Best books for Stock Trading Strategies, Psychology & Technical Analysis
Year 2010, the year that i joined my day job. I used to be so keen on making money in stock market during my final years in college as it was 2009-2010 the recovery from the lows of the 2008 crash.
As i started earning money i had option to invest or trade with some money. I was a newbie to the stock market. No one to guide on investing, financial planning or trading. Few colleagues who used to trade and lose money. They brag about their successful trades once a while (easily understood that they were losing lots of money; most of the time.)
Just start with icicidirect.com, trying to trade based on their recommendation without understanding the basic of trading and not knowing how to manage risk. If you are in India and if you are young, you are not going to tell your parents about trading or investing, all they know is that you lose money in stock market. So, obviously you are not going to bring in capital that is enough to risk manage. You will be having a small capital enough to lose it multiple times while you venture in high risk-high return strategy.
You trade and win 1 in 5 times or 4 in 5 times, you always end up losing all your money without a strategy.
I self learnt most of the things in the market over 8 to 9 years. I have lost lots of time, energy and money in the process. I have been reading quite a lot of books in last 3 years and it is always helping me gain something fresh and new everytime. Gaining knowledge through the experience of the author saves so much time and energy. I never stop learning these days. It was late but still fruitful to keep learning. I always kept cursing me for staying away from the books. I have self learnt most of the strategies that i use to pick stocks. Books are helping me to filter the stocks well.
Successful people in life or in trading never stops learning. Self investment is always the best investment.
I have published a basic e-book for beginners in Indian stock market which also includes the best articles from Gale.in. (You can download it here.) It will undergo continuous update to ensure it is more than sufficient for both investors and traders. Until then i would recommend you to buy the following books.
I present you with 5 [+1] books that helped me as a Trader. Best books for Stock Trading Strategies, Psychology & Technical Analysis. (Books are available in Amazon.in and link is shared below)
Best books for Stock Trading Strategies, Psychology & Technical Analysis:
1. How to Make Money Trading with Candlestick Charts (Entry level)
The book is easy to read and is essential for beginners.
This book intends to make the reader a master in his trade provided he follows the explained concepts of candlestick trading effectively. The Japanese have practiced candlestick techniques in trading and candle signals for over four centuries to fill up their treasuries. Refined and revised over the due course of time, these signals are now utilized all over the world for trading in finance markets, stocks and derivatives.
The book helps the reader in understanding and applying this technique to make money. It starts with explaining the types of candle signals, techniques to identity them and utilize them. Every candle formation reflects an underlying market psychology which has been lucidly explained by the book. Taking advantage of high probability trades, the book explains how one can accurately combine candlestick signals with Western technical analysis for generating explosive profits and cutting losses.
2. Trading in the Zone: Master the Market with Confidence, Discipline, and a Winning Attitude (Trading Psychology)
“The remaining 10% is not difficult to gather for any person with an average IQ.
In my 10 years of executing trades I have read hundreds of trading books. If there is a better book on trading than this one, then I am not aware of it yet.
For me ‘The Zone’ has become not just a way to trade but a way to live :-)”
3.Trade and Grow Rich: Adventurous Journey to Successful Trading
Easy to understand book filled with lots of Quotes. It help both the newbies and the experts.
Is it your personal quest to find out what has made some traders so successful?
Why do 5% of traders take all the money from 95% of losers?
The answer is nothing less than a revelation!
The authors of this book have formulated their journey of studying some of the most successful traders in the world into concise principles that, when acted upon, can help one achieve their dream to become a successful trader.
For over a decade, the authors have studied the world’s successful traders. Based on their learnings, they started practicing it and are now part of the 5%.
Trade and Grow Rich teaches not just concepts but also methods with the help of anecdotes. This book has to be read one chapter at a time, rather than just being a one-time read.
If you want to enjoy an adventurous journey to become a successful trader, then this is the book you are looking for!
4.Trading and Technical Analysis Course: How to Trade Safely and Profitably (Technical Analysis)
New Book that really helps in learn technical analysis the proper way.
How To Trade Safely And Profitably — Step By Step
This book shows you, step-by-step, how to combine the stock picking and market timing capability of technical analysis with the power of disciplined trade entries and trade management strategies. Result: Safe and profitable trading.
Mastering Technical Analysis : How to use various technical analysis concepts and tools, including trend analysis, moving averages, indicators and oscillators, candlestick and price patterns, volume, consolidations and corrections
How to pick the right stocks and timely trades using chart and pattern analysis
How to pre-determine tentative price and time targets for a trade
New : 2 brand new tradable price patterns pioneered by the author
Plus : Topic-wise quizzes and practice exercises to help you test your grasp of each important concept and topic and add to your trading confidence.
5. Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (Technical Analysis)
An easy to understand technical analysis book.
Technical Analysis of The Financial Markets: A Comprehensive Guide To Trading Methods And Applications (New York Institute of Finance) by John J. Murphy is an excellent reference book that attempts to teach traders the complicated relationship between technical analysis and stock markets.
The author has updated the first edition to include the most recent progress in technical tools, indicators and other changes in computer technology. The second edition contains additional information on inter-market relationships, stocks, stock rotation and candlestick charting. The book also contains ultra-modern examples and quotations related to the stock markets that further make it easier for the readers to comprehend the concepts.
Technical Analysis of The Financial Markets teaches the readers a vast range of topics ranging from understanding indicators in the markets to reading charts. It also provides a thorough explanation about the importance of technical analysis while investing. The book especially concentrates on trends in a future market scenario, which again helps the readers to chart out the strategies for investing accordingly.
The book has been especially revised and updated keeping in mind the various changes that have taken place in the markets in the past few years. It is an ideal guide for all potential investors who want to invest smartly.
6. Finally my favorite book for serious Traders [Trading Psychology]
“Let your profits run!” It’s the golden rule by which all Super Traders live.
This book provides a time-tested strategy for creating the conditions that allow you to reach levels of trading success you never thought possible. Providingexpert insight into both trading practices and psychology, Tharp teaches you how to steadily cut losses short and meet your investment goals through the use of position sizing strategies–the keys to steady profitability. Tharp offers concepts and tactics designed to help you:
- CREATE AND MEET YOUR SPECIFIC
- UNDERSTAND THE BIG PICTURE
- CONQUER COUNTERPRODUCTIVE THINKING
- MASTER THE ART OF POSITION SIZING STRATEGIES
Using the lessons of the book, you will approach trading as you would a small business–realistically, systematically, and enthusiastically. Drawing on his decades of experience, Author has created a simple plan designed to help anyone successfully navigate the market that includes the following:
- Mastering the psychology of trading
- Crafting a “business plan”–a working document to guide your trading
- Developing a trading system tailored to your personal needs and skills
- Creating position sizing strategies to meet your objectives
- Monitoring yourself constantly to minimize mistakes You can put this plan to use immediately.
these are the five [+1] Best books for Stock Trading Strategies, Psychology & Technical Analysis.
If you are new trader i would suggest you to have book 1, 2, 3 and later buy 4 & 5.
If you are advanced trader, I would suggest you to have Book 2, 3 and 5 and later 6..
There are lots of good books out there. I am reading few new books too. I will keep updating the list based on my experience with the books.