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Trading book(s) - please recommend if you can 115 replies

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Can anyone recommend a book which explains trading logic?

  • Post #1
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  • First Post: Apr 1, 2016 3:55pm Apr 1, 2016 3:55pm
Can anyone recommend a book, or provide any advice, with regards to the logic behind the way in which price moves and is predictable? Something that explains the fundamentals behind predicting price direction - but leaves you to interpret it, rather than telling you how to trade (something objective)?

Thanks
Quoting Ponzi Jr
Can anyone recommend a book, or provide any advice, with regards to the logic behind the way in which price moves and is predictable? Something that explains the fundamentals behind predicting price direction - but leaves you to interpret it, rather than telling you how to trade (something objective)? Thanks
Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay.

Read the sections on the Mississippi Company, the South Sea Company and the Tulip Mania if you want an insight into speculative markets.

Alternatively, read the sections regarding the search for the Philosopher's Stone, the Elixir of Life and Divination if you want an insight into Forex Factory psychology.
Quoting Atokys
{quote} Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay. Read the sections on the Mississippi Company, the South Sea Company and the Tulip Mania if you want an insight into speculative markets. Alternatively, read the sections regarding the search for the Philosopher's Stone, the Elixir of Life and Divination if you want an insight into Forex Factory psychology.
Excellent choice!!

I would also add "trading in the zone" by Mark Douglas. And "Time Compression Trading" by Jason Alan Jankowski.
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"Charting the Stock Market: The Wyckoff Method" by Jack K. Hutson,"Trades About to Happen: A Modern Adaptation of the Wyckoff Method" by David H. Weis... But I've been working recently, after going through it several times, "A Three Dimensional Approach To Forex Trading" by Anna Coulling." Anna is also a Wyckoff disciple, while her three dimensional approach, has all to do with "Money Flows."
I'm reading trading in the zone. I like it, it have some good insight to what to expect when dealing with real money. I'm already a money comes and go type of person so a lot of views on their i already practice myself.

Naked Forex is something I really enjoyed reading you get a good amount of strategies and what to expect.
Quoting Atokys
{quote} Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay. Read the sections on the Mississippi Company, the South Sea Company and the Tulip Mania if you want an insight into speculative markets. Alternatively, read the sections regarding the search for the Philosopher's Stone, the Elixir of Life and Divination if you want an insight into Forex Factory psychology.
I think the thread starter is asking for information referring to the mechanics of price movements, not the motivations of market players. In any case, I suggest "trading and exchanges market microstructure for practitioners" it does a very good job of explaining in a very non technical way how market, limit orders and liquidity influence price changes as well as various methods used in the industry by players to screw each other. If you're keen to learn about mechanics of price movements. This book is all you need. http://www.amazon.com/Trading-Exchan.../dp/0195144708
"Nature's law" is called "Reason". When perfectly understood by human it is
Just learn price action.
Quoting caomisa2
Just learn price action.
Theirs more to it than price action.

Understanding levels, pivot points, fibs. all the things I need to learn and I will think would help me as a trader. I thought price action would be bread and butter I was wrong.
http://www.amazon.com/Fooled-Randomn...+by+randomness
"If The Fool persists in his Folly he will become wise." - William Blake
  • Post #10
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  • Edited 1:45pm Apr 2, 2016 1:27pm | Edited 1:45pm
Quoting Caesar95
I think the thread starter is asking for information referring to the mechanics of price movements, not the motivations of market players....
Respectfully... I disagree. This particular poster has repeatedly asked others here to define the "logic" of the market and specifically price movement. Even though I and many others with significant experience have told him that from this point of view "logic" does not exist or have meaning. The very thought that one can predict what millions of other participants will do in the near or far future is itself illogical.

I believe that great insight can be gained by analyzing your own participation and controlling the only thing possible to control... Yourself. The market and it's resulting price movement will do what it's going to do. He is looking for logic where there is none to be found. The only thing that makes sense is to control how YOU participate. Thus the suggestions on books about how you participate.
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Ill send a drop box link with all the books i have and read.
  • Post #12
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  • Edited 5:54am Apr 3, 2016 5:00am | Edited 5:54am
Quoting DonPato
Respectfully... I disagree. This particular poster has repeatedly asked others here to define the "logic" of the market and specifically price movement. Even though I and many others with significant experience have told him that from this point of view "logic" does not exist or have meaning. The very thought that one can predict what millions of other participants will do in the near or far future is itself illogical. I believe that great insight can be gained by analyzing your own participation and controlling the only thing possible to control......
Thank you for responding in my defense when I would rather not even bother.

I am being completely sincere when I say that Mackay's book provides an understanding behind the logic (or illogic) of markets. If you understand the implications then you will have a system for profitable trading. Im not even being deliberately coy or vague, speculation is as simple as patiently riding a market up/down when such an opportunity presents itself. Even more encouraging is that when this idea is tested within a technical framework that follows trends, the results are overwhelming and cannot be ignored by the prudent speculator. If you are not going to trade such a system at least do not trade against it because you will stand to lose infinite sums of money in the long run.

Many people deliberately refuse to accept the simple nature of markets and choose to avoid feeling the uncertainty that comes with trading with all kinds of superstition. So many here want the strategy with <a specific win ratio> that makes <X dollars> every <arbitrarily decided period> consistently and without drawdowns of <Y magnitude> and will spend time, effort and sometimes money in pursuit of such a goal. Even worse is the crowd that thinks that some cocktail of technical or fundamental indicators can predict the future. Most people have imposed their own inner desires upon the market and this strikes me as no different from the people desiring boundless wealth and immortality searching for the philosopher's stone and water of life. You have to choose between following a delusion or following the evidence even if the outcome is unexpected and hard to accept.
Quoting Ponzi Jr
Can anyone recommend a book, or provide any advice, with regards to the logic behind the way in which price moves and is predictable? Something that explains the fundamentals behind predicting price direction - but leaves you to interpret it, rather than telling you how to trade (something objective)? Thanks
it's all mass psychology, or crown psychology,
is there any logic in that? probably not,
but who sad the market is logic?
you should read books about that.
the market is fear and greed,
that is what makes the market move
Inserted Video
Bulls are stupid Animals!especially when Im short!
Markets and Market Logic by J. Peter Steidlmayer
http://www.forexfactory.com/attachme...1&d=1449605378
Markets are not efficient, rather they are effective - Jones
  • Post #15
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  • Last Post: Apr 4, 2016 8:39am Apr 4, 2016 8:39am
Forecasting. Theory and practice. Satchwell C.J.
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