I got the most benefit out of Alan Farley's 'the master swing trader'. Certainly not light or easy reading, but it is worth wading in one page at a time as there is a lot to be gained once it is understood fully. Not recommended for beginners though, make sure you have a full grasp of the basics, particularly trading terminology (a lot of jargon in this book).
Not sure that any of my book recommendations would fit the "Must-have trading book," but I like them.
My top three trading books (so far):
1) Trading for a Living, Elder
2) Trading in the Zone, Douglas
3) Japanese Candlestick Charting Techniques SE, Nison
It would be very interesting to know what trading book has been significant in helping your trading. I know there are many trading books out there but few have the potential to significantly help on in their trading endeavors.
Nisons book helped me lose 15000.00 on one trade back in 2004, trading CFDs at Saxobank. Candlesticks are very difficult to trade from. There has to be a context.
But the book makes it look very simple..
Mark Fisher wrote about his method - applying the opening range and daily pivot levels based on a calculation of the previous H/L/C. It is very good and extremely helpful in getting a daily directional bias.
Gareth Burgess shows how to put candlesticks into context of patterns and other technical aspects of charting. Very good for keeping the big picture in mind..
The book I am currently reading is so far, most excellent, and I recommend it highly. In particular, its author, Peter Brandt, readily admits that he does not have any website to sell, nor conference seats to fill. Moreover he is simply a very successful commodities trader who is laying the game out straight and brutally honest for anyone (i.e., from beginners right up to other successful traders) who's interested.
Kudos to Brandt too because he openly admits that he's not trying to claim that he has any particular money making system, and seems to express wariness of many other disingenuous trading book authors, who try to sucker punters in with near ridiculous formulas for riches; which when back-tested make a veritable fortune - yet when forward tested in the real markets - are simply all too often a recipe for disaster. Instead, he isn't ashamed to admit that around 30% of his trades fail and he even has some off months when trading. His frank and very realistic writing style is most reassuring, quite apart from all the other positive attributes I've found already. All things considered, Brandt's approach is nothing but a breath of fresh air compared to most 'pie in the sky' trading books.
Accordingly, this member recommends people who seek a most stimulating, inspired and frank trading book, which puts reality well before selling the dream, read this:
Diary of A Professional Commodity Trader - Lessons from 21 Weeks of Real Trading
- Peter Brandt
(Wiley & sons 2011)
If you want to be a trader, read J Hulll, Futures, Options and Other Derivatives. There's a million other books I could list on managing specific risk list dynamic hedging, energy risks, commodity risks, equity derivative portfolio management blah blah blah.....
My point would be, most people here would take one look at the introduction to Hull (regarded as a bible by junior traders and analysts alike within real firms) and realise they are out of their depth.
There's nothing remotely wrong with realising how little you know about trading, pricing, risk management, real world markets, hypothetical markets or anything else. It's sensible to acknowledge weaknesses. Have a look at the standard, and I mean bog standard, texts every single trader at a real firm has read. If you don't understand the first thing in these books, have a real long think about the chances of you beating people in the market that do.
Same as I think boiler rooms are wrong, I vehemently believe it is wrong to not try to explain to new, independent traders, risking their own money, that are HIGHLY likely to lose it all.
If you want to learn to trade, get a job with a bank, fund,, utility, asset management house, pension manager, exchange, insurer, whoever! ... Any financial institution you like, and let them train you. You'll also then get paid to learn!! Surely, that is the only viable, realistic, sensible, way to learn???
If I'm wrong, then tell me, I'd like to be proved wrong and not be so cynical!
If I'm wrong, then tell me, I'd like to be proved wrong and not be so cynical![/QUOTE]
I have already mentioend the two books that I believe will help anyone to make money.. But instead of just jumping in at the deep end, take some examples from the books and just watch for those signals. Watch the price, get a feel for it..write it down every few minutes. Paper trade for a year..! Learn to understand the markets yourself. You will only make it if you follow yourself, what you learn for yourself and your own mistakes will bring you further than what any other trader can teach you because trading is all about winning. Winners do their own thing..