Cool, I'm gettin' it. As a former short lived interbank dealer at ICAP, I can totally attest to the seedy nature of this business. The monkies just get greasier the higher up on the wheel they climb...
These are the top 3 books that the greatest impact on me:
The Black Swan - Nassim Nicholas Taleb
Option Volatility & Pricing: Advanced Trading Strategies and Techniques - Sheldon Natenberg
Trade Your Way to Financial Freedom - K. Van Tharp
I just finished reading the Big Short by Michael Lewis, this was a fun read but not necessarily helpful for trading.
I am currently reading the book Algorithmic Trading & DMA by Barry Johnson, which I highly recommend:
It is interesting to know who are the guys you are playing against. It also will prevent you from ascending the Mount Everest with a pair of sandals. The book is relatively easy to read.
My next book afterward will be "Empricial Market Microstructure" by Joel Hasbrouck, I have already bought it and it sits and waits for me:
This one is a bit more demanding, requires some basic mathematical skills, so it will take some time.
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The book is more geared towards option trading, which so far has not been a topic on this forum. Taleb is well known, and judged by the table of contents, it is certainly an interesting book.
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Some traders prefer options over other instruments, since options maximises the return with leverages, slightly higher than the futures, of course its risky but with sound strategies it can favor the traders.my 2 cents.
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It's been a while since I posted in this thread but it just occurred to me as I read the new posts today that I've read countless books on trading, probably 20+ and the majority of them were completely useless and I'd even say the majority of them lead me astray. I wish I hadn't read most of them or wasted my time on them.
So choose your books wisely.
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Ok, if we want to put up a list on highly decommended books, we should do it in another thread. This makes it easier, if we get a take-down notice. Also the bashing will not pollute this thread. I can at least contribute 10 books as well.
Hmmmm, books I didn't like....
I've read easily over 50 books on trading and even the ones I didn't like; they still had some useful content. Actually, some of main aspects of my trading style are with tools and techniques that I initially dismissed as not useful. For some reason or other, I persisted to study them and then "saw the light".
But I'm curious to see this list too. Mike did say "which ones" earlier.
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I agree that even when I read a book I didn't like, it helped reinforce or underscore my own principles. For instance, if I read a book about a method, and I strongly disagree with it, I have still learned something.
This is true for most of the books, but you also have to take into account the opportunity cost. You could have spent the same time reading a better book.
And some books are that bad, that you can condense them into one page without losing any considerable amount of information.
Again, I do not want to cite them here. It is much more fun to discuss really good books and recommend them.
This definitely true for sort of book "I make you rich in 2 weeks, trading the markets"
But for a lot of the books out there agreeing with the ideas or not, if you take one or two sentences out of it, that help you make better trades it is worth the money. Meaning the standard price for book, depending on your lot size is what 1,2,3 ticks. As far as time goes, sitting in front of a quite market can be the quite boring.
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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Cunparis, Some interesting books you've listed that I will check out.
I agree fully on the "how to get rich" or "learn my method that made me millions" type of books being useless. I've never been attracted to those books as I'm always leery that the author is a snake-oil salesman.
Depending on where one is in their learning (I think most traders are woefully unprepared), there are numerous classic technical analysis books that I believe are a must read. I took the CMT years ago and the base curriculum forced me to read about T.A. disciplines that I wasn't aware of, or thought I knew but really didn't know much. Some of it I ended up dismissing, as it didn't strike a chord with me but it was still useful to me.
The barriers to entry in trading are pretty low. Open an account, and you're given all the necessary tools for next to nothing $. Read a couple of blogs and many think they know what's necessary. I understand, people are in a hurry to find the keys to success, but reading and learning are part of the 10,000 hrs imo. It's hard work and that's why most people quit and fail.
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I have read "Outliers" as well. It is a recommended and enjoyable read. Also enjoyed "The Wisdom of the Crowds" and "Why Most Things Fail". These are not exactly books that belong into a trading library, but they do have an impact.
