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Hello guys, I have been searching the forum for the past couple of days (i'm brand new here) and, while I have read most of the threads for books recommendations I could not find one that caters to people brand new to trading, so I humbly ask for you help:
Could you please recommend me some (paid) books for people totally new for tradding? I have read A Trader's First Book on Commodities by Carley Garner, and I am just starting J. Murphy Technical Analysis for Financial Markets. I think I am more interested in the theory itself, how markets, indicators and strategies work, including risk management, money management, charting, TA, FA and the like, but perhaps you can recommend me better?
I understand there's no magic sauce, nor I'm interested in snake oil, just plain theory to have an understanding of how things work!
Thank you!
(I'm mostly interested in trading indices, hence I post this here)
Mind Over Markets is not about trader psychology. It is about auction market theory and market (or volume) profile. This is the number one book to start with, imo. It provides the technical foundation from which to trade on a centralized exchange.
Chimp Paradox is a psychology book that focuses on using your "chimp mind" to benefit you. It's like what Freud called the id. But the "paradox" is that, while this animal brain tempts you into self-destructive things, it also has intuition that your cognitive brain (what Freud called the ego) will never have. So the trick is training it to be beneficial and not destructive. And, no lie, it's not that much different from training a dog well. You can have a shit dog that tears everything up, or you can have a trained dog that skillfully hunts prey and alerts you to incoming danger. Result depends on how you manage your chimp brain.
Other considerations might include:
Trades About to Happen by David H. Weis (this is about Wycoff method, arguably sheds a different light on auction market theory)
Trading Psychology 2.0 by Brett N. Steenbarger (Steenbarger is a psych guy but this book is about establishing the proper processes in your trading career, it's both practical and psych related)
Market Mind Games by Denise Shull (this is trader psych and how to properly employ emotion, goes in hand w Chimp Paradox)
Trade Mindfully by Gary Dayton (a psych book on de-programming key mental hangups and correcting those trading errors)
Mastery by Robert Greene (about how to build mastery, this is available in audio)
Hi
This is one of the books i read when i started to experiment Intraday trading
Day trading for a living - Andrew Aziz
Swing trading for Dummies is also good, depends on your style of trading eg. Intraday/Day, Swing -few days, weeks, Position trading - Fundamental based holding shares for months, years.
And once you have read/absorbed all that then do this.
On a good charting system zoom out so you can see as much price movement as possible. I use TT trader charts and Sierra charts. The TT trader charts are a lot better for this. Prorealtime charts are great for this as well.
When zoomed out, draw horizontal lines across where price continually has hit and then moved away. These are called Lines in the Sand. The best ones are 1-2-3 break outs which have then failed. See the attached screenshot for an example of this (indicated by arrows). It's basically an M or W pattern, or a cup and saucer pattern (think they're called that). They should also be accompanied by a low volume zone in the volume profile that is stretched to cover all the price action on your zoomed out screen (lots of great videos explaining volume profile-don't get too bogged down in it!). If you trade just these areas you'll do well
You'll note that this principle applies across any timeframe.
MT Absorb the following---- Old story. Have no idea if true, but the thought expressed is 100% truth.
A Texas Grandfather asked his Grandson one day what he wanted to do for a living. The Grandson replied "I want to be a commodity trader." To which the Grandfather replied- "Of all the ways to lose money, why would you pick the fastest?"
The books, the magazines, the endless indicators, the endless web sites, will in the end get you no where. If any of those things were of any help at all, then why do 98% of traders lose money? I threw everything out decades ago. No one- I repeat no one, will give you a map to their buried treasure. And if you think they will, it will be a worthless treasure.
I do not have a single book, get no magazines, go to no trading rooms, no anything. Just come to this site maybe twice a year to see what anyone has to say about Ninja, and then find a comment thread like yours. I haven't a clue what any market is going to do. Have no indicators, have no idea about any news or reports. Nothing is needed. There are 100's of opportunities each day to enter a trade.
