Best Trading Books: Reading List for Beginner Traders

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Trading in the financial market requires special training. Without the necessary skills and knowledge, it is impossible to build a career as a trader. If a beginner does not know at least the basic concepts of trading in the financial markets, then he will not only not be able to succeed in trading, but will also lose his money, which happens in 90% of cases.

Educational basic training is an important and responsible stage, which opens up opportunities for further profit on transactions. After a beginner receives initial training, he constantly improves his knowledge throughout his career, which leads to an overall improvement in trading efficiency and income. Those who want to master the profession of a trader and hone their skills in the financial market can do this with the help of the best trading books recommended by professionals. Some of them will be discussed in this article.

What is trading?

Practicallyany modern person has heard about Forex trading or the financial market. Trading is speculative financial transactions, that is, a trader buys an asset at a lower price and sells it at a higher price. As a result, a price difference is formed, which is the salary or income of a specialist.

All trading operations are carried out on specialized sites or platforms. In fact, the trader does not buy or sell anything, he only assumes in which direction the market price will move in the future. And if his forecast comes true, he will earn a profit. In case of incorrect analytics, he will receive a loss on the transaction. Trading is especially difficult for novice speculators who do not yet know how to analyze the market movement and often make mistakes.

Therefore, the primary task of every trader is to study the methods of forecasting quotes and apply them correctly. A beginner should not only understand the basic trading techniques and use of tools, but also assess the market situation, the goals of other players and know the psychology of trading.

Traders in the financial market

Who are traders? In simple terms, these are trained specialists who are engaged in speculative trading in financial markets using assets and instruments.

All bidders are divided into three groups:

1. Market makers and major players (central banks, funds).
2. Medium participants (smaller funds and banks and other institutions).
3. Small players (small companies, banks and privatetraders).

All movements occurring in the financial markets are regulated by large participants. They determine the direction of quotes and move prices in the right direction. Therefore, in order for trading in Forex, the stock market or binary options to generate income, you need to know the goals of the big players and open transactions in the same direction in which they move the market.

For example, they open trades in large volumes to lower the price level. Gradually, other bidders join them, and market quotes begin to fall. As a result, they not only control the market, but also move prices in the direction they need. A similar situation occurs when large market participants want to increase the price of any asset.

Training as a trader

Trading for beginners is about learning the basics and developing trading skills. To master the profession of a trader, you need to immediately tune in to the duration of training and be patient. There is no need to listen to false teachers who say that you can simply learn any strategy, learn how to open deals and make money in the market. With such superficial knowledge and a frivolous attitude to trading, the only result that can be achieved in trading is the loss of a deposit.

To understand all the subtleties and nuances of the exchange, professionals advise beginners to study the best books on trading (Bill Williams, Alexander Elder, Dean Lundell). They should not be easy to read, they should becomea desktop guide for every novice trader.

Basic training - terminology, theory, basics of trading - this is only the first, but very important, step on the way to mastery and mastering the profession of a stock speculator. In the further development, it is books that will help to reveal the intricacies of trading and improve the results of transactions. It is impossible to become a good specialist without understanding all the movements that occur on the trading chart and without knowing, without even assuming, the goals of the big players.

And also professionals recommend paying special attention to training in money management, which plays one of the primary roles in trading in the financial market. Often, the future income on the entire transaction depends on the correctly calculated lot size or placed protective orders.

Types of learning to trade

Basic training goes through all beginners without exception. It can be conditionally divided into several forms for providing information:

• video tutorials;
• webinars;
• seminars;
• online conferences;
• recommendations and articles;
• trading guide;
• dictionaries;
• books.

Each type has its own advantages. For example, by watching a video tutorial, you can visually get the information that the author wants to convey to the viewer. Online conferences and webinars, as well as other forms, are convenient because in real time you can not only get the necessary material, but also a quick answer from the host of this seminar to a specific question.

Group learningvideo chat is also very convenient, as you can become a participant in the discussion. However, the most complete information can be obtained from books. Of course, they are not all the same, and some of them may be empty and have no value.

Therefore, professionals and experts advise to study only the best books on trading, which have received worldwide recognition from traders around the world. With their help, beginners have the opportunity to understand the patterns of the financial market and quickly master trading. Such books have brought up more than one generation of successful traders.

The best authors of books for traders

Many beginners are looking for individual trading teachers. Unfortunately, they are not always found, and instead of gurus, people often encounter scammers who have only one goal - to cash in on a gullible person. So who can really teach trading? The answer is quite obvious, knowledge about the financial markets must be obtained from its founders, experts and professional traders. It is from books that you can emphasize all the necessary information.

Besides, stock trading is a serious and complicated business. Such knowledge is not always easy for beginners, however, there are authors who write material in a very accessible and simple way, especially for people who are far from this type of activity. These top trading books are sure to be fun to read, meaning you can get the knowledge you need faster.

List of references from the best authors:

1. "Chaos Theory". Bill Williams. A true masterpiece and classic.
2. "Encyclopedia of stock exchangegames". Alexander Elder. The basis of trading.
3. "The Grail of the Stock Exchange or the Adventures of the Trader Pinocchio". Alexander Gerchik and Tatyana Lukashevich. Informative book in a humorous style.
4. "Trading is your path to financial freedom." Van Tharp. beginner's guide.
5. Psychological book "The Art of War for Traders and Investors". Dean Lundell. The book reveals the importance of tactics and strategies.

