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matinthehat

Book Recommendation

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Hi,

 

I will be out of high-school within months and am going to dive immediatel,y into trading information. I need a list of books to read to get me prepared for my future career.

 

First i want to get a good understanding of futures (my understanding is already decent but i would like to further it). Second, i would like to learn about trading as a career. Then, i want to learn about direct market information. For the latter i already will be buying Mind Over Markets, Steidlmeyer on Markets, and Markets in Profile.

 

Please give me your opinions. I will accept any advice from anyone. Thanks.

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Welcome to TL. This topic has cropped up a couple of times here before you might want to have a rummage around. There are books that are considered 'classics' (Reminiscences of a Stock Operator, Douglas' stuff spring to mind) and people will offer books that cover there particular area of interest. If you have decided on MP as your main tool try not to get too distracted.

 

I would recommend taking a look at the trade/money management side of things Van Tharp is OK ish for a grounding, I quite liked Tewles. Psychology and mindset are important (hence people recommending Douglas). Ypu might want to get a basic 'dummys guide to starting a business' type book.

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There are many good books out there, and on your journey to be the best trader you can be, you'll most likely always have your nose a book.

 

From the very beginning, you should be reading books that will teach you how to trade markets based on price action alone (no indicators). This is analogous to driving a car with a stick shift. You'll have a better understanding of whats going on, and have much greater control over your trading no matter where your journey later takes you.

 

On this site do a search for a trader called "DbPhoenix", and look for the free "introduction/ebook" on his blog. To get the full version, contact him directly.

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  xracer said:
There are many good books out there, and on your journey to be the best trader you can be, you'll most likely always have your nose a book.

 

From the very beginning, you should be reading books that will teach you how to trade markets based on price action alone (no indicators). This is analogous to driving a car with a stick shift. You'll have a better understanding of whats going on, and have much greater control over your trading no matter where your journey later takes you.

 

On this site do a search for a trader called "DbPhoenix", and look for the free "introduction/ebook" on his blog. To get the full version, contact him directly.

 

Whilst I agree price action is king and complimentary to may other approaches (as a trigger for example), I would never presume to tell him how he should trade. He has already decided to go down the market profile road, at a later stage the material you mention might be useful however whilst studying MP as a beginner it is likely to add confusion rather than clarity. I do agree its all good stuff of course.

 

btw the futures book I mentioned is called "THE FUTURES GAME. Who Wins, Who Loses & Why." It's a pretty good all round book about futures and you could dispense with van Tharp if you read it as it covers the same money management principles.

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  BlowFish said:

 

btw the futures book I mentioned is called "THE FUTURES GAME. Who Wins, Who Loses & Why." It's a pretty good all round book about futures and you could dispense with van Tharp if you read it as it covers the same money management principles.

 

The Futures Game: Who Wins, Who Loses, & Why (Hardcover)

 

I recall hearing about that book as well, haven't read it myself though.

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To the OP - in addition to building your trading library, start to get some screen time. Screen time meaning watching the markets in real-time and getting a feel for them.

 

If you plan to trade futures or just need a low cost solution to watching real-time, I would strongly suggest using the Open ECry simulator.

 

Here's why:

1) Everyone here, regardless of how they trade, will tell you that screen time is important. And it is.

 

2) Starting out, it can get expensive getting data feeds and such to be able to watch in real-time if you are not trading. For example,
charges over $100/mo easily if you don't trade.

 

3) OEC is inexpensive IMO for what they offer to sim users. You get an incredible amount of live data (limited back data) and you can play around as much as you want. I believe the cost is $24.95/mo. You won't be able to beat that.

 

So look around and get your hands on something. NinjaTrader is free to sim but you'll still need data to plug into it. Not sure what other brokers offer as well.

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  brownsfan019 said:
NinjaTrader is free to sim but you'll still need data to plug into it. Not sure what other brokers offer as well.

 

I believe several brokers offer NinjaTrader with the Zen-Fire feed for free while you're just trading demo. Not only is this probably the cheapest way to get a good real-time data feed, NinjaTrader is pretty good as a trading software itself.

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  AgeKay said:
I believe several brokers offer NinjaTrader with the Zen-Fire feed for free while you're just trading demo. Not only is this probably the cheapest way to get a good real-time data feed, NinjaTrader is pretty good as a trading software itself.

 

Any idea what brokers? And is it unlimited or capped?

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How about adding the following:

 

a. Vadym Graifer: Techniques of Tape Reading

 

b. Suri Duddella: Trade Chart Patterns Like the Pros

 

c. Pascal Willain:Value in Time: Better Trading through Effective Volume (I just ordered this book, to the best of knowledge, the author tries to unmask the selling/buying patterns of the big boys using his proprietary Effective Volume)

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Let us know how that goes Jesse (Value in Time).

 

I'd love to see a review. Also your opinion of its effectiveness on futures, small caps, big caps etc. Its one of the few books I've seen recently that looked really interesting.

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Guys thanks a lot!!!

 

I have the Ninjatrader and Zen-fire setup right now on simulation, but have not been able to find the screen-time required, as my school courses are kicking my but. I also currently have trading for dummies, but it isn't that in-depth.

 

Keep the recommendations coming, thanks!

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  brownsfan019 said:
Any idea what brokers? And is it unlimited or capped?

 

You can sign up through http://www.zen-fire.com for the demo. The broker used with NT is Mirus (http://www.mirusfutures.com), but if you are using NT in pure sim mode, then you do not interact with Mirus at all.