One of my favourites is "The Evolution of Cooperation" by Robert Axelrod. For me this is a trading book. If you understand how strategies evolved during the computer tournaments, you should soon have an idea that this can be applied directly to any market place like a futures exchange. Algorithmic trading strategies, which now account for over 50% of volume compete with discretionary traders in different time frames. If you have read Axelrod's book you also will also know, why simple strategies, such as the breakout strategies of the Turtle Traders do not work any more.
As traders we are just agents in a complex game. There is no absolute truth, the strategies feed on each other. There are co-operative strategies (supplying liquidity) and non-cooperative strategies (asking for liquidity), all of them evolving during time. Many species are already extinct.
I have just purchased another book by Axelrod "The Complexity of Cooperation", but read the other one first.
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I just picked up the Al Brooks book, "Reading Price Charts Bar By Bar". I think that will keep me busy for a while
studying the technical side of things.
I would like a book, also, for my mind.
What would be the better psychology book...
"Market Wizards" by Jack Schwager or...
"Trading in the Zone" by Mark Douglas or...
"Reminiscences Of A Stock Operator" by Edwin LeFevre
I eventually will have all of the above, but I need a good book for my trading mind now...
tia
AJ
Nashville, Tennessee
"Life On The Edge of SR"
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To start with: All books are definitely worth reading and can be considered as classics.
Market Wizards
"Market Wizards" and "New Market Wizards" by Jack Schwager are both excellent books that give an overview of the biographies and trading methods of some of the top traders. Most astonishing is how different these guys and their methods are. Absolutely recommended reading. I have read the books twice.
However, these are not books on psychology.
Trading in the Zone
In my opinion the books "The Daily Trading Coach" and "Enhancing Trader Performance" by Brett Steenbarger and the books "The Disciplined Trader" and "Trading in the Zone" by Mark Douglas are amongst the best books that have ever been written on trading psychology.
So if you want to buy books on trading psychology, these are the books you are looking for. Fight the demons that prevent you from following your rules.
Reminiscences of a Stock Operator
This is a wonderful book written in 1923, something to read during a week-end, but again it is not a book on trading psychology.
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Moderator Notice
This thread has been merged into the existing Recommended Books thread.
-- Big Mike
BTW, I did not care for Trading in the Zone but many do. Market Wizards, and Market Wizards II, and Reminiscences of a Stock Operator are all must-reads.
You know I was going to say the same thing but then I thought it must just be me. I didn't get much out of Trading in the Zone. Maybe I need to read it again. I saw Douglas on some WiseTrade TV and it really turned me off that he'd be associated with them. Plus he wasn't impressive. I've traded in the zone when everything goes well and I trade off intuition. IMHO it comes with lots of practice, not from reading a book. I could write about it but it's something someone has to experience. People can experience it in plenty ways, not just in trading. Giving a presentation to a large group, performing in a concert, playing a video game, playing in a sports game, etc. Sometimes I get into the zone just playing piano. I can play without making any mistakes and everything goes well. Then I snap out of it, and I start questioning what I'm playing and wondering which finger goes well and then the song falls apart. I play much better when I don't think and just play. And trading is similar.
And the comment about Market Wizards & the Reminiscences of a Stock Operator not being about psychology.. I think there is a lot of psychology in those books. It's been at least a year since I've read them, 2 years for Market Wizards. I think I'll read them again before reading any "new" books on trading.
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Agreed, they can have profound impact on how you view the market. There are many profound implications on strategy and psychology in the books. It is true, they are good entertaining stories as well, but there are so many profound sentences and statements in the books, it's just.. well... profound!
There are actually 3 Market Wizard books:
Market Wizards - first printed in 1989
New Market Wizards - 1992
Stock Market Wizards - 2001
This thread had me looking at them again and I've decided to re-read them (it's been so long I don't remember them!)
Has anyone come across the first one in digital format? Amazon only has #2 and #3 in kindle format.
From my point of view,
a book every trader should have read is DOSTOEVSKY, "THE GAMBLER".
It gives you a compelling inside in the mind of a gambler and serves as perfect warning to what your trading
and emotions while your trading should not be like.
