FAQ Which Books should a Beginner Read?

[NVP]

there should be nothing different about forex trading from any other kind of trading.

that's an interesting comment .............

 

[NVP]

I've just read 'Talent is overrated'.

Must read for anyone imo.

perhaps a phrase mainly published by those without it ? .........

 

[lawrence-lugar]

Any book is the right book -- it's what you make of it...that counts.

 

[dbphoenix]

Nice Suggestions but I do prefer that rather than book you should gain knowledge through trading with Demo account and practice through it until you are ready to step into the real world of Forex.

If one attempts to trade without a thoroughly-tested and consistently-profitable trading plan, he'll get a lot more enjoyment out of his money by going to a casino.

Setting up a demo account and "practicing" without such a plan will accomplish little other than to embed bad habits that may take years to expunge.

 

[NVP]

If one attempts to trade without a thoroughly-tested and consistently-profitable trading plan, he'll get a lot more enjoyment out of his money by going to a casino.

Setting up a demo account and "practicing" without such a plan will accomplish little other than to embed bad habits that may take years to expunge.

word alert .............Db...........tone it down or we will have to get the dictionaries out

N

 

[SurtiTrader]

Instead of book I would suggest you to gain knowledge from trading with demo account and than can enter the real world of Forex.

 

[arigoldman]

Instead of book I would suggest you to gain knowledge from trading with demo account and than can enter the real world of Forex.

A lot of different kinds of traders, for me the demo only made real trading worse. It took me quite a time to adapt to real market conditions.

 

[Obi-Wan]

So, it seems the key is getting to live trading as soon a possible... Not to underestimate the psychological aspect. O

 

[arigoldman]

Exactly.

 

[dbphoenix]

http://www.trade2win.com/boards/fir...ienced-traders-help-newbies-2.html#post127104

 

[Eliott Gray]

Great post! I've heard good things of 'Practical Speculation' as well. And it's always good to read books, just never take one man's opinion as the ultimate truth but you can always learn something (to all those that wrote no books on trading are useful...)

 

[bootsyjam]

Great post! I've heard good things of 'Practical Speculation' as well. And it's always good to read books, just never take one man's opinion as the ultimate truth but you can always learn something (to all those that wrote no books on trading are useful...)

There's two facets to trading, the technical side and the psychological side. Most people (including myself) start out with the technical and ignore the psychological which is most likely the wrong way to do it!
Psychology books:
1) The Trading Athlete by Shane Murphy: A must read, should be the first book you read before anything else! Will get your mind set from the start.

2) Trading in the ZOne: First half is good, second half you can take it or leave it (just my opinion). If you read the Trading Athlete and implement what is described there is no reason to read this book.

3) The Playbook by Mike Bellafiore. A tough one this, it's very frustrating due to the style of writing which I didn't like, and it goes on and on and on. And on. It does not mention specific technical set ups which is what you would expect from the title. But what it does manage to do from the numerous home spun recounted conversations (yawn) is show you how much hard work and dedication you need to become a top trader. If you have the idea that you can sit in a park with a laptop for a few hours a day to become rich then read this book, it's illuminating. Only worth it if you can get a cheap copy (it's £35 new).

Read all/some of those and assimilate what they are saying, and do the exercises in the Trading Athlete.

Technical:
1) Mind over Markets by James Dalton: People are obsessed with spot fx trading. So was I. But you cannot see the volume going into the market on the buy/sell side, and you can't see at what prices the most volume came in at which is a footprint worth seeing. This book describes how to view the market via the auction process which is what markets are all about. It's quite dense, and you won't get it all at first. But read it, assimilate the info, look up videos about volume profile on youtube (the book deals with market profile which is time based but is v similar), get an understanding of what is going on, assimilate the info, let it sink in, then read this book again. Then concentrate on futures markets where this data is collated and used. Don't bother with spot fx and save yourself years of hassle.

2) Reminisces of a Stock Operator by Jesse Livermore. The best and worst book on trading ever written. I say worst simply because there are many technical lessons to be had in this book, but they are almost hidden and you have to think about what he is saying and then relate it to trading. Takes a good few reads to get a lot out of, but covers psychology and technical aspects very well. Will resonate the most if you have already been trading a while.

