In this post, I’m going to reveal 3 books that should help you take your trading to the next level.
Reading trading books is one of the best ways to learn new information about the forex market. The 3 I’m going to show you today will change your understanding of how the market works and give you some new strategies and techniques for making money and managing risk.
The three books are as follows…
- Read Price Charts Bar By Bar By Al Brooks.
- Market Wizards By Jack D Schwager.
- Trading In The Zone By Mark Douglas.
The books are all available to purchase on Amazon, but if you know what to put in on google, it is possible to get them for free – you didn’t hear it from me, though.
#1: Reading Price Charts Bar By Bar By Al Brooks
Have you ever had an “aha” moment in trading?
You know, where you learn something that completely changes your understanding of the market?
Aha moments don’t come often in trading, but in Reading Price Charts Bar By Bar, they come thick and fast.
When I first read this book way back in 2013, it completely changed my way of trading forex, as it showed me how useful price action was in finding opportunities and entering trades.
Before then, my focus had been solely on indicators, mainly the RSI and MACD. I’d use these either together or on their own to analyze the market and find trade opportunities. This worked well, but the book showed me that combining these tools with price action worked even better, and that’s when my trading really took off.
Now in the book, Al goes into detail on all aspects of price action, and I mean all.
Pin bars, engulfing candlesticks, support and resistance levels, fib retracements… Al covers pretty much every price action concept out there, and even details a few of the different ways they can be used when trading.
At the end of the book, he also reveals a couple of simple price action strategies based on the techniques discussed that you can use in your trading, some of which I’ve mentioned on this site before, but in lesser detail.
All in all, Reading Price Charts Bar By Bar is a great book with lots of eye-opening information on price action.
To learn more about Reading Price Charts Bar By Bar, visit the link below.
Reading Price Charts Bar By Bar
WHAT YOU’LL LEARN…
- Why price action is the key to understanding the market.
- How to use price action to spot when and where big reversals will happen.
- How to trade breakouts, reversals, and consolidations.
#2: Market Wizards 1 And 2: Interviews With The Worlds Top Three By Jack Schwager
Want to get an inside look into the minds, techniques, and philosophies of some of the world’s most successful traders and investors of all time?
Well, in the Market Wizards books, you can…
Made up of interviews with traders and investors who, at the time (and still now, in some cases), were some of the most successful in history, the Markets Wizards series gives you an inside look into how the top traders and investors operate, from their daily routine to how they got their start in the markets.
There’s a raft of interviews in the book, and even though they’re all old now (the book came out in 1990), the information is still very relevant to us today.
One of the best interviews comes from Marty Schwartz, who, from the late ’70s to the early ’90s, was one of the top stock and commodity day traders in the world.
Marty is a blunt guy, so his interview very much no BS. He talks about trading in a way that we call all relate to, from his humble upbringing as a cab driver to losing and making thousands of dollars a day.
The thing I took away most from Marty’s interview aside from all the tidbits about psychology and stuff (he doesn’t really talk about his strategy, but I know from his own book he used an MA crossover) is that success in trading, more than anything else, is about perseverance and psychology.
Marty didn’t start out as a good trader… far from it. In fact, he lost almost 50% of his capital in his FIRST month of trading.
Most people would have cut their losses and just given the whole thing up at that. But Marty, despite suffering even more losses in the next months (and a few small wins), persevered and went on to become one of the most famous traders of all time.
The Market Wizards books, of which there are a few (I’ve left links to the two best below), are definitely worth reading for their insights into how successful traders and investors operate and look at the market.
Learn more about the books using the links below.
Market Wizards: Interviews With Top Traders
The New Market Wizards: Conversations With Americas Top Traders
WHAT YOU’LL LEARN…
- How some of the most successful traders and investors of all time operate.
- Advice for managing your mindset/psychology.
- Tips that will help you improve your trading strategy and technique.
#3: Trading In The Zone By Mark Douglas
Close trades too early? Panic when the price falls against you? Get angry after suffering losses?
You need to read Trading In The Zone.
Considered one of the best trading books ever written, Trading In The Zone is a book not about trading strategies or techniques for making money, but about your mindset.
Your mindset and overall psychological makeup are critically important in trading.
In fact, most successful traders say the difference between being a winning trader and losing trader has little to do with your strategy or what techniques you know, but everything to do with how you manage yourself and deal with losses.
In Trading In The Zone, Mark Douglas outlines why trading is so centered around psychology and gives you practical tips to help overcome your issues and improve your mindset.
He explains how most mistakes (like taking profits too early) are caused as a result of people making assumptions about what the price will do in the future, and that this occurs because of their ego and beliefs about money that have been present with them all their life.
I could name a TON of different things I learned from Trading In The Zone over the years. It’s such a good book. One that requires repeated reads, that’s for sure.
You can learn more about Trading In The Zone by using the link below.
WHAT YOU’LL LEARN..
- How emotions affect your trading and what you can do about it.
- Why your beliefs about money affect your trading and causes losses.
- Tips and tactics for controlling your emotions and getting the right mindset.
Give these books a read see what you learn. I’ve studied them for years now, and even after all this time, I still find new tricks and techniques that help me out and improve my trading.