So far these books have proven to be the most helpful to me in learning how to invest and trade. Below is a library of clickable links below and you can download from there.
1. Way of the Turtle
2. Market Wizards
3. Reminiscesnes of a Stock Operator
This was years ago, and these were great reads, fun, but more intro to what trading is like book, and gave me a good mindset for how to think about trading and what to expect books. However, Way of the Turtle gives some good quant stuff too.
4. One Good Trade by Bellafiore at SMB (comes recommended by several THT guys including Nate). Bellafiore taught me the Held Bid / Offer and how to read the tape – this really helped my level 2 understanding, and gave me by best type of trade (lowest risk and highest reward).
5. Mastering the Trade – John Carter (Nate’s Favorite)
It definitely helped a ton by validating certain entry / exit signals like 3 bars in a row for reversal, and he breaks down a lot of types of trades he does quickly and gives you clear systematic entries / exits. It helped A LOT.
What I wanted to learn / develop –> Why I’m choosing the books I am
I wanted to improve at both tape reading and also develop a valid system that was not based on impulse or some indescribable coalesced discretion for entry and exit. I wanted clear decisions every time. For me, one of the most annoying things is when I ask a trader a question about how you know when to enter and exit and they say, “it depends.” It depends is the lazy answer, and often shows a trader hasn’t written a trading plan and isn’t taking only the best trade setups and executing risk management the same every time. I wanted to be able to code my system someday and until then be able to follow it and know that if I simply followed it to the letter, it would work. I also wanted to get in during the morning and ride my stocks all day operating with it in the background as I find more trades, not needing to be babysit it all the time.
Thus the following titles appealed to me:
6. Candlestick and Pivot Point Trading Triggers – John Person
7. High Probability Trading Strategies – Robert Miner
8. Trading the 10:00 Bulls – Geoff Bysshe
Person – A bit too slow and I put it down rather quickly, although I would return to it bc it did seem like good info, but just a little too slow and inefficient in his writing.
Miner – Probably one of my favorites of all the books I’ve read. He teaches you to combine several criteria for estimating entry and exit prices, especially dual time momentum and elliot wave pattern. I found dual time momentum a bit too stringent and cumbersome for intraday trading (he uses it on the weekly chart compared to daily), but I did come to understand what the standard time frames were and how to evaluate momentum a bit more. Elliot wave pattern and his trade management system of when and where to move stops and to always enter and exit with stops has enhanced my trading probably the most. Elliot wave patterns helped me to hold my winners longer by withstanding what were likely temporary drawdowns on pullbacks as well as provided a systematic way to know if the trend was changing. This and that on the concept of the 2 share entry and exit 1/2 position to cover stop he agrees with Carter, and that really helped my losers turn to scratches.
Bysshe – This is the ORB system – I read it in 2 days since its only 70 pages. It has been the backbone of how I find my trades and I think allows a good systematic way to find which stocks to watch. It provides a way to get in early and taught me to trade breakouts with clear price entries. My results became consistently profitable as a result of this system. It is based on what the author noticed tends to happen as a stock’s price crosses its opening range (it tends to breakout). Since opening ranges happen every day in every stock it gives you a way to find VALID trades every day. If you don’t like breakouts, you can trade based on the consolidation after the breakout, but I choose the breakout since it gives me a systematic clear price of entry, less guesswork. Since Opening Range is something I’ve seen in other books and a number of authors talk about it, I chose this as a focus area for now. Also, if I can’t trade the open successfully, then I don’t see the midday bc I’ve hit my my stop so that’s the first thing to learn.
So in order to gain more expertise in OR I’m reading:
9. Day Trading with Short-term Price Patterns and Opening Range – Tony Crabel
Crabel – This is a statistical study over years of research using various patterns and their relative probability and average net gain. The first 2 pages of reading it I was like holy shit this is like the holy grail. He introduced new concepts such as Early Entry (when a stock has twice the size of the average first 5min bar on the open), Thrust (bars that subsequently increase in size and are the same direction), Inside Days (when the daily bar high and low are both inside the previous day’s high and low), and Narrow Range Days. All of which tell you something about the respective probability of an ORB being successful, and how successful.
I am only 30 pages in and already I’ve learned a lot – haven’t applied it yet though, except to identify momentum reversals without using an indicator. This has saved me some money already.
From here, I plan to read the following:
10. Dark Pools – Scott Patterson (recommended by Doyle)
11. The Disciplined Trader – Mark Douglas (highly recommended by Carter and others)
12. Steve Nison – Candlestick Course
13. Speculation a Profitable Profession – W.D. Gann (Miner mentions Gann)
These are more general types of books I have a feeling, but I’d like to get this basic knowledge.
I also want to learn about market timing besides fib time rets, mechanical systems (since I’ve seen a lot of things happen with 15c intervals), something on momentum, and something on arbitrage because it seems smart and low risk to me.
Thanks for asking, and would love to know your reading list as well,