Will reading books really help you in trading?
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  1. #1

    Will reading books really help you in trading?

    Hi traders! Value trader is "on air".

    I’ve been asked very often of what books to read. In this thread I will share with you my ideas on this topic and give a small read-list of books that helped me in my development in early days of my trading career.

    As far as I concern, reading and consuming information is a little bit overvalued because it’s not logics that drives our actions, it’s our deep beliefs. Those beliefs can be obtained only in the process of deliberate practice. When you’ve seen something with your own eyes 10000 times, you will believe in what you are doing. If you have just read book on the topic, you will easily forget everything learned from the book once market starts to behave in volatile unpredictable manner (it very often does).

    Of course, when we come to trading, first thing we want to do is to read, read and read more. That’s our natural way to deal with uncertainty. We want to get a quick answer, but more often than not, we are just internalizing some ideas that make us feel confused in a process of real trading. For example – have you ever seen such beautiful trending lines (or, say, support/resistance lines?) in a real trading environment? Most of trading best sellers include plenty of beautiful but unrealistic (or, rare) trading setups.

    I guess, no. So, the first element thing that most of trading literature does – it fails to prepare us to real trading environment, which happens to be much more ambiguous, much more complex than it is shown on beautiful snapshots.

    Confirmatory bias

    The main thing that 90% of trading books do – they show you how your ideal setup would look like. By the way, it’s not only trading books, most books on success and personal growth also do the same thing. They tell you what you would need to do to get to point B from point A. But, they don’t tell you what you are not expected to do.

    The better advice for the field where 90% fail to survive, will not tell you «how to achieve your goal», but rather how to survive in a process of testing and probing your ideas in a process of real trading.

    Warren Buffet once had said that «Investing process is saying «no» to 90 proposals and «yes» to just one proposal».
    Best trading books that may change the way you think, will not tell you what to do in each and every case. They, instead, will focus your attention on nuances, details and obstacles that are rarely spoken about. Nuances make difference between amateur and professional trader.
    I will provide small list of books that helped me some years ago.


    «Enhancing trader performance» by B. Steenbarger.

    Brett Steenbarger is a famous trading psychologist (and a trader himself). In this book he talks not just about «greed and fear», but about various steps of learning process. You may understand from this book how to find your own trading niche, how to understand you position of the learning curve.
    From this book, I’ve captured one very valuable idea – all our internal characteristics (or behavioral characteristics) that we consider as obstacles, as something to fight with, in reality have huge potential to become our strengths.

    For example, in my trading it was anxiety and inability to hold position in some cases, I was closing position too early very often, and therefore, and missed some good opportunities. Later on, I have understood that I had pretty strong feel of changing market momentum. So, I should have become momentum trader, not trend-following trader. After I have understood this, I’ve changed my trading style and made it more synchronized with my strengths.

    You see – when I was trying to fight it, it was very tough, when I’ve made strengths out of my weaknesses – things have become much easier.

    «Mind over markets» and «Markets in profile» by J. Dalton.

    J. Dalton is authority in the world of auction market theory, but what us more valuable – he has huge experience in trading and in the past was running institutional trading desk working for big market participants.

    Markets are very visual. If you want to capture important information from visual analysis of market profile as well as candlestick chart, this book is for you.
    This book may seem a bit complex and it is not giving direct advices of what to do – when to open and close a position. But as I have told you before – real trading education is not about knowing your ideal setup, it’s about ability to know the whole picture including bad setups as well.
    Also, this book is about «market profile» – not every trader has this tool at his disposal.

    «Diary of professional commodity trader» by P. Brandt

    And last (but not least) in my read-list is a book by Peter Brandt, professional money manager, who was keeping trading journal in a real time for several months describing his thoughts and explaining his actions. This circumstance makes this book valuable, because it’s really what we would like to know – how does professional trader think and act in a real time.
    Also, tools that Peter Brandt uses – conventional technical and charting analysis, it will be familiar to any trader. Though, he trades on big timeframes (W1 and D1), this book will help to change the way you think about most trading challenges and ideas.

