Reading Time - 4 Minutes
I’ve been asked a few times to
recommend a reading list to help people with their trading. I do have a few
books I would advise you to read if you’re hoping to become a trader, however I
think the titles will surprise you somewhat. There are no ‘trading’ books in
the list. Every trading book is essentially the same – they teach you how to
identify setups, how to pinpoint trends, how to make your millions. You’ll see
plenty of pinbars, arguments over what timeframe to trade, in depth research
into money management strategies and so much more trading related.
So why are there none of those
books on my reading list? Quite simply, because they aren’t enough. Hopefully
you’ve got a basic understanding of trading, whereby you can read charts, spot
reversal opportunities, identify the common patterns and so on. If not then
have a look at the beginner playlist on my YouTube channel, or watch some of
the countless other videos out there… And by all means, read some of the
trading books. I’ve read countless. My bookshelves are jam packed with them.
I’m sure you’ve read the
statistic that 95% of traders fail, usually within their first year (failure
tends to mean you go broke!) What do you think the vast majority of these
people are reading? Trading books. Specifically, they’re looking for secret
formulas, magical candlestick patterns and the ultimate trading plan. They think
that when they find the right plan, everything else will fall into place. So
why do so many fail? If everyone has easy access to the same material, why is
it so difficult?
I’ll give you a clue. The
tagline for Decisive Trading is ‘Master Yourself. Master the Market’. That’s
the tagline for a very good reason – trading is easily 80% a mental game (war
is probably a better word!) If one hundred people were given a successful
strategy, a proven method for making money in the markets, 85 – 95 of them
would still fail to consistently make money. That’s a hard fact. And it’s
because they don’t work on themselves.
You need to focus on building
mental discipline. The ability to remain calm and clear headed, to make
rational decisions under pressure and a strong determination to succeed are key
to success. And so, the reading list I’m going to recommend are all aimed at
improving YOU, rather than your trading knowledge. Trading is simple, but it is
not easy. And it is not easy because of the emotional attachment.
So here are a few of the books
I would recommend –
- Think and Grow Rich by
Napoleon Hill
- The Alchemist by Paulo Coelho
- Rich Dad Poor Day by Robert T
Kiyosaki
- The Miracle Morning by Hal
Elrod
- As A Man Thinketh by James
Allen
- The 7 Habits of Highly
Effective People by Stephen R. Covey
That should be enough to get
you started!
I hope you have a great
trading week!
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