Locust
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I found Trading In The Zone to be excellent for the psychological aspects of trading (the importance of truly thinking in probabilities and not just paying lip service to it). However it is repetitive and contains lots of needless waffle. I condensed the book into 6 pages of A4 which I sometimes re-read.
I don't much care for technical trading books. The Market Wizards books are great. Reminiscences of a Stock Operator (annotated edition very helpful for those aged under 100) is next. I'm gonna get Pit Bull on the strength of recommendations here. Beat The Forex Dealer also sounds like it might be a good read.
First of all. Please forgive my lack of strength in the writing department. That is possibly why I don't post much.
From my own experience: I know that you can only reach intuitive trading after you have truly accept the fact that losing trades are a normal everyday part of a traders life. And once you embrace losing you start to free yourself of all the distractions that come from trading with extreme emotional swings. A great example of traders not embracing losing is the constant search for the holy grail.
My own opinion of myself is that I am no expert of trading. Even though I have been making a living as a trader for close to 20 years. That mindset keeps my mind open to the big picture or high probable moves that the market may be making.
So back to the book. In the book the author uses real traders. to help you understand the different levels of intuition. For example one trader informs that he believes that intuition is only achieved after you have put in the thousand of hours of studying and applying with real $ your trading method. My take on that. Is after the repetition of using your method time and time again. You will have moments of clarity, and putting a trade on without hesitation. Like peddling your bike down the street.
And from my own opinion. I feel you can take it a little further by figuring out your core mythology. Are you leaning towards automated assist trading or discretionary. Are you a price-action trader or indicator base. Do you like using the info from the news and fundamentals (economic or business) to make decisions. Or do care less about the news and just wait to see how the market reacts to the news. And if your a indicator base trader you need to ask yourself how long have i been using this set up. In most cases indicator base traders like to change there indicators like a child with ADD.
So I guess what I'm trying to say or suggest is to keep it simple. Put the thousand of hours in on a core method (Traders Identity that fits your personality). Try your best to not change up your foundation once you found a method of trading that fits your brain. Then put the thousands of hours of blue collar work in.
Hope this helps
Mindless
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I must admit that I did not like the title of this book. There are many authors around that have fed on the hype following the financial crisis without contributing a lot.
I finally bought this book, and I do not regret. It is a well researched story of the history of hedge funds. It accurately tracks the fate of famous traders and their funds, explains their trading styles, the great success stories and the great failures.
The author is a former board member of the Washington Post, was the International Finance Correspondant for The Economist and currently works for the Council On Foreign Relations (CFR), where he holds the position of the Director of the M.R. Greenberg Center for Geoeconomic Studies.
The book is extremely well researched, as the author has conducted around 150 interviews with traders and other members of the financial community. The cited sources alone cover 55 pages.
In a way the book can be compared to Jack Schwager's Market Wizards, but with a lesser focus on the personal histories of the traders. By contrast it gives a far better overview of the evolution of the financial markets, which provided the context for the different trading strategies during the last 30 years.
I enjoyed reading the book.
Sebastian Mallaby - More Money Than God: Hedge Funds and the Making of a New Elite
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First published in 1923 the true story of Jesse Livermore where he made and lost several fortunes.
In a age made of supercomputers, high tech procedures, indies and algorythms this book is still actual and reminds us that the rules and the psychology of the game are still the same.
I don't know if it's been mentioned before, I found it simply incredible.
+1. I couldn't agree more with your thoughts above.
I think people become obsessed with indicators because they treat it as an intellectual challenge - searching for a holy grail (modern day alchemy) is futile and can lead to a poor trading mindset.
I picked up an old copy of the book on eBay and will look forward to reading it.
Please post more often!
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I have read it some years ago. It is a good introduction to some basic trading concepts and also discloses a number of reasonable setups. Do not expect to make money by applying those setups right away.
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Totally agree, Beat The Forex Dealer is a fantastic book, doesn't really matter if you have no interest in FX or not. Agustin Silvani has a sick track record if you look him up. He clearly doesn't need the money from the book and probably wrote it as an homage to Ed Thorp.
