Book Recommendations

[BrandonB 4]

Hello,

 

I've read all of Andrew's books & was wondering if anyone has any other book/audible recommendations for Day Trading, psychology, strategies etc.

 

Thank You

[FX 3]

The Playbook by Mike Bellafiore

[BrandonB 4]

@FX would you happen to know where I can purchase this? I can't seem to locate a Kindle edition & the cheapest price on Amazon is 700$

 

https://www.amazon.ca/PlayBook-Inside-Think-Professional-Trader/dp/0132937646/ref=sr_1_1?crid=23BAX62HANFOS&dchild=1&keywords=the+playbook+mike+bellafiore&qid=1599437189&sprefix=the+playbook+mike+%2Caps%2C158&sr=8-1

 

Thank You

[CliffG 31]

There are three more I would recommend.

Anna Coulling - A complete Guide to Volume Price Analysis

Mike Bellafiore - One Good Trade

Mark Douglas - Trading in the zone.

[FX 3]

Brandon I saw that too on Amazon. I must be a mistake. I have seen it in PDF. Google it, you can find a better price.

[cjsimon07 16]

Mark Douglas's Trading in the Zone is a great book. Really helped me become more consistent. And the whole audio book is available free on youtube!

[Rick Lee 10]

I'd say these 3 besides Andrew's have given me a solid start to being a fundamentally good trader (still lots to learn but these have been a huge help):

• A Complete Guide to Volume Price Analysis by Anna Couling
• Technical Analysis on Multiple Timeframes by Brian Shannon
• Trading in the Zone by Mark Douglass

 

Next on my list is One Good Trade and Reminiscences of a Stock Operator.

Edited September 17, 2020 by Rick Lee

[mlestina 6]

I agree with the above posts.

I read 6 (Andrews 2, Trading in the Zone, One Good trade, Brian Shannon's book and Anna Coulling's book, all good.

 To me, One Good Trade is overlooked but is very engaging.  Andrew's 2nd book (i.e. Advanced) has some overlap with One Good Trade. One good Trade is written from the perspective of an owner of a day trading firm where newbies, after a 6 week training session, go live without ever trading on a Sim.  The name of the book comes from the fact that a day trader should focus on one good trade (i.e. following your rules, if-then statements, honoring your stop losses, and diligently paying attention to the screen during trade management) as opposed to only trying to make a profit.  A good day trader performs one good, trade, then one good trade, and then one good trade.  A good trade could include a small loss provided you honored your stop loss and you executed it according to your plan.  ells about all the different types of people he employed.  The typical successful trader being someone who went to college, played sports but did not excel academically.  Emphasizes that it is a full time job, must be in the office on time to find the stocks in play, then find support and resistance levels and moving averages of these stocks in play, then develop and write down "if-then" statements of how and when to trade, then sit in front of the screen the whole day and try to find a stock in play that meets your criteria of your "if-then" statements, then if a trade is made, you need to pay attention to the screen for trade management, then journal and/or record your activity and trades, and then review trades afterwards.  All this is needed to become a CPT (consistently profitable trader).  

Trading in the Zone is psychological, and ends with an exercise where after you find your "edge", you are supposed to test it with a minimum sample size of 20 before going live. See also Mike B's July 23 Webinar.  Trading in the Zone tells you good and bad moods to be in when trading.  The "zone" is a care-free state of mind where you are absent of any feelings of pain or fear and where you can act instinctively  and get into the flow (i.e. opportunity flow) of the market.  In the flow or zone requires you to be restrained but not reckless, and to think in terms of probabilities, and not focus on the profit/loss results of an individual trade.  The book often compares a day trader to a professional athlete. It compares a consistently profitable trader (CPT) to a star athlete by comparing the mental states of the two.  A bad trading mood is that you must get some money, or that you were ripped off and need to make it back, or that you feel you have to make a trade even though the set up is not that good (i.e. chasing).  A good mood is the market is presenting opportunities, and that you are looking for opportunities, that you stick with your set stop loss, that the goal is to execute the trade properly according to your rules and not only to make a profit.  A good attitude is to approach day trading like you are a gambling casino owner, and that you will win some and lose some, and that for each had played (or trade made), you cannot guarantee a profit and you must be open to all possibilities and be able to accept all outcomes. Good traders approach a trade by knowing that they cannot control the outcome, and that they are fully willing to accept the risk involved.  Good trading may include small magnitude losses but not large magnitude losses.  It is OK to enter a trade, exit by stop loss or whatever, and reenter the same trade thereby taking several stabs at it.  Bad is to ignore your stop loss and double down.  When you are trading in the zone, you are in sync with the market and are doing well just as an athlete does well when he is in the zone.

Shannon's book talks about the 4 stages of the market cycle (accumulation, markup, distribution and decline), and Anna Coulling's book again refers to these 4 stages and emphasizes that it is the insider that accumulates during the accumulation phase and distributes during the distribution phase while the retail investor does the opposite etc.  Anna Coulling also says that retail investors tend to buy high and sell low and insiders and market makers do the opposite, and tells you how to read the volume to determine when the insiders are doing these things by looking at the volume of sales that come thru.  In other words, there is a lot of things going on in the market that are invisible to us retail traders, such as dark pools, iceberg orders, no intention to fill limit orders, level 3,  etc that puts us retail traders at a disadvantage.  However, what is available to us retail traders is volume data, and if you can properly interpret this volume information, you can get clues as to what the insiders are thinking and doing so we do not wind up like ordinary retail traders of buying high and selling low.  High volume means there is a lot of conviction of the corresponding price move, and hence it serves to validate and confirm the price move, while low volume shows a lack of conviction, and thus the price move may be considered an "anomaly". An anomaly could signal an odd outlier, manipulation by insiders, a test, etc etc depending on the context of the anomaly.   

Matt

 

 

 

 

 

Edited October 10, 2020 by mlestina

[Bryan W 50]

https://bearbulltraders.com/books/ 

https://bearbulltraders.com/audiobook/