This week, we'll talk about two books that, in our opinion, are critical to your success as a trader.
Trading is a serious industry, and if you want to make a significant profit, you must put in the necessary work.
It is a well-known fact that becoming an expert in anything takes an average individual around ten thousand hours of study and practice. And the more you study, the greater your level of competency, which is directly linked to your profitability.
There are many excellent books on Forex trading, but we've narrowed it down to just two that will be extremely beneficial to you.
Reading the two books listed below should be extremely beneficial to practically anyone interested in learning how to trade the markets, as they cover both "how-to" and "why."
Reminiscences of a Stock Operator
The book is Jesse Livermore's autobiography, written as told to financial writer Edwin Lefevre, about his career as possibly the most successful trader of all time.
At the age of 14, Livermore began trading stocks and commodities with just $5 of his own money while working as a quote-boy in a "bucket shop" — the American version of retail Forex brokers at the time.
From the bucket shops to the big time with J.P Morgan and all the way up to the 1920s, the book recounts his career, which is told with heartbreaking honesty.
Livermore goes bankrupt twice, makes and loses numerous multimillion-dollar fortunes, and details both his achievements and mistakes, as well as the tactics he used to create big gains that may still be applied today.
The fact that Livermore worked alone at a period when technical analysis was virtually unknown adds to the book's fascination and use. Livermore was an extraordinarily self-assured man with steely nerves, yet he was also thoughtful and open about his failures.
He devised his own profitable trading strategy based on both technical and fundamental analysis, and he tested everything that worked. He relied nearly solely on his own observations of price movements because he was self-taught and self-directed.
Although there was no Forex market until decades after Livermore's death, the ideas he taught are timeless and apply to all markets, including Forex.
The book is appropriate for complete Forex newbies, but it will be most useful to those who have battled to learn from their own mistakes. Many of the same mistakes were made by Livermore, and he describes how he overcome them.
This book will teach any trader something useful.
The Little Book of Behavioral Investing: How Not to be Your Own Worst Enemy
One of the most difficult moments for most traders is realizing that they know what they should be doing to earn money trading, but that they are unable to "stay to the script" and follow their own trading guidelines for whatever reason.
By entering into the domain of trade psychology, this brief, easy-to-follow book shows why this happens.
Even better, author James Montier demonstrates how human nature and psychology cause the "crowd" to make predictable mistakes, providing an exploitable trading "edge" to clever traders and investors.
This book is easy to read and includes helpful, actionable tactics you may apply to help you profit and avoid your profit from being harmed by factors like confidence, bias, and fear, which affect all traders to varying degrees.
If you want to be a good Forex trader, you must first open a practice account and study the fundamentals of the market. You'd also have to go live and learn how to execute and operate on a micro level later on. This is because no other learning method compares to hands-on experience, which you may obtain via your own price chart and activities rather than informative movies.
It's also important to zoom out, turn off your computer, and look at the big picture from time to time by reading some of the greatest Forex trading books available. This will assist you in learning the underlying truths and meanings in the markets, allowing you to navigate through difficult times without suffering.
P.S:- Both of the books mentioned in this article are available on Amazon for purchase.
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