Trading Regime Analysis by Murray Gun is worth the price of admission although alot of the book is about TA that just seems to be page filler.
Actually, I was going to start a blog in the fall..made a few post then got bored..here is the trading book one to go with above.
I recently got my hands on Trading Regime Analysis by Murray Gunn..I remember when this book came out I was excited until I caught the subtitle of "the probability of volatility" which sounded like a ham handed way to try to sound "scientific"...This book though I guess is better than what I thought it was going to be but that is not saying much.
440 pages...from page 80-240 you have basically rehashed technical analysis crap that is a part of every other retail trading book. The author states clearly this is not a quant finance book then sticks in interview in on Markov chains on page 240..I'm not sure what the point of that chapter is although I guess it is always good to wet peoples appetites as far as what other methods are out there.
There are basically 40 pages of this book that are interesting/new to a retail trader which comprises part 3 of the book. The remainder of the book is simply filler because people will not purchase a 40 page book.
I do believe this is an important book historically though as I think it brings an end to the retail trading publishing business. 40 pages of information that could probably be condensed to 20 pages then 400 pages of filler...This is the state of books directed at retail traders, there simply is nothing more to say on the subject as any new research past 1990 involves the formalized language of mathematical finance.
I would imagine future good trading books will look much more like the second book by Sinclair..
Sinclair is a respected poster on the nuclearphynance forum(egghead rocket scientist according to Gunn).
224 pages and not a single wasted word...equations presented to formalize things but also much discussions as to the "how" and "why" by someone who has clearly grinded alot of ticks himself.
It is interesting to think about how every year trading moves farther and farther away from what the know nothing is thinking when seeing a scottrade commercial or some insidious retail algo platform bullshit on cnbc or whatnot..
-------------------
I'm a little more positive on the book now then when I wrote that.
I have that book by Euan Sinclair, I do not know the other one.
What you forgot to say about the Sinclair book, is that it is heavily making use of advanced mathematics. Some of the formulae used are not well explained, so you may catch some of the ideas, but will not be able to apply the stuff.
Let us say I am making rather slow progress reading it.
Can't remember how many years ago I bought these.
Still enjoy McCall's book for a "guide to Samurai Courage, Confidence and Discipline."
and Bach's for the occasional reminder when I forget about perspective.(lol)
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The OP creates a good sticky. I went through the first 8 pages and did not see the book I wanted to post, so here it is:
Fibonacci Analysis - by Constance Brown
Published by: Bloomberg Market Essentials
The other thing I would add here is that I am not an avid reader of books on trading, unless I can find a good technical reason (or, reasons) for why the book adds to my level of positive expectancy. I've scanned a ton of books on trading in the bookstores - probably reading the first 1-3 chapters before putting the back back on the stand (many hours spent in bookstores). Ironically, I have discovered that books having nothing to do with trading, have been the most helpful of all (mathematics and/or physics).
The essential idea is not to attempt to directly apply physical laws to the financially traded markets, but to force the trader's mind outside of normal boundaries that all too often stifle creative thinking and problem solving. So, I might be reading the book: Philosophy and The New Physics - by Louis Rougier, and encounter a discussion on the "structure of energy," that sparks a new idea within the current set of research I find myself engaged with. Good ideas for augmenting a current indicator, or creating an entirely new class of indicators, have come through this process.
So, I would stress the importance of getting "outside the box" of trading long enough to receive input from other structured sources - namely those disciplines involving other technical sciences, either at a conceptual (non-mathematical), or detailed (mathematics) level. The idea is to stretch the imagination to include problem solving thoughts that do not exist within the typical traders locker room.
Jet, can the Fibonacci technique described in the book be applied to intraday charts, e.g. 5 min chart? What kind of math level is required to be able to understand this book? Thanks,
I have read four books on Fibonacci Analysis. The book by Constance Brown is the most difficult to understand. She has a peculiar way to draw her levels from mysterious starting points, which I really had a hard time to understand.
