What books do professional traders read?

rodolfo49

Newbie
9 2
So everywhere I look I see the same recommended books: "reminiscences of a stock operator", "market wizards', "new market wizards", "trading in the zone", "trade your way to financial freedom", "trading for a living", etc etc etc, you all know the rest...

...but I was wondering what books do professionals read?

Now, either...

1. Before becoming a professional you were a newbie and thus you started with these books(like most people do) and later moved to other 'more-in-depth' and advanced books.

or...

2. You had no prior trading experience and you started working for a prop firm or a big institution(I'm assuming they said they'd train you) and they tell u what books to read and study from and which ones should u familiarize yourself with.

I'm asking these for various reasons. First of all, ALL websites and everywhere you see the same books being recommended(note: everybody's reading the same books yet still 80%-%90 of traders fail) and secondly, professional traders go against the herd mentality and fade what amateurs(newbie retail traders reading the same books) do.

I guess I'm trying to learn more of how a professional trader thinks, and what exactly does he know, or what's his mindset, what kind of literature does he fill his mind with? What books? What analysis? How does he analyze the market differently from the retail traders or newbies?

I hope the way I explained myself makes sense. :whistling

Are there any professional traders around here? I haven't yet had the pleasure of meeting any.

Warning: I don't mean to imply that a professional trader is only one that works for big institutions. I just gave that example for the sake of an example.:!:

In any case...I was lately wondering what on earth these guys read after they've read all the recommended and classic trading books. :p
 

Enzzo

Active member
145 13
So everywhere I look I see the same recommended books: "reminiscences of a stock operator", "market wizards', "new market wizards", "trading in the zone", "trade your way to financial freedom", "trading for a living", etc etc etc, you all know the rest...

...but I was wondering what books do professionals read?

Now, either...

1. Before becoming a professional you were a newbie and thus you started with these books(like most people do) and later moved to other 'more-in-depth' and advanced books.

or...

2. You had no prior trading experience and you started working for a prop firm or a big institution(I'm assuming they said they'd train you) and they tell u what books to read and study from and which ones should u familiarize yourself with.

I'm asking these for various reasons. First of all, ALL websites and everywhere you see the same books being recommended(note: everybody's reading the same books yet still 80%-%90 of traders fail) and secondly, professional traders go against the herd mentality and fade what amateurs(newbie retail traders reading the same books) do.

I guess I'm trying to learn more of how a professional trader thinks, and what exactly does he know, or what's his mindset, what kind of literature does he fill his mind with? What books? What analysis? How does he analyze the market differently from the retail traders or newbies?

I hope the way I explained myself makes sense. :whistling

Are there any professional traders around here? I haven't yet had the pleasure of meeting any.

Warning: I don't mean to imply that a professional trader is only one that works for big institutions. I just gave that example for the sake of an example.:!:

In any case...I was lately wondering what on earth these guys read after they've read all the recommended and classic trading books. :p
You would be surprised to know that "some" huge traders from "some" prop firm making a big number of K's week in and week out didn't ever read any trading book....
Of course this is not the case for all, but this is a fact.... :)
 

HenriettaBret

Newbie
2 0
These 3 books really helped me in my trading and it will help you as well.
1. Mastering The Trade (by John Carter)
2. Technical Analysis of the Financial Markets (by John J. Murphy)
3. Trading In The Zone (by Mark Douglas)
 

Rhody Trader

Senior member
2,620 264
I guess I'm trying to learn more of how a professional trader thinks, and what exactly does he know, or what's his mindset, what kind of literature does he fill his mind with? What books? What analysis? How does he analyze the market differently from the retail traders or newbies?
If that's what you're after, then you should read the Market Wizards books which you noted before. They are all about getting in the minds of professionals.

As for what the pros read, think about what sort of things you read in your own profession. I'd venture to say the vast majority of your development at this stage is about experience and keeping up with developments in your field (usually news and other periodical type publications), not about reading books. This isn't to say you shouldn't read. It's just that at a certain point any given book might only have one or two little bits in it that might be of specific use to you because of your stage of development. Books are not generally written for the "masters".
 

