Last Updated on December 6, 2019
“Information is power. Particularly when the competition ignores the opportunity to do the same.” Serial entrepreneur Mark Cuban swears by these words, and the impact shows in his envious business success.
Likewise, even if you have day traded for the past five years straight, or perhaps even took a stock trading course there is always a new trick to learn. Or you can improve the go-to trading styles that have optimized intraday trading risk and made you consistent returns over the years.
Reinforcing your day trading stance is specifically critical when you’re just starting to wet your beak in the world of day trading. Beginner day traders, pay attention: You stand to benefit the most from day trading books. So, where can you find these books? It depends on what you need.
Start by talking to friends, your day trading clique, and see if they know of any excellent day trading books that they can recommend. You can pick up several day trading publications from your local library, or search for free and paid electronic versions online on Google Books. Alternatively, look up a New York bestseller on Goodreads, Barnes & Noble, or order a paperback off Amazon.
Before setting out to buy a comprehensive day trading guide, ask yourself: “what about day trading do I need to learn the most?” It’ll help to have learning objectives and subsequently find the relevant day trading book.
Maybe you need a better grasp of technical analysis, a clear view on trading exotic options, or something akin to a risk management manual. Whichever the case, use the right book for the intended learning purpose. Here is a list of day trading books guaranteed to turn your fortunes around:
1. Beginner’s Guide to Day Trading Online by Toni Turner
The majority of day traders start as newbies and work their way to intermediate traders before finally accelerating to expert level. That revered day trader who is always on the business news segment of the one o’clock bulletin once was inexperienced. If that, alongside this book by Turner, doesn’t inspire you, nothing will.
The book details the humble beginnings of Wall Street, and to an extent, a brief history of day trading. After ushering in the readers, Toni leverages her education background and firsthand trading experience to highlight day trading entry-level best practices.
Issues covered include how to design a trading plan, perform risk management to gauge the level of risk you can take, and the right mindset to set you up for profits. The content has quizzes and checklists to help you follow through.
2. The Disciplined Trader: Developing Winning Attitudes by Mark Douglas
As with everything else in life, discipline in day trading is crucial. You need to develop psychological thinking that’ll enable you to stick to your trading plan and stay the course. And that’s exactly what Douglas aims to help you achieve.
The book addresses several day trader pain points, such as how to avoid emotional decision-making and simple risk management tricks to maintain and grow investment capital. Use this book to unleash the power of critical thinking so that you’re not a day trader who is captive to their limiting thoughts.
3. The Truth About Day Trading Stocks by Josh DiPietro
The two securities featured most in day trading activities are stocks and foreign exchange (forex). Most day trading ‘experts’ more likely than not paint a heavenly picture about day trading in the stock markets. Josh does the opposite and details the brutal truth.
But there is also a counterbalance angle in which the reader is given practical remedies to all day trading risk factors brought to light. It’s a problem-and-solution type of publication, which is a good thing. Otherwise, why would a doctor diagnose you and not give you the treatment and medication you deserve?
4. Charting and Technical Analysis by Fred McAllen
Technical analysts study the past trading activity (price changes and volume traded) of securities and plot it in charts such as line graphs and candlesticks. “Charting and Technical Analysis” delves into the intricacies of price pivots and volumes and suggests what action to take.
Candlesticks and moving averages can be a bit tricky to decode, especially for newcomers trying to find their feet in day trading. Even advanced day traders may need to give this book a second or third read before putting their arms around the different charting patterns and signals concepts.
5. The Simple Strategy: A Powerful Day Trading Strategy for Trading Futures, Stocks, ETFs and Forex by Markus Heitkoetter
The book makes two assumptions:
- That you’re a quick learner
- That you have hands-on experience in charting and outline strategies
The book is definitely not suitable for non-seasoned day traders. Note that there’re day trading strategies that can’t blend into a hybrid approach, and this book identifies one such instance.
The simple strategy can’t merge with automated trading. That’s because the trading plan discussed gives you clear entry and exit signals, but it’s up to you to take up those security positions or decline.
Other benefits you can derive from reading this book center around recommended charting software and how to profit from even the slightest of intraday market trends. The book pretty much covers an array of financial assets. It’s an appropriate guide for day traders who want to mix it up as opposed to trading in one type of security.
The above day trading books are a fraction of what you can get your hands on depending on the level you’re in and the type of information you need. For online and electronic formats of a day trading book, paid versions tend to be the best. A premium version or premium account at an e-library portal grants you access to more day trading information compared to a teaser version.
If you are the sceptical type, you can pick up two books that tackle the same topic and compare the concepts and the author’s day trading recommendations. Slight ideology differences may occur, but your findings should correlate. Still, you can take those trading concepts and strategies and try them out in a demo online trading account. If you like what you see, ditch the demo account for a live one and have a blast!