began, which until recently not everything was known to the end. All participants were required to keep details secret, and for another 20 years after its completion. In 2007, that period expired and the book was published. Now each of you will know how an average person can become a super trader. Or can’t he?

Recommended for: Anyone who cannot pass by hidden information, which is usually the most valuable.

Lance Beggs: Price Action Trader

What kind of book this is: We give you the opportunity to read what your colleagues wanted to know but were afraid to ask: how to trade without indicators.

Why You should read it: This book gives you the opportunity to overcome dependence on indicators and start trading freely and profitably, based solely on price movement that you can see for yourself. The key question of the book is not when to enter the market, but when to leave it, and how to do it correctly, without unnecessary losses. This is a real course for a practical successful trader, with graphs and numerous examples. As the author says: the best book is one you write yourself. Gain valuable experience of an extraordinary strategy that really works and will allow you to assess the situation on the market several times faster than you do now.

Recommended for: Those who are not afraid to trade relying only on themselves. And for those who have already read something of the above and will not say “trading without indicators is unprofessional.”

Fedor Tolstikov: The Pound, in Plain Sight

What kind of book this is: It can be said that this is a practical trade bible for the GBP/USD pair. It is material that will change your idea of why some techniques help make money, while others just kill the opportunity.

Why You should read it: This is a unique textbook on graphical analysis, which describes only what really works and does not fill your head with unnecessary information. What can we say, but it is simply a rare book, which describes a method that works flawlessly for intraday pound-dollar trading. This material is sure to help you understand how to work and earn in the Forex market as a whole. You will learn to see what is still left that you have not noticed.

Recommended for:: Those who have already read something from the above and are ready to receive information from a different, non-template angle.

Sometimes proven theory is lacking for good practice. Textbooks on trading should be read in order not to step on rakes that are in fact the only rules you never knew. It is like driving a car: a beginner who has never looked at a driving regulations handbook is virtually doomed to crash or get a fine, at the very least, for driving without a license. In trading, such fines are also called “big losses.” It is possible to avoid unpleasant feelings in front of the terminal by having a good understanding of what exactly the market is and how to trade wisely.

Edwin Lefèvre: Reminiscences of a Stock Operator

What kind of book this is: This is probably the most popular book on the market. It is necessary as a primer.

Why You should read it:This book was written when it the world of stock exchanges was just beginning, in 1923. But it is remarkable that it has not lost relevance in the 21st century. The author talks about the greatest speculator in the history of mankind, Jesse Livermore. His biography is given through one of the most interesting reflections of the markets, through an unusual approach to the psychology of crowds in these markets and a unique explanation for jumps in market demand. It is written as if it happened yesterday! This is the foundation needed to recognize that the market is not just a terminal.

Recommended for: A must-read for all those who realize deep down that gambling is a game. It is captivating and a game of chance.

Alexander Elder: Trading for a Living: Psychology, Trading Tactics, Money Management

What kind of book this is: It is, so to speak, the second stage of understanding — to specific actions.

Why You should read it: If you lack specific instructions on how to organize work on the exchange, you will find them in this book. It helps you to quickly and easily learn the skills essential to succeed in the financial markets. In one place, speculator psychology and mass crowd psychology are combined with technical indicators and trading systems, risk control rules and conditions of placing stop orders. This is a true encyclopedia of speculation.

Recommended for: Everyone who wants to learn how to win right, but also to learn lessons from their mistakes.

Jeffrey Katz and Donna McCormick: The Encyclopedia of Trading Strategies

What kind of book this is: If you need a reference book, which you can refer to in search of fresh ideas for the construction of an original trading system, then this book is for you and is simply irreplaceable.

Why You should read it: In essence, the authors are predecessors of the famous “myth-busters.” After reading the book, there will be no myths left about markets that are not debunked. You will find a detailed description of all methods and strategies, which just show outstanding results in practice. And the conclusions are based on a large number of tests and historical data on a range of markets.

Recommended for: Everyone will like it who wants to know in advance what methods are potentially loss-making, which are the most risky and which are already known and do not lead to ruin.

Eric L. Nyman: The Small Trader’s Encyclopedia

What kind of book this is: This is the perfect guide to build an original and successful trading system.