 

I tried it for a few weeks to see if this give me any real advantage over IB and I didn't see any. The bids/asks are definitely coming in fast and furious through it and if you are using tick charts, it probably will make a big difference, but since I am using plain old time charts, IB works well enough for my needs.

 

I just checked and I can still connect in Sim mode, so I am not sure if there is a limit. I'm surprised there isn't a limit and although I am not complaining, I also find it odd that no one from Mirus has attempted to contact me to try and convince me to open an account with them.

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Hi, Kiwi,

 

I love to provide review of Pascal's Book "Value in Time", but it'll take a bit of time for my order to arrive as I ordered it thru Traderslibrary taking advantage of their free worldwide shipping offer. From past experience, they'll ship it by surface mail.

 

In the meantime, members can visit Pascal's website: effectivevolume.eu.

 

Btw, the author is a philanthropist: if one donates US$50 or above to the foundation for handicapped children, one can get his Excel Add On software.:)

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Buy 4 copies of The Taylor Trading Technique read the book 100 times. When one copy gets too marked up start a new copy. I a number of trading books. Some mentioned here. Taylors is the best book hands down. Hard to understand but the best book. You can find what you need in that book to trade.

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  brownsfan019 said:
The Futures Game: Who Wins, Who Loses, & Why (Hardcover)

 

I recall hearing about that book as well, haven't read it myself though.

 

I haven't for a long time, it was recommended years ago by a trader I respected. A good 'everything you wanted to know but where scared to ask' type thing. The most important section is about money mangement, trade management, risk of ruin and all the stuff Van Tharp covers which is a corner piece of the whole trading jigsaw.

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  brownsfan019 said:
Any idea what brokers? And is it unlimited or capped?

 

Mirus & Amp. Mirus are meant to be very good from what I have heard. Amp I believe are a 'white box' company selling OEC?

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  WHY? said:
Buy 4 copies of The Taylor Trading Technique read the book 100 times. When one copy gets too marked up start a new copy. I a number of trading books. Some mentioned here. Taylors is the best book hands down. Hard to understand but the best book. You can find what you need in that book to trade.

 

How would this help someone wanting to learn market profile, or how to run a trading business (with all the cash flow and management issues to sort out) or the trading psychology? :) I am sure its a great book but will it help the guy set up and run a trading business?

 

Incidentally if I had to pick one book it would be Reminiscences. Not read it 100 times but probably 20. Funnily enough the majority of the Market Wizards (in Shwagers book) made the same recommendation, not that I am putting myself in the same category of course :)

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Since you are just beginning your quest for the Holy Grail of Trading, You might want to read Johm Murphy's "Technical Analysis of the Financial Markets". It is full of techniques that were "Holy Grails" at one time, but they all stopped working or only work in some markets some of the time.

 

There isn't a Holy Grail, or if someone found it, they aren't sharing it with the rest of us. But you will have to convince yourself of that fact.

 

In my humble opinion, the skill to be learned is pattern recognition. Have you ever seen a chess Grand Master play 30 kids at one time. He can walk from board to board and make the next move almost intuitively. However, if you show him a board where the pieces were postioned randomly, he is lost. It is pattern recognition. I have read several books written by successful traders that suggest that it takes 5-7 years for them to become successful.

 

Linda Raschke suggested that you have to look at a million charts. Do the math: 800 charts a day/5days per week/5 years.

 

Buck

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I agree with the last poster. My suggestion is to finish reading reminiscences..., read a bit about money management (and make a few calculations yourself to prove it to yourself) and then just start watching some market in real time with volume historgram and VWAP on it and see if you notice something (i.e. find a real edge). Reading books about trading is a waste of time if you want to trade professionally, 99% of what is written is bullshit, especially about indicators and strategies. Attached is a short interview by Mark Oryon (used to be a pretty large DAX trader and traded for Velocity Futures, don't know what he's doing now) you should read. I absolutely love that interview because he is 100% no-nonsense.

 

Getting a hold of your personally psychology is also a lot easier if you think of as a business. I like to think of it of running a casino. They have an incredibly small edge, but they have an edge (this is important!) and make sure no-one takes it away (forbidding card counting on Blackjack, etc.), and they make an incredible amount of money that way. So think of yourself as a casino and you won't allow yourself to make those stupid mistakes that would cause most traders to blow up.

Mark Oryon Interview.pdfFetching info...

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  BlowFish said:
How would this help someone wanting to learn market profile, or how to run a trading business (with all the cash flow and management issues to sort out) or the trading psychology? :) I am sure its a great book but will it help the guy set up and run a trading business?

 

Incidentally if I had to pick one book it would be Reminiscences. Not read it 100 times but probably 20. Funnily enough the majority of the Market Wizards (in Shwagers book) made the same recommendation, not that I am putting myself in the same category of course :)

 

If a person has the ability and discipline to follow a system then all they need is in the book. Of course, if they aren't disciplined then they will need some help there. Taylors system clocked price movement and has strict rules to follow when things do not pan out. If one follows the rules the money managment issue will take care of itself. It is the one trading book Joe Ross says is eternal. Linda Bradford Raschke bases much of her trading on the Taylors concepts I understand. She also highly recommmends the book. I have lots of trading books. If I were forced to give them all up but one..well you know the one I would keep. :did I say that?:

 

There are 2 or 3 threads here at TL about Taylor. I would suggest anyone interested in Taylor look at the threads. I have shared quite a few posts in those threads also. There have been many adaptations of Taylor methods. I guess"whatever adaptations floats ones' boat" and makes money is fine.

Edited by WHY?

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