I received quite a few requests to recommend some good technical books, especially on candlesticks. As you perhaps already know I use candlesticks and volume only. Simplicity is a beauty in trading. I do not use any oscillators, Elliot waves, Bolling Band, Price channels, Andrew’s pitch fork. Fibonacci retracement etc.. I am not saying that those indicators are not good. I have heard that some traders are really good at using those indicators.
Candlesticks originated from my home country, Japan. I heard that a Japaneses trader took 100 trades using candlesticks alone. All were winners. That is a legend. You and I are not going to have that kind of accuracy in real trading. But I do think it is a very effective indicator. The best is Japanese Candlestick Charting Techniques(the yellow one) by Steve Nison, which is a classic. Please read the reviews on Amazon.
I believe 50-60% of your trading success depends on your psychology. The following books might help you learn one single most important thing in trading, “cut the losers and let the winners run”.
Here is a collection of books written by Alex Elder, a practicing psychiatrist and professional expert trader. I have every single one of his text books. I don’t have the study guides. I think his books are required readings. I do not want to write any reviews about his books here. You need to go check what others say on Amazon. I started with his “Entires and Exits”(the White One).
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Nice books. I have just placed an order for Robert Edward’s book. Which book/s do you suggest for swing trading?
Posted on February 7th, 2009 at 10:32 am
@jrlearner, You are ambitious. I am not aware of any good books on swing trading. There is one called “The Swing Traders Bible”. I dislike any books that have “Bible” in their titles. Only readers have the right to bestow the word “Bible” to a book.
I do not think you need specific books on Swing trading. I use 15 min charts for short swing(3-7 days) and 60 min charts for long swing (10-20 days).
Posted on February 7th, 2009 at 1:10 pm
Thanks TraderMom. I think i’m going to pick up the Japanese Candlesticks by Nisson book over the Charting for Dummies.
Any particular one book you can recommend from Alex Elder’s collection?
Posted on February 10th, 2009 at 6:32 pm
seizure, The one by Nisson is a classic. I think every techie using candles has that book on their trading desks. So no matter what your current level is, you would end up buying it if you do not give up trading in the first couple of years….
As for Alex Elder’s. I started with “Entries and Exists”. You can get “Sell Short” when you have gained a lot of experience with trading the long side.
Posted on February 10th, 2009 at 9:18 pm
I really wish to know how you’re able to manage without scaling your exits. For example, in today’s (Dec 28, 2009) AIG trade, you entered long at 31.75 and exited at 32.54. While the price fluctuated between 31.74 and 32.10 with two topping tails in 1 minute candles, you stuck to your position. Though I am impressed with the reward that you achieved without scaling out for quick profit, I wonder how the logic works in your favor when most traders scale out of positions.
Greatly appreciate your reply.
-Ravi.
Posted on December 28th, 2009 at 8:36 pm
I have moved your comment to the relevant post
http://www.momdaytrader.com/blog/2009/12/28/day-trading-profit-target-200/#comments
Posted on December 28th, 2009 at 9:28 pm
Seizure, did you read the book? Could you provide feedback to me please?
Posted on March 24th, 2010 at 8:01 pm
Seizure, did you read the book? Could you provide feedback to me please?
Posted on March 24th, 2010 at 4:01 pm
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