Trading in the financial market requires special training. Without the necessary skills and knowledge, it is impossible to build a career as a trader. If a beginner does not know at least basic concepts about trading in financial markets, then he will not only fail to succeed in trading, but will lose his money, which happens in 90% of cases.
Educational basic training is an important and crucial stage, which opens up opportunities for further profit on transactions. After a beginner receives initial training, he constantly improves his knowledge throughout his career, which leads to an overall improvement in trading efficiency and income. Those who want to learn the profession of a trader and hone their skills in the financial market can do this with the help of the best trading books recommended by professionals. Some of them will be discussed in this article.
What is trading?
Almost any modern person has heard about Forex trading or the financial market. Trading is speculative financial transactions, that is, a trader buys an asset at a lower price, and sells it at a higher price. As a result, a price difference is formed, which is the earnings or income of a specialist.
All trading operations are performed on specialized platforms or platforms. In fact, the trader does not buy or sell anything, he only assumes in which direction the market price will move in the future. And if his forecast comes true, then he will earn a profit. In case of incorrect analytics - will receive a loss on the transaction. Trading is especially difficult for beginner speculators who still do not know how to analyze market movements and often make mistakes.
Therefore, the primary task of each trader is to study the methods of forecasting quotes and their correct application. A beginner should not only understand the basis of trading techniques and the use of tools, but also assess the market situation, the goals of other players and know the psychology of trading.
Bidders in the financial market
Who are traders? In simple words, these are trained specialists who engage in speculative trading in financial markets with the help of assets and tools.
All bidders are divided into three groups:
- Market makers and major players (central banks, funds).
- Average participants (smaller funds and banks, as well as other organizations).
- Small players (small companies, banks and private traders).
All movements taking place in the financial markets are regulated by large participants. They determine the direction of quotes and move prices in the right direction. Therefore, for Forex trading, the stock market or binary options to generate income, you need to know the goals of large players and open transactions in the same direction in which they move the market.
For example, they open deals in large volumes to lower the price level. Gradually, other bidders connect to them, and market quotes begin to fall. As a result, they not only control the market, but also move prices in the direction they need. A similar situation occurs when large market participants want to increase the price of an asset.
Trader Training
Trading for beginners is the study of basic fundamentals and the development of trading skills. To master the profession of a trader, you need to immediately tune in to the duration of the training and be patient. No need to listen to false teachers who say that you can simply study some strategy, learn how to open deals and earn money in the market. With such superficial knowledge and a frivolous attitude to trading, the only result that can be achieved in trading is a loss of deposit.
To understand all the subtleties and nuances of the exchange, professionals advise beginners to study the best books on trading (Bill Williams, Alexander Elder, Dean Lundell). They need to be difficult to read, they should become a desktop tool for every novice trader.
Basic training - terminology, theory, fundamentals of trading - this is only the first, but very important, step on the path of mastery and development of the profession of an exchange speculator. In further development, it is books that will help to reveal the intricacies of trade and improve transaction results. It is impossible to become a good specialist without understanding all the movements that occur on the trading chart and not knowing, without even imagining, the goals of large players.
And also professionals recommend paying special attention to teaching money management, which plays one of the primary roles in trading in the financial market. Often, the future income for the entire transaction depends on the correctly calculated lot size or placed protective orders.
Types of Trading Training
Basic training for all beginners without exception. It can be conditionally divided into several forms for the provision of information:
- video lessons;
- webinars;
- workshops;
- Online conferences
- recommendations and articles;
- trading allowances;
- dictionaries;
- books.
Each of the species has its own advantages. For example, watching a video lesson, you can visually get the information that the author wants to convey to the viewer. Online conferences and webinars, as well as other forms, are convenient because in real time you can not only get the material you need, but also the quick answer of the leader of this seminar to a specific question.
Group video chat training is also very convenient, as you can become a member of the discussion. However, the most complete information can be obtained from books. Of course, they are not all the same, and some of them may be dummies and carry no value.
Therefore, professionals and experts advise to study only the best books on trading that have received worldwide recognition of traders around the world. With their help, newcomers have the opportunity to understand the laws of the financial market and quickly master trading. Such books have brought up more than one generation of successful traders.
The best authors of books for traders
Many beginners are looking for individual trading teachers for themselves. Unfortunately, they are not always found, and instead of a guru, people often encounter scammers who have only one goal - to cash in on a gullible person. So who can really teach trading? The answer is quite obvious, knowledge of financial markets must be obtained from its founders, experts and professional traders. It is from books that all the necessary information can be emphasized.
In addition, trading on the stock exchange is a serious and complex business. Such knowledge is not always easy for beginners, however, there are authors who write the material in a very accessible and simple way, especially for people who are far from this type of activity. These best trading books are undoubtedly interesting to read, which means that there is an opportunity to quickly get the necessary knowledge.
References from the best authors:
- "Chaos theory". Bill Williams A true masterpiece and classic.
- "Encyclopedia of the stock market game." Alexander Elder. The basis of trading.
- "The stock grail or the adventures of the trader Pinocchio." Alexander Gerchik and Tatyana Lukashevich. A cognitive book in a humorous style.
- "Trading is your path to financial freedom." Van Tharp beginners guide.
- Psychological book "The art of war for traders and investors." Dean Lundell. The book reveals the importance of tactics and strategies.