    Good luck!
    Last edited by Value trader; 06-30-2014 at 09:32 AM.

  2. #2
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    There is no how the reading of books will not hep the trader, i read books and i am still reading good. It will help me to get the clue on what i want to do before doing it actually, this is a very good thing for nay trader to do, but be careful on the books you are reading. Also, if you are not new in the market, your limitation in reading book should be observed

  3. #3
    Riding a cycle is not possible that only read this type of book . it is only help you to know the characteristics and the performance of the book . so this is actually that type of thing . in this trade you have to learn in this trade so much and does the trade with the real trading practice . at the new moment it is really hard to trade . but after this thing you can trade in here as a good trader .

  4. #4
    There are many Forex related books. Reading books can help us to learn about Forex trading. Books can be helpful to learn the basic things about Forex. We can gain the primary knowledge by reading books. So, we can buy Forex related books and read it regularly for learning purpose.

  5. #5
    Quote Originally Posted by sohelrana View Post
    There are many Forex related books. Reading books can help us to learn about Forex trading. Books can be helpful to learn the basic things about Forex. We can gain the primary knowledge by reading books. So, we can buy Forex related books and read it regularly for learning purpose.
    Reading books helps but that should be complemented with experience to derive maximum benefit. Forex trading is easy to do but very hard to earn money . If you lack of knowledge and experience , there will be no way to earn money even you try with many ways . So you should keep learning everyday to enhance your knowledge .

  6. #6
    Trader dkarev's Avatar
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    reading about trading has being the reason in have being able to understand the concept of this business, i basically earn how to do this business by myself with nobody help except from books and site reading,the most important thing is the level of passion and seriousness one is having toward this business,so i believe one can surely learn how to trade by reading the most important is practise

  7. #7
    Quote Originally Posted by dkarev View Post
    reading about trading has being the reason in have being able to understand the concept of this business, i basically earn how to do this business by myself with nobody help except from books and site reading,the most important thing is the level of passion and seriousness one is having toward this business,so i believe one can surely learn how to trade by reading the most important is practise
    When a trader reading different Forex trade related books and bring to come some trading idea and with online demo correctly doing then will be gathering trading in this market. Trading learning is very important side of us. So, We want to different technique strategy for getting more profit from Forex trading market. trade related reading books and learning or practice is the best policy of us and getting more money from live trading platform.

  8. #8
    Registered user mohabbat's Avatar
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    Quote Originally Posted by High View Post
    When a trader reading different Forex trade related books and bring to come some trading idea and with online demo correctly doing then will be gathering trading in this market. Trading learning is very important side of us. So, We want to different technique strategy for getting more profit from Forex trading market. trade related reading books and learning or practice is the best policy of us and getting more money from live trading platform.
    Yes dear High. I think for better trading experience we can get support from many ways. for example we can study economic news paper. online economy news, or global finance. every thing very wonderful and effective for forex market understanding. so I am agree with you
    Don't loss you hope.

  9. #9
    Quote Originally Posted by mohabbat View Post
    Yes dear High. I think for better trading experience we can get support from many ways. for example we can study economic news paper. online economy news, or global finance. every thing very wonderful and effective for forex market understanding. so I am agree with you
    Exactly for making good experience on the basis of this business trader must be achieve it in many ways. Dear when any trader try to making trade in the Forex trading platform that time they must be need to good experience. Otherwise this business is meaningless for businessmen. I am always prefer news of Forex business from online.

  10. #10
    Registered user Quid's Avatar
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    Quote Originally Posted by Touhid View Post
    Exactly for making good experience on the basis of this business trader must be achieve it in many ways. Dear when any trader try to making trade in the Forex trading platform that time they must be need to good experience. Otherwise this business is meaningless for businessmen. I am always prefer news of Forex business from online.
    The traders are not at all reading the real situation in the market in many ways they are trading,in the business which is made in simple way,they are preparing the knowledge through reading the books,but they are not knowing all things without practice in real account,to see and to face the market condition which are traded by other real market traders are necessary to see the market potential trading.
    Finally successful traders

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