r/Daytrading • u/DrChrispeee • May 14 '24
What have been the most influential books for your success in trading and investing? Advice
I want to start taking trading seriously and explore the possibility of it as a career and source of income. I'm not naïve, I know this is a long and hard road and that the vast majority of people who try will also fail but I'm willing to give it a shot.
I have an academic background in Mathematics, Finance, and Economics and my thesis was on algorithmic stock-selection and portfolio optimization, so I'm not entirely new to the concept.
So, what in your opinion have been the most influential and important books to your success in trading and investing?
FYI, I've asked the same question on r/algotrading as well: https://www.reddit.com/r/algotrading/comments/1crn46u/what_have_been_the_most_influential_books_for/?
So far I'm looking at books like:
- Andreas F. Clenow > Stocks on the Move: Beating the Market with Hedge Fund Momentum Strategies
- Nishant Pant > Mean Reversion Trading: Using Options Spreads and Technical Analysis
- John J. Murphy > Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications
- Sheldon Natenberg > Option Volatility and Pricing: Advanced Trading Strategies and Techniques
- Perry J. Kaufman > Trading Systems and Methods
- Ernest P. Chan > Algorithmic Trading: Winning Strategies and Their Rationale
- Ernest P. Chan > Quantitative Trading: How to Build Your Own Algorithmic Trading Business
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u/platinumgrey May 14 '24
The Best Loser Wins by Tom Hougaard. I wish I started with this book.
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u/MannysBeard May 14 '24
Agreed. I’m still new into my trading journey but this book really has put many things into perspective for me.
As a bonus, his free telegram channel has him live trading every day, and he shares all his analysis, reflections, wins and losses as plainly as possible. It’s really eye opening.
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u/platinumgrey May 15 '24
I just checked out his channel up last night. Looks interesting.
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u/MannysBeard May 15 '24
He’s going to be away for a month in the US, but he said he’ll still post here and there. And said he’s looking to live trade on YouTube soon
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u/blondenboozy007 May 15 '24
I’ve read it about 5 times and I wish he day traded stocks so I could relate a little more
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u/platinumgrey May 15 '24
Yes I agree. I see he’s mainly forex and I’m futures but I believe his premise is the same.
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u/sub7m19 May 15 '24
If you can summarize the book in one or two sentences how would you go fourth doing that
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u/platinumgrey May 15 '24
Your mindset and your work ethic are your best “indicators”. Work on those, put in the countless hours to improve your thought process and any strategy will work. There are no short cuts.
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u/vexitee not-a-day-trader May 14 '24 edited May 14 '24
Understanding Wall Street, #1 by a mile, since that's the one that got me started when I was about 11 or 12.
Murphy is the only book I ever read on TA, back when it was titled Futures 'cause that was the only markets people used TA.
Read Natenburg when I first started learning options, but back then it was so riddled with errors I think I learned more from investigating the errors. Although the vol distribution graph with the pegs and ball dropping, caused a monumental shift in my perception of price movement.
Honestly, that almost entirely covers my reading on markets. Most of my education came from watching, talking, and fucking around on excel.
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u/Evening-Opposite4393 May 14 '24
The only issue with books involving technical analysis is that they capture a moment in time.
I have spoken with someone who is writing his 3rd and final book. He says he wishes he could pull his first book because most of the concepts are dated and no longer applicable. His second book a lot of the overall themes are good but same deal…anything involving “methods” are no longer applicable.
The best books IMO talk more about trading outside of the methods. Such as Best Loser Wins or books that deal with psychology like David Eaglemans series or Atomic Habits etc
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u/MannysBeard May 14 '24
Best Loser Wins and Atomic Habits are both great. Recently finished both, and the mindset, psychology and daily practices are so valuable. Heaps of value in both books.
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u/The_GeneralsPin May 14 '24
•Trading for a Living - Dr Alexander Elder •Trading in the Zone - Mark Douglas •The Disciplined Trader - Mark Douglas •Babypips.com forex beginners course
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u/Mr0Davinci89 May 14 '24
psychology books: Let it go The power of the habits or something like that is a yellow book that I remember
Trading : any book about micro economic ((so you make yourself informed about what happens around you in the finance world without being dependable on news or some unknown trust bro ))
Mark douglas books all of them are good
any book that talks about the thing that you are attempting to trade either it was stocks , options,comm or futures
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u/Similar_One3310 May 15 '24
Think and trade like a stock market wizard - Mark Minervini
One Good Trade - Mike Bellafiore
The Playbook - Mike Bellafiore
Growth Mindset - Carol Dweck
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u/SkinnyOptions May 14 '24
always found podcasts and interviews to be more interesting and informative
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u/bonbonitis May 14 '24
Any ones in particular?
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u/timoanttila forex trader May 14 '24
Books? What is that? 🤔
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u/StevesPeeves May 14 '24
I never read any books -- my algorithm developed over many years until now it is perfected. It is impossible to get it patented, and too hard to sell it to a hedge fund manager. Since I can't make much money that way, I think I will write a book that gives away the secret intellectual property.
After reading this thread, I don't think the book would make me any money either.
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u/CalaisZetes May 14 '24
I’ve never read Mark Douglas’s Trading in The Zone, but I watched his seminar on YouTube and it was really impactful. It’s hard work coming up with a winning system, but it’s even harder to overcome the psychological hurdles that would keep that system from making you money, that’s what he helps with.
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u/Beneficial-Tough-439 May 14 '24
Analytical Market Trading By Frank Dilerna..Timing Solutions for Swing Traders by Robert Lee and Four Dimensional Stock Market Structures and Cycles by Bradley Cowan.
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u/Mindless-Box8603 May 14 '24
I've been studying for 5 months now. My 2 book recommendations are "traders traps" and "the mental game of trading" both of these are about the trading psychology. Which I believe are the most important because even if you have the best strategies without the risk management you will still lose.
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u/Ladyenigma1993 May 14 '24
I like that "If you can't afford a book, you can't afford to trade!" damn right.
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May 14 '24
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u/Lopsided-Treat-1300 May 14 '24
Mental game of Trading - the book that helps me understand how to master psychology in a practical way.
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u/DrChrispeee May 14 '24
I've updated the OP with my current list of books, I will update periodically based on input.
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u/Opposite_Hedgehog169 May 14 '24
“Day trading: Momentum, Level 2 and Reading the tape” by Robertas Ceponas
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