Trading

More than 642 titles of Books about Trading the Markets: Stocks, Futures, Forex: The list below has more than 642 titles of books about Trading the markets. Most are about trading systems while others delve into details about trading certain markets like futures, stocks or forex. There are so many books on trading its so easy to get very lost. When you see a list like this it brings it all into perspective. But how do you learn how to trade from books? Which books are the 'best' books to pick up trading basics? That's a good question.

When you trade, you trade objectively, taking in mind the market consensus from news, fundamental analysis or technical analysis: As a trader, you shouldn't be concerned about market downturns or booms. When you trade, you trade objectively, taking in mind the market consensus from news, fundamental analysis or technical analysis and simply trading that view. You have the choice of trading each style specifically or trading a combination of each technique, taking in the news as well as the fundamental information.

The BHP stock price has fallen considerably over the past week given the dramatic falls in commodity process this week. BHP closed the week much lower at $28.74 compared to last week's close of $31.72. Given the recent price movements BHP still remains my favourite stock to trade because of its liquidity and volatility.

In the previous post we had a look at the first step in how traders get from analysis to finally executing and committing your capital to the trade, be it forex, stocks or futures. The first step was to have yourself a test to determine if the trade is worthwhile for you. You may have your own methods (send me some ideas!), but I suggested one of my qualifiers as the momentum of the trend line of the particular equity you are looking at.

Unless you’re gambling away your capital at the markets, I expect you as a share trader to be doing some due diligence before each trade - analysing the stock or currency pair before making your mind up whether to enter the trade at all then if the price is trading up, down or sideways. It's all the same deal, the same process whether you trade the US stockmarket, the Australian sharemarket or the forex markets.

Your overall trading psychology consists of your holistic attitude - the way with which you approach & view trading the markets: Your psychology when trading is definitely an important part of successful trading. Your psychology consists of your attitude - the way with which you approach and view trading. Most of my recent trading rants are about psychology. To trade successfully, you must respect the markets for what they are and understand its relationship with you. (Read "The Market is Against Me)

It's important to have some sort of benchmark when you are trading forex or stocks - or any other commodity. Setting a benchmark is like comparing yourself against the average in an exam. If you are higher than the average - you're an above average student. Lower than that mean that you're lower then your peers. It helps motivate you perform your best in your trading as well as keep you focused at what your target should be to make your trading worthwhile.

Trading Stocks is Gambling After All... So Why is Gambling Bad? I want to return to the question of share trading being gambling. Is share trading gambling? Previously, I argued that share trading comes pretty close to the definition of gambling, but the fine line is that share trading often involves a business plan and a risk management scheme. Others may argue that professional gamblers have these two elements at play. They have a plan of attack - their game, and a risk management strategy. I was reading this article about Joe Hachem who won the World Series of Poker in Las Vegas last year. Here's what this professional poker player said: "To me, it's a business," Hachem said. "Over the long run, poker is close to 70-30 in terms of skill to luck. So, I'm not going back to see if I can get lucky." Which is interesting because that is a similar attitude that a professional trader would have towards trading the stock markets.