The freedom to work, the nomadic lifestyle, the level of income some day traders achieve is just mind blowing.
But let’s be clear, very few traders make it.
The reasons? Not the ones we think.
Finding a system to trade is not that difficult, but what is much more difficult, is getting the right mindset.
There are many books on day trading, and making a choice isn’t simple.
The books below focus on an active form of intervention in the markets.
What’s my book selection process?
In order to go straight to the very best day trading books, here’s the process I’ve followed:
- I have selected the books on Amazon that are relevant to Day Trading
- I eliminated those with reviews below 4 stars or low numbers of reviews (such as all the cheap of free e-books)
- That list of books has then been cross-referenced with other leading websites for the books they reference under Day Trading (forexfactory.com, warriortrading.com, investopedia.com, goodreads.com, businessinsider.com, cnbc.com)
- I finished by establishing the Top 10 shortlist and wrote the independent reviews below taking into account book content, site reviews and above all user reviews
So here are the Top 10 Day Trading Books for 2019.
Master the Market with Confidence, Discipline and Winning Attitude, by Mark Douglas
Mark Douglas goes after the mental reasons that prevent traders from getting consistent results.
He tackles the market’s myths, challenges them and teaches traders to face the reality of risk and overcome random outcomes.
Trading in The Zone is about the mindset needed by successful traders. Now, if you’re a beginner, you might be under the impression that what you need most is a strategy, indicators, trade plans. In fact, that’s only a small part of what you need to be successful.
All traders know it, your greatest enemy is within you, failure will usually come not from a failed system but from a weak mindset.
This is why this book might not be the first one you need to read, however at one point it will become essential, and that’s the reason it has been receiving so much praise for so long.
Stop thinking, start doing. Your WILL see a difference in your trading results.
Topics covered in the book: fundamental, technical or mental analysis, the lure and dangers of trading, taking responsibility, consistency: a state of mind, the dynamics of perception, the market’s perspective, the trader’s edge (thinking in probabilities), working with your beliefs, the nature of beliefs and their impact on trading, thinking like a trader.
An in-depth look into the field of professional scalping, by Bob Volman
Scalping is an intense form of Day trading consisting in making numerous short trades (sometimes only a few seconds), making the most of small movements in the market.
This book will cover all the intraday tactics that can help you become a successful scalper.The chart setups, the trade entries, and trade management tactics, along with the money management aspects.
There aren’t that many books covering the topic in detail, from the technical aspects to the psychological ones. The techniques taught in the book are mainly price action.
Bob Volman’s book is a must-have in everyday serious trader’s library.
Topics covered in the book: basics of scalping, trade entries, trade management, trade selection, account management.
Tools, Tactics, Money Management, Discipline and Trading Psychology by AndrewAziz
This book is a bestseller and one of the best Day Trading books around. It comes out consistently on top of most rankings when it comes to Trading books.
If your goal is to be a Day Trader, to have the freedom to work and live from anywhere in the world, with the flexibility and money that comes from successful training, then this book is a good place to start.
Andrew Aziz also runs a website called BearBullTraders.com where he has gathered a Community of traders around his methods and strategies.
Topics covered in the book: How day trading works, risk and account management, how to find stocks for trades, tools and platforms, introduction to candlesticks, most important day trading strategies, step-by-step to a successful trade, next steps for beginner traders, Andrew’s 11 rules of Day Trading.
A Winning System in Good Times and Bad, Fourth Edition by William J. O’Neil
No serious trader can ignore this book and the teachings from the legendary William O’Neil. It has sold over 2 million copies, and has popularized the author’s famous CANSLIM model.
It is a full investing system with a 7-step process tuned towards selecting the best stocks while optimizing your risk / reward ratio.It is a philosophy of screening, selecting, buying and selling common stocks. The letters refer to :
C=Current Earnings (stocks with recent quarterly growth in EPS)
A=Annual Earnings (annual EPS growing for the past 5 years)
N=New (the company should have undergone a recent change)
S=Supply and Demand (the universal laws governing markets)
L=Leader or Laggard (pick the leaders in their industry)
I=Institutional Sponsorship (are the big money managers in?)
M=Market Direction (are you in a bear or bull market?)
The book explains in great detail each of these elements, with concrete examples, charts, graphs and methodologies. There are numerous results showing the superior performance of the CANSLIM model.
