The best day trading books teaching day trading strategies and producing consistent profits are very hard to find. And while very few reliable books on Forex trading rarely exist, books on day trading particularly in Stocks are widespread.
Make no mistake, Forex is the largest and most liquid market in the world! But this market didn’t exist before. Unlike the stock markets which many people are already familiar, the forex market is a new market, and that’s why most day trading books are written for Stocks.
The techniques you will learn by reading any of the books listed below can be applied to Forex trading to improve if not better your day trading skills as a forex trader.
Successful Day Trading Video
Below is a video of a successful day trading I’ve done. I acquired most of my day trading strategies by reading these day trading books. Watch this video first before you continue reading the rest of the article details below.
Table Of Contents
- The Alchemy of Finance
- One Up on Wall Street
- Market Wizards
- A random walk on Wall Street
- Trading In the Zone
- Options Volatility & Pricing
- Technical Analysis of the Financial Markets
- PitBull – Lessons from Wall Street’s champion trader
- How to make money in Stocks
- The little book that beats the Market
- Trading for a Living
- The New Trading for a Living
- Study Guide for The New Trading for a Living
The Alchemy of Finance
An essential but undervalued best day trading books on finance and economics. This book has not got its due praise though, mainly because the written material seems a bit complex.
The basic idea proposed in this book is revolutionary and opposes the popular belief of cost-effective market theory, but the book is so worthy.
I advise first to read “Soros on Soros” which is a kind of brief summary of the ideas given in this book, but in an interview style so that the writing is much more persuasive and coherent.
Once you’ve done that, I would absolutely recommend learning “Alchemy …”. The concepts and knowledge offered here are robust and have changed the game for those who can understand it. Read this book, take notes and combine the lessons and ideas in it in your day trading.
One Up on Wall Street
I heard this book, and it is highly recommended for anyone interested in investing. Lynch is best-known for his slogan “Invest in what you know,” and while some see it as a consideration to investing in any company where they “feel good,” Lynch is not relentless in his book and even warns before.
Its central message is that individuals like me and you are involved in the economy, aware of new trends and investment opportunities.
By being aware and diligently doing homework before investing, you can find numerous “diggers” – stocks that multiply over time – that can make you quite wealthy.
Lynch in this book points out that it gives the average person the advantage over professional investors. Throughout the book, he justifies the ideas and methods for analyzing companies and serves as a reasonable basis for value-oriented investors. Lynch also has a good sense of humor like Buffett making the book engaging to read.
For those familiar with investment kinds of literature, I’m sure you’ve heard of a book called the “Reminiscences of a Stock Operator“. It was deemed the “authority” of commerce and became a reference in a lot of other favorite books of the genre.
For years it was the book that influenced the best traders in the world. The “Reminiscences of a Stock Operator” book was referenced in various discussions with the “Wizards,” so it’s evident that a lot of the topics are recurrent in this book. Narrations are tales and beliefs of the world’s influential traders, and collected in one place is incredibly thrilling.
Along with other books mentioned in this article, Market Wizards has benefited me to become a profitable trader. I recommend “The New Market Wizards” and its sequel to those who want to take their trading career to the next level.
A random walk on Wall Street
I realized that although I’m interested in how the market works, I don’t go into details of companies and different trades and try to be smarter than someone on the other side. Malkiel found out how to get the most return possible with as little effort as possible.
Although Malkiel convincingly shows that there is no way to beat the market, there is a strange paradox. For the market to function, people need to think that they can hit the market. Even if the best strategy is to buy and hold a low-cost index fund, if all of them did, liquidity and pricing would fall.
Trading In the Zone
I suffered considerable emotional distress concerning my mistakes in the market (among the other life events), and this book helped me to put my investments and trading in the right light again. I have a natural preference for that, but I do not think that is unfounded.
As I scoured the text, I had an epiphany after the epiphany, when Douglas described the emotions and trading conditions that I had just experienced and why they are the natural reactions of most market participants. His teachings of ownership, consistency, perceptions, expectations, and beliefs continue to form the basis of my trading psyche.
As one of the best day trading books in my collection, I would recommend this text to all traders as a tool to rationalize and combat the confusion and frustration that the market poses to us every day. It’s a relatively short read, but a very influential one that should help you when your trading emotions overcook.
Options Volatility & Pricing
What I think is that this book mainly reads like a textbook and is hard to read. It took me a while to get into the bulk of the writing style.
And for those are new to options trading, I suggest simple books first that are easier to start with and save this book for later reading after you have acquired the basics of options trading.
There is no doubt that this is one of the most educational and comprehensive books about options although its not advisable for beginners.
