The following list of books is a must-read. In this article, I will present you with the top day trading books and the best value investing books I have ever read. Regardless if you do day trading, swing trading or even longer-term trading; they are security independent, and apply to forex trading, stock trading, commodity trading, futures, or currency (including cryptocurrency) trading.

I will provide you with the top 5 books, and I will give them to you in the correct reading order, as the order is significant if you want to get started quickly and improve by acquiring the right knowledge at the right time.

In this article, I want to help you find the best readings that you could find if you are going to source books with trading strategies that work. Here is a list of my favorite technical analysis books which I advise to read in this exact order.

Warning

This is no financial advise, all the content and the ideas present in this page and all the other pages of the website do not guarantee financial success and may lead to a loss of your money. You should always do your own due diligence before trading or seek professional advise.
If you want to learn how to trade risk free, you want to learn paper trading first. Check this tutorial out, I will take you through all the necessary steps to set up your free account on TradingView and place your ‘monopoly money’ traders in the real market.

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The best trading book of all time

Japanese Candlestick Charting Techniques

Japanese Candlestick Charting TechniquesThere is a reason why I define Candlesticks Charting Techniques by Steve Nison as the absolute best trading book, but before I go through it in detail, I must admit that at the time I thought this was just a waste of money because I was caught up in the Elliott Wave principles. I saw it as the most modern and effective way to trade because I was reading things in the wrong order, and my mind looked at this as an obsolete way of trading. I was so wrong! This book stayed on my shelf for nearly a year, only partially read… What a mistake! The usage of Elliott Wave with scarce experience and knowledge led me to lose money and now that I have more experience, I really see the real value of this book and I do not merely consider it as a good stock market book (or any other security), but I believe this book is invaluable and a must-have for every single trader in the world. If you only have money for one book, you will undoubtedly want to buy Japanese Candlestick Charting Techniques by Steve Nison.

Why this Book rather than Other Candlestick Books?

Steve Nison is the one who brought Japanese Candlesticks techniques to the western world. He is the one who did all the translations from the original Japanese texts, and every resource that you can find online comes from Steve Nison’s material. I would really advise not to invest in anything else other than Steve Nison books (of which I have two listed in this article as I am very fond of Steve’s products and techniques).

Also, this book is straightforward to understand if you have no experience. It will get you started straight away and will immediately give you strategies that are very simple to understand, yet practical, and I am still amazed by how silly I have been by underestimating its importance when I first read it.

Content of the Book

The book begins with an excellent historical overview of the Japanese trading techniques, which is where I obtained the information from when I made this article. The book explains how candlesticks are constructed and provides an introduction to their picturesque names and the emotions behind them, a fascinating read. Once you have a grasp of these shapes, the book will introduce the various forms that can indicate a reversal of a market trend, providing names, forms, psychology, and emotions behind them and all the requirements for these shapes to be valid reversal patterns. This is extremely important, as I have seen many other sources of Japanese Candlesticks resources that have lost something in the translation from Steve Nison’s original content and therefore, are not very reliable. This is why I recommend only to read Steve Nison’s books when it comes to Japanese candlesticks trading unless you can learn the original Japanese scripts; in that case you have an advantage. The first section is so rich and detailed that it goes ahead for three entire chapters, and it is the most extended section of the book. In fact, once you are done with it, you will be halfway through the whole book. After discussing about reversal patterns, which are the ones that all parties, including day traders, swing traders, and investors of Forex, Stock, Futures, Commodities, and all sort of securities are after; the book proceeds to include the continuation patterns, which are as useful and powerful as the reversal patterns, but unlike the reversal ones, this lasts for one single chapter, and it is relatively simple to remember, unless you want to memorize all the names and shades of each pattern, which is interesting, but not essential from a practical point of view. The next chapter is dedicated entirely to the Doji, for which I have seen and heard many things. Many of which were wrong, and I finally found out how to correctly read this particular candle shape accurately. All these patterns are not merely described and discussed in theory, but the book is rich in examples of real scenarios which had occurred in the past and explains precisely when and why things happened, and most importantly, when things did not work as expected and why. Starting from Chapter 9, you will finally begin to see how to use all this stuff together by reading the charts and probably realising how in-depth these readings should be conducted. This goes for three chapters and provides the reader with the correct approach to technical analysis. Because Candlestick readings alone would not provide you with price targets, the book also implements western techniques combined with candlestick readings which is what makes this book invaluable. The most important to be read as it will get you started nearly straight away with no need for advanced knowledge. From Chapter 11, until the end of the book, you will be provided with all the tools that you will ever need to trade successfully, and this will save you money as you will not need further day trading strategies books, forex trading books, stock trading books, or technical analysis books. I believe that you get the idea; this is the first and only book you will ever need if you do not want to go further.