And beyond all that, there is a wealth of info on the internet. Look up volume profile articles/explanations so you can really understand what goes on in the markets in terms of buying/selling volume. Great example-if you have heard of the idea that a breakout is more likely to occur the third time it reaches a level, do you know why that is? What is going on with the auction process with a head and shoulders pattern-why does it work? Spot fx trading just says it's a rule and that's it, but shows now understanding of the auction process and why it occurs. When you understand why these things work in terms of how buyers and sellers think and interact then you will be well on the way.

 

[dbphoenix]

There's two facets to trading, the technical side and the psychological side. Most people (including myself) start out with the technical and ignore the psychological which is most likely the wrong way to do it!
Psychology books:
1) The Trading Athlete by Shane Murphy: A must read, should be the first book you read before anything else! Will get your mind set from the start.

Having the right "attitude" isn't going to get one very far without a thoroughly-tested and consistently-profitable trading plan. Trading without one is not unlike trying to play professional poker without knowing whether or not a straight beats a full house.

Db

 

[bootsyjam]

Having the right "attitude" isn't going to get one very far without a thoroughly-tested and consistently-profitable trading plan. Trading without one is not unlike trying to play professional poker without knowing whether or not a straight beats a full house.

Db

The book is not just about getting your trading system/trading plan set up and then training your mind accordingly. It asks what motivates you to trade, how to view the path to making it etcetc. You could read all the technical books in the world and still go nowhere. I put it first as it will help focus the mind when you DO start to delve in to technicals. So there you go.

 

[dbphoenix]

The book is not just about getting your trading system/trading plan set up and then training your mind accordingly. It asks what motivates you to trade, how to view the path to making it etcetc. You could read all the technical books in the world and still go nowhere. I put it first as it will help focus the mind when you DO start to delve in to technicals. So there you go.

Technicals aren't necessarily pertinent. One can develop a robust trading system without getting into "technicals" at all. As for books in general, what will benefit the beginning trader most is studying the market, not books.

If one develops a robust trading system properly, i.e., through thorough testing, what is required of "the mind" is consequential and should require no further work.

The path to "making it" is, again, developing a thoroughly-tested and consistently-profitable trading plan, something which only a tiny minority of traders -- the successful ones -- do.

Db

 

[bootsyjam]

Technicals aren't necessarily pertinent. One can develop a robust trading system without getting into "technicals" at all. As for books in general, what will benefit the beginning trader most is studying the market, not books.

If one develops a robust trading system properly, i.e., through thorough testing, what is required of "the mind" is consequential and should require no further work.

The path to "making it" is, again, developing a thoroughly-tested and consistently-profitable trading plan, something which only a tiny minority of traders -- the successful ones -- do.

Db

I'm trying to give practical and structured advice that shows a clear path rather than posting meandering important sounding waffle that ultimately goes nowhere which is common on the fx community.
By understanding the mental self first, and then studying volume profile, or the other way round for the sake of argument, then this is a clear path that will cut out a lot of generally useless pontification.

 

[dbphoenix]

I'm trying to give practical and structured advice that shows a clear path rather than posting meandering important sounding waffle that ultimately goes nowhere which is common on the fx community.
By understanding the mental self first, and then studying volume profile, or the other way round for the sake of argument, then this is a clear path that will cut out a lot of generally useless pontification.

I understand. And you are to be commended. However, one can be mental health poster boy and still fail if he has no thoroughly-tested and consistently-profitable trading plan. And while Steidlmayer does a nice job of explaining the logic of markets, he also adds unnecessary layers of complexity and complication to what was addressed at length a century ago. One needn't spend a dime on software or programs in order to develop a robust trading plan.

Db

 

[SwingTrader24]

Hi all

I'm 17 years old, I am a swing trader and I recommend reading "Rich dad, poor dad". I loved this book and I really have a different look to money.

Have fun.
Trade safe

Maxime

 

[arigoldman]

Rich dad poor dad is good indeed.

 

[SweetAnalyst]

I have been hooked upon the book for trading. Naked Trading has been my favorite for months now as I can learn a lot about Forex and trading.