by Mihaly Csikszentmihalyi
Almost finished! Come back soon to see my comments, but I'm definitely recommending this as a top ten book.
by Scott Plous
The Plous name is all over the literature on trading decisions and behavioral finance, so I thought I would give this book a try. I have not finished reading it yet, so check in after a few weeks for a review. That said, the existing reviews are good, so you may not want to wait for me to get around to it.
by Edward Russo and Paul Schoemaker
I read this back in 1990, before I became interested in FX. Due to a recent and random event that reminded me of the book, I pulled it out of a box in my garage and read it again. Now I know why I kept it. Whether you trade or not, you must read this book. It is short and concise and if you're not already familiar with the material, it might just blow your mind. Very applicable to trading.
by Jeremy du Plessis
This book will take the place of Dorsey's as the best book written on Point and Figure. At 450 pages, it is a tome. But if you are committed to learning this purest of TA paradigms, you will emerge a new trader. I first started using Point and Figure on long term FX charts last year and am now revising all -- yes, I said all -- of my trading models. I'll have a brief review prepared soon of what I got out of this excellent book, but don't wait for me!
by Bernard Baumohl
This is another reference book I keep on my desk that when read with a few cups of coffee provide a deeper perspective of economic events on any given trading day. If I were a professor, this would be required (albeit boring) reading. Understanding economic data releases is essential, whatever the trading approach. An excellent companion for any TA-based news trading method.
2nd Ed.
by Steve Nison
Of all of the traders I've met, 8 out of 10 use candles without understanding the anatomy of a candle or of candle formations. I have taken my guidance from Steve Nison and others like Morris and Bigelow, all of whom have documented the major formations and explained them in the context of Western analysis. This is a reference book I keep on my desk.
by Van K. Tharp
The risk and money management principles touched on in this book are among the most accessible I've read. Most of the book, however, is simply a laundry list of things to ponder that leave one wanting more -- likely a tactic to get you to buy his courses. The book certainly doesn't come off as an exposé on Tharp's "secrets". I think the author should have done a better job given his claims to insight, but nevertheless rate this required reading.
by John J. Murphy
This is a must-read for serious students of the financial markets, alongside Technical Analysis of Stock Trends. Authoritative, concise, and well organized, this book answers everyday questions on technical indicators, trading strategies, and more. A necessary reference for any budding trading business.
by Jack D. Schwager (Hardcover)
A very inspiring and (at times) entertaining read. If you ever wanted to survey how the big boys play, it is one of the better books out there. This was the first book I read about trading and to this day I still return to some of its chapters. I have read the chapters on Paul Tudor Jones, Bruce Kovner, and Ed Seykota more times than I have fingers. You can also get the audio editions of some of these interviews.
by Thomas N. Bulkowski
This is the second edition, published in 2005. I own both. Bulkowski not only describes the patterns, he explains how well they have worked historically in the equities markets. The FX spot market works somewhat differently, but the patterns are certainly the same. Anyone who gives a damn about patterns should read this book.
by Mark B. Fisher
The forward is written by Paul Tudor Jones, which should be enough of an endorsement to buy this book. If I had the opportunity, I would throw myself at the feet of both of these traders and do everything they tell me to do. Fortunately, Fisher wrote a fairly detailed explanation of his methods, so I can read about them from home instead of camping out on his front doorstep like some obsessed groupie.
Technical Analysis of Stock Trends,
7th Ed.
by Robert D. Edwards and John Magee
Originally published in the 1930s, this "timeless classic" is the foundation for many studies on
the topic of trend analysis. (Can something be less than 100 years old and be a classic?) The 8th edition takes too many editorial liberties, in my opinion, so look for the 7th edition or earlier. If you buy the 8th edition, just note where the original authors stop and the editor begins.
That said, the 8th ed. is still a fine book and much easier to find.
by John L. Person
This is another author who practices what he teaches and his methods are very accessible for the beginning trader. The title is a fairly accurate description of what you get inside this well-written book. If you can get past the plugs for his website and other services, your trading will probably benefit.
The Tax Guide for Traders
by Robert A. Green
This is a no-brainer and includes the latest changes to relevant tax laws. It is written for traders, not accountants, and given the small margins of profitability for most traders, reducing taxes to the minimum by legal means is crucial to trading success. This book will take the reader from the nuts and bolts of filling out forms to what to do in the event of an audit. Buy this book.
International Monetary Power
by David M. Andrews, Editor
This book is on the academic side, but much more accessible than Sarno and Taylor. It is a collaborative work on the sources and implications of monetary policy with respect to power and statecraft at the international level, and also below the state level. Part three is especially interesting, as it goes into using exchange rates as coercive instruments -- and the limitations of doing so.
