Having to close trades before the day is out brings certain limitations — such as the inability to capture overnight profits which can be significant. Above all, managing risk and keeping a level head are the most important lessons for a day trader to learn.
The idea behind High Probability Trading by Marcel Link is to trade only when the odds are in your favour. Combine this with the right frame of mind and you have the winning formula to riches. Before Marcel Link was successful in the markets, he spent years going through different methods and trading systems. The lessons from this trial and error approach are nicely documented in this book.
Calculated Bets by Steven Skiena has to be one of the most important books for traders and gamblers alike. It can be slightly hard going due to the mathematical substance inside but if any book is going to teach you how to best manage risk vs. He then shows examples of how the approach can be compared to other areas such as stock trading and political polling. Mastering the Trade, Second Edition: Coming in at pages, Mastering the Trade by John Carter is a fairly comprehensive guide to trading that specialises in intraday and swing trading setups.
The book also explains the tools needed to trade and talks about some internal market indicators to watch out for. Kathy Lien has to be one of the most well-known analysts in the forex space. The sections on fundamental strategies are particularly worthwhile. Trends are much more choppy, and momentum frequently breaks down. Meanwhile, trading costs inhibit most high turnover strategies, such as scalping.
This works well because it tunes in to the mean reversion nature of intraday markets. Developing Winning Attitudes — Mark Douglas. You should also avoid looking at your profit and loss while you trade. These are personal lessons that I learnt the hard way. Technical Analysis of the Financial Markets: Coming in at pages, for me, this is still the ultimate technical analysis reference book. The Little Book of Market Wizards: Lessons from the Greatest Traders — Jack D.
For me, the Market Wizards books are the most useful since they document interviews with real traders and the lessons to be learnt are surprising and encouraging. The Little Book of Market Wizards is a good one because it was released just last year and it distills all the previous books of the series into a concise guide. What did you think of these choices?
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Leave this field empty if you're human: Must read books for day traders.More...