When it comes to trading, especially futures scalping, the right books can fundamentally shape your approach and enhance your edge in the markets. Here’s a curated list of trading books that have significantly impacted my own trading journey, providing unique insights beyond mainstream indicators and strategies.
📚 Essential Reads:
1. Japanese Candlestick Charting by Steve Nison
- Japanese Candlestick Charting Techniques: A Contemporary Guide to the Ancient Investment Techniques of the Far East
- The Candlestick Course
- Beyond Candlesticks: New Japanese Charting Techniques Revealed
- Strategies for Profiting with Japanese Candlestick Charts (Wiley Trading Book 132)
Why these matter:
Steve Nison’s books were my introduction to trading. While I don’t exclusively trade candlestick patterns, understanding them has become foundational. Every chart uses candlesticks nowadays, and if you don’t grasp their language, you’re trading blind. Combined with market structure, candlesticks heavily influence my trade/no-trade decisions and setups I’ve coded.
2. Market Timing and Technical Innovation by Thomas Demark
- New Market Timing Techniques: Innovative Studies in Market Rhythm & Price Exhaustion (Wiley Trading Book 63)
- The New Science of Technical Analysis (Wiley Finance Book 45)
- DeMark Indicators by Jason Perl (Bloomberg Financial Book 40)
Why these matter:
Demark’s methodologies challenged my understanding of technical analysis, pushing me beyond typical indicators like RSI, MACD, and moving averages. His unique concepts and setups, some of which I’ve adapted with custom filters for NQ 1-minute charts, have helped me approach scalping from a fresh perspective.
3. Advanced Analytics by John Ehlers and Perry Kaufman
- Cybernetic Analysis for Stocks and Futures: Cutting-Edge DSP Technology to Improve Your Trading (Ehlers)
- MESA and Trading Market Cycles: Forecasting and Trading Strategies from the Creator of MESA (Ehlers)
- Cycle Analytics for Traders (Ehlers)
- Trading Systems and Methods (Wiley Trading) (Kaufman)
Why these matter:
Ehlers and Kaufman further expanded my analytical toolkit. Their sophisticated and unconventional approaches helped me transcend traditional analysis frameworks, enhancing my ability to identify and create unique scalping / indicator concepts and ideas. Reading their work was important in reshaping how I interpret market dynamics and technical signals.
⚠️ Overrated Books (In My Opinion)
- Reminiscences of a Stock Operator by Edwin Lefèvre
A fun narrative, but the actionable trading insights boil down to basic order flow concepts that you need to learn from somewhere else (there is nothing of practical, execution value in the book). I went down the rabbit hole of learning order flow trading years ago and spent an incredible amount of time dedicated to the art form, but was never consistently successful. - Technical Analysis of the Financial Markets
This book primarily covers fundamental and mainstream indicators (RSI, MACD, MA) that nearly every trader uses. As a scalper looking for unique edges, I found the insights here too generic.
🗒️ Other Often-Recommended Books (but also mainstream):
- Trading in the Zone by Mark Douglas
- Market Wizards by Jack D. Schwager
- How to Make Money in Stocks by William J. O’Neil
These books frequently come up in discussions but similarly cover well-trodden territory. While valuable for mindset, I prefer technical insights that are more unique and directly actionable for my trading style.
Ultimately, trading success relies heavily on your ability to continually refine and challenge your analytical thinking. The authors listed above have each provided tools and insights that enabled me to refine my scalping methodology, think differently from the crowd, and enhance my trading precision.
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