In the past 25+ years of being active in the financial markets I have been a big reader. As many people will sit and watch television, play video games or be on the internet for hours I have done the same thing with books. I love learning new things and gaining life changing information to put into effect in my life for self improvement. I have read over 1,000 nonfiction books with over 400 of those being about trading, investing, and personal finance. I have reviewed hundreds of these books on my Verfied Amazon Influencer Page since 2005.
What have I learned after spending over $5,000 on hundreds of trading books?
In trading you must have the right mindset, the right risk managment, and a system with an edge to make money over the long term. If any one of these are missing you will not make it.It is possible to beat the market, the Trend Followers, the Market Wizards, and Warren Buffett have proven that beyond a doubt.Opinions, predictions, and beliefs are meaningless on the markets. You have to go in the path of least resistance and follow the trends.
If you approach trading like a gambler you will never make long term profits, you have to trade from the perspective that you are a casino and you need to trade the probabilities and statistics and make money from the gamblers.
To make money in the markets you need an edge, if you don’t know what an edge is or what yours is then you don’t have one.
Position sizing determines the long term success of your trading system and is the primary metric that determines both the size of your returns and the risk of eventually blowing up your account.
There are two types of trading books, one kind is written by content writers and are painfully boring and useless and the other is written by traders who have a passion for trading and studying the world’s best traders.
20% of trading is system development and 80% is being able to psychologically follow your own plan.If you find value in a trading book it will pay you back in mulitples of the cover price.Risk management can save you more money than any other lesson.
The Amazon Kindle App is a great platform for storing all your trading books on your iPad. Much more efficient than having a physical library.
If you have a trading author that helps you read all his books first before looking for another author you like.
Focus on books that teach you exactly what you are trying to learn.
Some of the best trading books are written by or about Market Wizards and Trend Followers.
You don’t need to read hundreds of trading books to learn how