In addition, to increase motivation in trading on the stock exchange, experts recommend reading the works of Donald Trump, who wrote the book "Think big and don't slow down", which is based on psychology. And also for all beginners, the trading manual by Viktor Ilyin and Valery Titov "Exchange at your fingertips" will be useful.

This is just a small selection of books that are recommended for people studying the fundamentals and patterns of the financial market.

Trading with Elder

Alexander Elder - the author of numerous works on stock trading, is an internationally recognized specialist in the field of trading and psychology. He revealed to his followers many subtleties of trade. The main value of his books lies in the fact that Elder more deeply and fully illuminated the patterns of the financial market from the psychological side and revealed the relationship between all participants.

One of the most famous books by Alexander Elder - "Fundamentals of stock trading" - has been translated into 12 languages. It is rightfully considered the unsurpassed bestseller of its age andhas been reprinted several times. The main idea of this book is very clear, interesting and accessible to any level of trader.

"Raiding with Dr. Elder. Encyclopedia of the Stock Game" is also considered to be no less popular work. It covers all the fundamental knowledge about trading in financial markets and reveals patterns between them. In his books, Elder describes a lot of examples with calculations and graphs, gives useful recommendations. His works have been recognized in the professional environment around the world and still remain relevant, useful and popular with traders.

Exchange trading with Van Tharp, Gerchik and Lukashevich

For every beginner, the moment of learning is a very difficult step. Someone immediately understands that trading is not the kind of activity that he would like to do. But there are also people who build their careers and develop in this direction. Trading, Your Path to Financial Freedom by Van Tharp is a complete guide and a boon for every newbie who wants to learn this trade.

It provides the necessary recommendations and instructions, and its main advantage is that it not only reveals the technical side of trading, but also allows you to improve and improve your skills in trading in the financial markets. The book is designed for traders who are serious about learning to trade, regardless of their level of experience, that is, it is ideal even for beginners.

In contrast to it, we can mention another book - "The Stock Grail or the Adventures of the Trader Pinocchio". Even from the title, one can understand that the authors Alexander Gerchik and Tatyana Lukashevich provide information in it in a humorous, so to speak, playful way. However, the light style does not make it less significant; it is just more interesting to read it than the usual textbooks. In addition, the book has a lot of examples, which makes it even more understandable. Alexander and Tatyana in their work reveal the intricacies of modern stock trading.

Investing and trading by Dean Lundell

The trading book "The Art of War for Traders and Investors" has its own unique backstory. It is based on the idea of Sun Tzu, a fairly well-known author in his circles, who wrote the book The Art of War. The main idea of the work is a guide for achieving victories over an opponent in various unforeseen and conflicting circumstances and situations.

Professionals consider this creation to be the perfect reference. Sun Tzu believes that tactics and strategy are the two main tools in any military action. And therefore, their correct choice and further application will help to win even at the "starting point of the conflict growth".

This reasoning and deep thought formed the basis of the book "The Art of War for Traders and Investors" by Dean Lundell. His book describes methods from the original source, converted for trading onfinancial market. According to many trading professionals, their correct use allows you to increase the profitability of transactions not only for traders, but also for investors.

Donald Trump's thoughts on the Stock Exchange

This book may surprise a lot of people who study trading. Even the title of his work - "Think big and don't slow down" - Donald Trump discouraged both his competitors and associates.

The main idea that he, together with Bill Zanker, invested in it, is that in trading, like in any other business, in some cases it is necessary to apply non-standard solutions. For example, Trump believes that if you make a person angry, you can achieve the greatest results from him, as the body mobilizes and strengthens the power of brain activity. Thus, a person will be able to make a decision that is more beneficial for himself, his activity, business or company.

In his book, the author always encourages the reader to be honest, make independent decisions, not let other people manipulate him, never give up under any circumstances. He believes that this is how a person should think - "in a big way" and "not exchanging for little things" that occur daily in personal life, at work and in business.

By and large, this book does not apply to stock trading, but it can be considered as a psychological factor for motivation and achievement of goals.

Description of the book "Exchange at your fingertips"

Each trading book is always valued somewhatsubjectively. All people are different and have their own opinion on this or that issue. However, one can understand the usefulness and interestingness of the book by the quantitative majority of experts. The book "Exchange at your fingertips", written by Viktor Ilyin and Valery Titov, is, according to experts, an invaluable guide to trading.

She helps beginners understand:

• patterns of the stock market;
• its working principles;
• trading mechanisms;
• interactions between market participants;
• general market structure.

From the book, readers will learn how the stock market works, what trading sessions exist on it, their features, when the exchange has the highest volatility, liquidity and for which instruments, as well as the time range, causes and characteristics of a calm market state.

In addition, the book provides information on the history of the development of the stock exchange, its distinguishing points from other areas of trade, the subtleties and nuances of working moments. After studying and reading this book, the beginner will get a complete understanding of the stock exchange, as well as useful and necessary recommendations for trading.

Conclusion

To succeed in trading, you need not only to master its technical basics, but also to constantly improve and improve your trading skills, as well as learn how to apply psychology in stock trading.

The best assistants and teachers for beginners can be books for learning trading, which will not only enrich them with the necessaryknowledge, but will also help increase motivation to achieve goals.