“As my trading experience grows I am tending to read less stock market trading related books, but still enjoy doing so. In my formative years, I read as much as I could but still would not profess to having ‘read them all’ by any stretch of the imagination – far from it. As a beginner I tended to focus on the Australian share market and consequently Australian books. It was probably also a function of price as they were significantly more affordable than those from the US. If I had my time over, I would research books a lot more and not let price be so much of a buying criteria, as my shelves are full of disappointing books that really don’t teach you much of what really matters,” Craig Fisher told me when I recently interviewed him about his stock trading experience.
One of the challenges for the beginner stock trader is to find and trust the information in the better texts and discard the information that is of little use. With that in mind Craig lists the following five books as his top 5 stock trading books; those that he found most useful and that he keeps going back to over time to reference and re-read. The books are presented in no particular order.Visit best books to learn day trading for more details.
Trade Your Way to Financial Freedom – Van Tharp
This was a book of firsts for Craig in many areas. The first time he had come across concepts such as expectancy, R-multiples and the importance of the risk/reward ratio. It also covers money management and position sizing strategies, stock trading system design, degrees of freedom and trading biases. “It really got me thinking about trading in terms of probabilities and statistics,” said Craig.
Market Wizards – Jack D Schwager
Craig would also recommend the other books in the series; The New Market Wizards and Stock Market Wizards. This is a series of interviews with top traders and contains so many pearls of wisdom that Craig really learned some valuable lessons. It presents a picture of what trading is really like as opposed to the spruikers out there who profess easy money. The interviews reiterate the need for discipline, persistence and determination, along with the old adage “cut your losses and let your winners run”.
Adaptive Analysis for Australian Stocks – Nick Radge
“I wish I had come across this book in earlier in my trading career as it the best Australian book on technical analysis I’ve read'” exclaimed Craig. In his typical easy reading style Nick focuses on what is important and visits concepts such as risk management, low risk setups, the Expectancy Curve and skewing the numbers in your favour. It is an excellent precursor to something like Van Tharp’s text. “I’ve read this from cover to cover several times and the first fifty one pages at least half a dozen times, probably more. I highly recommend the first 50 pages to all traders. Adaptive Analysis should be your Stock Trading Bible,” says Craig.
Master the Markets – Tom Williams
This is a book that Nick Radge (see above) recommends. “It is quite simply the most definitive guide to volume analysis that I have come across,” said Craig. Craig recommends a few reads to absorb all the information, including the concept of volume spread analysis or VSA, supply and demand, recognising market tops and bottoms, along with the importance of looking in the background as well as the present.
The Power of Now – Eckhart Tolle
“This book is nothing to do with trading but everything to do with trading. It won’t teach you about stock market trading systems, or about short term trading, long term investing, technical analysis or such things as pyramiding. What it will teach you is about yourself and your potential trading sabotages,” Craig stated. The book offers a practical guide to being in the here and now – a much underestimated prerequisite for trading and not widely discussed, but such a valuable tool. It will assist with your trader’s mindset. Craig Fisher found The Power Of Now to be a profound and life changing read.