In my personal opinion, anyone should start with the book of Robert C.Miner (listed below). It is comprehensive., complete and I recommend it. the easiest to read is the book by Larry Pesavento, as it focuses on a couple of harmonic patterns.
Robert C. Miner: High Probability Trading Strategies - my personal favorite, well structured and complete
Larry Pesavento, Leslie Jouflas: Trade What You See - the easiest to read with many sexy charts
Carolyn Boroden: Fibonacci Trading: comparable with the book of Robert C.Miner, but not as good
Constance Brown: Fibonacci Analysis - worth reading, but difficult to understand
Fibonacci Analysis can be applied intraday. There is a number of free indicators available, you can try the anaCurrentDayOHL, which draws Fibonacci retracements from the current day's high and low (look for SessionPivots).
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No math necessary for Constance, other than the basic math we all learned in Elementary, really. Fibs are nothing more than derivations through addition, multiplication, subtraction and division. She stresses the need to understand the distinction between Proportion and Ratio, which some people do confuse often times. She also talks briefly about the need to know the different kinds of averages, with most of her emphasis on Mode, Mean, Geometric and Harmonic. But, your Fib Tool will do most of the work for you on the chart.
Fibs can be applied to just about any chart. Some people say that the accuracy goes up when used on larger time-frames. I believe the accuracy goes up when the trade learns to initiate the retracement range correctly, by knowing the six (6) different market behavioral patterns and why merely dropping the Fib Tool on a Swing High, or a Swing Low, might not always be the optimal location for the start of the range. Constance, covers all that pretty well.
Using what Constance explains, you could take a 1 minute chart and a Fib Tool, to pick-off 5-7 pips per trade on most days. On average, 10 trades should net you more than 50 pips a day. Its a grind doing it that way and it will take several hours to complete, but there are lots of people out there who make a lot less money working the same eight hours a day doing other things. Basically, you are using a 1 minute chart, but typically plotting Fib ranges across 15 minutes up to 1 hour. There is a lot of useful detail that takes place on the M1 chart that many people overlook. If you get good at observing them, you can see the contours and details of false Double-Bottom/Top moves, which helps in identifying larger time-frame Double-Bottom/Top moves that are genuine. You really get to know the character (attitude, disposition, personality, mode) of a currency pair by spending a lot of time with its M1 time-frame.
That's not how I trade, but I'm just giving an example of what can be done when you start using the correct starting point for the Fibo range.
She can be difficult at times, if you lose focus. She's a smart Woman with a lot of knowledge and she seems to want to take the reader on a journey of discovery, which brings into play her knowledge and understanding about the source and origins of the Golden Ratio. You get a pretty good understanding of why the Fibonacci Sequence and the Derived Ratios are important to history, not just to trading. You also get an understanding of some of the renowned mathematicians who used them long before there were markets to trade, as well as how Leonardo Fibonacci, was not the actual father of the Fibonacci Sequence, but was actually given credit for its discovery.
On of the most important aspects of her book, is early on when she walks you through an example of the sequence using the Nautilus Shell, under-imposed against "perfect" spiraling model with ever expanding squares that we've all seen. The comparison to those two images together, with the distinctions between an Expanding and Contracting market, is something that she makes you understand as being something critically important to learning how to properly use your Fib Tool. She makes it clear that for this reason, you cannot always use just the Swing High or the Swing Low, as the starting point for the Fibonacci range. She goes as far as to call this a critical error, for the average trader to make - who then wonders why Fibonacci Analysis in trading "does not work."
And, it makes all the sense in the world the way she explains it. If you are plotting a standard Fibo range into an Expanding or Contracting market, then taking the nearest Swing High or Swing Low, will yield incorrect retracement levels. So, you have to know where to begin the range for both the Expanding and the Contracting market phases, in order to derive the optimal confluence zones. This is one of the very first things she talks about and she goes a long way to explaining why this is so important to nail down.
