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Noob needs to learn more - what books do I need?

  • #21
  • Jun 16, 2012 10:53am Jun 16, 2012 10:53am
When I first started reading about Forex and trading in general, I waded through a lot of slop that was a waste of time. However, I did really enjoy Alexander Elder's books. Trading for a Living, Come Into My Trading Room, and Entries and Exits. He covers wide ranges of topics that aren't necessarily focused on Forex(in fact, he barely touches on Forex) but technical analysis in general as well as money management and trading psychology.

I'm still new to trading and figuring things out as I go, but I think you'll be able to get something useful out of his books.
  • #22
  • Jun 21, 2012 12:38am Jun 21, 2012 12:38am
Since noone has mentioned them.. The only compulsory books to read, when starting are:

"Technical Analysis of the Financial Markets" by John J Murphy (this is bible).

And the trading psychology books by Brett Steenbarger, "Enhancing Trader Performance" and "The Daily Trading Coach."

To be honest the elder and adam's books made me wince for the whole duration while reading them due to the unnecessary preechyness in the writing, which some may like.

The above books will enable you to work out your own trading. As in, work it out for yourself instead of playing simon says and made to feel inferior for not doing so.

EDIT: Yes babypips school definitely!! Its some of the best material i've seen on currencies and trading in particular outside of formal study. Really easy read also (as with the above books).
  • #23
  • Jul 10, 2012 6:07am Jul 10, 2012 6:07am
Quoting Supernaut
Books... I have read many of them. I would say no book alone can make you a trader. Plus, you can get a lot of stuff from some good websites like fxstreet and babypips.

Psychology/Mindset

Steve Ward - High Performance Trading: 35 Practical Strategies and Techniques To Enhance Your Trading Psychology and Performance

Very practical and with some good advice. If you want one book on psychology then this is it. There are classic books by Mark Douglas and Brett Steenbarger, but I find them way too long and theoretical. Those are...
You can directly download the first 4 chapters for free from his website www.highperformanceglobal.com/resources/
  • #24
  • Jul 10, 2012 2:07pm Jul 10, 2012 2:07pm
Most of the resources you need are here on Forex Factory or on the web. Just in the same way as books, you need to find what is good from what is not so good, except that the web is free. There are some very good videos posted on the web, too - primarily on Youtube. Help yourself.
Gone to a better place
  • #25
  • Aug 6, 2012 10:59am Aug 6, 2012 10:59am
Hello Traders,
This is my first post @ FF. I am a newbee and I need some help from the experienced traders here. There's this book which claim's to be "The real bible of technical analysis" Name of the book is Technical Analysis and Stock Market Profits. Written by Richard W Schabacker, are Technical Analysis applied differently in stocks and forex. I am asking this because this book says "stock market profits" instead of forex market profits. Secondly is this book worth buying.

Really appreciate help in this regard traders.
  • #26
  • Aug 7, 2012 12:37pm Aug 7, 2012 12:37pm
High Probability trading by Marcel Link is absolutely worth reading. Has it been mentioned on this tread?
  • #27
  • Aug 7, 2012 1:37pm Aug 7, 2012 1:37pm
Quoting HDcommander
Hello Traders,
This is my first post @ FF. I am a newbee and I need some help from the experienced traders here. There's this book which claim's to be "The real bible of technical analysis" Name of the book is Technical Analysis and Stock Market Profits. Written by Richard W Schabacker, are Technical Analysis applied differently in stocks and forex. I am asking this because this book says "stock market profits" instead of forex market profits. Secondly is this book worth buying.

Really...

never read it, but remember that the title has to invite you to reading.
Same book could be called technical analysis, but it sounds more boring, doesn't it?

besides, some people say that if you can handle on one market you can handle on any market, but I'd rather to find something about forex anyway, and after it I'd check opinions of others before buying
On my way to financial independence - if others can do it - I can do it
  • #28
  • Aug 7, 2012 4:48pm Aug 7, 2012 4:48pm
Quoting Eur Usd
In the meantime I hope to read some more books, to gain some more knowledge

Probably not many of you lasted till the end, sorry for long and boring story ;-)

I love Nubies.

Dear Nube,

While having a library filled by books about "The Financial Markets" and "Trading the Financial Markets," is rather impressive thing, I did not see among your list of knowledge building tools, the one tool that any Nubie should have. Why is that? Why did you leave out the most important tool the Modern Trading Nubie should never go without?

