Trading 101

Trading can be easy if you let it be. It can also be difficult if you let it become difficult.

The problem is you never know when is high enough enough, or when is low enough enough. You cannot catch the very bottom or the very top. So as always in probabilistic problems like these (e.g. dating), focus on improving the process, not getting better results.

As usual I’m going to only recommend a few books, that will give you 80% of what you need to know. These are not books that recommend a particular method, because if it’s not your method, you will not trust it enough to stick with it when things go wrong. You’ll have to develop your own method and style after reading these books.

How I Made $2,000,000 in the Stock Market – Nicolas Darvas

Nicolas Darvas was a dancer. This is a tour through all the ways you will think when you start to trade, as well as how he came up with his own system (you might have to come up with your own system).

The advice is old, but evergreen relevant.

Trade Your Way to Financial Freedom – Van Tharp

The encyclopedia on how to design your own trading system, including timeframes, how to think of risk-to-reward ratio etc.

The only thing left is to stick to your system.

Your Personality and Successful Trading – Windsor Advisory

A strong reminder that your trading system should always adapt to your lifestyle and personality.

Also, join a trading community.