Technical Analysis of the Financial Markets
I wanted to understand technical market analysis techniques a few years ago. As an experienced MT4 and CAlgo programmer, I was looking for a source that would explain all the different technical indicators.
This book fits perfectly with this need. I use this book regularly as a reference in the development of expert advisors, indicators and scripts to scan markets for input and output signals.
This is not a “get rich quick” in the stock market book. This is more like an encyclopedia of technical analysis tools. There is much talk about theory in this book, and it can scare off people looking for an easy way to start trading. Each indicator is discussed regarding how it works in detail along with its advantages and disadvantages.
For those who want to develop their own system of technical alerts, this book will be a goldmine for information. For the past 6 years, this book has helped me better understand market indicators. So if you want to understand the technical market analysis, you need this book.
PitBull – Lessons from Wall Street’s champion trader
This one tells the story of Marty Schwartz, who began as a stock analyst and decided to work alone and make a living. He was a very successful trader.
Marty has earned millions of dollars. He won the US trade championship several times. He loves to trade S & P futures, stocks and some options. His trading style is day trading, and he rarely held positions for more than a few hours or overnight.
He is one of the outstanding traders of our time, and you can learn a lot on how to become profitable by reading this book.
How to make money in Stocks
After reading this book and using its rules in live trading, I genuinely believe that this is the # 1 stock trading/investment book out there.
The book presents both outstanding fundamental reasons for buying growth stocks using the CAN SLIM method and the timing of the purchase.
It also recommends reducing all losses to no more than a maximum of 7% to 8% and preparing to take profits when you get 20% to 25% from a winner. I have used the principles of this book to achieve over 20% return trading my personal account.
The little book that beats the Market
This book is short and entertaining that you can read it in just a few days. The proposed strategy seems to be working for the 19 years as described.
After reading a series of papers that rigorously tested investment strategies over 50-80+ years, I was appalled to see that the original version only had 17 years of backtesting.
Fortunately, this updated version contains data that start from 2005 to 2009, and show that the strategy outperformed the S & P during that 4 year period (not every year, but over the entire 4 years).
Besides, you buy and sell 30 shares every year, which has tax implications (unless you invest over an IRA or 401k) and transaction costs that are not really mentioned.
This book is recommended to those who are unsure if they want to invest in the stock market. I believe that after reading this book, you’ll have the confidence to invest in the stock market which you can likewise apply in forex trading.
Trading for a Living
I purchased the Audio Book, and “Love it”! I have listened to Trading for Living many times now and take away something more each time! I have been day trading forex for about 9-years having many difficulties. I started reevaluating my trading practices this last September 2018 and slowed down considerably due to previous losses.
Adding psychology to my trades and focusing on making a good trade not just making money has increased my profits many times over! Trading for a Living has greatly helped me focus, and stay focused. Easy listen, with direct explanations in a manner anyone can understand.
This book/CD will not tell you what to trade; it will give you the reasons to trade and explain not only the pitfalls of the market but your own. Understanding why you want to buy or sell (the psychology) is the key ingredient in making a “good trade”.
I have read many books on trading and thus far, Trading for a Living is the best for a well-rounded trader or investor. I would also highly recommend the Tao of Buffett.
The New Trading for a Living
The reason I say this is Traders trade and writers write. Most of the books available are a mishmash of nonsense.
I have been a professional trader for over ten years and things change and are changing faster all the time. So any book you read is dated from the get-go. This is a hard profession not for the faint of heart.
Discipline is one of the hardest things to control. You must have a method and I always say to people TTT test trust and then trade. Then does your method fit your personality? Do you have enough money and time to begin and stay, the risk of ruin is always there.
I think the most important books I have read are Reminiscences of a Stock Operator, How to make money in Stocks, and Trade your way to financial freedom. But this is a good book for beginners.
Buy with caution, take your time, becoming a pro takes time and perseverance.
Just remember Luck has nothing to do with trading and the markets don’t give a damn if you win or lose, only you do!
Study Guide for The New Trading for a Living
By far the most intelligently written and comprehensive book that I have ever read on trading. Elder covers everything that is important in just the right amount of detail, and the chart illustrations are very clear. At first, I thought I would not buy the book because of its price, but I am so happy I did. I have five other books on trading that are now superfluous because Elder’s is so superior. The physical aspects of the book, ie size of the pages, glossy paper, use of color for clarity in the presentation all add to the joy of reading this book and owning it.
In this age of sloppy ebooks, it is a real pleasure to find a book that has everything an author could do to put out a perfect piece of work. Well done Dr. Elder!
And while these books exclusively discussed tips and techniques for Stock and Options trading, I mainly applied the techniques I gained in Forex Trading. So there you have it. What’s your best day trading books?