I like the “Elliott Wave Principle” (key to market behavior) by A.J. Frost.
I read recently Stock Market Wizards: Interviews with America’s Top Stock Traders revised and updated edition 2003. Picked it up for 5.50 A$ in the 2nd hand section … what does that say about my trading strategy? … compared to downloading it for free 
Initial interviews in this book have been done during the bull market/ tech boom (early 2000). The interesting part is that that edition includes follow up interviews on how the traders did during downturn till 2002.
Not much on the strategies, but a lot on personalities, characteristics etc. Many of these top traders lost all their money at least ones?! Its a quick good read. If not interested in one of the persons / styles just go to the next one. Mainly shares, options and futures traders, but that does not really matter that much. The book is much more about “what makes a successful trader” and different trading styles.
Interesting that the amazon.com founder worked for one of the traders before starting the business …
Really enjoyed Enhancing Trader Performance by Brett N. Steenbarger as well. It’s very valuable and written really well.
I am currently reading Reminiscences of a Stock Operator, Currency Trading for Dummies, The Zurich Axioms and Bollinger on Bollinger Bands, all great books, easy to read, jargon to a minimum.
I am interested in reading The Art of War by Sun Tzu, though there are so many versions of it I’m not too sure which to read.
These six are just some of the versions I have found:
Sun Tzu on Investing: 15 Strategies for Dynamic Investments by Curtis Montgomery (publisher John Wiley & Sons)
Sun tzus the art of war by McCreadie Karen (publisher Infinite Ideas Limited)
Sun Tzus The Art Of War Bilingual Edition Tzu Sun
The Art of War (Galaxy Books) By Sun Zi, Samuel B. Griffith
Art Of War Sun Tzu Popular Penguins seris
Have you read The Art of War, if so which versions have you read and would recommend.
Thank you
I am reading this version every day and have done so for the past five years…
The Art of War: Spirituality for Conflict: Annotated & Explained: Annotated and Explained - Marc Benioff & Thomas Huynh
You can find a shortened online version here…
Sonshi.com | Original Sun Tzu’s Art of War translation (not Giles)
This article is based on an idea from Technical Analysis of Stocks & Commodities magazine by McCall, in December 1994 titled, “The Warrior’s Discipline of Trading” and was written by Thomas N. Bulkowski who retired at age 36 because of his successful trading since age 20.
[B][U]The Warrior’s Discipline of Trading[/U][/B]
The premise of the article is that we can learn much about handling the stress of trading by examining how the Samurai coped with battle. He created an acronym called [U][B]ACTION[/B] [/U]to define a six point plan.
-
[B]"[U]A[/U]ccept all possible losses before entering the battle."[/B]
McCall says that the samurai accepted death as a possible outcome of battle. That gave them the confidence to act boldly, without self-doubt. If you know you are going to die, you might as well go down fighting.
Recognize and accept that each trade could be a losing one, and plan accordingly. That will give you the confidence to make the proper choices. -
[B]"[U]C[/U]enter yourself in mind, body and spirit." [/B]
McCall explains that deep breathing exercises tend to calm the nerves and may help overcome excessive excitement or fear. I do that before a radio interview to help calm me down. If I don’t pass out from hyperventilating, then I’m good-to-go. -
[B]"[U]T[/U]rust your inner skills and intuition." [/B]
Often I find a voice telling me to exit a trade because price will turn down. When I act on those instructions, I do well. Ignoring them or second guessing them and my trading suffers.
McCall says that you not only have to trust the tools you use but also your intuition. If you mistrust your system, then tear it apart and explore how it works until you understand and trust it. If the system is suffering bad results, then perhaps it is time for a tune up. Do what it takes to make sure that the tools you use are working properly. Include yourself in the mix. If you cannot hear that voice talking (intuition) then paper trade until you do. -
[B]"[U]I[/U]magine victory clearly."[/B]
This is a recurring theme in many psychological articles that I have read. Another way to express it is to think positively. Imagine a positive outcome and that is what you will get. Sure, it may take three years of losses before you win, but keep hoping and keep trying.
Knowing that the trade is going to be a loss not only makes you unhappy, but you may find yourself sabotaging your potentially profitable trades as well. If you believe that this trade will end in a loss, then get out or don’t get into it in the first place. -
[B]"[U]O[/U]nly exist in the present to conquer fear." [/B]
McCall says that fear leads to over-analyzing, something I didn’t know but is probably true. This second guessing plays havoc on your finely tuned system. Have confidence in your skills and tools and that will diminish the self-doubt, hesitation, and impulsive behavior that makes trading so difficult.
Focus on the trade as it unfolds, not on what might or might not happen. You cannot control what will happen, but you can have the confidence to handle what is happening. I guess it is a lot like the fear of flying. If you concentrate on yourself being spam in a can, then your goose is cooked (to mix a metaphor). Focus on the good ending, that after the plane crashes, your ex-spouse won’t get a dime from your estate! -
[B]"[U]N[/U]ever stop a course of action once you have begun." [/B]
Again, this is a recurring theme. Successful traders love to complete projects. If you have the courage to enter a trade, then play the tape to the end. Plan your trade (and you do have a plan, don’t you?) and trade your plan. If you have doubts about a trade at the start, then don’t trade. Just don’t use that as an excuse to avoid trading. Know that this trade will be the big winner you have been waiting for, and then let it happen.
Those are the six maxims of a samurai and how they can improve your trading. Be prepared for losses. Remain calm when trading. Trust yourself and your tools. Imagine a winning trade. Focus on the trade and not what may happen. See the trade to completion. Focus not on the money but on how well you traded, and you will become a successful trader.
2 Likes
Thanks cas for that version, it does look helpful.
Another book that has come to my attention is The Book of Five Rings by Miyamoto Musashi.
Any comments, ideas etc on this one?
If you have no background and understanding of japanese culture, japanese history and japanese society in general it might be a bit confusing. Especially for a western mind and western way of thinking.
I read Currency Competition and Foreign Exchange Markets: The Dollar, the Yen and the Euro. Great book, got from my brokers website, ac-markets. There is a list of forex books that says what are they about.
Is it a book on candlesticks?
Not to my knowledge.
It was written by a Samurai by the name Miyamoto Musashi in 1645, its about success that is applicable to martial arts, situations involving confrontation and in general being successful.
Motivational reading.
well currently got a few books on my to get list
-new concepts in technical trading systems
-the candlestick course
-trading in the zone
-enhancing trader performance
any other reccommendations? also what would be a good book for learning how to correctly place E wave and fibs? for some reason i cant seem to do those right:(
I strongly agree with you. Mindset for success was to determine how a person wants to achieve success. If your mind were not aware of your ability to succeed, yes you will never achieve success. So, before starting your business, you should always have the mindset that you will succeed with the new business. Without having the right mindset, you will never succeed.
Good Luck
I think that “The Essentials of Trading” by John Forman is one of the best books for newbies .
My favorite book is: “Don’t lose money” by still not written (Stay humble my friend)
Has anyone on these forums read:
Martin J. Pring
Investment Psychology Explained: Classic Strategies to Beat the Markets?
Is it a useful book, opinions, thoughts, suggestions etc please.
Found it while looking at psychology books at online book retailers.
Has anyone read Forex Patterns & Probabilities: Trading Strategies for Trending &Range-Bound Markets (Wiley Trading) and or Day Trading the Currency market by Kathy Lien ?
Day Trading the Currency Market is a difficult book to find… I haven’t read it yet, I have ordered it though.
Please which book is useful for beginner like me who wants to know the basics?
I like “The Essentials of Trading” it is very good book
Who is that written by?