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READING LIST

Take advantage of a comprehensive library of SX Intel user guides for use of our products and services, including SX Signals Advisory Platform services. These free, easy-to-understand briefs show you how to optimize use of SX Advisory | Crypto, SX Advisory | Precious Metals, and SX Advisory | Macro. If you need additional assistance, drop us a line at [email protected].

Trading For A Living

Alexandar Elder

Elder provide a good review of classical indicators with a nice summary of trading rules. I like the book because it introduced a new but simple and effective indicator, the Force index. It is also well known for introducing his multiple timeframe “triple screen trading” approach which has become immensely popular.

Come Into My Trading Room

Alexandar Elder

The popular follow-up to “Trading For A Living”. Really good material on money management and position sizing. Introduces some new trading system ideas and techniques like a volatility-baed trailing stop. Covers a lot of he ground of the habits and processes of successful traders. Pairs well with his previous book.

Technical Analysis – The Complete Resource for Financial Market Technicians

Charles Kirkpatrick and Julie Dahlquist

A comprehensive overview of technical anaysis, not unlike the well-regarded book of John Murhpy’s “Technical Analysis of the Financial Markets”, yet it goes into greater depth and additional subject areas such as system testing and money and risk management.

Computer Analysis of the Futures Market

Charles Le Beau & David W. Lucas

This is a great book for two reasons. First, it clearly debunks the supposed value of almost all standard technical analysis indicators like Stochastics and RSI. Second, it reinforces the importance of determining whether or not a market or asset is in trending. The authors test many traditional indicators, not based on hypothetical profits and losses from trading various commodities, but by such things as the percentage of signals that were profitable at various time intervals after the signal. In short, most indicators they tested proved to be no better and no worse than random. But the ability to filter a market by whether or not it is trending proved to be of value. My only compliant about this book is that the timeframes for testing are too short, and the number of commodities tested is too small. I would love to see an updated version of this book. But don’t read too much into the complaint, this is a unique, value and highly instructive work. Most highly recommended.

The Way of the Turtle

Curtis Faith

Written by one of Richard Dennis’ original Turtles (trading trainees), the real value of this book is Curtis’s expansion on the Dennis methods and his advanced techniques for risk and money management, as well as system testing.

Fed Up

Danielle DiMartino Booth

A scathing and highly illuminating look inside the decision-making of the Federal Reserve. The book exposes the narrow-minded and slavish devotion to the inaccurate economic models used to drive monetary policy. Very highly recommended.

Evidence-based Technical Analysis

David Aronson

A crucial read for any technical systems developer. The wordy subtitle says a lot about the value of this book: “Applying the Scientific Method and Statistical Inference to Trading Signals.” The book debunks the failed Efficient Markets Hypotheses, and offers important technique and approaches for testing signals to determine if they offer significant value or the reusults are simply from data mining bias. It gives you the evaluaiton tools to conduct rigourous analysis and develop robust technical systems. Most highly recommended.

Economics in One Lesson: The Shortest and Surest Way to Understand Basic Economics

Henry Hazlitt

A short and essential read for any critical thinker – poses and then illustrates the single most important question for assessing the consequences of all economic policy decisions and directives.

Steidlmayer on Markets

J. Peter Steidlmayer

Building on his first book, “Markets & Market Logic”, Steidlmayer goes deeper into trading techniques using his unique Market Profile charting approach, and expands the scope of the approach to include stocks

Markets & Market Logic

J. Peter Steidlmayer and Kevin Koy

Steidlmayer’s introductory text offer a fresh perspective on how markets really work from someone who was an experienced floor trader, and the introduction to Market Profile, his new groundbreaking take on charts based on price and time. Highly recommended

Market Wizards

Jack Schwager

The best book to read if you want to get inside the mind of great traders.  I’ve read this book many times over the last few decades and every time I pick up new jewels. One of the most important takeaways is that none of these traders pursue the same systems or analytical approaches, but what they have in common is a solid framework for decision making, good discipline for risk management, and an effective approach to position-sizing.

The New Market Wizards

Jack Schwager

More coverage of great traders in the same vein as the original Market Wizards. Highly recommended.

Market Sense and Nonsense

Jack Schwager

A refreshing read and financial market myth-buster. Schwager addresses many myths such as:  markets are not efficient, paster returns are not a reliable indicator of the future, hedge fund portfolios is not necessarily riskier than a tradition approach, and superior performance does not necessarily imply superior trading management, among others.

Fundamental Analysis (Schwager on Futures)

Jack Schwager

After having spent years in the futures markets and being horrified at what many traders and analysts represented as “fundamental analysis”, Schwager has done everyone a favor by identifying what it really is and what is required to successfully pursue it.

What Works On Wall Street

James O’Shaughnessy

Kudos to O’Shaughnessy for providing a comprehensive analysis of a variety of primarily fundamental stock investments strategies. If you want to know the best value and growth approaches, this is the book for you. He also provides good coverage of the benefits of relative strength analysis, and combines the best growth and value approaches with relative strength analysis in a multi-factor model that is not to be missed.

The Volatility Edge in Options Trading

Jeff Augen

An advanced option trading book presenting several trading strategies and good material on managing complex positions.

Bollinger on Bollinger Bands

John Bollinger

Good insight on a variety of ways to use Bollinger Bands from the man himself. Recommended.

Technical Analysis of the Financial Markets

John Murphy

What more can be said about this book? Considered the be the most comprehensive guide to a wide variety of chart techniques and mathematical indicators.  The closest thing to a comprehensive encyclopedia in this field.  Seems like everyone in the business owns a copy.

