📚TraderLion’s Recommending Reading List 📚 (Thread)
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1. How To Make Money in Stocks - William O’Neil
William J. O'Neil is the founder @IBDinvestors. His #CANSLIM methodology and studies have influenced us at TraderLion & many authors including those in this thread.
Reminiscences is the biography of Jesse Livermore, one of the greatest speculators who ever lived. More than 80 years later, it is still one of the most highly recommended investment books ever written.
Livermore started trading in securities when he was fourteen years old. This book is derived from a series of interviews between Richard Wyckoff and Jesse Livermore from the 1920s.
Douglas uncovers the underlying reasons for lack of consistency and helps traders overcome the mental habits that cost them money. This is a MUST-READ for all traders/investors.
The Disciplined Trader focuses on how traders can take control of their trading behavior by developing a systematic, step-by-step approach to winning week after week, month after month.
7. How I Trade and Invest in Stocks - Richard Wyckoff
Wyckoff leverages over 33 years of experience in the markets in this book. His primary reason for writing this was to help new investors who find the markets too complex.
8. Secrets for Profiting in Bull and Bear Markets - Stan Weinstein
All traders/investors should read this book as it offers the skeleton of which phases stocks go through again and again over many years. Timeless principles.
11. Lessons from the Greatest Stock Traders of All Time - @monsterstocks1
This book follows Livermore, Bernard Baruch, Gerald Loeb, Darvas, and WON and emphasizes their processes and common characteristics even as they traded in different time periods.
12. Market Wizards: Interviews with Top Traders - @jackschwager
Schwager interviewed dozens of top traders and while the details differed, they can all be boiled down to the same formula: solid methodology + proper mental attitude = trading success.
13. Unknown Market Wizards: The Best Traders You’ve Never Heard of - @jackschwager
This book continues on the popular Market Wizards series, interviewing exceptionally successful traders to learn how they achieved their performance results.
Minervini unveils his trademarked stock market method SEPA, which combines careful risk management, self-analysis, and perseverance. He explains his process for achieving triple-digit returns.
16. Technical Analysis Using Multiple Timeframes - @alphatrends
This book is an excellent introduction to technical analysis and reading price action. It goes through how to read trends, market structure, and the psychology of price movement.
This book covers a series of experiments that identifies a feedback loop between testosterone & success that is responsible for how we feel after a winning or losing streak. Very fun read.
18. 24 Essential Lessons for Investment Success - William O’Neil
We had to end with another book from WON! This one breaks down his 40 years of experience studying the markets into a handful of easy-to-digest lessons.
19. How I Made $2,000,000 in the Stock Market - Darvas
Let's not forget Darvas! In this book, he documents his techniques including his unique Box system. This is a classic even to this day and we highly recommend reading it.
Impatience and instant success are built into our minds from the get-go. We want instant wins and instant rewards.
This has as much to do with our psychological build-up as it does with the society we live in.
In this thread, we will cover:
What to do if you are not trading well.
How to stop the drawdowns when no progress is being made.
How to have a systematic process that protects you from yourself.
What to look for when the market gets volatile. (Thread)
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The first thing you should be on the lookout for is tight price action in leadership names. During corrective markets, liquidity is low as market participants take a step back due to uncertainty.
This leads to larger price ranges and therefore tight action is a sign that liquidity is returning to the markets.
As certainty returns, price action becomes tighter and more rational.
10 Lessons I Learned While Working With William O’Neil (Thread)
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1. The importance of trading psychology and emotional/physical well-being
Trading psychology and physical/emotional well-being is probably one of the least discussed, yet most important aspects of becoming a successful trader.
However, the large majority of traders spend little time if any focusing on this aspect of their trading and instead, dedicate their time to methodology, technique, and “special indicators.”
Start by taking good care of your physical and emotional health.
Why do we track institutional footprints? 🐘 (Thread)
Large institutions like mutual funds, hedge funds, banks, insurance companies, trusts, etc. amount for over 75% of all volume. These institutions move the market, not you and I.
It makes sense that if these guys are moving the markets, we would ideally want to buy the same stocks they are buying, but before they buy them? Right?
So, let’s get a clear understanding of how and why this is so important and what this might look like behind the scenes.
1. Find a Trading Method That Fits Your Personality
Becoming a great trader is a process of self-discovery. It is very important to understand this from the get-go and start by finding a proven style, or methodology that jives with who you are.
2. Trade With The Trend
Did you know 3 out of every 4 stocks follow the direction of the general market? Anytime you are trading against the trend you are putting the odds heavily against yourself.