Rohit Musale, CFA
My Top 3 Book Recommendations for Traders
Here are my top three book recommendations for you, if you want to become a consistently profitable, professional trader.
1) Japanese Candlesticks Charting Techniques, written by Steve Nison
In this book, Steve talks about the advantages of using a candle chart over a bar chart, and also discusses the most frequently occurring candle patterns on the chart.
At the end of the book, he also combines Japanese Candlestick Charting Techniques with Western Technical Analysis, to find a confluence of factors on the chart, which would allow you to take high probability, profitable trades.
2) The New Trading for a Living, written by Dr. Alexander Elder
This is another fantastic book.
This is all about Western Technical Analysis.
The argument that Dr. Elder makes in this book is that, in professional trading, it is all about three things: mind, method and money.
He talks at length about the importance of trading psychology in professional trading.
He also discusses the basics of charting and introduces the reader to multiple indicators, and towards the end of the book, also discusses in detail, the concepts of reward to risk, money management, position sizing and risk management.
By the way, there are only bar charts in this book.
This is pure western technical analysis.
So, when you combine what you learn from this book with Steve Nison's book, you have a very formidable combination, which you can use in the markets for your trading.
3) Trading in the Zone, written by Mark Douglas
This book is an absolute gem.
This is only about trading psychology.
This is the best book ever written on trading psychology.
I also recommend that you watch a four part video series of Mark Douglas, in which he teaches us how to think like a professional trader.
It is available online.
Please watch those four videos.
So those were the three books that I wanted to recommend to you, if you are truly serious about becoming a consistently profitable professional trader.
Rohit Musale, CFA
6 February 2023