Recommended Books?

Hello everyone,
I’ve been trading for about 1 month, and have had moderate success so far. Although, I find I rely on indicators and information I don’t really understand. Kind of how I drive a car without knowing how the car really works.

I want to learn about technical analysis in general, and the background behind specific indicators, chart patterns, candlesticks, etc. Can anyone recommend a good book on the topic? I know there are lots of online resources, but I really enjoy the feeling of a book in my hands and feel that’s how I learn best. Thanks a lot!

Indicators give secondary information that doesn’t address the root cause of price movement and how pros operate. You might want to check this out. You don’t need the software they are selling.

I know you say you prefer books, but the School here on babypips is the best resource you will find anywhere.
Im working my way through it and can’t recommend it highly enough

• If you want a book you can hold in your hand, try this for starters:

Currency Trading for Dummies by Mark Galant and Brian Dolan

This is a thick paperback which costs about $20 if you buy it online. But, you can probably find it in your local public library.

Note: You want the complete book — not the “Getting Started” version that Forex.com gives away for free when you open a demo account. What’s the connection? Well, the authors work for Forex.com.

You can read the “Getting Started” version — here — to see whether you want to track down the real thing at your library or at Amazon.com

• For more in-depth education on technical analysis, try:

Technical Analysis for Dummies by Barbara Rockefeller

This is another in the “dummies” series of books, and you can probably find this one at your library, as well. Barbara’s writing always goes to the top of my “must-read” list.

• After you have the basics under your belt, you might be ready for this book:

Day Trading and Swing Trading the Currency Market by Kathy Lien

This one may be harder to find at your local library. But, if you want the hard-copy in your hand, it’s worth the purchase price.

In my opinion, you don’t need most the stuff taught under the heading of “technical analysis”. But, you need to know about it, because most of the non-professionals who trade forex use technical indicators, and react to technical indicators, and talk about technical indicators here on this forum and elsewhere.

If you haven’t mastered technical indicators, at least in theory, then all the talk you hear about this indicator, or that indicator, will mislead you into believing that “those technical traders” have discovered the “holy grail” of trading.

There is no holy grail — except possibly avoiding all technical indicators. But, that’s something you’ll have to discover for yourself, somewhere down the road.

For now, read the books, and work your way through the Babypips School. And, become proficient in using the SEARCH feature on this website, so that you can find answers to the many specific questions you are certain to have.

When the books, and the School, and the SEARCH feature have all failed to answer your questions, bring them here to this forum. There are lots of members here who are ready and willing to help you find answers.

From my personal experience, I have found that technical trading is 10% of trading and psychology/emotions is 90%. I know you asked for technical books, but have a look at Mark Douglas “Trading in the Zone”, worth its weight in money saved 100 fold. Good luck!

Hi,

Only my two cents, learn about price action (S&R etc), learn about volume. Books - Price Action Trader at yourtradingcoach.com and Master the Markets (Tom Williams). For a further read about volume, check out peteFader’s thread on babypips (free and very detailed).