Trade Like the Little Guy

L.A. Little

An interesting approach for those who like to trade off of chart patterns.  Little uses a smart combination of volume and classic trend pattern analysis to develop a multi-time frame decision matrix.  Recommended for chart-based traders.

Trend Qualification & Trading

L.A. Little

A follow-on book to Trade Like the Little Guy; goes into further depth of the author’s analytical chart-based framework for determining and trading trends.

Trend Trading Set-ups

L.A. Little

Another follow-on book to Trade Like the Little Guy, this book explores chart-based set-ups for higher probability trading. A good approach that combines price, volume and time. Recommended for avid chart analysts and traders.

Options as a Strategic Investment

Lawrence McMillan

The first of the widely read books on options, and still one of the best. One of the first two books we recommend for learning about options.

Buy – Don’t Hold

Leslie Masonson

A good, basic primer on relative strength trading with ETFs.

Winning On Wall Street

Martin Zweig

A true oldie but goodie, another classic that’s on almost everyone’s bookshelf. Great introduction to monetary indicators.  His “super model” is a great overview of how to bring together disparate indicators into an integrated stock market analytical model.  Still relevant today.

The Complete Turtle Trader

Michael Covel

One of the best books you can read if you want to learn about the Turtles, the trainees selected and taught by legendary trader Richard Dennis.  The vast majority went on to long-term success. In addition the fascinating story, the book provides and inside look at the strategy and specially the risk management and money management techniques taught by Dennis.  A lot to learn here and highly recommended.

Dynamic Hedging

Nassim Taleb

One of the best and most practical financial engineering books ever. Be warned that this is an advance book, but he goes beyond standard option and value-at-risk models to show what really counts in terms of managing (and risk monitoring) plain vanilla and complex, exotic option portfolios.  Taleb is an author absolutely not to be missed!

Stock Market Logic

Norman Fosback

All-time classic, the book that started me on my analytical and econometrics journey

Smarter Trading

Perry Kaufmann

Kaufmann’s book focuses on improving trading systems and introduces newer and more advanced techniques to improve traditional indicators, as well as advanced systems development and testing concepts. Recommended.

New Trading Systems and Methods

Perry Kaufmann

An encyclopedic work, covering the gamut of approaches to developing trading systems. Great reading to inspire your own ideas, or to put his system ideas into practice. Recommended

Mechanical Trading Systems

Richard Weissman

Good material on basic system development, good book to follow the development of example systems for both mean-reversion (counter-trend) and trend-following systems, as well as system testing and performance measurement.

Technical Analysis of Stock Trends

Robert Edwards and John Magee

Not many words needed – this is the “Bible” of chart analysis – the authors invented many of the common chart formations traders and analysts still use today (e.g., head and shoulders, double tops and bottoms, flags and pennants).

Design, Testing, and Optimization of Trading Systems

Robert Pardo

Delivers exactly what the book’s title describes. This is a very comprehensive classic of the field, one of the core publications on trading systems. Highly recommended

Options Analysis

Robert Tompkins

One of our favorite options books, primarily because Tompkins does a great job of describing complex options (including many exotic options) and strategies in terms that non math-oriented readers can understand, even though the math is included for those so inclined.

Option Volatility & Pricing

Sheldon Natenberg

Delivers exactly what the book’s title describes. This is a very comprehensive classic of the field, one of the core publications on trading systems. Highly recommended

Beyond Technical Analysis

Tushar Chande

Another all-time favorite book, Tushar Chande goes into a lot of depth on how to develop a trading system, and along the way introduces many system concepts plus equity curve analysis, useful ideas for money management, and advanced techniques for system testing.

The New Technical Trader

Tushar Chande and Stanley Kroll

We’re big fans of Tushar Chande, and his pairing with trader Stanely Kroll resulted in a productive joint effort. Great ideas and book.  This book introduces many new, more advanced technical indicators, plus covers the inadequacies of many common indicators, and introduces key concepts for risk control. And if you are an experienced trader who maintains good trading data, maximum excursion analysis can help optimize loss control and profit-taking. Highly recommended.

Trade Your Way to Financial Freedom

Van Tharp

One of my all-time favorites – despite the somewhat sensationalist title.  The best overview of how to build and execute an integrated trading approach, including all the components of a complete trading system.  Great material on establishing and understanding system objectives and measuring expectations.Good treatment of risk-based position sizing. And deals with important psychological issues such as overcoming judgmental biases that can easily undermine your trading and your success at developing effective trading systems.

Super Trader – Making Consistent Profits in Good and Bad Markets

Van Tharp

Based on his modeling of traders he identified as “Super Traders”, Dr. Tharp introduces his comprehensive plan to model the best traders including mastering the psychology of trading, developing a trading business plan, developing a trading system along with risk-based position sizing (covers a lot of the material from his other book Trade Your Way to Financial Freedom), and approaches to monitoring yourself to reduce trading mistakes.

Van Tharp’s Definitive Guide to Position Sizing

Van Tharp

This is a crucial aspect of successful trading that we stress repeated – learn how to optimally size your trades. This is a highly recommended book that comprehensively covers the subject and practical applications that can be implemented by any trader or investor. Highly recommended.

Fooled By Randomness

Nassim Nicholas Taleb

The early breakthrough book from Taleb with a withering critique of gurus and Wall St. success stories, this is an eamination of the role of luck in success and dealing with randomness and various human biases. Most highly recommended.

Black Swan

Nassim Nicholas Taleb

Taleb’s most popular book and the original source of the now widely-used term of a “black swan” to describe a highly improbable event of enormous magnitude. Essential reading, most highly recommended.

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