A beginner needs the knowledge to change your life and start earning money from trading. Trader books about financial markets and trading systems applied to them are the best teachers. To find out which strategy to use in day trading for beginners, we offer a list of the best of these.
1. One Good Trade (Mike Bellafiore)
There are many useful books for traders. But first, we should start with the main one, which is easy to read and suitable for everyone.
“One Good Trade” examines the competitive world of private trading. It focuses on analysis methods, the importance of risk management, and correcting common mistakes. The author shares his personal experience and strategies, which he has acquired over the past 12 years.
Main ideas
- The book helps traders to focus on short-term trading and expectations from trading and the market.
- Understanding the Stock Market Trading: It is useful for beginners who want to start trading in the stock market but do not have a clear understanding of the process.
2. Technical Analysis is the New Science (Thomas DeMark)
For several years, Thomas R. DeMark has been the most authoritative advisor to financial barons like Leon Cooperman and Lawrence Tisch. His models underpin the investment plans of the world’s largest and most prosperous companies: Tudor Group, Odyssey Partners, Warburg, Pincus, and others. His recommendations are worth their weight in gold at investment giants such as Goldman Sachs, Citibank, Discount Corp., and Criterion Fund. And now, finally, Thomas DeMark has decided to make his research public. Now traders and investors around the world can learn the proven market forecasting techniques that have made him one of the most influential behind-the-scenes figures in the financial world.
Main ideas
- The author emphasizes the importance of time cycles and their impact on price movements, which allows traders to better predict changes in the market. He gives examples of how certain time frames can be more prone to reversals.
- DeMark has introduced proprietary indicators, such as the TD Sequential and TD Combo, that help identify reversal points and support/resistance levels. For example, he describes how the TD Sequential can signal a possible trend reversal when a certain number of consecutive bars are reached.
- In this financial market book, the author emphasizes the importance of considering time cycles in decision-making, as they can help predict changes in price movements.
3. Long-Term Secrets of Short-Term Trading (Larry Williams)
This manual can be safely attributed to cryptocurrency books. The author of this trader book calls himself a master of short-term trading or day trading. Larry Williams once publicly turned $10K into $1.1M within a year. He describes his methods that pave the way to gigantic profits. But, also teaches the strongest concentration, constant focus and vigilance, trader behavior, and very strict planning.
Main ideas
- Williams talks about the basic principles that drive the markets. For example, he emphasizes the importance of understanding seasonal trends and cycles, giving examples of how certain commodities or stocks may behave depending on the time of year. He recommends paying attention to historical price movements in different locations of cycles.
- The author reveals the three most dominant cycles when to exit trades, and how to maintain winning positions in selected time frames until the end. Williams advises looking for opportunities when the market becomes “too optimistic” or “too pessimistic.” This means opening positions against the prevailing majority opinion, which often results in profitable trades.
4. Come Into My Trading Room: A Complete Guide to Trading (Alexander Elder)
It is a comprehensive trading book that is aimed at both beginners and professionals. The book provides expert advice and proven strategies, allowing readers to both master the basic principles of trading and deepen their knowledge and skills. The recommendations given here are applicable to the stock market (stocks book), commodities, and the market of cryptocurrencies and short-term strategies.
Main ideas
- Elder emphasizes the creation of a personal trading system that includes clearly defined entry and exit rules and money management criteria.
- He offers an approach that integrates three key aspects: trader psychology, analysis techniques, and risk management, emphasizing the interrelationship between these areas.
- Lessons from slot machines: Elder illustrates how elements of slot machines can be applied to trading, showing how important it is to understand trader behavior and reactions to winning and losing.
5. Beyond Candlestick Charts: New Japanese Methods of Chart Analysis (Steve Nison)
The candlestick book reveals the secrets of Japanese traders and provides a valuable tool for successful stock market operations. It contains many candlestick charts with detailed comments.
Main ideas
- According to the author, candlestick charts compared to bar charts allow you to get a more accurate and voluminous picture of the market, while they are perfectly combined with other types of technical analysis.
- Japanese Candlesticks reflect the current ratio of supply and demand. They show not only the direction but also the strength of the market movement. With their help, you can identify signs of upcoming changes and choose a good time to make a deal, minimizing the risk of error.
“One of the most striking properties of candlestick charts is their ability — despite their simplicity — to provide a lot of valuable information about the state of the market. What, for example, can more clearly reflect market equilibrium than the doji? This simple candlestick reflects the equality of bulls and bears, and therefore, a possible turning point in the market development. And all this can be recognized by just one candlestick!” (Steve Nison)
There are fundamental analysis books that require good training and experience in trading. And there are basic books that are suitable for day trading for beginners. This small list of trading books will help you to achieve high results.
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