Where is your copy of Excel, or 123?

You won't find a more powerful tool for learning, than the Modern Spreadsheet. LOL!

The books are perfectly fine, don't get rid of them - just table them for now and go get yourself hooked up with Excel, or 123. Open a sheet and type: Open High Low Close, into their own respective cells, in a row near the top of the sheet. Then, go get some history data from the platform you trade on, or demo with and dump as much OHLC data into the spreadsheet that you can get, from the Daily time frame (D1 Bar Data).

Change the sheet background color to black and the font to white, because you will be spending a HUGE amount of time looking at this one sheet.

Learn to use the basic mathematical functions of your spreadsheet - you won't need anything exotic for the time being - that will come later. Learn how to quickly enter spreadsheet formulas and functions. Learn how to use the spreadsheet functions for finding the Highest and Lowest Values from a set of data.

Then, simply start 'looking' at the data. Scan from left to right on the first bar of data. In the spreadsheet, bars of data becomes rows of data - its just that simple. If you have dumped 1,000 rows of D1 OHLC data into your spreadsheet, that is EXACTLY like looking at a 1,000 D1 bar price chart. In fact, it is better. It is 10 TIMES better than looking at a candle chart.

You are a Nube. What you desperately need to know is ONE thing right now:

The FX Market has Price Structure and Price Patterns that Repeat Themselves.

You only need to prove it to yourself. And, the way you go about doing that at a very deep (visceral) level, is to SEE some of those patterns with your own two eyes. The absolutely best way to accomplish that mission, is to start observing market data in the RAW.

You will learn SO MUCH from this process and it will lead you to the development of your OWN custom indicator designs - designs that nobody else has, knows about, or can take from you - and/or - use against you.

But, what am I looking for - says the Nube?

The Nube always says that (what am I looking for, what am I looking for, what am I looking for...) Relax, you would not be a proper Nube, if you did not ask that question.

Here's what you are looking for Nube: PATTERNS!

But, what kind of pattern - says the Nube? (the nube ALWAYS asks that question)

Here's the kind of Patterns you are searching for Nube: REPEATING PATTERNS!

But, what kind of Repeating Patterns? (Oh, the Nube! The ALWAYS ask that question)

Here's the kind of Repeating Patterns you are searching for: MAGNITUDE!

But, what does Magnitude mean? (There goes that Nube question again!)

Here's what Magnitude means: DIFFERENTIAL IN PRICE BETWEEN TWO PRICE POINTS!
-------------------------------

With that information and your proper due diligence, you will move yourself from Nube Trader, to Novice Trader and from there, you will ultimately move yourself into Successful Trader status.

Patterns that Repeat with Differential Magnitude between TWO Price Points.

If you locate those, and then learn how to project the "next" pattern that has not yet taken shape in the market, you will put yourself light years ahead of all the other Nube Cakes out there, buying books that really look good in the ole Home Library, but never manage to tell you the most important thing about trading:

 

  1. Timing
  2. Direction
  3. Magnitude
  4. Probability


You cannot trade long-term without these elements well understood and well accounted for in your indicators. Trying to do so, is absolutely futile and even reckless.

This is what they do not teach you at Trading School 101. Learning how to locate Magnitude, will lead you to unlock the location of the other three (3). It does not matter what the Magnitude of the Pattern turns out to be, as long as it fits YOUR requirement for profitability, over the time frame that YOU decide is relevant - not what someone else decides for you.

Every successful trade you make in this business begins with proper research.

If somebody had told me this when I first started, I probably could have cut my learning curve losses by about 50%. I've lost tens of thousands of dollars getting up to speed as a Trader. Today, 1 pip = $5k to $10k+, depending on the trade signal generated by the system I use. I expect to settle down somewhere in the PPV neighborhood of between $75k to $150K (some day). Proof positive that we all have some work yet to do.

They say that the Trend is your friend. I say that Magnitude between Price Points, is your BEST friend of all.

Why?

Because when the chips are down and things start to get a little rough, you will ALWAYS know who your "friends" are when the stuff starts hitting the fan, and Magnitude will always point you to the correct path - when all those other "fake friends" tuck their tails and start to head for the exit signs.

Give Magnitude the respect it deserves and it will bail you out when times are tough and there are no other so-called "friends" in sight.