We've probably all been guilty at one point or another, of plotting Fibonacci ranges incorrectly. Some of us, for a very long time. So, she also makes it clear that for some, there will be a need to re-learn what we learned incorrectly. Markets are not static - they are dynamic by nature. Always in a constant state of flux, either moving into Contraction from Expansion, or into Expansion from Contraction, with phases of Horizontal transitions to both. So, where you initialize the Fibo range, becomes of paramount importance. Most importantly, Constance, shows you how to determine whether the market you are following is in a Contraction phase, or an Expansion phase. If neither, then it must be a Horizontal transition - and that is the ONLY time you should use the absolute Swing High, or the absolute Swing Low. At all other times, you have to use a different technique for locating the optimal initialization level for the Fib range. Else, you will always see Fibonacci ratios as being hardly any better a technical tool than anything else.
As I said, I have read a number of books and I do not share your opinion on the book by Constance Brown. I think that different views on a subject are legitimate and that the disagreement can even be further exploited to release further energy (and increase entropy).
The Fibonacci Series is a growth series, the golden ratio describes the ratio of two consecutive generations (of rabbits, pineapple seeds, calcium deposits in a nautilus shell, etc.). So the concept can be used to describe a two-dimensional expansion, which relies on internal feedback.
Adapting these ratios to expansion would mean that you no longer describe expansion, but an expansion within an expansion, as the scale that you relate to is now changed. This is not in line with the origin of the Fibonacci ratio, but really is contradiction, as Fibonacci ratios describe growth and not the growth of the growth. Also I do not share the opinion of Constance Brown that Fibonacci ratios do not work when applied to the absolute highs and lows. I think that her definitions are fuzzy, as you select the appropriate starting point for retracements and expansions with hindsight. Everything she writes is influenced by a religious belief that there must be a hidden order, where there is none. in my opinion, the book is a blend of practical knowledge on how to use Fibonacci ratios with some pseudo-scientific verbiage added.
For me, a statement like "Harmonic Unity Within Market Price and Time" is simply nonsense. But again, I respect different views on this subject. Maybe we can continue to discuss it further in one of the harmonic trading or Fibonacci threads, as it does not belong here.
Attachment: Fibonacci zones, counted from the top and bottom.
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Be sure you get the original from 1940 (there are pdfs floating around), not the edition ruined by Smitten. It's short, but contains profound trading wisdom.
Sources of Power is the one gem that I think no one has touched on here. The author looks at people who have stressful jobs and how they become quicker and quicker at problem solving and rational thought processes in highly emotional times. The case studies are great, like soldiers, EMTs, firefighters, etc. Looks at pattern recognition from a non-trading perspective that easily transfers over to trading.
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Tony Oz - The stock trader ( where he makes trades for a month and shows trade charts for both losses and profits )
Tony Oz - How to Take Money from Wall Street
alexander elder- trading for a living
Toni Turner - a beginers guide to daytrading online
Mark Douglas - trading in the zone
Currently reading Daily trading coach by Brett steenberger - its good so far
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since many people pick 'alexander elder- trading for a living', my question is why it is good? I think it's more about trend following. Did you guys make money based on his methods?
It is an introduction. and contains very basic stuff for beginners. Dr. Elder is a psychologist, which helps. Every experienced trader will tell you that psychology is more important than mathematics. The book starts with psychology, before it deals with charting.
The trading method of Dr. Elder is essentially based on two indicators, the MACD and the force index, which are monitored in three different time frames. It is a very good book, if you know little about trading.
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This book is not an introduction to trading, but has the focus on one of the geometrical pattern. I would not mention Gartley pattern without relating them to ABCD pattern (measured moves) and to butterfly pattern. I think that this book is
-> not for beginners
-> not exhaustive
-> overpriced
If you look for an easy-to-read introduction to harmonic pattern, I would rather recommend the book by Larry Pesavento: Trade What You See.
It contains more information and is even cheaper.
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Stop and Make Money: How To Profit in the Stock Market Using Volume and Stop Orders
Richard W. Arms (Author)
Richard Arms is one of the world's most respected stock market technicians. His expertise in this field is unparalleled, and his groundbreaking theories in volume analysis and market forecasting have forever changed the way traders perceive markets. Now, in Stop and Make Money, Arms presents a short-term approach to trading using the technical methods he has pioneered—as well as other established technical tools—over the course of his successful forty-year career.
