Are there any REAL TRADING BOOKS out there?

Discussion in 'Educational Resources' started by patrickmichaels84, Aug 19, 2009.

  1. Hey,

    I just started day trading a few months ago, and I'm looking to purchase some books on the subject. I'm mainly looking for books that offer technical analysis and level II strategies.

    I've looked over the book reviews on elitetrader and amazon, and every review is difficult to decipher. There are the people who will give a book 5 stars no questions asked (probably to beef up the rating), and then there are the people who shit talk the book only to finish the review by recommending their own shitty book.

    I recently read "The Truth About Trading Stocks" by Josh DiPietro. The book bascially stated that you should practice strick risk managment, which I already know after trading for three months (I've already taken some serious rips and have learned to pick an exit price before entering a trade).

    Can anyone point me in the direction of a book (or books) that are related to the two subjects that I mentioned avove, and that are also RELEVANT to todays ECONOMY?

  2. I recommend this to all new traders.

    Don't get too caught up in level 2 stuff. It's not nearly the same as it was when most level2 type books came out.

    When SOES became Supermontage and Direct plus became hybrid, level 2 strategies became extinct.

    Market makers and specialists use algorithms to manage their books. Most orders (even very large ones) are chopped to bits.

    Too often you will see a bid or offer with size of 50,000 shares vanish when it gets hit with a 200 share print.

    In order to trade level 2 type trading also you need the right cost structure to trade, if you are doing it retail forget about it.

    If you want to learn to read the tape watch one stock every day for the next month, if you cycle from stock to stock you won't learn anything.

    You can definitely tell from reading the tape when a natural buyer or seller is active in a stock (or when they are done) but it takes focus and screen time.

    Good luck
  3. Topper


    trading in the zone
  4. The best day trading book I've read is Mastering The Trade by John Carter.

    He's very specific about lots of things that other authors speak more generally about, including how he uses indicators, his setups/entries/stops, and even the particular hardware and software he uses.

    Some of the advice and cautions he gives concerning what you need to do to be successful are pretty blunt, but that's probably a good thing...
  5. If you want to get into the minds of Traders, then Jack Schwager's 2 hardcover books - interview format with well-known traders aren't bad. Title escapes me at the moment.

    Although there are others as well.

    If you click the "Books" link at the very top (green line), you can see a number of books that have been reviewed here, by topic.
  6. just21


    get a kindle dx and then download the pdf's from your favourite torrent site.
    BobbiDigital likes this.


    Horrible suggestion. I read this and was completly disgusted with it.

    1. He states early his book he doesn't use indicators but then spends an entire chapter on the "squeeze"

    2. His risk to reward is horrible. I recommend you youtube him and you can see him trade live. He risks 12 ticks to make 4. At the beginning of his trade he says once he enters his trade he does not touch anything and let's his system handle it but halfway through he moves his stop up!

    Very inconsistent. Horrible model to follow
  8. "2. His risk to reward is horrible. I recommend you youtube him and you can see him trade live. He risks 12 ticks to make 4." - David666

    Hi David,

    It's interesting you mention that. I've read a lot of books and trader interviews and haven't seen many successful traders who claim to use this type of backwards risk-to-reward ratio.

    The most famous proponent I've seen was Mark Cook in Jack Schwager's Stock Market Wizards book. He discussed how he likes to use a 3-point profit objective and a 6-point stop-loss.

    Schwager called him on it and Cook responded that he prefers high probability trades and that this setup normally worked 7 out of 8 times so he makes about 7x3 minus 1x6 = 15 points every 8 trades.

    He and John Carter have apparently been very successful over a period of years (though I don't know how either one is doing now), but it's clear that their approach can only work if the system has a high percentage of winners.
  9. every trading book in existence uses past data to support current arguments

    some useful insights - but don't try to model your activities after them

    its kinda like talking about how you picked last weeks lottery winner using last weeks winning number

  10. But the problem is with Carters risk to reward he has to be right 75 percent of the time just to BREAKEVEN. I mean is 85 percent possible? Yes just because he is basically scalping. Do I think its realistic for people to follow it and make a living? No.I'd rather have 40 percent with a 5 to 1 then 1 to 3 with 80 percent accuracy.
    #10     Aug 19, 2009