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Some highly recommended books

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Paris, France
Trading Experience: Advanced
Platform: Market Delta & Ninjatrader
Favorite Futures: ES
cunparis's Avatar
Posts: 2,565 since Jun 2009
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Big Mike View Post
Can you be more specific about which books and why?

I'd say the majority of book authors aren't even trading profitably. Trading is hard, writing books about it and pretending to trade is much easier.

An example is Tim Ord's book. He has the "secrets" to price & volume. Yet in his own trading, he doesn't even use this. And he has been short the S&P since the 800's.

Another example is Kase's book. I spent weeks learning that, practicing it, trading it on simulator. That's weeks of my time lost.

Another example is Larry Williams's books.

Another is Marcel Link's book. Total garbage.

I could go on and on. None of that stuff works.

It seems most authors write books in order to promote their indicators, software, newsletter, or webinars. They're all in it for something. And it's similar for blogs. Most blogs have an agenda - to sell webinars or software. And the free webinars have an agenda too, they want you to sign up for their newsletter or chatroom. It's all promotion.

In this case I think fewer is better. Less is more.

Basically anything that teaches you a method to trade profitably is most likely bogus.

Books that teach you about yourself, about trading but not how to trade, or about psychology are much more useful. Market Wizards, the books about Livermoore, the Pit Bull book, and possibly psychology books (I haven't read any yet). For example I recently read Crisis Economics which was excellent. I'm currently reading "Devil take the hindmost" which is about the various bubbles in history.

I recently read "How we decide" which was awesome and had a serious impact on my trading. After reading that I started journaling and I realized how multiple timeframes and sine waves were just confusing me. They talk about how the human brain can only handle 4-10 things at a time (most people are towards 4). So I was trying to monitor 20+ things. That led to confusion. Now I trade off one timeframe just looking at a couple charts and I'm doing much better. That book taught me, rather convinced me, of much more than any book on trading.

I'm currently reading Outliers. The 10,000 hour rule is great. It explains why so many fail in trading. They don't stick around for the 10,000 hours. They either give up or blow up. I estimate my hours around 7,500. So I'm close.

I think books like this can teach us much more than a book about setups, chart patterns, indicators, setups, etc.

This is all just my opinion. Be careful of any author be it a book or a blog who happens to have a newsletter or software or a trading room or webinar or DVDs or anything else to sell you. It's a huge conflict of interest. He can't tell you everything in the book because they he'd have nothing to sell. So the book is a teaser to get you to buy something else. Heck be skeptical even if they're not selling anything.

And remember that we have no proof that any of these authors are actually profitable traders. So by reading books from people who aren't pretending to be profitable traders, we can avoid the conflict of interest and learn a lot about ourselves which is much more helpful.

I hope you find that useful, I really don't want to debate the subject. If people learn from reading the books I despise then that's great and I'm happy for you. Whatever works.

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