FAQ Which Books should a Beginner Read?

timsk

Well-known member
Mar 18, 2002
6,829
1,765
223
#61
. . .The less you know about how someone else views the markets and their strategies and so forth, the better equipped you are to make decisions and accept responsibility for your own trading decisions.
Hi TE,
Welcome to the site!

Good post and I expect many members will agree with what you say. Given that this is a FAQ in the 'New Traders' forum, most people reading it are likely to be inexperienced newbies. Nothing wrong with that of course, we've all got to start somewhere. However, it takes a massive amount of self-confidence and, even, a good measure of arrogance, for the newbie to do as you recommend in the section of your post I've quoted. I suspect very, very few people make the decision that - beyond reading books / websites and what not about the basic mechanics of trading - they're going to work everything else out for themselves without any external input. My guess is that if there are any traders out there that have actually done that - they are as rare as hens teeth.

Having said all that, your point is very valid - but it's a real catch-22 for the majority of newbies, IMO.
Tim.
 

random12345

Well-known member
Jun 23, 2012
793
279
73
#62
Trading in the Zone and The Disciplined Trader, both by Mark Douglas
A commonly held belief amongst many traders is that the obstacle to trading profits isn't the markets or your methodology - it's you! These books are widely regarded as essential reading to help you develop the right mindset to trade successfully.
This won't be popular, but I honestly believe Trading in the Zone is a terrible choice for a retail trader. It wasn't written with the current modern, very under capitalised retail traders in mind and you would do far better by thinking that it IS indeed you method that is flawed rather than your psychology. Growing the balls to trade a losing method is obviously a very, very, very bad combination.
 

15 min tlb

Well-known member
Apr 2, 2011
2,057
98
58
#63
This won't be popular, but I honestly believe Trading in the Zone is a terrible choice for a retail trader. It wasn't written with the current modern, very under capitalised retail traders in mind and you would do far better by thinking that it IS indeed you method that is flawed rather than your psychology. Growing the balls to trade a losing method is obviously a very, very, very bad combination.

A trader can have a very good method , but without knowing himself and his worst enemy , he can not be ready for the heat of the moment in war ................when everything in technical anylysis and set ups gets fuzzy and dubious ,the mind and emotions control everything in the heat of the moment.

The method does not control the trader , it is the mindset which comes into action , in uncertainty. Phsychology is more important and makes up 80 % of a trader.

We have inexperienced ,unskilled , amateurs , method less and clueless retail traders.They need phsychology more than a method , to hold them together under stress. , a method can not hold them together.
 
Feb 14, 2013
100
15
28
34
#64
Having said all that, your point is very valid - but it's a real catch-22 for the majority of newbies, IMO.
You’re right. I did wonder about the benefit of offering an opinion. Advice is much easier given than taken, but by far the more valuable when earned.
 
Likes: timsk
Feb 27, 2013
2
0
11
#65
No matter what they say I think that of course knowing the basics of trading is very, very important. But! You can know a lot and be not able to implement this because of the psychological issue. I do not recommend to read a lot. I think there should be an overall basics in economics so that you can understand the meaning of the events and it probable impact. And also you should cope with your emotions. As I have read in the "Trader's Psychology" book on Profiforex website: "A professional trader concentrates on skilled trading, but not money. Of course, first of all, this is the psychological trick, that helps to get rid of fear and greediness. It helps to keep your head in any situation and wait for the right time. " I think this is a very right thing. Anyway it brought me success so far.
 
Jan 13, 2013
82
2
18
#66
I'm guessing this site is predominantly for retail traders and as such, choice of reading material is discretionary. One of the benefits pro traders have is having a largely proscribed nucleus of mandatory material which is normally substantial enough to preclude the time or energy for too many forays into the wider publishing market.

Bear in mind that book written for traders, even written by traders, are largely an exercise in self-promotion and basic product marketing. Even with good intent, there is little to choose between one experts output and another’s in terms of helping develop trading skills.

I’d go further and suggest apart from the basic mechanics of market structure, price development & discovery and operational trading mechanics, most trading books work against the best interests of the reader.

The less you know about how someone else views the markets and their strategies and so forth, the better equipped you are to make decisions and accept responsibility for your own trading decisions. There are only so many things you can say about price: it’s either moving directional (trending) or not. Everything else is a unnecessary bolt-on. Unnecessary to the reader, but vital to the author/publisher to validate publishing their ‘new’ approach/methodology/system etc.

Of course, the more complex derivatives and structured trades do require detailed explanation. But then there is the argument that retail traders shouldn’t really be palying with these asset classes and derivatives anyway.
What material would you recommend to provide information and a basic understanding of the market mechanisms then without personal views?
 

malaguti

Well-known member
Nov 3, 2009
2,262
421
93
#67
What material would you recommend to provide information and a basic understanding of the market mechanisms then without personal views?
try John J Murphy's "Technical Analysis of the financial markets"
has everything in that book that any course will charge you a couple of grand for
 
May 23, 2013
3
0
11
#68
Stop Losses by Matt LeRouge - it's short and cheap but gets straight to the point and I reckon it's already Stopped me Losing hundreds of dollars!
Good luck!
 
Apr 22, 2014
648
61
38
#73
Why Smart People Make Big Money Mistakes; Belsky & Gilovich

The Secret Science of the Stock Market; Jenkins

The Profit Magic of Stock Transaction Timing; Hurst

The Geometry of Stock Market Profits; Jenkins

George Wollsten: Expert Stock Trader; Bayer