Cons of this Book

I do struggle to find disadvantages of reading this book as it applies to everyone from the intraday trader and swing trader who wants to trade every security. It does not matter if you are a forex trader, a stock trader, a futures trader, or everything else trader.

Obviously this, like all the books that talk about money and wealth, is not a cheap book and certainly not the most competitive about Japanese Candlestick trading, but it certainly is worth its price as it could not only make you gain money by trading in the market, but it will also make you save money. It is undoubtedly more affordable than a $300.00 training video and most importantly, it comes from the only reputable source on this topic, at least in the western world.

The only cons of this book are buying it and leaving it on the shelf as I did one year ago when I did not know what I was doing. :o)

Skimmer Box

Japanese Candlestick Charting Techniques

  • Steve Nison brought Japanese Candlesticks techniques to the western world.
  • An excellent historical overview of the Japanese candlesticks
  • Introduces various forms that can indicate a reversal of a market trend.
  • The book is rich in examples of real scenarios.
  • No cons, but it is certainly worth the price when it comes from such a reputable source.
  • Candlesticks Charting Techniques by Steve Nison

Best day trading and swing trading book

Mastering the trade

Mastering The TradeThe second book that you want to read is, in my opinion, amongst the best day trading books and best swing trading books as it is what this book is specialised about. I found it very important in changing my mindset towards trading and money in general. It was thanks to this book that one day, I closed all my losing positions all at once, and I started to make a profit afterwards, along with contributing to inspiring this article. John F. Carter, the author of the book, makes an excellent job (I would say that he scares you in the right way) in clarifying what kind of mindset you should have if you want to be a successful day trader or swing trader of stocks, forex, futures, commodities etc. A new version of this book is available:  

Content of the Book

The book begins with two chapters that go in-depth into the psychology behind trading, which is extremely important to understand, above all, from your psychology perspective as you will need to analyse yourself objectively and change if you notice any of the aspects that are covered in this chapter that are not correct.

This books really opens your eyes towards what you should and should not do, which is why I propose it as the second most influential book. Japanese Candlestick Charting Techniques does not cover these topics with the same emphasis as this book does, and this is another crucial aspect that separates winners from losers in this game.

The third chapter talks about the hardware and software setup for traders, but the juicy part comes from Chapter 4 as it begins to talk about the mechanics of futures and commodity markets and continues with stock options and how to trade them.

The last chapter of the first part is all about the stock market and how to predict its direction throughout the trading day, which makes this one of the best books for intraday trading and stock market technical analysis books.

The second part of the book begins with the best intraday and swing-trading setups for futures, stocks, options and forex and it talks about opening gaps, which we know are not common in forex.

It is still immensely useful to forex traders as well, because it also covers the best strategies for people who cannot trade full time, and we know that Forex, in this case, is the one that offers the best opportunities because it works 24/7.

Then the book develops in so many intricate parts, which are a little technical (that is why this is not the first book to be bought, in my opinion) and it is so broad that each trader, regardless what kind of security is trading, will benefit from.

It discusses pivot points; tick fades, also known as how to take money from newbies…

I know, this sounds a little mean, but after all that is the nature of trading as I say here (which is why you want to read books like this and make your ‘newbieness’ last the short possible amount of time). Exit strategies, entry strategies to get the best before big market moves, catching the waves, in other words, techniques for swing traders, and how not to be kicked off too early from a winning trade. It also covers the best strategies for those who are defined scalpers (in other words, speculators).

I could continue forever as the second section of this book covers so many aspects of trading that we cannot even imagine and has recommendations for every trader, of every security, in every timeframe.

The third part of the book is dedicated to the business side of trading as trading is business if done for a living, and I keep linking the same article as it is heavily inspired by this book as well.

