By VIKRAM
Over the past few years, I have read more than 100 books on trading, both good, bad and average ones. But there are some handful books which really changed my trading life, I may be little biased here with the recommendation of these books because I’m more of a Day trader, so my recommendation based on what I learned from these books for my Day trading method.
If I am saying these are the books which changed my life doesn’t mean that other books are not good, there are excellent books by some world famous traders like Van Tharp, Michael Covel, Mark Minervini, Martin Pring, Paul Tudor Jones etc…
But being a day trader, my preference has been to read books from traders who are legends in Day trading.so, 5 books which are mentioned in below section are my personal favorites and which helped me to take my trading career to a new height
[bctt tweet=”5 Trading Books which changed my life.”]
Here goes the list of those 5 best books.
Written by Franklin O. Ochoa, is possibly the single most recommended book for traders who want to trade based on pivot points.
This is the book which I always recommend when a new trader comes to me and ask for the suggestion about a good trading book, this is the book which gave me that “aha” movement when I read about the power of pivot points and when I back tested it on our Indian market.
My trading strategy is solely based on pivots and price action, whatever strategy mentioned in this book are based on US market, so I had to tweak a lot and did back testing on the Indian market with 5 years of historical data, and then had to come with my unique strategy.
Other than pivots this book has also given a lot of insight on market profile, volume profile and powerful candle patterns.
What I liked most about this book is, it doesn’t discuss anything about basics of technical analysis, or any other basics of trading, instead shows you how one can stay consistently profitable just by mastering pivots.
(Things to note here, my strategies are not directly lifted from this book, but just I took some ideas from this book and developed my own Day Trading strategy)
Click here for SECRETS OF PIVOT BOSS
HOW TO MAKE MONEY IN INTRADAY TRADING
Written by well known Indian Trader, Ashwani Gujral…
What I like about this book is, it is written in a simple layman language which anyone can understand, and all chart examples given on our Indian Stock Market, so ideal for Indian Traders, here he explains his simple methods on Intraday trading.
I have been a big follower of Ashwani Gujral for many years, as per him, his strategy mainly built on Pivot points, Candle sticks and Moving Average combination….and even my Intraday Trading method based on these 3 parameters….So, I can say I am slightly biased here….But,If you want a system based on Pivot Points then it is a MUST READ book, and importantly its very pocket friendly(not expensive)
(Point to remember here, Secrets of Pivot Boss and this book are not the same, completely different contents, if you want to know Pivot Points in depth then highly recommended to read these both books.)
Click here for HOW TO MAKE MONEY IN INTRADAY TRADING
Written by Jack Schwager…..One of the world-famous books, if you go and ask any successful trader to recommend 5 good books, he is more likely to recommend this book as top 5 trading books.
This is the book which is more like a bible for aspiring and experienced traders.
This book contains interviews of many successful traders, their trading styles, their stories on how they started, their early failures and how they managed to bounce back and become successful traders.
This book was like all in one, especially for new traders, like trading strategies, risk management and trading psychology, all combined in one.
Very highly recommended for aspiring traders.
CLICK HERE FOR MARKET WIZARDS
Profiting on every trade by Oliver Velez.
Oliver Velez, undoubtedly the most famous day trader in today’s time. After Frank Ochoa, it is Oliver Velez trading style which impressed me the most, he is a pure day trader who specializes in trading opening of the day, he trades on 2 minutes chart with the help of moving averages and candlestick patterns and makes a very successful living by trading.
If I learned pivots from Secret of pivot boss, then my understanding of candlestick patterns and moving averages comes from the book “Profiting from every trade”,
If you are searching for a book which explains price action and moving averages, then your search ends here, you can confidently go ahead and buy this book, which is worth your hard-earned money.
Click below image for PROFITING ON EVERY TRADE
Trading in the Zone by Mark Douglas.
There is a small story behind recommending this book, I came to know about this book from an experienced and successful trader in twitter where he had mentioned that after reading this book his life changed for good and he became a successful trader, and that was enough for me to go and buy this book, after reading the heading of the book “trading in the zone” I was so excited to read this book thinking it will have some secrets like he must have mentioned some secret zones in the chart, but it was a big disappointment when I started reading this book….. it was all about some discipline, trading psychology etc…. which I was not interested in, as any other novice trader even I was running behind that one magic formula or that magic indicator.
I read this book only after some six months when I was not able to make any headway in my trading and I realized the importance of trading psychology.
By now I must have read this book at least 5-6 times, and here are 5 points from the books which are embedded in me till today.
- Anything can happen in the stock market.
- You don’t need to know what is going to happen next in order to make money.
- There is a random distribution between wins and losses for any given set of variables that define an edge.
- An edge is nothing more than an indication of a higher probability of one thing happening over another.
- Every moment in the market is unique.
CONCLUSION
As I said at the beginning of this article, these are not the only 5 good books on trading, there are hundreds of other good books, but these five are my personal favorites which helped me to take my trading career to new heights.
Risk Management,Trading Psychology and robust strategy(EDGE) are 3 pillars important for of Successful Trading…
Do you have any other trading books in mind which I should add to this list?
If Yes, then leave a comment below and let me know…
Nice article. However, I feel one book that is undoubtedly one of the Bible for traders – Reminiscences of a Stock Operator by Jesse Livermore. I do not know any great trader who was not influenced by him.
My best wishes for the ‘New Blog.’
Thanks, Rajesh for your suggestion, as I mentioned in my blog these 5 books are my personal favourites and Reminiscences of a Stock Operator by Jesse Livermore indeed a good book
Thanks, Bikash, Wish u good luck.
I tried to understand market profile logic by reading few books, but somehow I didn’t get hooked to it, so I continued with candlestick chart, as they say, u should follow what matches ur personality, if u like market profile then you should go ahead and master it.
Thanks, Abhishek, I tried to understand market profile logic by reading few books, but somehow I didn’t get hooked to it, so I continued with candlestick chart, as they say, u should follow what matches ur personality, if u like market profile then you should go ahead and master it.
Thanks
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