Recommended Trading Books

1. Japanese Candlestick charting Techniques – Steve Nison

For new traders who are also new to the charting. Read this book first. You would probably be using Candlestick charts for analysis. You may find that you can skip a few pages once you grasp concepts.

2. Trading for a living – Elder Alexander 

Although this book has lot of information. It has very useful information about long term trading. For trader who are interested in trading daily charts or weekly charts (Positional Trading).

3. Street Smarts –  Linda Raschke

Trading systems for short term trading like 1-2 days. This book has systems which can directly be used out of the box. In that sense, this is one of a kind book. Most of the books only talk about do this and that but this book is about specifics.

4. Trading Price Action – Al Brooks – 3 book series – Trends, Ranges and Reversals

This is for day traders. Day traders should mostly trade price action as indicators will not be quick enough. This doesn’t mean you shouldn’t use indicators or oscillators. We can use anything and everything if there is consistency and discretion used with proper context. Day traders focus on concepts like supply- demand, support- resistance, and acceptance- rejection of price levels, Stop loss orders of other traders, Covering, Profit booking etc. This and the book below by Bob Volman also have specific information that can be used in day trading.

5. Understanding Price Action  – Bob Volman

6. Swing Trade Stocks – Website – Craig Ferguson

Link: http://www.swing-trade-stocks.com/index.html

For traders who are interested in swing trading. Holding period is about 2-5 days. If you are absolutely new, I would recommend reading this website first before any books.

7. Nifty Nirvana – Blog – SMART TRADER – DP Trading System

Link: http://niftynirvana.blogspot.in/

 

The above blog offer a nice day trading system based on price action. A lot of articles written by SMART TRADER explaining the system and the concepts involved well. If you are into trading support and resistances, you will particularly find this system interesting. Even otherwise, if you are looking for day trading, this system is worth a try. The blogs offer few eBooks also and lots of example trades which are quite helpful. Do read the comments section of the charts.

 

Most of the books will advise that a trader should stick to one time frame. You would also learn that you only require one pattern and one instrument to be successful in this business. Therefore, you could choose to trade particular Index, or a currency pair or a commodity which is super liquid to start with.  To trade high quantity, which you eventually would like to do, you would require confidence. Confidence would come if you trade only what you know. Therefore system is important as is discretion.

There are lot of other books which are good reads. You will come across them eventually if you want to explore.

Whatever concept you like, observe it first for a few days. Eventually you will understand that it is all simple and our mind was complicated. But to reach that stage, you will have to do some reading and require a lot of screen time.