The third part is not as long as the first and the second, but it is essential and if I were John F. Carter I would have created an entire book about it as this part is essential for you to succeed in trading!

In my opinion, not only this is the number one amongst the good stock market books, but it is necessary along with Steve Nison’s books.

Cons of this Book

I must admit that a new edition of this book was published meanwhile and I only have the previous version; therefore I do not know what updates were brought to the hardware and software part, but with the advent of tools like TradingView I did find that chapter a little outdated, but quite frankly, it is just one chapter of an immensely useful book. Probably someone a little less technology savvy than myself, would still find it beneficial to read it mostly because the author also goes through the computer to use (hence computer buying) for this purpose and maybe the new version also has something more up to date in that chapter. The core of this book is certainly not the software and hardware part, but everything else, so I do not see this being a big issue. You can skip that chapter if you do not feel the need to be instructed about hardware and software (I admit, I have skipped a big part of that chapter).

Yes, this is another book that I can only recommend buying and reading as I have not seen any of these concepts being explained anywhere else and this makes it one of the best day trading books of all time.

Skimmer Box

Mastering the trade

  • Very important in changing mindsets towards trading and money in general.
  • Covers Hardware and software setup for traders; mechanics of futures and commodity markets and continues with stock options and how to trade them; the stock market and how to predict its direction throughout the trading day.
  • It discusses pivot points; tick fades, also known as how to take money from newbies.
  • Con: a new edition of this book was published but with the advent of tools like TradingView that chapter was a little outdated.
  • Mastering the Trade by John F. Carter

The king of Technical analysis of Stocks Books (or forex, or Futures or Everything else)

Technical Analysis of the Financial Markets

Technical Analysis of the financial marketsI am sure that this book does not need introductions, as some classify it, as one of the best futures trading books. In reality, this book is about Technical Analysis in general and could be easily ranked as one of the best currency trading books, or one of the best stock technical analysis books, or again one of the best forex technical analysis books and why not one of the best books on commodity trading. In reality, it is all of them. In just one book!

John J. Murphy is the author of this book, and it indeed covers everything, everything about price action in the charts but without forgetting the major indicators and oscillators.

Content of the Book

After a brief introduction and comparison between technical and fundamental analysis, it goes straight to the exciting bits; such as the dow theory, chart construction, covering topics such as candlesticks, arithmetic and logarithmic scales, the development of bar charts (which you would already know thanks to the Japanese Candlestick Charting Techniques), volume and futures. Yes, this book really specialises on futures, but this really does not change for other types of securities.

Once these topics are covered (by the way, they do not go in great detail as you can find in the Candlestick Charting Techniques book from Steve Nison), it finally goes to where somebody defines us as “the people who draw triangles in charts”.

Yes, the mere and pure technical analysis stuff that you see me and many other YouTubers drawing before your eyes every day in our videos.

At this point, the book goes from the basics such as the trend to the most difficult things; covering topics that you would probably not even see technicians discussing, meaning, it is complete!

It goes through the significant reversal patterns and here is where you would see the benefits of having started with Steve Nison’s book as you will already know these concepts and will find that you are already making more profit than if you had used only the information available in this book (which is still essential as it will extend your western patterns knowledge, hence your trading arsenal).

It then goes through the continuation patterns and volume, all things that you will already know from Steve Nison’s book, but here they are explained in more detail, from a different perspective, and will make you have a couple of ‘aha’ moments when combined with the things that you already know from Steve Nison’s book.

This book also covers long-term charts and to a certain extent tries to define notions of time (or when things are likely to happen), making this book perfect for investors as well. Do not forget that if you want to be an investor, it is still essential to know when not to enter the market. After the charts, the book touches on Moving Averages, Oscillators and due to its age, even things that people do not use anymore in modern trading, but are still fascinating to know and who knows just because they are forgotten by many, could even give you an edge against other traders.

The book also covers Japanese Candlesticks, but it is just 10 pages out of over 500, so you should not expect much and would be able to skip them at this point if you have read these books in the order that I recommend.

The Elliott Wave Theory also is covered in this book, but in just a way that would make you want to learn more and forget about everything else. (Yes, this book is one of the reasons why I erroneously ignored Japanese Candlestick Charting Techniques pursuing the Sacred Graal of the Elliott Wave).

