How’s it going champ?
It’s Santa here of course, otherwise known as Saint Nick ey…
Alright, so I am not really Santa but at least now for sure nobody can call me Scrooge any
more.
If you are anything like me, then when it comes to Christmas time then people say “Hey,
what do you want for Christmas?”
then you really struggle with what to tell them.
So I am going to help you out with some ideas of what you can put on your Christmas list
to Santa.
So we are going to talk through five books and I know it seems these days as though no
one really reads anymore but if you have got some time off over Christmas, I really recommend
you sitting down and at least reading some of these books to really help progress your
trading in the right way.
Now a quick disclaimer before we get started, I’m not saying that these are the best five
books for learning to trade, I’m not even saying these are my favourite books about
trading.
All I am saying is that this is a selection of five books covering a range of topics that
if you take the time to read even a few of them you will really see an enhancement in
your progress to becoming a consistent trader.
So based on that disclaimer, don’t go reading those books and then coming back to me like
“What the **** Saint Nick, I read all of those books and I’m not a millionaire trader
yet, what’s up with that?”
Because guess what?
I won’t be listening, just kidding I always listen.
Now let’s get started with the first book.
I always say that if you want to get really good at something the idea is not to copy
someone’s strategy but to try and model their approach.
That way you can understand why and how certain things are done.
And this book is perfect for that purpose as are the other books in the Wizard series
by Jack Schwager.
It’s not often that you get to delve into the minds of some of the most successful traders
around.
The book is a bit dated now, and it has a heavy focus on stock trading, but you’ll
still be able to see overall some common themes between the traders and this will really help
you to decide where you are going to focus your attention with your own trading.
And here is a quick hint for you: The common themes amongst all of these successful traders
have nothing to do with strategy.
It is always to do with risk and money management as well as approaching your trading with the
right mindset for success.
So go and check it out, now onto the next book.
When it comes to trading psychology this is the book to read.
Almost every successful trader around today is probably going to recommend this book to
you.
It’s often said that trading success comes down to 80% psychology and we really believe
that as well which is why you may have noticed that there is a heavy focus on psychology
with a lot of the videos that we release on this channel.
So what better way to achieve success on your trading than to focus on your psychology and
mindset and really understand how you can achieve the very best in that department.
Now this book isn’t going to be life changing in that it is going to give you some sort
of formula for success or anything like that, you should know by now that’s not how things
work.
Instead it is going to help you start coaching your mindset so that you can be more emotionally
neutral in the markets and start approaching the markets and your trades with the correct
perception of what they stand for.
This is going to help you identify the right opportunities and to trade them in the right
way rather than constantly panicking about your account balance.
Although we don’t really focus on individual price action techniques and candlestick patterns
and that kind of thing.
It does help to have some sort of broad background knowledge of them.
This is going to help you add context to the markets.
It is not necessarily going to be that you start trading these as opportunities but by
giving context in the markets you can start to use that information to help filter situations
where you can potentially find some good opportunities and situations which you should avoid like
the plague.
And when it comes to price action Al Brooks is the man.
Now I don’t think that the techniques taught in the book, the approach that he uses will
be useful in isolation for everyone so don’t you start reading this book thinking that
you can trade profitably using those techniques- it is not for everyone.
But I think it is an amazing addition to have in a trader’s arsenal and will help you
to be a more versatile trader.
Now, although Mr Brooks is amazing at price action he doesn’t seem to be so amazing
at writing books in a coherent and easy to understand way unfortunately, which means
that you will have to read this book a few times before it sinks in because it is a bit
of a tricky read and sometimes it is difficult to understand what he’s really referring
to.
So you may need to read it two or three times before it really gets into your mind.
And he’s released books more recently about the same topic but broken down into different
types of trading and personally I don’t think you need to read all of these books
because the concepts and approaches he teaches are going to be the same throughout all of
them, so you only need to pick up one of those books and read it to really understand that
approach that he is using with price action.
Now this one for most people is going to be a tricky one to read because it is written
more like a scientific or statistics or mathematical type of book which means that you really need
to concentrate when you are reading it to get the best out of it.
Now you may have heard me talk about him before but Benoit Mandelbrot is one of the greatest
mathematical minds that we have had and his work with the markets has been really fascinating
and eye opening this is one of the books that really changed my thinking with my trading
and really influenced the approach that we had a few years ago when we were developing
out automated trading system.
So if we think that Al Brooks book was getting into the really fine detail in the charts,
this book is going to do the opposite.
It’s going to drag you out of the charts, out of the nitty-gritty detail and look at
the bigger picture to really see the markets for what they are.
Some really important points that you will learn from this book are that charts are scale
invariant due to the fractal nature of the markets and that the markets often have surprising
twists and turns unexpectedly, and we need to factor that into our risk models.
If you are a complete beginner then this book probably is not for you yet, this book is
more for you if you have started to grasp trading and you want to take your understanding
to that next level now.
This book is surprisingly become one of my favourite books and has really motivated me
to become better at trading.
I think it is the way that they explain how Justin came from being a small town boy to
having big dreams when he got discovered by Usher but I find… just kidding it looks
like a load of ****. Mervyn King was a really respected economist
and he served as the chairman of the Bank of England during one of the most difficult
times in recent history- the financial crisis in 2007-2008.
Next year on this channel we want to really to encourage you to engage more with fundamental
analysis to understand what is going on in the financial world and how that is going
to impact the prices in the market to really broaden your knowledge as a trader.
And in order to do that you really need to understand how Central Banks work, what they
do, why they do it and how this affects prices and this book is a really good starting point
for that.
This was one of the best books that I’ve read this year and I recommend it to everyone
all the time.
Not only does it explain what Central Banks are, what they do and the history of central
banking, just in case you didn’t know that already but it also goes onto explain how
and why disasters in the financial markets happened, what the Central Banks did right
or wrong and potential solutions for the central banking system in the future.
So it is a really great read for anyone, trust me on this- Central Banks have been a key
theme in the markets for many years and they will be for many years to come as well, and
we may actually be on the verge of more disasters, so get studying now.
So there you have it guys there’s five books for you to get started on this Christmas.
I do hope that Santa is good to you and he brings you one or two of them.
You may have seen me recommend these books before in previous videos because I really
do rate them highly, however over the years I have probably read dozens and dozens of
books about trading and there are some really fantastic ones that I didn’t really want
to exclude from this list.
I had to just pick five of them, and those were the five one that I picked.
So what I would suggest is this: You get started on those five books now and I will give you
another reading list in a few months’ time.
That way we can cover all of the amazing books that I have read and I can tell you to avoid
some of the bad ones and all of the books are going to compliment the stuff that you’re
learning at the Duomo Initiative and especially those of you that are learning The Duomo Method
on our full online course.
Now, I’d better go because I’ve got presents to wrap and I’ve got Elves to give a kick
up the arse to, because I run a tight ship around here.
Thank you very much for watching remember to hit that like button to spread some festive
cheer.
If you want more videos about learning to trade and hopefully not me in a Santa’s
hat next time.
Make sure that you subscribe to the channel, I really appreciate you watching, take care
and Ho!
Ho!
Have a Happy Christmas.
Bye, Bye.