One of the definitive guides for traders making their first steps
This month’s selection is one of the true trading books for beginners. As the name implies, this is a collection of the most vital elements any trader should know before entering. Although it doesn’t go into the details of the more difficult and nuanced aspects of trading, it does contain what are essential facts, that are often forgotten by some more experienced traders who start to shift or lose their focus with time.
The book has a good flow in terms of explanations and complexity of the issues discussed, starting off with “Trading Mechanics”, which covers the pre-planning process, the action and aftermath of a trade. This is a thorough introduction to the act of trading and provides more than the usual sources which only address instrument selection and the direction of the trade.
Risk and money management are also one of the more important chapters and the author has given them some thought, as they will give you vital directions in this constant process, that is often overlooked. The most important takeaway from the book on the subject is approaching your portfolio as an ongoing business, but at the same describing the separate trades as a individual business transactions that also need managing and changing around.
The most important several chapters in our opinion are those covering how to perform market analysis and using trading systems. This is what usually turns people away, as the concepts and connections can seem daunting, but here they come in easily understood packages, broken down to the essential without skipping on anything important.
The technical side of what the book includes as exercises, examples and highlighting the most important concepts also brings more focus on what can be considered intimidating by someone who is just getting acquainted with trading.
Overall the book can be considered an improved version on what can be found online, as it is more coherent and provides more answers to questions that arise along the way. It’s main weakness is the lack of a distinct section on the psychology behind trading success.
There are occasional mentions of how the mental approach is crucial, but nothing more. Regardless the book can be considered one of the best reads for someone starting on the challenging trading path and it provides what it says on the cover – the essentials of trading, no more, no less.
To win the book leave us a comment with suggestions on what you’d like to see in the blog, as well as the platform. The winner will be selected by the 30th of December and notified via email for the delivery.
Have a great Christmas and thanks for being with us in our first steps!