You will find later the Elliott Wave book that I recommend, and really, you can be successful traders even without knowing it, so do not fall in the same trap I fell into a few years ago.

The following chapters are about time cycles, software and money management tactics, and after that, you will see that it goes through the different aspects of stock and futures markets, more indicators and then again to money management and the right psychology that you should have to be a successful trader.

If you want to know how the indicators that you are using on TradingView work, probably this is the best book where you can find it.

If you want, you can also buy the companion to this book, which is called ‘Study Guide For Technical Analysis Of The Financial Markets‘ as this small book comes with tests that you can take, based on the information found in the main book.

I have bought both, and I have tried the challenge many times as technical analysis is very rich in things to remember and consider, and it is always good to sharpen your skills from time to time.

Cons of this Book

Despite being an incredibly useful book, rich in valuable information, I believe it feels the age of the content.

Also, I believe that this book wants to cover too much, but sometimes it just introduces some topics and could create the effect of wanting to know more about a particular thing (in my case it was the Elliott Wave) disregarding other vital things, always present in this book.

Regardless of this little detail, this 500 pages long book, is handy as it gives you all you need to know about technical analysis, and it is uncertainly amongst the best price action trading books that you can buy, even when it comes to forex books despite the fact that they are not in its content, but technical analysis is the same regardless of timeframes and types of security.

Skimmer Box

Technical Analysis of the Financial Markets

  • Has a brief introduction and comparison between technical and fundamental analysis, then goes into such topics as the dow theory, chart construction, candlesticks, arithmetic and logarithmic scales, the development of bar charts, volume and futures.
  • It goes through the significant reversal patterns, then on through the continuation patterns and volume. It also touches on Moving Averages, and Oscillators.
  • If you want to know how the indicators on TradingView work, this is the best book.
  • Con: age of content and tries to cover too much.
  • Technical Analysis of the Financial Markets by John J. Murphy.

The best book for share markets

Beyond Candlesticks

Beyond CandlesticksWhether you are looking for swing trading books or intraday trading books or something else, or you are looking for the best forex trading books, look no further. This is the second book by Steve Nison available in this top 5 list, and the reason why it is in 4th position is simply that I wanted to give you a variety of topics. This could easily be your second and last book if you really do not mind western techniques and are disciplined enough not to need to be guided through learning to let go of your losers and keeping your winners. Despite being the sequel of Japanese Candlestick Charting Techniques, this book does not require having read its predecessor. In this book, you will find further details on candlestick trading and not only this; it makes it very suitable for every security and timeframes, so even if it is not mentioned, this is once again, one of the top day trading and best forex books.

Content of the Book

Along with going through more or less the same introduction of its predecessor (after all, if this is a standalone book it is evident that some information is repeated), this book does not cover the essentials in as great detail as the previous book from Steve Nison.

It is also amazing to see how much more information can be taken from candlesticks.

The book is essentially providing more information about what you already know regarding candlesticks; for instance, you often hear me say that there are hidden resistance/support areas within a long candle. This is an example of what you will find in this book.

Steve shows other ways to draw candles, which is more interesting than practical.

In the book, it also explains the relationship between price levels and candle bodies; spinning tops are described in great detail in this book and all their implications.

The book goes through accumulation and distribution read in the candles, and after the bodies, we can read a great deal about shadows.

Obviously, the book goes through the patterns as we can see in the first book, but with some details that we always need to know to improve our knowledge, bringing new examples of real scenarios, and explaining why and what is right or wrong.

The first book explained how to use candlesticks with western technical analysis tools, but in this book, you would see more Japanese influence, and you will see terms like ‘becoming a market chameleon’ which is very intriguing and will explain exactly what you would understand by the title. It explains the risk and reward concept, and all those psychological aspects that were not brought in the first book.

In other words, you should consider this as a master in candlesticks, and I must admit, I loved this book as much as the first one.

Probably these two books from Steve Nison alone would suffice in making you a great trader, but I want you to get the best of both western and eastern worlds; hence this book takes only fourth place.

Cons of this Book

As for the first book, it is hard to find cons; however, some redundancy between the two books occurs, but quite frankly, you should expect it. After all, I do not find it negative as going through the same concepts may refresh your memory as you cannot possibly remember all these books 100%.

