Knowledge is power, this is also true when it comes to trading and investing. It is essential as traders to always keep learning and developing our skills if we are to survive and prosper in the financial markets. Here are some of the best trading books that we have read and would recommend any new or experienced trader to read. You could also check out some free forex and trading ebooks to download to get you started. This book list is in no particular order of importance and it will continue to grow as we read more interesting books on trading. If you know of a good book that is not listed here and you recommend it, please leave us a comment or get in contact. We are always looking to expand our knowledge.
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The Disciplined Trader by Mark Douglas
This is one of the best trading books we have read. Most books on the topic of investing and trading focus on technical analysis (understanding and interpreting price charts), and the discipline of the trader is often overlooked. Many traders focus on developing or finding an amazing system. However, a trading system is only as good as the trader using it. The disciplined trader persuades the reader to form good habits while eliminating bad ones. Although this book is titled The Disciplined Trader, many of the concepts in the book can be used by the reader in other areas of their life. If you are interested in a copy click on the image
Trading in the Zone by Mark Douglas
Trading in the zone is another good book by Mark Douglas. Just like The Disciplined Trader - Trading in the zone focuses on the trader's mindset. Mark Douglas introduces the reader to a mental state called "being in the zone". This mind state sometimes is made in reference to sports players or performers. It's a state when the practitioner doesn't have to consciously think about what they are doing, and so their chosen activity seems almost like second nature. Just like The Disciplined Trader, many of the concepts in the book can be used by the reader in other areas of their life. If you are interested in a copy click on the image.
Reminiscences of a Stock Operator by Edwin Lefèvre
There are a few book titles that are universally agreed upon to be essential in every trader's library. Reminiscences of a Stock Operator is one such book. This book is an autobiography of Jesse Lauriston Livermore who was an American investor. He made and lost fortunes during the 1920s stock market crash. Because of these experiences, the book is full of valuable lessons that every trader (whether novice or expert) can benefit from.
Japanese Candlestick Charting Techniques by Steve Nison
Japanese candlesticks are a standard for plotting price charts for traders across the globe, the appeal of them is not hard to see. At one glance the high, low, close and open price can be seen on any time frame. These candlesticks also form patterns that traders can recognise and exploit if they choose.
At first glance Japanese candlesticks look very confusing. But once understood, they can be an invaluable asset to trading Forex, stocks, or commodities successfully. Japanese Candlestick Charting Techniques by Steve Nison will guide you closer to understanding Japanese candlesticks.
Trading for Dummies Series by Various Authors
The 'for Dummies' series are a well-established book brand. They are known for simplifying often complicated subjects so that anyone who can read will understand the concept of the subject by the end of the book. Although these books are not designed to be for experienced traders as they often do not go in depth on many subjects, they can still serve as good references for the experienced trader. These books are ideal for novice traders or anyone who has a mild interest in the subject. Don't be daunted by the thickness of the book, as it is broken down in many small easy to read and understand chapters. Here are a few of them to get you started.
ADXcellence by Charles B. Schaap
Every trader that uses technical analysis has their preferred tools, the average directional index (ADX) is one of the indicators I use often. However, I didn't really take much notice of the ADX indicator until after I had read Charles B. Schaap's book ADXcellence. I found this book extremely thorough in explaining (with detailed examples) how to use ADX as a trend indicator. Trading with the trend is the easiest way of making money as a retailer trader. Spotting a trend, the strength of the trend and if there is a possible trend reversal is made simpler with the ADX indicator and ADXcellence teaches the reader how to fully utilise this very useful indicator.