If you’re interested in becoming a better trader, the best trading books will take you deep into price action trading, risk management, and technical analysis. They’ll teach you the mindset you need to succeed at the highest levels. These books will help you become a better trader and make you more confident in your decisions.
Hull’s book is primarily about risk management. It is a useful resource for novice traders as well as advanced traders. It covers a wide range of trading strategies, and explains why some methods are more effective with specific derivatives. The author uses practical examples to illustrate the concepts. This book is very comprehensive, and will benefit a range of traders, from those with a minimal understanding of technical analysis to those with decades of experience.
As a former consultant for major investment banks, Hull is an authority on derivatives, options, and futures trading. His book covers the basics of these instruments and is based on his own experiences. It also includes information on how to estimate time-value of options and other derivatives. It is written in a simple, straightforward style.
Mean Markets and Lizard Brains
Mean Markets and Lizard Brains is a book that applies the scientific theory of irrationality to financial markets and personal finance. The author, Terry Burnham, explains why individuals act in irrational ways. He points out that our brains were fashioned to think in ways that supported our hunter-gatherer ancestors and are out of sync with our rational financial decision-making process. This book will help you better understand why you make the decisions you do, and why they are so wrong.
Hull argues that irrationality is caused by the amygdala, which triggers irrational reactions. Even though anyone can take a profit or a loss, Hull points out that the amygdala is a major contributor to irrational decisions. The solution is simple: reward yourself for making rational decisions. This could mean something as simple as a piece of chocolate or an afternoon off from work.
Andreas Clenow’s Trading Strategy
Andreas Clenow is the author of several international bestsellers, including Trading Evolved, Following the Trend, and Stocks on the Move. This book covers his strategies for trading futures and equities. The book includes the complete source code for each trading strategy.
Andreas’s trading strategy differs from mechanical trading in that it is systematic in nature, whereas mechanical trading is mechanical. In either case, there are rules that must be followed through the whole trading cycle. The goal is to profit from the market’s movements while reducing risk. This strategy is a great way to earn higher returns without taking on more risk than is comfortable for you.
In this book, you’ll learn from the trading strategies and stories of 16 different traders across a variety of markets. Each trader has their own goals and focuses. But the common theme is that they all employ varying strategies and techniques. Though the book doesn’t reveal any secret formulas, it does emphasize the importance of a methodical and disciplined approach to trading.
The Way of the Turtle is a popular book written by Curtis Faith. This book outlines the social experiment that was conducted in the early 1980s by Richard Dennis and William Eckhardt, who trained 23 “Turtles” to become successful traders in two weeks. Faith argues that trading is not complicated, but it is difficult to follow simple rules.
Matthew R. Kratter
This book is one of the best-selling trading books on Amazon, written by a former hedge fund manager. It explains the basics of trading, from how to choose a brokerage firm to how to place an order. The author even offers email support for those who have questions.
The book also introduces readers to the concept of diversification in trading. Many traders have “fixed mindsets” and don’t realize that diversification is an essential part of trading. With this new concept, they can increase their odds of success.