If you’re looking for some good reading material focused on day trading, then you should definitely check out the books listed below. They offer a range of information from “how-to’s”, different day trading strategies, market and trader psychology to stories about traders who have blown up accounts only to come roaring back to making millions. In addition to these books liked below, I would recommend you check out Ross Cameron and the Warrior Trading website if you are also looking for a day trading chat room, or a day trading course. They provide online content for traders who are ready to start actively trading the market. In the meantime, make sure you check out these books below! They each have a place in your trading book collection and are great to reference from time to time. Enjoy!
Trading For A Living
Trading For A Living is an excellent book written Dr. Alexander Elder that covers a wide range of topics from trader and market psychology, technical analysis, indicators, trading systems and risk management. This book basically covers it all and will give you a great head start in the right direction when starting out. Dr. Alexander Elder starts the book off talking about individual psychology and how traders think and process information when under pressure. This is a great section to read and then re-read so that you fully understand what you as a trader will tend to do without even thinking about it. The following section goes into depth about market psychology and why stocks trade the way they do followed up by detailed analysis of technical indicators and chart patterns. One of my favorite sections is at the end where he covers risk management and how traders are actually experts at managing their risk and their emotions. If you can’t overcome those hurtles then your trading career will come to a quick end. He then goes into money management techniques and best practices for exiting trades, which is an incredibly important part of trading. Anyone can buy or short a stock but to know how to manage the position whether it goes against or for you is critical to your survival as a trader.
Trading In The Zone
Trading In The Zone is one of my favorite trading books that has helped me get over some major psychological hurtles in my trading. It was written by Mark Douglas and has gain popularity amongst traders looking to take control of their emotions and how to think like a successful trader. Throughout the book Mark goes into the mindset of a trader and how they should perceive the market with a winner’s mindset based on probabilities. He teaches you how to gain confidence and how to take responsibility for your failures. A section in the book that really caught my attention was where he spoke about eliminating emotional risk in your trading. It’s easy to get caught up in the moment but it’s important to make sure that you are thinking in terms of probabilities with the price action and tape telling what to do, not “what you think” is going to happen.
Market Wizards is a trading book classic written by Jack D. Schwager who interviews top traders that have made millions trading the markets. The interviews are great as it dives into the minds of traders who some have lost it all only to come back and make millions. The book covers traders who trade all different types of instruments including stocks, options, futures and currencies based on their style and preference. Some of the traders interviewed include Paul Tudor Jones, Marty Schwartz, Tom Baldwin and Michael Steinhardt. I found it really interesting to read about their struggles when they first started out and how these all-star traders endured through tough times to finally make it in the end. It just further proves how difficult trading is and how much time, practice and patience it takes to become successful.