Top Ten Trading Books

Michael Storm– Follow Michael on Twitter

In the live trading room this subject occasionally comes up of  “what books do you recommend”  So, I thought I would take some time and make a top 10 list of my favorite books of all time.  I have traded for 10 years and read dozens of book, taken many courses, watched dozens of video’s etc… and so on.  There is no end to the amount of strategies that can be developed.  Many new traders can become so fascinated with indicators and strategies because they supposedly tell you exactly where to enter and exit trades.  This appeals upon our psychological “need to be right” make-up.

The well rounded, self actualized trader will have BALANCE in all that he does and all that he understands  So in order to achieve that balance here is the books I highly recommend.  I have thrown all others in the fireplace but these remain on my shelf FOREVER.

#1) Tools and Tactics of the Master Trader by Carpra and Velez.  (I was personally told by Oliver himself that about 90% of everything he knows is in that book)

#2)Trade your way to FInancial Freedom by Tharp.  (excellent book on system development, risk management and most importantly traders psychology.  PRICELESS)

#3 Reminiscences of a stock Operator by Edwin Lefevre (Timeless classic, One of the best!  I have read this book 5 times and NEVER get sick of it. It to will go into much mental discussions.  The man in the story became one of the greatest traders of all time…. a true operator)

#4) Allen Farly  Market Makers Edge (Revealing into the concepts of a market maker I try hard to think like them and use the same tactics at certain times)

#5) This one is open to negotiation because each has put out so many….  Martin Pring OR Steve Nisson…. Just about anything…. For a book on CANDLES. (If you do not understand candles, what they are saying and telling you this should enlighten you.)

#6)  Economics in one easy lesson by Henry Hazlit  ( a very enlightening and brilliant work on taking the complex discussion on economics and bringing it down to a level that the average mind can understand.  Economics is meant to be confusing, forcing us to look toward the “masters” who supposedly know so much and can “fix” all our economic woes.  Sadly they were all schooled in the faulty  Keynsian league and therefore they do not know what they are doing either!  If the leaders of the wold would READ and HEAD this book we would go through 10 years of pain, and the worlds problems would be SOLVED…. Disclaimer…. this is MY PERSONAL OPINION BASED UPON THE READING OF THIS BOOK…. IF YOU HAVEN’T READ IT, PLEASE DO NOT POST ME SOME NEGATIVE POSTING… BECAUSE YOU DO NOT KNOW WHAT YOU ARE TALKING ABOUT)

#7) Trading in the Zone by Mark Douglas (mostly all about trader psychology, and priceless).

For FOREX:

#1  Forex patterns and probabilities by ed Ponzi ( a good, basic introduction to forex markets in general and has much on strategies, but this is more for the swing trader in my opinion

#2)  Mastering the Currency Markets (by Norris and Gaskill)  I must admit by way of disclaimer that Jay Norris is becoming quite of friend of mine, so I don’t want anyone to think that I am recommending this book purely because of THAT.  I also have to say that I am only about half way through this book, but I must admit it is quite good, I have quickly examined the rest of it and this appears to be a very good primer for FOREX trading.  Covering everything from the beginners through what appears to me to be the intermediate level.  The book is clear, concise and well written.

Well, that’s it for my personal list of favorites.  But there are new books being written every year, and who knows, as life goes on perhaps I will read more and recommend  others in the future.  Whats that you say?  There are only nine suggestions?  AH,  well. you are perceptive.  What will number 10 be?  Why the book that I intend to write some day (real soon) of course!  When I do, it will go quite deep, it will assume that the reader is in the intermediate level of trading and understanding of course and I will write only from the perspective of mastering the scalping world and working orders from a market maker/scalper mindset. So, give me a year to get it done.      

Note Purchase any of these books by clicking here

Till then, Happy trading!  And bye for now.  Michael Storm (aka Robinhood).