![\"Trading](\"https:\/\/www.icmarkets.com\/blog\/wp-content\/uploads\/2019\/03\/PIC-1-BOOKS.jpg\")
The importance of trading psychology is unfortunately often overlooked. Many traders erroneously believe developing solid trading strategies is all that\u2019s required to profit. While a well-rounded methodology is necessary, learning to control the psychological impact is equally as important.<\/p>\n
Why is psychology such an important aspect in trading? If you\u2019re incapable of regulating your mind\/thoughts whilst operating in the market, regardless of the trading strategy\u2019s success rate, the odds of becoming successful over the long term is exceedingly low.<\/p>\n
Among the most respected in this field is Mark Douglas, notable for his work in Trading in the Zone<\/em>. Sadly, Douglas passed away in 2015, though his work continues to inspire traders around the world.<\/p>\n The book is relevant to anyone embarking upon, or intent on maintaining, a successful career in the role of a trader. The author describes various flaws in thinking which can work against a trader, causing him\/her to act in a manner at odds with the overall objective: consistent profitability.<\/p>\n Key quotes:<\/p>\n Widely regarded as a classic in trading literature, this really is a must-read.<\/p>\n This book is an ideal read for folks just beginning their forex trading journey but do not know where to start. Brown lays focus on a number of key concepts, including, but not limited to, an explanation of what forex is and its advantages, order types, trading psychology, technical and fundamental analysis and risk\/reward ratio types. As an added Bonus, Brown also offers one of his trading systems at the end of the book.<\/p>\n Japanese candlesticks continue to offer an effective way of forecasting short and long-term market direction, and remain an integral element of technical analysis. Used extensively throughout the trading community, each candle delivers a valuable story. Candlestick patterns are ultimately a by-product of human action. Having the ability to interpret these actions on a chart by means of candlestick patterns offers an invaluable trading edge.<\/p>\n Many consider Japanese Candlestick Charting Techniques <\/em>to be the bible of understanding and using candle charts. In addition to this book, Nison\u2019s work has been highlighted in the Wall Street Journal<\/em>, Barron’s<\/em>, Institutional Investor <\/em>and many other publications around the world, as well as appearing numerous times on CNBC. He is also a highly sought-after speaker who has presented his techniques to thousands, including members of the World Bank and the Federal Reserve.<\/p>\n Japanese Candlestick Charting Techniques <\/em>provides an in-depth education on Japanese candlestick charts in a comprehensive, well-written and understandable format. The book also discusses how candlestick charts are used in conjunction with other technical tools to aid in improving technical market analysis. As a result, Nison\u2019s book is perfect for traders seeking a better understanding of candlestick psychology and structure.<\/p>\n Over 500 pages in length, it\u2019s well written and easy to absorb. Murphy\u2019s basic concepts are timeless and offer a suitable follow-on read from FOREX TRADING: The Basics Explained in Simple Terms\u2019 by Jim Brown.<\/em><\/p>\n \u2018Major Reversal Patterns\u2019 and \u2018Continuation Patterns\u2019 <\/em>are a key component of the book. He also covers technical indicators, including the Relative Strength Index, or \u2018RSI\u2019 and the Moving Average Convergence Divergence, or \u2018MACD\u2019.<\/p>\n In addition to the above, another focal point of the book falls under \u2018Money Management and Trading Tactics<\/em>\u2019 and inter-market analysis. Although not a large section of the book, a number of key aspects related to money management are presented here, offering a solid foundation for further reading on the subject. Inter-market analysis is often a confusing subject for many traders. This book provides a good introduction to the way the markets intertwine with one another.<\/p>\n Despite the title, the book is not a guide on how to grow a $500 trading account into $500,000. It is precisely these exaggerated returns that cause traders to overleverage accounts and ultimately throw in the towel.<\/p>\n In under 100 pages, the author, who has more than 15 years of experience in day trading futures and foreign exchange, shows how you can become a full-time trader in spite of limited start-up capital.<\/p>\n Despite the author\u2019s pen name, the book does not teach trading methods using Heiken Ashi candles. Instead, the author offers a down-to-earth explanation of the discipline and patience required to be successful in the markets. The main message many traders receive from this book is the need to learn to trade before concerning yourself with making money. Most beginners will have exaggerated ideas on how returns can be achieved in the market. The book helps traders take a step back, ultimately avoiding the pitfalls so many fall victim to.<\/p>\n Although not an exhaustive list, the five books presented here are worthy reads for any aspiring forex trader.<\/p>\n Other worthwhile trading books worth considering are:<\/p>\n \u00a0<\/em><\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" With an endless stream of books available to choose from, it\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":38001,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[220],"tags":[282,242,248,234,243,264],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/33455"}],"collection":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/comments?post=33455"}],"version-history":[{"count":17,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/33455\/revisions"}],"predecessor-version":[{"id":33508,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/33455\/revisions\/33508"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/media\/38001"}],"wp:attachment":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/media?parent=33455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/categories?post=33455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/tags?post=33455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
\u2018FOREX TRADING: The Basics Explained in Simple Terms\u2019 by Jim Brown (2015)<\/strong><\/h2>\n
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Despite being only 72 pages in length, Jim Brown covers crucial concepts in a direct and easy-to-understand manner. Brown\u2019s knowledge of currency trading extends over a 14 year period and has evolved from old-fashioned manual charting when he first started in 2002, to trading on multiple screens and entering the arena of automated trading. During this time, he has developed and shared many trading systems for free, and assisted many new traders through various blogs and forum participation.<\/p>\n\u2018Japanese Candlestick Charting Techniques\u2019 by Steve Nison (2001)<\/strong><\/h2>\n
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In December 1989, Steve Nison \u2013 author of Japanese Candlestick Charting Techniques <\/em>and known worldwide as the father of modern candlestick charting \u2013 wrote an introductory article on Japanese candlesticks. It turned out he was one of the few Americans familiar with this centuries-old Japanese technique. Since then, Japanese candlestick patterns have become a staple in many trading plans throughout the western world.<\/p>\n\u2018Technical Analysis of the Financial Markets\u2019 by John J. Murphy (1999)<\/strong><\/h2>\n
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John J. Murphy is a former technical analyst for CNBC and has over forty years of market experience. His book: Technical Analysis of the Financial Markets <\/em>is considered a classic among market technicians.<\/p>\n\u2018How to Start a Trading Business with $500\u2019 by Heikin Ashi Trader (2015)<\/strong><\/h2>\n
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As many forex traders begin with reasonably small trading accounts, this is a must-have piece.<\/p>\nFinal thoughts<\/strong><\/h2>\n
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