Top 10 Best Trading Books For Beginners
As a trader, I always receive messages from beginners asking:
“Can you recommend me the best trading books?”
So I have taken the time to select the top 10 of my favorite trading books.
These books cover subjects like learning how to trade, technical analysis, chart patterns, trading psychology, risk management, trend analysis, simple strategies, beginner-friendly techniques, etc.
Whether you are a beginner or already a profitable trader, there is something here for everyone.
I suggest you practice what you learn in these books using one of these technical analysis softwares.
So which 10 trading books should beginners read to get started with trading and start making profits?
1. Trading In The Zone
This is one of the best trading books trading ever written.
It took Mark Douglas seven years to complete the book.
Mark Douglas' book, Trading in the Zone, is a must-read for both beginners and successful traders.
While bursting with informative advice on various ways of improving your trading skills, this book is primarily designed to adjust your behavior and the way you see things important for successful trading.
For example:
How to get a probability mindset and how successful traders see risk.
The book focuses on the psychology of trading and the relevance of having a healthy trader's mindset.
No wonder it is considered the "bible of trading psychology."
Here's an interview with Mark Douglas discussing some key points in his book:
2. Encyclopedia Of Chart Patterns
As its name implies, Encyclopedia of Chart Patterns is a book covering all the technical analysis chart patterns that every trader should read.
You get statistics for both bull and bear markets, and 33 chart and event patterns are explained.
For example:
You will learn the Dead-Cat Bounce, Three Rising Valleys, Pipe Bottoms, Diamond Bottoms, and more.
It's a complete trading book to chart patterns.
With tested and proven chart pattern strategies, Thomas N. Bulkowski also provided relevant explanations on how to use charts to improve your trading results.
3. Naked Forex
The strategies in this book work on most markets, not just forex.
In his book, Naked Forex, Walter Peters offers helpful high-probability strategies and techniques for trading without indicators in the simplest possible and tips on how to read and trade candlestick charts.
Beginner traders will learn a lot of naked trading strategies for successful trading by reading this book.
4. Reminiscences Of A Stock Operator
First published in 1923, this book is the most widely read, highly recommended, and one of the best books for beginner traders. It's also an excellent guide to stock market investing strategies.
Generations of readers have found that it has more to teach them about markets and people than years of experience.
This is a timeless tale that will enrich your life and make you a better trader. The content is very much about the mental aspects of trading.
5. Market Wizards: Interviews With Top Traders
Bestselling author Jack D. Schwager interviews dozens of top traders across most financial markets.
While their responses differed in the details, all of them could be boiled down to the same essential formula: solid methodology + proper mental attitude = trading success.
Jack D. Schwager also distills the top traders’ responses down into a set of guiding principles and trading rules you can use to become an investing and trading star in your own right.
6. Trade Your Way To Financial Freedom
This trading book features Tharp’s new 17-step trading model.
The book also addresses reward to risk multiples, and insightful new interviews with top traders, and features updated examples and charts.
There are very good discussions on position sizing and risk management.
Position sizing and risk management are the closest thing to “The Holy Grail” in trading you will find.
7. Way Of The Turtle
This book explains the success of the simple trading system used by the group known as the “Turtles.”
Author Turtle Curtis Faith explains the entire experiment in detail, describing how Dennis and Eckhardt could recruit 23 newbies from all walks of life and train them to be successful traders in just two weeks.
If you are a beginner trader and unsure about how to start trading, this book will be of great help in showing you the way.
8. The New Trading For A Living
I often recommend this trading book for those who are beginners. Even before you make your first real trade on the market, you must read this book and learn about the basic principles of trading psychology, discipline, trading tools, risk control, and trade management.
While presenting you with a broader range of how your technical analysis should be done, it also offers a winning strategy along with some interesting new ideas that can help your trading.
Read this book and learn how to overcome some of the most common trading mistakes traders make.
9. Mastering The Trade
In this trading book, you will find and learn several trading strategies that can be applied to succeed in trading. John F. Carter's strategies can be used to profit from most markets.
You will get to know more about the essential tools and proven techniques for profiting from intraday and swing trading setups.
The book is loaded with actual, working strategies that can help you succeed and overcome failures in trading. Like talking to a personal financial adviser, this book is presented in a friendly tone that will give you real facts.
10. Trading Price Action Trends
Suppose you're looking to day trade successfully. In that case, the trading strategies and techniques found in Trading Price Action Trends Bar by Bar will help you take your trading to the next level.
In this book, Al Brooks explains his 5-minute price charts trading system. He's found a way to make consistent profits regardless of market direction. It's an informative book of his system where you can follow his trading method step by step through the entire process.
You will learn about institutional piggybacking, trend trading, trading ranges, and reversals.
He is breaking down everything into a successful methodology.
The book describes what individual candlesticks and combinations of candlesticks can tell a trader about what smart money is doing.
Do You Want AccurateTrend Reversal Signals?
I'm a family guy in my early 30's who learned how to trade the markets in a simple yet effective way. During university, I studied investing and graduated with a master's degree in risk management. Quickly, I realized that I was onto something. I started helping friends and taking students. My students started getting results, spent less time in front of their screens, and their accounts grew consistently. Learn more about me here.
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