Trading Books

Check out the best trading books.


If you want to make your living as a daytrader you start for the best with a good trading book in order to understand how the markets work and react. Daytrader is a profession like any other, so you have to learn lots of topics about Technical Analysis, Intermarket Analysis, Forex Markets, Fundamental Analysis, Commodities and Human Psychology. You won't need to know all this stuff in your daily trading routine but the more you know about the function of the markets and different intruments the better. The following books are a personal recommendation of and have been read and reviewed by ourselves. The most important books are above, the less important come afterwards. You will make the most out of this literature if you try to apply your knowledge on a free demo account once you have read one of these books. In order to become a successful daytrader you have to develop your own trading strategy(ies).

1. John J. Murphy: Technical Analysis of the Financial Markets

technische analyse

Mr Murphy's Technical Analysis of the Financial Markets is by far the most important book for daytraders in the world. This book both for beginners and experienced trades will teach you everything you need to know about the markets, technical chart formations, indicators and oscillators and the dow theory. This book is known as the "bible" amongst daytraders all over the world. This is why we put it on 1st place in this review. Even if you are keen on topics like seasonals, trading psychology and fundamental indicators you will find the answer. This book closes with a work book by means of which you can test your skills. No matter which instrument you inted to trade (stocks, forex, futures or CFDs) what you learn in this book apply to any market.

Conclusion: The "Bible" for any (Forex) Daytrader you need to buy and read. If you don't like reading and don't want to read any other book this one is the one and only and most important you have to read.

Link: Technical Analysis of the Financial Markets

2. John J. Murphy: Intermarket Technical Analysis

intermarket analysis

This book goes deeper into intermarket details than Murphy's previous book. This book will not teach you how to trade or explain the function of different indicators and oscillators but it will tell you when a rising dollar is good for the stock market and when it is bad, how is the impact of certain commodities on the stocks and bonds markets and how the correlation between different markets work. If you always wanted to know when stock markets rise or fall when the bonds markets rise and fall just buy it. In this book Murphy does not only explain how it came to the different crashs in the years 1987, 2000 and 2007/2008 but he combines the fundametal issues with technical indications and shows you possible early warnings.

Conclusion: Murphy's latest book is not as easy to read as the previous one. There are sentences that need to be read twice in order to get a deeper understanding. This book is not for trading beginners but for those who want to deepen their skills and get a global overiew on the financial markets and it's correlations.

Link: Intermarket Technical Analysis

3. Steve Nison: Japanese Candlestick Charting

steve nison candlesticks

If Murphy's candle stick section doesn't go far enough into detail for you you should buy this book. Steve Nison, the godfather of candle sticks brought this kind of technical analysis from Japan to Europe. If you are just interested in candle stick trading and nothing else you can buy this book and renounce on Murphy's. But bear in mind that there are some topics missing - it's just candle stick trading and nothing else. In the second part of the book Nison combines the candle stick technique with western method of market analysis in order to improve the results and get the most out of it.

Conclusion: A must have for any candle stick freak. If you just want to trade according to different candle stick patterns this is the best book for you.

Link: Japanese Candlestick Charting

4. John Momsen: Superstar Seasonals

momsen superstar seasonals

"18 Proven-Dependable Futures Trades for Profiting Year after Year," this is the promising title of the book. How much money would you spend on a book that helps you to make 100 per cent statistically proven year after year? John Momsen is the master of seasonal trading which means, he knows exactly the best time in the year for buying or selling certain futures. Have you ever noticed that the oil price is always low in february and tends to rise till the end of october? With the help of this book you can take advantage of such seasonal patterns. Momsen has analysed the futures market for soy beans, cattle, corn, crude oil, wheat, orange juice and some other assets. Although this book is primarily made for futures traders you can easily apply his rules on the cfd market or use ETFs instead. Momsens trades are always executed when a certain asset rises or falls in a certain period of time in the year, means, he trades the breakout. There's no fixed Take Profit on his strategy but he uses a Trailing Stop and follows the market as long as it rises or falls.

Conclusion: If you are interested in seasonal patterns and would like to know when for example oil tends to rise or fall, you should invest in this book. The trades can easily be realised with futures, CFDs or ETFs.

Link: Superstar Seasonals

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RISK WARNING: Daytrading includes products that are traded on margin and carry a risk of losses in excess of your deposited funds. The products may not be suitable for all investors. Please ensure that you fully understand the risks involved.