Skimmer Box

Beyond Candlesticks

  • This could easily be your second and last book if you do not mind western techniques and are disciplined.
  • Details on candlestick trading and it makes it very suitable for every security and timeframes.
  • Other ways to draw candles.
  • Consider this as a master in candlesticks.
  • Cons: Some redundancy
  • Beyond Candlesticks by Steve Nison.

The Best Book About Elliott Wave

Elliott Wave Principle

The Elliott Wave PrincipleThis book by Frost and Prechter is the absolute best book about trading using the Elliott Wave principles!

Elliott Wave seems a straightforward thing; three impulse waves, two corrective waves… and it is precisely what this book goes through… in just 250 pages of small text!!

Now, I do not want you to be put off by the size of the text, it is more than readable, but thanks to the size of the text it looks like a small manual, which in reality, hides tons of concepts and things that in order to be grasped, you need to iterate several times.

The complexity of the Elliott Wave is disarming!

Content of the Book

The book is divided into two sections; the first part is the theory of the Elliott Wave and the second is the practice. The first chapter talks about the tenets, the motive, the corrective waves, and all their variations; such as impulse, extension, truncation, diagonals, zigzags flat and triangles (and their combinations). The second chapter focuses on the randomness of these waves, such as the alternation law, channelling, the ‘right look’, and the wave personalities. Now you start to understand why you do not want to begin your trading career with such a complicated thing for a beginner. Because the Elliott Wave is heavily based on the Fibonacci sequence, Chapter 3 is all about that. In the second part of the book, we begin with applying the calculations of the beginning and the end of these waves based on the Fibonacci sequence and concepts such as retracements, motive waves, and corrective waves. The book also covers the Fibonacci Time Sequences and Benner’s Theory. After this chapter, we move to Chapter 5, where things get exciting and talk about long term waves, supercycles, grand supercycles, millennium wave, dark ages. It looks like an esoteric bunch of things, but it is incredibly exciting as it blends the universe shapes and elements with the market cycles, and even if we are rational individuals, we cannot deny that certain things in nature perfectly match what Fibonacci found with his ratio. As much as this appeal is inexplicable, it exists, and according to the Elliott Wave, it is correctly applied to the markets as much as to the universe where we exist. The book also covers stocks, commodities approaches to the stock market, and their relationship with the wave principle. It also mentions some Dow Theory (which you should already know by now after reading the third book on the list). This book certainly is immensely valuable, but you need to read it when you are ready, and it certainly is not a book you want to begin with.

Cons of this Book

Well, except for the fact that this book is not for beginners, I am unable to find any cons at all.

It is overly complicated and requires lots of experience. You may also decide to never know the Elliott Wave and save money, but I would read this book as well if I were you.

Skimmer Box

Elliott Wave Principle

  • Elliott Wave is a straightforward thing; three impulse waves, two corrective waves.
  • Talks about tenets, the motive, the corrective waves, and all their variations.
  • Discusses the randomness of these waves, such as the alternation law, channelling, the ‘right look’, and the wave personalities.
  • Applying calculations of the beginning and the end of these waves based on the Fibonacci sequence and concepts such as retracements, motive waves, and corrective waves.
  • Cons: None except for being not for beginners.
  • Elliott Wave Principle by Frost and Prechter

Conclusion

With this, I conclude the list of the top 5 trading books, whether you do swing trading, day trading, Stock trading, forex trading, cryptocurrency trading, or anything else.

These books are all about emotions, and these emotions never change across securities.

The important thing is to buy these books in the order that I present to you as otherwise you may struggle and slow down your progress as an analyst.

I am giving you a lifetime worth of books to read and reiterate periodically.

I have developed a free candlestick scanner for you to use on TradingView, along with the instructions to set it up and to set up TradingView for paper trading, which is an entirely risk-free way to trade (with “Monopoly” money). You place orders with a fake portfolio in the real exchange. Your wins and losses are real as they are placed in the real world, but you do not really make or (more importantly) lose money.

You can join me in the Promising Traders tribe and meet likeminded people who want to reach their goals through trading.

I will occasionally talk about money and business and not only trading, and I will do my best to provide you with the best strategies that I know with the intent to help you in becoming a market demon!

Alex Promising Trader

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