Category Archives: Best Trading Books

Trading for a living – Alexander Elder – Review

Trading-for-a-LivingThis book was one of the first books I read, or better it was the second book. The first was an introduction on technical analysis. I have placed this as one of the earlier books to read as this book will give you a general understanding on all the facets of trading from technical analysis to money management to trading psychology.

I really enjoyed it. Dr. Alexander Elder did inspire a bit of my earlier trading techniques. The Strategy he offers is simple and based on the MACD. I guess at times simplicity is key.

He gives a deep explanation of many technical indicators like the: moving averages, MACD, directional system, new high-new low index, etc.

He also introduces his own two indicators: Elder Ray and Force Index. Elder’s techniques are based on Volume and momentum. Volume is very important in markets.

In Trading for a living, he also introduced the Triple Screen trading (using three timeframes) method which was very insightful, which is a general trading method recommended.

He does go into trading psychology,  Dr. Elder is a psychiatrist by profession and this helps him capture and explain the psychological of trading, how difficult trading psychology is, the roller coaster of emotions, and how often traders  “marry” to their losing positions afraid to close them, in hopes for a reversal.

He goes further to explain how no great money management technique can help a loosing system, but poor money management can make any good strategy loose.

I really enjoyed this book at the beginning of my trading. If you are looking for explanations on all aspects of trading, this is a nice read.

List of Best Trading Books

In this section is a list of my personal best trading books, useful to improve your trading psychology, trading strategy and to learn from other people’s experience. Furthermore there are book that are fundamental for all traders to read.

Trading Books for Beginners:

I feel this the the essential list for all traders that are just beginning and would like to get into trading.

Trading for a living – Alexander Elder
Trade your way to financial freedom – Van K Tharp
Trading in the Zone – Mark Douglas
Market wizards – Jack Shwager
New Market wizards – Jack Shwager
Candlesticks – by Steve Nison
Technical Analysis Of The Financial Markets by John J. Murphy
Intermarket Analysis  by John J. Murphy

Trading Books for the more experienced traders:

Trading System and Methods – Perry J. Kaufman
Trading Encyclopedia of Chart Patterns by Thomas Buwolski
Bollinger On Bollinger Band – John Bollinger
Technical Analysis for the Trading Professional by Constance Brown
The Complete TurtleTrader – The Legend, the Lessons, the Results by Michael Covel
Elliott Wave Principle by Frost and Prechter Elliott Wave Principle (Applied to Forex Market) by Robert Balan
Japanese Candlestick Charting Techniques, Second Edition by Steve Nison
The Definitive Guide to Point and Figure: A Comprehensive Guide by Jeremy du Plessis

 

 

I will add to the list also books recommended by others