Top Trading Books
We’ve been asked a few times what trading books we can recommend for people new to social trading … in addition to reading the materials on our website of course
So while this list is certainly not exhaustive or final, we’ve listed some books which we feel have certainly helped shape our approach and mind on the way.
We’re not listing books to learn the trading basics (you can find that on any most social trading sites) or relating to pure trading systems or strategies (e.g. what is The Gartley Method). We’re more interested in books which may help us understand how successful traders think and operate as this could help us identifying other top traders to copy.
Momo Traders by Brady Dahl
This book features in-depth interviews with 10 top traders. Not the type of traders who work on Wall Street, but people who started like most of us with limited capital and time, but are now trading full time making significant profits for themselves. The age groups ranges from students who started trading young in school competitions to traders in their forties who didn’t execute a trade until they were in their thirties. You’ll likely find something which resonates to your background and situation in a few of them.
The traders interviewed in this book discuss what got them started into trading, lessons learnt from the losses they often made, what changed for them to become profitable, how they manage and maintain success and what strategies they use (though only at high level). While all of them are stock traders, you’re bound to pick up some useful tips and tricks as well which relate to Forex trading.
In terms of social trading, what you need to understand is that these are the type of traders you should aim to find to copy on the social trading networks. Unfortunately the profiles shared on the networks are only a few sentences long and don’t allow you to understand the mindset or background of the traders. However if you follow them for a while and communicate with them (possible on some networks) you can try and see if their trading behaviour and attitude is similar to that of the top traders in this book.
Trading in the Zone by Mark Doughlas
The main purpose of Mark Doughlas’ book is to explain how to become a trader … in your mind! It doesn’t prescribe any trading system or strategy, but aims to help you get the best out of a system that you want to apply. It very much focuses on the psychological elements of trading, how to overcome certain barriers and avoid mistakes most traders make. However in explaining this Mark touches on “real life” experiences as well.
While the book is obviously focused on helping you trade yourself it will also be useful when you copy other traders since the same psychological elements often apply. E.g. his approach to closing winning trades can also be applied to banking your profits from traders you copy.
To get the best out of this book, read with an open mind and take notes.
We’re still adding more suggested reads to this section and if you have any suggestions yourself, please get in touch or leave them below in the comments section.