The 11 Best Books to Read for Day Trading
Day trading isn’t easy, and even those who have already ventured into the realm may need some guidance from time to time. To help guide you through the investing process, there are a number of day trading books that can help aid you with such things as:
Determining your risk management
Understanding the psychology behind day trading
Learning strategies that can help you improve your skills
Performing technical analysis
The key now is tracking down and finding the best books that can lead you on the path for successful day trading. Below are some of the best books for day traders of all skill levels.
Best Books on Day Trading for Beginners
If you are new to the world of day trading, it’s crucial to find a book that is geared toward beginners. Getting books for more experienced traders can lead to frustration and confusion.
Below are some of the top recommended books for those just starting out in day trading.
1. A Beginner’s Guide To Day Trading Online
Written by author Toni Turner, “A Beginner’s Guide to Day Trading Online” is the perfect starter book for armchair investors adding day trading to their skill-set. Toni Turner is both an educator and an experienced trader who not only provides the readers with up-to-date information on industry developments, but also provides clear and concise direction on how to begin the day trading process.
The book includes an overview for determining your level of risk and how to perform proper risk management. It also provides a detailed guide to setting up a trading plan. To help make sure that you are understanding the content of the book, the author has included quizzes and checklists so you can stay on tasks and determine areas you may not quite be getting. You will also be provided with a glossary of terminology, so you can learn to talk the talk as well as walk the walk. The author walks you through the differences between short term and long term trading, as well as the benefits and risks involved with each.
2. Start Day Trading Now: A Quick And Easy Introduction To Making Money While Managing Your Risk
Experienced trader Micheal Sincere has compiled his knowledge on the technical aspects of day trading, to help new investors better understand and navigate the process more efficiently. The author breaks it down in an easy-to-read format that includes charts, patterns, and indicators, so you can see a visual representation of the information you are absorbing. Also included in the book is a step by step guide through the practicalities of embarking on that first trade. First-hand knowledge and information is presented to you through the words of other experienced traders through interviews. Learn about their successes and failures so that you can better avoid the pitfalls that come with day trading.
3. Day Trading For Dummies
The name says it all. This is the go-to book by Ann C Logue on how to get started with little to no knowledge of the day trading process. Even though the author is not an experienced trader, she provides the reader with an education in day trading that is invaluable.
“Day Trading for Dummies” is a great starting place for those who are looking to get a broader knowledge of the process and how the system works. You will find information about every day trading topic that you can think of, and this can be the ideal book to read before others, so you can have a handle on the terminology.
Best Day Trading Books for Strategy
Once you have developed a little experience in day trading and have made a few good first trades, you may want to look into books that delve more deeply into day trading strategies. Below are strategy books that are the perfect accompaniment to your collection.
1. The Disciplined Trader: Developing Winning Attitudes
A winning attitude is a crucial first step when getting more seriously into the realm of day trading, but author Mark Douglas teaches you more than just how to get the attitude you need. This book not only focuses on risk management and appropriate trading strategies, but also delves into the psychology behind these strategies, and what makes them successes or failures. He also provides the reader with a number of tips on how to get in the day trading mindset that propels you from novice to experienced.
2. Mastering The Trade
If you are looking for a more detailed direction on strategy development and setting up trades, then John Carter’s “Mastering the Trade” is a must-read. He breaks down different strategies for use in a wide range of markets in a way that is easy to comprehend and follow no matter your level of investing experience. The book is also popular for those looking into how day trading psychology works, and it is extremely relatable by providing real-life examples to illustrate its points.
3. The Simple Strategy
Markus Heitkotter helps break trading strategy down in an easy-to-understand format. His book is widely touted as the top book for those looking for information on day trading in forex and options. Its praise is well earned, as you will be given detailed and clear instructions about the various entry and exit rules you should follow. He also advises his readers on small intraday trading and software programs that are essential to giving you the best chance of success. The light-hearted and reader-engaging format makes it easy to read as well as enjoyable.
4. Range Trading
If you are looking for a book that hones in on day trading strategy, then “Range Trading” by Micheal Young is the book to add to your collection. He delves deeply into more complex strategies such as scalping struggle, and discusses how it can be utilized to overcome high intraday fees and costs. He also focuses on range trading, which is an alternative strategy that can lead to more successful day trading. He breaks down these complex systems and puts them into easy-to-follow language that makes it more accessible for various levels of traders.
The Best Day Trading Books
For traders looking for more well-rounded books that delve into everything from strategies to risk management to planning, below are some of the most popular books on the whole day trading process.
1. High Probability Trading: Take the Steps to Become a Successful Trader
Marcel Link centers his work on the premise of making trades in situations where the odds are in your favor. You will be provided with a detailed guide on what to look for, what to trade, for how much, and exactly how to set up each trade. The author plays off of his years of extensive experience navigating the market through the use of a trial-and-error approach. He uses his successes and failures, delivered to the reader candidly, to help you avoid missteps that he made, and to achieve a successful day trading experience.
2. The Truth About Day Trading Stocks
If you are looking for a book that provides you with a get-rich scheme, then keep on browsing. In “The Truth About Day Trading Stocks,” author Josh DiPetrio offers an honest look at the benefits and dangers of day trading. He instructs you not only on all of the potential dangers that you may encounter, but also provides you with actionable advice on how to manage or mitigate them. He doesn’t sugarcoat the scenarios, and by the end of the book, you will enjoy his honesty and candid discussions.
3. Digital Day Trading
If you are looking for one of the top books involving day trading psychology, then “Digital Day Trading” by Howard Abell is a book you should have on your shelf. This book is good for both beginners and more experienced traders, as it is easy to follow and leaves out much of the fluff and fanfare that other books may include. No word is wasted, and at the conclusion, you will have a better understanding of the day trading process, market philosophy, and even day trading psychology. The book is packed with useful tips and advice in the form of interviews from successful and experienced day traders.
4. Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves
Author Kathy Lien takes a more technical focus to day trading, providing readers with insight in how to conduct an accurate and effective analysis of the market, and using that analysis to manage your trade decisions. The author is more than qualified as she is one of the most highly experienced and widely recognized analysts in the forex realm. You are likely to have seen her on either CNN or Bloomberg. She also provides you with her own trade ideas. This is definitely one of the top forex books.
Best Advanced Day Trading Books
If you’re looking for a book with more in-depth, advanced trading strategies, there are many you can turn to. Here are some that we believe are comprehensive and easy to understand.
1. The Stock Trader: How I Make a Living Trading Stocks by Tony Oz
This book is a must-read because of how easy it is to apply the strategies the author describes in the book. He gives a number of detailed strategies that cover entry and exit points, patterns to identify, and charts to use as well as other indicators.
2. Trading in the Zone by Mark Douglas
In this book, Douglas focuses on the psychology of trading, and the steps you need to take to think like a great trader. Trading requires mental toughness, and in this book, Douglas delves into the mindset of a trader, teaches you how to gain confidence, and shares how you can take responsibility for your failures.
Your emotions can get in the way of your ability to think objectively, causing you to lose money. This book helps you overcome those limitations to become a better, more confident trader.
3. The Art and Science of Technical Analysis by Adam Grimes
This book focuses on how you can develop an edge in the stock market through testing and analysis, while using price action as confirmation. The author goes into depth about trends in trading and ranges, and he provides detailed examples to show you how his strategies work. The last part covers the psychology of being a successful trader and the steps you should take to make sure you’re on the right path.
Whether you are starting out in day trading or looking to make your day trading more successful, having one or more of the books above in your arsenal can help give you a better start. Want to learn even more about the ins and outs of day trading? Sign up for our webinar or download our free e-book today.