The Event Horizon
  • #29
  • Aug 8, 2012 9:14am Aug 8, 2012 9:14am
thanks for the advice. I see I have a lot work to do :-)
On my way to financial independence - if others can do it - I can do it
  • #30
  • Aug 9, 2012 1:02am Aug 9, 2012 1:02am
@IDOUBLE, nice response and yes, the list contains just one too many books - looks more like a listing for the local bookstore..and did enjoy reading your response..
  • #31
  • Aug 9, 2012 2:21am Aug 9, 2012 2:21am
Quoting Eur Usd
Hi All
I lost quite a lot of money on trading, so I thought it would be better to spend some money on education in stead of loosing them on markets. I try to read about different markets although am interested mostly in forex
So far I read, or have in my library waiting to be read:


The Little Book of Common sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits) by John C. Bogle

my first book about markets I ever read, and very interesting. I have few grands in HSBC indice...
apologies,,,

I think you already read books,,,had enough
training and more experience is needed in this

the training and experience you will find balance and discover what makes you comfortable with the method you use

just my humble opinion
there is no downside to read a thread in this link

regards
suma

http://www.forexfactory.com/showthread.php?t=57639
  • #32
  • Aug 13, 2012 4:16am Aug 13, 2012 4:16am
I know you didn't like the Taleb's book, but have you read the other book from Taleb, The black swan? I liked both books from Taleb... though they are similar in its style.

Besides reading books I would suggest two things that have helped me a lot:
1) Trade together with someone, form a group of people to trade with or get a coach
2) Use a detailed journal of all your trades, mark down as much information for each trade as you can and go through your journal before and after each session
  • #33
  • Aug 13, 2012 11:50am Aug 13, 2012 11:50am
I think you should give taleb another try. But you have to understand that taleb is both trader and philosopher so dont expect to hear from him when should you enter or when should you exit a trade. He has a new book coming called Antifragile so that might be interesting.
  • #34
  • Aug 13, 2012 11:52am Aug 13, 2012 11:52am
Quoting Government
I think you should give taleb another try. But you have to understand that taleb is both trader and philosopher so dont expect to hear from him when should you enter or when should you exit a trade. He has a new book coming called Antifragile so that might be interesting.
rather not mate. I like facts not some posh chit chats :-)
On my way to financial independence - if others can do it - I can do it
  • #35
  • Aug 13, 2012 5:00pm Aug 13, 2012 5:00pm
Quoting Eur Usd
Hi All
I lost quite a lot of money on trading, so I thought it would be better to spend some money on education in stead of loosing them on markets. I try to read about different markets although am interested mostly in forex
So far I read, or have in my library waiting to be read:


The Little Book of Common sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits) by John C. Bogle

my first book about markets I ever read, and very interesting. I have few grands in HSBC...
ive pretty much learnt anything i know from the net,and just lately ive been watching nial fuller very closely,just nial fuller alone would be enough for you i think,hope this helps
  • #36
  • Aug 14, 2012 2:04pm Aug 14, 2012 2:04pm
Experience is your best book
Trade what you see, not what you think.
  • #37
  • Dec 18, 2012 2:47am Dec 18, 2012 2:47am
... I thanks Christ I'm not you Mr eur usd.
In the days of old when sailors were bold, and seldom if ever contented.
  • #38
  • Dec 18, 2012 2:50am Dec 18, 2012 2:50am
Quoting Eur Usd
Hi All
I lost quite a lot of money on trading, so I thought it would be better to spend some money on education in stead of loosing them on markets. I try to read about different markets although am interested mostly in forex
So far I read, or have in my library waiting to be read:


The Little Book of Common sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits) by John C. Bogle

my first book about markets I ever read, and very interesting. I have few grands in HSBC indice...
you dont need books, you need screen time. just keep trading and learn from what goes wrong
The best indicator is price.
  • #39
  • Dec 18, 2012 3:21am Dec 18, 2012 3:21am
Quoting scfx
you dont need books, you need screen time. just keep trading and learn from what goes wrong
I don't agree. These books gave me a lot of knowledge. Now I just trade, but the books helped me a lot especially on the mentality side and on proper position sizing
On my way to financial independence - if others can do it - I can do it
  • #40
  • Dec 18, 2012 3:24am Dec 18, 2012 3:24am
Quoting pt49
... I thanks Christ I'm not you Mr eur usd.
You're not worth my attention
On my way to financial independence - if others can do it - I can do it
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