Top 5 technical analysis books for new traders

Technical analysis is a combination of art and science that also requires a sixth sense, and there are literally thousands of books written on teaching its basics to new traders. You can find books that cover topics like crowd psychology, trading system development and chart patterns. Did you know that Japanese candlestick charts were invented by Japanese rice traders in the 18th century, but only popularized in the West in the 1990s in one of the books listed below? Because trading is an evolving process, most of the books become outdated very soon, but that doesn’t mean you cannot find any good books that can give you a comprehensive knowledge of day trading. We’d like to share our pick of top 5 books on technical analysis that should help a  new trader become a day trading expert. Let’s see what they are:

Getting Started in Technical Analysis by Jack Schwager

If you have to choose one book to get a comprehensive overview of day trading, Getting Started in Technical Analysis by Jack Schwager is an excellent choice. Apart from covering technical indicators and chart patterns, the book also explains the process of choosing entry and exit points, developing a successful trading plan and trading systems. 

The topics covered in this book are wide-ranging, and the language is relatively simple and easy to understand. If you are just starting your trading journey, this is one of the best books you can begin with. It is often recommended by expert traders which further adds to its credibility. Getting this much information in such a precise and comprehensive package makes it a great launchpad to your success.  

How to Make Money in Stocks by William O’Neil

Written by William O’Neil, who founded the Investor’s Business Daily, How to Make Money in Stocks is among the classics in the trading world. O’Neil was a huge advocate of technical analysis, and in his research journey for this book, he analyzed over 100 years of stock price data to get a better idea of various principles of technical analysis. 

In this book, you can find an extensive range of technical methods and strategies that are geared towards helping you make money while minimizing your risk of incurring losses. You will also find tips regarding market trends and finding suitable entry and exit positions. Give this book a go to develop a more complex understanding of the stock trading world.   

Technical Analysis Explained by Martin Pring

Often dubbed the Bible of the trading world, Technical Analysis Explained by Martin Pring is one of the best books that teaches core concepts and principles of trading in a very precise and easy manner. Ancillary topics, such as market mechanics and trading psychology which help the traders understand the reasons behind the action instead of  just trading methods are also covered in this book. 

Despite having so much information and covering so many complex subjects, the book’s layout and language is approachable, and even the most novice trader can learn a lot from this book. 

Technical Analysis of the Financial Markets by John Murphy

If you are looking for a book that is both easy to approach and simple, yet clarifies complex trading mechanisms then Technical Analysis of the Financial Markets by John Murphy might be a great choice for you. The book gives practical advice and actionable insights that you can implement right away to fetch the rewards. 

John Murphy was a technical analyst for CNBC for more than four decades and his extensive experience in the trading world allowed him to become a leading voice in the world of technical analysis. John Murphy’s language in the book is very refreshing and engaging, and you can easily grasp complex concepts using this book.  It is a great book to lay the basis of technical analysis for day trading before delving into more intricate subjects. 

Japanese Candlestick Charting Techniques by Steve Nison

This is the most comprehensive book that you can find on candlestick charting, which is among the most widely used technical analysis instruments. Before Japanese Candlestick Charting Techniques by Steve Nison was written, candlestick charting was unheard of in the Western World. 

Thanks to his work, Japanese candlestick charting got momentum and today has become the most commonly used technical indicator. Nison was helpful in publicizing this technique and trained many institutional analysts and traders at top investment firms and banks. You can find extensive information about candlestick charting in this book, and after reading this book you will be able to interpret the market movements and make better trading decisions. 

Final thoughts

These books are a great starting point for anyone interested in learning technical analysis. Each of the books on this list covers aspects of technical analysis that help a trader understand the underlying patterns and make better financial decisions. Begin your trading with these books, and you will already be a long way on your trading journey. 

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