Best option trading strategies book
I believe that this is one of the top-selling trading books of all-time. Traders, Guns and Money: Knowns and unknowns in the dazzling world of derivatives by Satyajit Das. This riveting bestseller reveals the truth about derivatives: Traders, Guns and Money will introduce you to the players and the practices and reveals how the real money is made and lost.
I could hardly put this book down. Another brilliant read is Liars Poker. This book is highly entertaining and a thoroughly enjoyable read. We see the story told by Lewis of his four years with the Wall Street firm Salomon Brothers, from his bizarre hiring through the training program to his years as a successful bond trader.
It introduces you to the concept of charting based on what we call Japanese Candlesticks. It teaches you everything about why candlesticks works, what which signal means and how it all works with option trading. A definitive option trading book that shows why candlesticks is still one of the most commonly used charting method used by fund managers.
Technical Trading Tactics by John Person This is not an option trading book per se but it introduces you to one of the 2 faces of stock market trading Both technical and fundamental analysis have its place in the stock markets and the option trading markets.
Both aspects have its pros and cons. This and the next book will give you a basic overview of the techniques used by both faces of the coin and allows you to decide what works for you. Personally, I am a staunch technical option trader and have developed my trading methods based on technical analysis. The New Buffettology by Mary Buffett This is a book on the methods of the master fundamental analyst of the world This is a book compiled by his daughter in law based on the private teachings that he gave to his family.
His knowledge is the epitome of the other side of stock market analysis This is a book that will definitely open your eyes to why fundamental analysis is so useful in long term option trading. Options As A Strategic Investment by Lawrence Mcmillian This pure option trading book takes option trading knowledge to the next level for experienced option traders. You will be able to learn how to use options as part of an overall portfolio and also helps you to develop your own trading system.
It also breaks many of the "invincibility" myths of option trading and teaches you the real science of option trading. This option trading book is a must have for anyone who is serious about trading options for a living. Trend Following by Micheal Covel This book introduces you to the trading method that is most used by hedge funds There's very little information out there on the art of tape reading, and OGT will give you a rundown of how it works.
Mind Over Markets - Dalton I believe one of the most underutilized forms of analysis is market profile. It's a dark art, and there isn't much literature on it. But this book is a must read. It's a struggle to read at times but I often review chapters every so often to understand the short term market. Markets in Profile - Dalton This is the second book you must read on Market Profile, and it's a little more up to date compared to MoM.
There's a little more integration with newer behavioral finance stuff and neuroeconomics. Seriously, you must understand auction market theory if you want to learn to trade.
Mastering the Trade - Carter The setups are a bit outdated, but this holds a special place with me as it first introduced me to derivatives trading. Brett If you haven't read anything by Dr. Brett you are doing yourself a disservice. I love this book because the author comes from a background of Clinical Psychology focusing on high-performing individuals. The anecdotes easily crossover into the trading realm, and you can gain plenty of insights about yourself and your trader profile.
The Daily Trading Coach - Dr. Brett Treat this book like a daily devotional. Brett smartly broke up the book into lessons.
Read one lesson per day and see how you could implement it in your trading. Continual, incremental self-improvement will do wonders for your performance. Trade Your Way to Financial Freedom - Tharp If you ever wanted the best way to track your performance, you will learn it here.
The book discusses the concept of "R-multiples," which I believe is critical for traders and investors to understand. Tharp focuses not on the individual setups but how to approach them from a risk-oriented approach.