Long-Term Secrets to Short-Term Trading by Larry Williams
Larry Williams brings out strong emotions in traders – you either admire him or you dismiss him. I have had the pleasure of trading live with Larry Williams, seen him speak on a number of occasions and read all his books. He has a lot to offer and this book, Long-Term Secrets to Short-Term Trading, is one of his best.
Trade Stocks & Commodities with the Insiders by Larry Williams
Larry Williams filled a gap in the market with this book exclusively about Commitment of Traders. He doesn’t reveal all his secrets in this book but if you want to understand the Commitment of Traders Report, this is a must read. The information is more geared towards swing trading futures than day trading Eminis.
Rocket Science for Traders by John Ehlers
John Ehlers is one of the most brilliant contributors to modern technical analysis and trading. His books focus on applying digital signal processing techniques to the financial markets. This book, among other things, introduces the Hilbert Sine Wave – without which I would not be able to trade.
Cybernetic Analysis for Stocks & Futures by John Ehlers
In this book John Ehlers introduces even more ground-breaking trading ideas based on digital signal processing. The book builds on ideas introduced in “Rocket Science for Traders” and this time there is code for both TradeStation EasyLanguage and eSignal Formula Script (EFS). If you’re not mathematically inclined you might find this hard going.
24 Essential Lessons for Investment Success by William O’Neil
William O’Neil is the founder of Investor’s Business Daily (IBD). If you want to start medium to long term investing in stocks this is a great book to read. A very logical investing methodology, covering both fundamental and technical view points, and clearly communicated. Having an IBD subscription also helps.
The Master Swing Trader by Alan Farley
This is my favorite book on swing trading for stocks. I prefer it to Velez and Capra’s Pristine methodology and their “Master Day Trader” book. Farley describes in great detail his “7 Bells” or swing trading set-ups with lots of example charts. If you want a comprehensive read on swing trading equities, this is it.
The Ultimate Trading Guide by John Hill, George Pruitt & Lundy Hill
Hill and Pruitt run the Futures Truth trading system newsletter. They have probably seen the inside workings of more commercially available trading systems than anyone else. This is one of the best books on trading methodologies and designing and testing trading systems. An essential read.
Jesse Livermore: World’s Greatest Stock Trader by Richard Smitten
This is my favorite book about the life of a real trader, Jesse Livermore. Reading the book you get a real feel for the swings in equity that Livermore went through on his way to achieving massive wealth. The myth that Livermore committed suicide broke is also finally resolved. I couldn’t put this book down.
Devil Take the Hindmost by Edward Chancellor
This extraordinary book chronicles the history of market bubbles from Tulip mania in 1637 to Long Term Capital Management’s bust in 1998 – putting trading and financial speculation in a historical context. It made me feel that I was part of a long tradition of speculators. Read a review of Devil Take the Hindmost here and watch the video here.
New Market Timing Techniques by Tom DeMark
Tom DeMark specializes in developing trading indicators and set-up patterns and works for some major trading houses. His focus on extensive back-testing has enabled him to develop unique methods that you won’t find anywhere else. There’s almost too much to take in with this book.
Unlocking Wealth: Secret to Market Timing by John Crane
This is the follow up to John Crane’s first book “Advanced Swing Trading”. The first book was good but this is really great – clearer explanations of the methodology and more chart examples. This is one of the most elegant futures trading methodologies I’ve seen. Read the full review of the John Crane trading book and methodology here.
Professional Stock Trading by Mark Conway & Aaron Behle
Although Mark Conway is currently under a cloud, this book is still an excellent equity swing trading resource. A complete swing trading methodology is described with detailed TradeStation EasyLanguage code for 6 different set-up patterns plus exits and money management. A great book if you want to see EasyLanguage in action.
Secrets for Profiting in Bull & Bear Markets by Stan Weinstein
An oldie but a goodie. This book is about long term investing in stocks. The charts could be better and more up to date, but the discussion of moving average breakouts and cup-and-handle patterns is timeless.
For more Top Trading Book suggestions go to Christmas Gifts for Traders.