Why You should read it: To save time visiting all manner of seminars and webinars, which, if you look at them, just regurgitate the contents of this encyclopedia, based on the fact that not everyone has read it. But here, in condensed form, all currently existing trading strategies and techniques are presented.

Recommended for: Those traders and analysts who want to improve the efficiency and reliability of their work. If you still cannot name half a dozen trading strategies, this is a must-read book.

Richard L. Weissman: Mechanical Trading Systems

What kind of book this is: This book, logically, is about mechanical trading systems. Yet they are considered not just as an abstract robot, yet as a painful process of “reprogramming the trader”.

Why You should read it: You will find in it the factors that influence the choice of trading system, learn about the possible dangers that may come your way in creating a robot, and of course, ways how to eliminate them. You will probably be enticed by a description of how different systems have been tested on historical and forecast data. Remarkably, instead of a story about risks and yields, the author proposes simple trading systems that can consistently generate positive returns and, most importantly, at the same time minimize the risk of losing everything. Incidentally, the author, with seventeen years’ experience in trading, directly says that if you try to attain yields of several hundred percent, your finances are doomed to failure.

Recommended for: All those who want to simplify the process of conquering the market and find a decent aid in the form of a trading robot.

Sheldon Natenberg: Option Volatility & Pricing: Advanced Trading Strategies and Techniques

What kind of book this is: This is a very useful book. Chicago Stock Exchange CBOT traders are trained with it. This is a real textbook, and tested by the time and experience of many professional traders and brokers.

Why You should read it: You will find a lot of useful information here. There is no unnecessary theory, no superfluous simplifications, and no lack of practice. You will learn about different trading strategies, how they work and how they can be used by every one of you according to needs and trading style.

Recommended for: Of course, for all traders who want to extract the maximum profit from possible options, but it is of particular interest to employees of companies active in this field.

Mikhail Chekulaev: Mysteries of Option Trading: Mechanics of Exchange Success

What kind of book this is: This is a full guide capable of bringing you from the wilds of options trading.

Why You should read it: You will get a clear idea as to what fantastic opportunities open up in the process of 24-hour trade and what the minuses of the traditional approach to portfolio management are. The author believes that the only options provide effective market risk management with quality are those which cannot compare to any other trading system.

Recommended for: It is a must-read book for everyone who wishes to discover new trading horizons.

Lewis J. Borsellino: The Day Trader: From the Pit to the PC

What kind of book this is: The author talks about the world’s major traders in the world arena — the pit, where futures are traded. It is here that the Titans of trade conclude great deals, or lose everything and break the bank in the blink of an eye. The author tells the story of himself, revealing to us the previously unavailable world of the day trader.

Why You should read it: Among other things, you will gain practical knowledge of the futures markets, trading in the pit, get a feeling for the philosophy of the market, learn the nuances of fundamental and technical analysis, as well as have the rare opportunity to understand the thinking of one of today’s most prominent traders. This is a sincere memoir, describing the unique dynamics of a trading hall, and the gifts and blows of the recognized leader of the pit.

Recommended for: A must-read book for all traders as a fascinating story, from which you can gain invaluable experience, without having even been in the pit.

Alexander Elder: Trading for a Living: Psychology, Trading Tactics, Money Management

What kind of book this is: Another very informative and interesting story by Alexander Elder, a professional stockbroker and an expert on trading tactics.

Why You should read it: You will learn about what the methods of risk control are, and that the key to victory over the market is rooted in your psychology. You will become a disciplined player, can avoid emotional traps, and learn to look for bargains using graphics and computer indicators and other analysis tools. You will see how you can easily combine various methods and build an effective speculation system.

Recommended for: A must-read book for anyone who wants to learn how to properly manage their money on their stock account (And we are sure that everyone wants to).

Mike Bellafiore: One Good Trade: Inside the Highly Competitive World of Proprietary Trading

What kind of book this is: This is an interesting story about private trading, i.e. how we all actually need to trade.

Why You should read it: This book reveals all the secrets that the author was able to penetrate throughout his 12-year trading in the markets. He shares invaluable experience and introduces the reader to his trading friends. Of course, some of them are highly successful, but most will tell rather disappointing stories. It is very instructive and valuable book that helps to remove the rose-colored spectacles and approach trading with cold calculation and professionalism.

Recommended for: It will be of interest to all traders trying to implement their own trading strategies.