Scott Masters

Newbie
6 0
the majority of the valuable information you need to know/learn about trading comes predominantly from experience, and a firm understanding of the fundamentals and the tools.
 

mingbao

Member
89 0
It's an interesting question. and it's a truth that you can not find may great books for this amazing market. you should learn more through experience. as to trading basics, you can learn from everywhere.
 

rodolfo49

Newbie
9 2
I agree. I just started "Market Wizards" so I'm really excited about learning from their experiences. HenriettaBrett, thank you for those, I already have them on my book list, so I'll devour them as soon as I get a hold of them. :)

Everyday I learn more through experience too, screen time cannot be replaced by book reading, theory doesn't make u money, but action. Although u need the theory to know what to act upon. haha

Thank you all for your input. xD
 

Enzzo

Active member
145 13
everybody's reading the same books yet still 80%-%90 of traders fail) and secondly, professional traders go against the herd mentality and fade what amateurs(newbie retail traders reading the same books) do.
this is "key" and you won't find anything about it in many technical analysis books...
 

rodolfo49

Newbie
9 2
So true. :(

Now that I think about it, maybe a book on Behavioral Economics would be an interesting read. :D
 

Joules MM1

Established member
640 141
http://www.trade2win.com/boards/trading-home/150652-good-books-trading.html#post1860740

you ever heard the phrase "the market is at the point of recognition" ?

i think that most books people commend are precisely points of recognition and utterly useless to a newbie......in other words, you'll read a book and either grin or chagrin at the moment you recognise a concept or event summary in a book.......so the books are, really, recognition references, afterall, without the actualised, personal, experiences summarised within, how can an individual know, see, acknowledge or recall anything from within the confines of the book and if they say they do, then, that's most likely a recall of a (reference) they've read in a previous text simply due to their previous searches, they've stumbled across stuff that's become familiar and theyre not sure where or when or how they came across the work(s) and they've taken enough in to at least feel they understand the current book they're ensconced in......and this is the challenge (see link above) because this familiarity is a rouge, of itself, that comes from everyday laziness of how we see ourselves and determines the level of effort we'll go to for absolute result......the effort rarely departs from the result......the effort rarely departs from self esteem......they are circular....each transaction is an absolute result, the price you enter, the price you exit, you recieve an absolute result and to avoid the absolute traders will die in a position rather than take on the absolute, they'd rather be in a romantic notion drawn from books than do the work that is required.......the participation in an auction process is so distinct from any other activity yet most people want to participate as though they are armed from a few books, as though, this is nothing from the ordinary, yet, we are talking about making and losing money from......well......money.......so how familiar and exactly-like anything else can trading be?

i've read on T2W trading described likened to a carpenter making furniture.....very funny.......and i've likened trading to rugby where i'm facing a huge forward who's coming at me at speed, who drops the left shoulder and fakes right and i'm left stranded, or worse still, he fends me off with a palm to the face.....while that's conceptual in how you've taken in that idea it's true in it's description of the dynamism i'm involved in.......a book cannot convey that to you in context.....a person, a mentor, a tutor can!

there's a cupla books i've read that are ideal to specific auctions, one for stocks and the other for futures, two distinctive different beasts......i would not suggest them to anyone without first knowing that person can articulate the basis of an auction......very few people can clearly articulate the auction process without drifting off into into a specific event which results in an out-of context point of view....most people have no idea how a car engine works they just want to turn the key and make the car go.....most people cannot summarise an auction, any auction, even after hours of reading famous trading books and as a trader youre the driver and the mechanic

take any of the most accepted, most read, most loved texts on trading and then search to see who has paraphrased the parts that are actionable or have been moulded into a regime of process......these people are likely to be harder to find than the actionable parts themselves.......there is a good reason for that and i'm guessing you've already realised the reason as you're reading this post.......

a pro trader who no longer frequents this site once enlightened me to this idea:

Question: "What kind of book should i read?"

Answer: "That's the wrong question"
just ideas
 

Rhody Trader

Senior member
2,620 264
throw away your books and learn from others, this is a connected world.
Ummm....Learning from books IS learning from others. And the structure of a well-done book facilitates more efficient information exchange than learning from forums, etc.
 

rodolfo49

Newbie
9 2
Joules MM1, thank you for your in depth comment. What I'll do is soak in and absorb what the literature I'm reading is teaching and record it down on paper so I don't forget them. Review them every now and then, if not everyday pre-market, so it's fresh on my mind. We gotta find a way to purposefully turn into action what we learn from reading those books, or any kind of trading literature we read.