In a straightforward and accessible style, Arms reveals how to profit from short-term price movements in the stock market—whether you're buying or selling short—by accurately interpreting price/volume information and effectively employing stop orders to enter and exit positions.
Before getting down to details, Arms briefly explores some essential trading examples and explains the advantages of technical analysis. He also prepares you for the journey ahead by offering insights and advice on what you might need to achieve your goals, including charting services, quotations services, a brokerage account, and more. Then, in the chapters that follow, Arms skillfully illustrates the self-developed techniques that have allowed him to manage trades for maximum profits during his many years in the market. Topics discussed include everything from the Equivolume charting system and the Arms Index—also known as TRIN—to Volume Adjusted Moving Averages and Ease of Movement. Along the way, you'll also become familiar with conventional technical tools, such as support and resistance, trendlines, and channels, which fit into Arms's strategy.
While many of the drawbacks to successful trading have been largely eliminated, it still takes knowledge, discipline, and hard work to capture considerable profits. Nobody knows this better than Richard Arms. And with Stop and Make Money, Arms will show you how to observe and anticipate short-term stock market moves in order to improve your overall trading activities.
* If investing gets too difficult for a seventh grader to understand, the system is needlessly complex
* Markets produce an enormous volume of information, much of which is redundant
* In every game and con there's always an opponent, and there's always a victim. The trick is to know when you're the latter, so you can become the former
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The attachment has been removed as it appears to be a copyrighted commercial book, not donated to the public for free by the author. If you can confirm it is indeed free, let me know and you can re-post it.
No one book can cover all aspects of trading. If someone has basic understanding of trading and wants to learn the method of worlds foremost trading legend then Mark Fisher " The logical trader" is the best.
Forward for the book is written by none other than Paul Tudor Jones and when i read that per Paul Tudor Jones that in his opinion Mark Fisher is the best pit trader ever, that's all i needed to learn everything about Mark Fisher.
There is lot of garbage over the internet in terms of reviews by various wanna be traders about MF method. I ignored every comment and just trusted the advice of Paul Tudor Jones and in my book mark fisher is a trading GENIUS.
Any question about ACD method, I am here to answer them.
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I also like the book of Mark Fisher. There are some interesting elements that I use for my own trading. This includes the pivot range and the rolling pivots. However, I am a bit sceptical about his ACD method of defining the breakout levels. It is an old floor trader concept, which may work, if enough traders watch the same levels. If you are trading physical commodities - in particular energy and metal futures - it should do the job, but for financial futures or FOREX you may find better breakout points by using other statistical methods.
I have not backtested the ACD method. This would be difficult to do as the A and C values change once or twice per year. Also I do not believe in the counting system presented in the book, which is used to predict a bull or bear run for a commodity. To use the ACD system you need to subscribe to Mark Fisher's service, which costs you $$$ per month - or you need to know a subscriber.
Good points. By the way I enjoyed your Webinars. Thanks for sharing your knowledge. I was particularly impressed by your Fib. Webinar as I got tired of people telling me all the time that Fib's tells them market direction etc.. You settled that issue for me.
MF himself says that ACD method is not good for forex . I day trade full time crude oil and i can not understand how a retail trader can trade without ACD.
I subscribe to his service and it's $1800/year, daily cost comes to be less than what i pay in trading commission every day.
I would be more than happy to provide you any information you may need from subscription service. I primarily use it for 30 days ACD number line and daily pivot tracker value.
If you talk to one of the traders at MF firm you will realize they have very little knowledge in terms of statistics etc.. What they do have ACD reference points as risk control and ability to step up to the plate when it matters.
The following user says Thank You to mfbreakout for this post:
I was looking for the highly recommended book "Trade Chart Patterns Like the Pros" by Duddella.
I noticed that it is not on Amazon (they do have a outside seller on their site you can buy from), and seems to not be readily available on the internet. Now I have found places to buy it from...but I was just wondering why it is not readily available? I mean Amazon usually directly sells every known book...