Think Like A Trader Blog

Monday, 12 October 2015

Recommended Reading List

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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