The Economics of Exchange Rates
by Lucio Sarno and Mark P. Taylor
An advanced but very important book for traders like me, who like to know what factors influence the macrostructure and the microstructures of the foreign exchange market. Many traders dismiss this kind of education, but it has helped me gain a "feel" for market valuations of currencies and some commodities
by reading about the missives of central banks, finance ministries and
the broader financial markets.
Enhancing Trader Performance: Proven
Strategies form the Cutting Edge of Trading Psychology
by Brett N. Steenbarger
Far
better than his earlier book, The Psychology of Trading, this is
a good counterpart to Gandevani's book. The reader will come away with several powerful ideas for
structuring their personal development. Great book for a "system
reboot", so to speak. Case-based on real research and focused on
developing real expertise. Be sure to take notes.
How to Become a Successful Trader
by Ned Gandevani
The subtitle of this book is "The Trading Personality Profile: Your Key
to Maximizing Your Profit with Any System". The book delivers the goods.
I haven't been this excited about reading a book in a long time. The
reason: Gandevani actually provides the tools for assessing personality
and then developing strategies for exploiting strengths and addressing
weaknesses. Best practical book on trading psychology I've read.
Trading in the Zone: Master the Market
with Confidence, Discipline and a Winning Attitude
by Mark Douglas
This was the first book on trading psychology I read as a new trader.
Douglas is not a psychologist and brings his unique perspective to the
discussion on thinking in probabilities. He also provides a survey at
the back that helps structure the trader's beliefs, though it is not
nearly as refined or researched as Gandevani's FFR model. For the
newbie, this book is a good first glance at the subject.
by Alan S. Farley
I have recommended this book to several people and have received both good and bad comments -- the key to reading this book with success is to have charts alongside and a strong will to stay awake. Farley writes in a convoluted style and imagines a rich world of market phenomena that not all will appreciate. I certainly did.
by Robert Deel
Don't take any shortcuts when it comes to writing your trading plan. Deel guides you through a concrete process with clear rules for managing risk and money. This is a serious book for serious traders. Read this after reading Van Tharp and you'll see what I mean. It's not perfect, but it's well written and professionally presented. This book is required reading and well worth the $70.
by I.R. Toshchakov
This book is written for the novice trader who has a solid grasp of the fundamentals. It is among the strongest and most original books on trading forex that I have read. English obviously isn't the author's first language, but very important knowledge for the first time trader is clearly conveyed. On top of all this, he shares a very tradable long term method.
by Daryl Guppy
This is a great book on position sizing and other topics related to money management. After reading a few on the subject, I can say that Daryl Guppy's style of writing and thinking most closely resembles the style I best learn from. I was fortunate to find this and the books above before I blew my first trading account. This was the one that turned things around for my trading.
by Linda Bradford Raschke and Laurence A. Connors
They know what they are talking about. I read this book for that simple reason and came away very impressed with how it had provoked me to think about new trading methods and trading management perspectives. One of the most professional books I've read. Not full of pet theories. It is a bit pricey, however...maybe too pricey.
by J. Orlin Grabbe
Simply put, the definitive textbook on the subject. Don't bother with it if you've never taken a college level course in international finance. It will probably not help improve one's trading, but it will provide a very good foundation for understanding how global capital markets are formed and how they function.
by Larry Harris
Finally, a book on microstructure theory that a non-quant can read and understand! However, unless you are well read on the subject, have a few college-level finance courses under your belt, and have some experience in front of the screen or on the floor, it will likely be over your head. This is my trading bible. I keep it next to Kirkpatrick's TA book.
by Charles Kirkpatrick and Julie Dahlquist
If I were to call any one book my TA bible, this would be it. Very well written and organized for self-study. Reads like a college textbook, but that shouldn't matter for serious students of TA. In my opinion, it is exactly what is needed. Surpasses Murphy and Pring in several areas. A good launch point into more focused studies. And brand spanking new, besides.
by Jack D. Schwager (Hardcover)
In the sequel to Market Wizards you will find chapters on Bill Lipschutz, Tom Basso and Linda Bradford Raschke. Schwager spends much less time talking about himself, which I think is an improvement. The section on trading psychology is also much improved. Reading about great traders is always inspiring. Modeling your core traits after theirs is what I call the holy grail.
Alexander Elder
Forget about his previous books. This one presents a rare opportunity to look into the lives of other lonely traders -- who trade from home and have become successful on their own terms and on their own time. This, to me, is the pinnacle of what it means to be a lonely trader. As pack animals who out of necessity trade alone, this book is a welcome respite for us. It's like having our own community of friends who trade.
by Kathy Lien
Ms. Lien is a paid employee of FXCM and her book certainly reflects this, but not overly so. Chapter 2, a history of FX, reads like a high school paper, but I can forgive her for that. Like Schossberg's book, hers is a compilation of published articles that can be obtained free of charge. I recommend it with some hesitation, but only for the bare-butt newbie.
