If You Could Only Recommend 1 Trading Book?

[darthtrader]

I would recommend checking out your local library and seeing what they have. When I first got into this I would check out 10 books at a time and quickly go through them and read what seemed important. You might be surprised at how good the finance section is at a big library, saves alot of cash. As mentioned you can also find virtually every trading book as pdf on p2p networks. Its nice to browse before you buy.
While some books are alot better than others I don't think I've ever read a trading book that was literally useless. I would go for quantity over quality until you find your personal style.
"Statistics Without Tears" is also also an amazing book if you never took stats in school and certainly helpful to know.

[thrunner]

	Quote:	idaxtrader
	Most people really believe that over trading is bad or wrong. This is of course true if you are incompetent. On the other hand if you are qualified over trading is your best friend because it allows you to increase your sample size

Even if it increases your sampling size, overtrading is wrong for most beginners because there is no edge and commission and slippage adds up easily. It also reinforce bad habits if you don't have an edge and it tires you out before you can find a better set up - often you will get into a bad trade and become reluctant to enter the next trade which could be a much better setup. LBR (Raschke) has mentioned how most professionals will trade less with less size and break even on a lot of choppy days but make it up on large, usually trending days where their setups are optimal. LBR doesn't need any plugs, but there are many free articles on her site as well.

[MC]

	Quote:	thrunner
	Even if it increases your sampling size, overtrading is wrong for most beginners because there is no edge and commission and slippage adds up easily. It also reinforce bad habits if you don't have an edge and it tires you out before you can find a better set up - often you will get into a bad trade and become reluctant to enter the next trade which could be a much better setup. LBR (Raschke) has mentioned how most professionals will trade less with less size and break even on a lot of choppy days but make it up on large, usually trending days where their setups are optimal. LBR doesn't need any plugs, but there are many free articles on her site as well.

Agreed and I know this first hand. Sample size with no edge is a pointless sample set. And the fees will ruin the odds as you stated.

Almost all my losses on my 70 stock and 54 future trades were commish.
$1100 in commish, down $1300 lifetime. I now have a new perspective on fees and how it impacts the bottom line bigtime.

[BlowFish]

If you have no edge it can be show statistically that your best option to win is to go all in on one trade rather than lots of small trades which will surely empty your account. Whether that is considered over trading or not I dunno.

[Soultrader]

	Quote:	torero
	I think it depends on where you are as a trader (beginner, advanced or vet). Giving someone a book that's too complex hope help unless he goes through basics first.

Good answer Torero. My number one recommendation would be Mind Over Markets. I owe everything to market profile so will be biased

[MC]

	Quote:	BlowFish
	If you have no edge it can be show statistically that your best option to win is to go all in on one trade rather than lots of small trades which will surely empty your account. Whether that is considered over trading or not I dunno.

Poor money management more than overtrading.
Over extending might be a proper word for that...or just gambling even.

Good point though.

[Nvesta81]

	Quote:	mcichocki_
	Poor money management more than overtrading. Over extending might be a proper word for that...or just gambling even. Good point though.

I've noticed that even on days where I get carried away and over-trade I never lose that much money because I use proper money management and reasonable stops. Even if you were only getting 50% accuracy you can still manage to not lose too much or even be ahead depending on the size of your winners. People that really lose big must be reckless.

[MC]

	Quote:	Nvesta81
	I've noticed that even on days where I get carried away and over-trade I never lose that much money because I use proper money management and reasonable stops. Even if you were only getting 50% accuracy you can still manage to not lose too much or even be ahead depending on the size of your winners. People that really lose big must be reckless.

Most people I've seen take BIG losses were overextended for their equity level. Swinging for the fences will get you knocked out at one point or another. It's a combo too of not knowing when to cut a loser and freezing up though. Double whammy.

[Eiger]

The most valuable trading books I have read are:

Undeclared Secrets of the Stock Market - Tom Williams
The Wyckoff Course in Stock Market Science & Technique - Richard Wyckoff
Reminisensces of a Stock Operator - Edwin Lefever
Trading in the Zone - Mark Douglas

Eiger

[RichGuy/PoorGuy]

The value of a book alters as your skill level changes. My current No. 1 is
The Definitive Guide to Point and Figure by Jeremy du Plessis.

I have also found

Bollinger on Bollinger Bands by John Bollinger.
and
Trading Without Fear by Richard Arms

good books.