In addition, to strengthen the motivation for trading on the exchange, experts recommend that you familiarize yourself with the works of Donald Trump, who wrote the book “Thinking Big and Don't Stop,” which is based on psychology. And also for all beginners, the trading manual by Viktor Ilyin and Valery Titov “Exchange at your fingertips” will be useful.
This is only a small part of those books that are recommended for people studying the basics and patterns of the financial market.
Trading with Elder
Alexander Elder, the author of numerous works on exchange trading, is an internationally recognized specialist in the field of trading and psychology. He revealed to his followers the many subtleties of trade. The main value of his books is that Elder more deeply and fully illuminated the laws of the financial market from a psychological perspective and revealed a relationship between all participants.
One of the most famous books by Alexander Elder - "Fundamentals of Exchange Trading" - has been translated into 12 languages. She is rightfully considered the unsurpassed bestseller of her century and has been reprinted several times. The main idea of ​​this book is expressed very clearly, interestingly and easily for any level of training of a trader.
"Raiding with Dr. Elder. The Encyclopedia of the Stock Market Game" is also considered an equally popular work. It highlights all the fundamental knowledge about trading in financial markets and identifies patterns between them. In his books, Elder describes a lot of examples with calculations and graphs, gives useful recommendations. His works were recognized in the professional environment of the whole world and still remain relevant, useful and popular with traders.
Exchange trading with Van Tharp, Gerchik and Lukashevich
For every beginner, the moment of training is a very difficult step. Someone immediately understands that trading is not the kind of activity that he would like to engage in. But there are also people who are building their careers and are developing in this direction. The book by Van Tharp, “Trading is Your Way to Financial Freedom,” is a complete guide and a real find for every beginner who wants to learn such a profession.
It provides the necessary recommendations and instructions, and its main advantage is that it not only reveals the technical side of trading, but also allows you to improve and improve your skills in trading in financial markets. The book is intended for traders who are seriously inclined to master trading, regardless of the level of training, that is, it is ideal even for beginners.
In contrast to her, you can mention another book - "The stock exchange grail or the adventures of a trader Pinocchio." You can even understand from the name that the authors Alexander Gerchik and Tatyana Lukashevich provide information in it in a humorous, so to speak, playful form. However, from the light style it does not become less significant, just reading it is somewhat more interesting than the usual textbooks. In addition, the book has a lot of examples, which makes it even more accessible for understanding. Alexander and Tatyana in their work reveal the intricacies of modern stock trading.
Investing and Trading by Dean Lundell
The trading book "The Art of War for Traders and Investors" has its own unique background. It is based on the idea of ​​the rather famous author Sun Tzu, who wrote the book "The Art of War". The main idea of ​​the work is a guide to achieving victories over an opponent in various unforeseen and conflicting circumstances and situations.
Professionals consider this creation ideal recommendations. Sun Tzu believes that it is tactics and strategy that are the two main tools in any military operations. And therefore, their correct choice and further application will help to win even at the "initial point of growth of the conflict."
This reasoning and deep thought formed the basis of Dean Lundell's book "The Art of War for Traders and Investors." His book describes methods from the source converted to trade in the financial market. According to many trading professionals, their proper application allows you to increase the profitability of transactions not only to traders, but also to investors.
Donald Trump's thoughts on the stock exchange
This book may surprise so many people studying trading. Let’s give the name of his work - “Think Big and Don't Stop” - Donald Trump discouraged both his competitors and colleagues.
The main idea that he, together with Bill Zanker, invested in it, is that in trading, as in any other business, in some cases it is necessary to apply non-standard solutions. For example, Trump believes that if you make a person angry, you can achieve the greatest results from him, as the body mobilizes and strengthens the power of brain activity. Thus, a person will be able to make a decision that is more advantageous for himself, his activity, business or company.
In his book, the author always encourages the reader to be honest, to make independent decisions, not to allow other people to manipulate themselves, and under no circumstances to ever give up. He believes that this is how a person should think - “big-time” and “not be exchanged for trifles,” which are found everyday in personal life, at work and in business.
By and large, this book does not apply specifically to trading on the exchange, but it can be considered as a psychological factor for motivation and achieving goals.
Description of the book “Exchange at your fingertips”
Each trading book is always evaluated somewhat subjectively. All people are different and have their own opinions on this or that issue. However, the usefulness and interestingness of the book can be understood by a quantitative majority of experts. The book “Exchange at your fingertips”, which was written by Victor Ilyin and Valery Titov, is, according to experts, an invaluable trading manual.
She helps beginners understand:
- stock market patterns;
- its principles of work;
- trade mechanisms;
- interactions between market participants;
- general market structure.
Readers will learn from the book how the stock market works, what trading sessions exist on it, their features, when the exchange has the most volatility, liquidity, and the time range, reasons and its characteristics of a calm market state for which instruments.
In addition, the book provides information on the history of the stock exchange, its distinguishing points from other areas of trade, the subtleties and nuances of working moments. After studying and reading this book, a beginner will get a complete picture of the stock exchange, as well as useful and necessary recommendations for trading.
Conclusion
To succeed in trading, you need to not only learn its technical basics, but also constantly improve and improve your trading skills, as well as learn how to apply psychology in exchange trading.
Books for studying trading, which will not only enrich them with the necessary knowledge, but also help to increase motivation to achieve goals, can become the best assistants and teachers for beginners.