I’ve decided to make this page because I get asked a lot about which are the best resources to use to learn how to trade and which steps to take. I’ve also made a library of general reading.
Let’s pretend you have no idea what trading or the market is. This is where stage 1 comes in. Let’s begin…
– this should provide you with the very, very basics of what the market is, why it is there, amongst other elements such as technical analysis and fundamental analysis. Once you have finished this you should be able to at least place a demoballer trade.
So you have made it through all of the BabyPips stages and listened to the berating from Trader Dante. But really, I’ll be frank with you, you still know nothing. In stage 2 we’ll expand a bit further…
– This will explain liquidity and why the market moves to where it does, and the market mechanics. I believe this is one of the most overlooked topics amongst retail traders and I was lucky enough to be guided to this topic pretty early on. It really does help. Understand what you are looking for and then for a month, just sit and go through your charts to understand the market ebb and flow for one hour per day.
I’d suggest by now that you have at least opened a demo account. If you haven’t done this yet, then clickhere and get it sorted. On the other hand, if you want to jump in at the deep end, open a live account here.
Now that’s out of the way, the next two books are about psychology (the most important part about trading) and the 3rd has a few more advanced topics in…
Trading in the Zone – Mark Douglas. This book is purely about psychology and how to find a psychological edge. Hugely important. RIP Mr Douglas.
The New Market Wizards – Jack Schwager. Interviews with some of the best traders ever. Slightly outdated, as it was written in 1992, but all of what is spoken about it still relevant today.
Master the Markets – Tom Williams.
This was recommended to me by another trader on Twitter and is a great book, especially the section on spread volume analysis. As a newbie it will go over your head, but get out of your comfort zone or you won’t progress. Read it til you get it.
The Wyckoff Workbook – Richard Wyckoff. Added this because it is very rational & relies on 0 bullshit.
You should basically be a multi-millionaire at this stage. No, I’m joking. You probably won’t be ever if you play the probabilities and neither will I. But that isn’t the point. Someone will be so give yourself the best chance at being one. Now here is the Holy Grail…
Harmonic Trading Volume 2 – Some idiot who knows nothing. Seriously, stay away from harmonics. They are crap.
Stage 4 should be just chart time. You can read all the books you want, but without doing it and experiencing then you can’t physically understand the market movements. I could have listed 100 books you need to read at each stage, but that would have hindered getting the the doing stage. One thing people underestimate is their subconscious. The more you watch, the more you, even implicitly, pick up certain patterns that work, and you then end up consciously recognising these patterns which enables you to then refine and perfect. Until of course market conditions change and you need to change something, but whatever.