If you are looking to learn how to trade the financial markets, there are so many options for you to choose from.
Books can be a great source of information to get you going but you must be careful as reading the wrong kind of books can set you back rather than help you.
What Kind of trading Books help?
When it comes to choosing a book, I would first define the outcome that you want from a book. For example, if you simply just wanted to learn a little introduction to financial trading, you could grab almost any technical book and you will learn very similar things.
Technical books generally focus on the very similar principles like teaching you about support and resistance, trend lines, chart patterns, technical indicators and so on.
Do the strategies Work?
Unfortunately, these types of technical books are teaching you some very basic concepts that don’t really allow you to make money with. It’s nice if you just want to learn some basic concepts so you understand some theory, but unfortunately, it is not what’s needed if you are looking to become a professional trader.
Low Barrier to Entry
If you are looking for good trading books to read there are literally thousands of books written, that you could choose from. In fact, over time it has become easier to become an author so anybody with some knowledge can pretty much write a book and even self-publish it for a very low cost.
In some ways, it’s good because it means there is a lot more knowledge available. In other ways, it’s not good because if the barriers to entry are limited it means there could be a lot of wrong information being published.
Choosing a Book
When choosing a good book, you will want to read something where the person writing is either an expert in the field (e.g. a professional trader) or someone who has interviewed experts in the field with proven results.
If you are learning theory from someone who doesn’t practice what they preach, then what you are learning is unlikely to give you the results you are looking for.
In general, it is better to stay away from most technical books and focus more on books that teach you how to think like a professional trader.
If you want to learn the technical parts of trading, you are usually better to work with a mentor who can guide and support you during the learning phase.
Don’t get me wrong there are some good technical books, but chances are you probably won’t really be able to apply what you learn without the help of a mentor. An application is much more important than learning theory so it is better to choose books that can help you with the trading psychology and the mindset part of the game.
Top 3 trading book recommendations
So, my first recommendation is a book by Mark Douglass called Trading in the Zone. A nice easy read with stories that help you understand how your past experiences can heavily influence your every decision when it comes to trading the markets.
My second recommendation is a book called The Daily Trading Coach which can act as your own personal coach. This was written by trading psychologist Brett Stein berger and is a book I highly recommend (especially if you’re already trading).
My final recommendation is to read The Market Wizard Series (including the hedge fund market wizard), which is a series of interviews of the most successful traders. This series of trading books are fantastic as you will learn the truth about what is required to trade successfully in the markets. You will learn the types of extreme experiences some traders went through and finally came out the other side. This type of inside knowledge can help you a lot when overcoming your own challenges and obstacles.
In conclusion, if you want to master financial trading the focus should be on learning how to master the trading psychology (mindset) of trading.
If you want some additional advice or help with learning the technical aspects of trading feel free to reach out for a free consultation by clicking this link (https://meetme.so/LTIGeneralEnquiry) and booking a strategy call with one of our traders.
For a basic introduction to trading, you can also take the London Trading Institute ‘Introduction to Trading Course’ completely complementary. Click Here to Register