If you want to know more about William O’Neil’s investing principles, he is the founder of the incomparable Investors Business Daily (IBD) website, the no.1 website to help traders make the best investment decisions. You can check that out too.
Updated Interviews with Top Traders by Jack D. Schwager
Jack Schwager had interviewed the best of the best, and the outcome is an extraordinary book that looks into some of the recipes behind the outstanding performances of these Top traders.
This bestselling classic is a must-read, delving into the minds of traders such as Michael Marcus, Bruce Kovner, Richard Dennis, Paul Tudor Jones, Ed Seykota, Marty Schwartz and many others.
Actually, there is more than one ”Market Wizards” books, Jack Schwager also wrote:
Each of these books have outstanding reviews on Amazon, click on the images if you want to take a look.
If you’re wondering how the market wizards are amassing hundreds of millions of dollars on the markets, here’s a unique chance to learn about their methodologies and unique mental attitudes. This is one of the most useful books on trading you will find.
Psychology, Discipline, Trading Tools and Systems, Risk Control, Trade Management by Alexander Elder
The first edition of this book, Trading For a Living, is one of the best-selling trading books of all time. In this updated version, Dr Elder teaches a complete approach to the markets for anyone wanting to develop a successful trading system.
The book includes trade plans, charts, graphs, templates for rating stock picks, and basically all the tools and techniques you need to develop a systematic approach to markets. It will also give you very actionable advice on risk management, trading psychology, and basically all the things we do that prevent us from being successful.
Many traders still refer to this book as their favorite.
Topics covered in the book: individual and mass psychology, classical chart analysis, computerized technical analysis, volume and time, general market indicators, trading systems, trading vehicles, risk management, practical details, good record-keeping.
Proven Techniques for Profiting from Intraday and Swing Trading Setups by John F. Carter
John F. Carter is a well-known contributor to leading publications such as SFO magazine, he’s been featured on ABC money and a regular speaker at Trader Expo. He has been a professional trader and trading advisor since 1998 and has launched the website Tradethemarket.com.
In Mastering the Trade, he covers the tools and techniques that every day trader needs in order to master what he calls the “5 key traits of professional traders”.
The book has three parts:
The first part is a trader bootcamp, explaining how markets work and what are the best ways to get mentally prepared for successful trading and investing.
The second part analyzes the best intraday and swing-trading setups for futures, stocks, options, and Forex.
Finally, the third part gets into the details of traders game plan, with premarket checklists, the traders’ business plan and the tips and tricks when it’s not working for you, no matter what you do.
101 Lessons for Becoming Your own Trading Psychologist by Brett N. Steenbarger.
This book is quite unique. It is organized in ten chapters containing 10 lessons each, destined to help traders improve every aspect of their approach, mindset and techniques.
It covers the change process you need to engage in if you want to become a confident trader and the ways you can cope with stress and distress. The book also details the steps toward self improvement and many techniques of self coaching (tolerating discomfort, challenging our defenses, …).
Most lessons are quite short, 3 to 5 pages long, making this an easy book to pick up and read on the fly.
As a constant improvement and self coaching tool, this book is a useful addition to any serious trader’s library.
by Van K. Tharp
This book has been called the holy grail of trading information.
It exposes Van K. Tharp’s unique 17 step trading model in a real trading masterpiece. It features interviews with traders, and breaks down what a trading system is and how you can develop your own by picking some examples within the book.
It is a kind of self-help psychology manual for traders and is necessary for anyone wishing to get serious with day trading.
Topics covered in the book: the Legend of the Holy Grail, judgemental biases, setting objectives, steps to developing a system, selecting a concept that works, trading strategies that fit the big picture, six keys to a great trading system, using setups to jumpstart your system, entry or market timing, knowing when to fold’em, how to take profits.
by Edwin Lefevre
Edwin Lefevre has written one the most iconic trading books ever. This is the story of Jesse Livermore, one of the greatest traders of all time and it is a must-read for every serious trader.
At one point, Jesse Livermore has amassed close to $100 million, close to $1.4 billion in equivalent dollars today. During his life, he won and lost several multi million dollar fortunes several times over.
Reminiscences is an amazingly entertaining book, and there isn’t a serious trader that wouldn’t mention it in his short list. Not only is it a first hand insight on technical trading and trading psychology, but it is also a brilliant story.
There is just so much to learn from this book, it is filled with wisdom and investment advice that continues to be so contemporary.
I’d love to know what are your favorite Day Trading Books, leave us a comment below and share your tips!