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).
Extremely hard work and a few solid trading books are what you need to become a successful trader. There is no shortcut! By the way, you can always check out my portfolio, in which I post my trades real time.
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