Radius: Off
Radius:
km Set radius for geolocation
Search

Do traders need books on investing?

Do traders need books on investing?


One of the brokers asked his traders: what books on trading and investing have you read in the last year? And have you read the books at all? In total, about 3.5 thousand active traders with different levels of experience were interviewed. Active ones meant those who opened at least 3-5 deals per month. The survey showed that novice traders do not read books at all – only 3.5% of traders with a transaction volume of up to 1-2 lots per month and with an account of up to 6 months have read at least one book about trading and investing. Among more experienced traders, the number of readers is higher – about 12%. It turns out that understanding the benefits of a book for a trader comes only with experience?

Books for a trader – benefit or loss of time

Respondents were asked another question: “If you haven’t read a single book yet, why? And do you plan to do so in the future?

Why books for traders are not of interest:

  • “I don’t see the point”. Argument: There are many other sources of information where the information is presented concisely, concisely and clearly. Unlike books, where the essence is stretched over dozens of pages. At the stage of getting acquainted with trading, beginners prefer short informational articles from blogs or analytical resources that they find according to the classic queries “the most profitable strategy for beginners” or “how to quickly disperse a deposit”. Traders are interested in money, not knowledge. After reading a few articles, they immediately attack the demo account.
  • “No time”. After all, you need to work and earn! One book will take several days at best, even if you listen to it in audio format. Why waste time when you can read the description of the strategy and hone it on a demo account?
  • “Much is unclear”. Terminology, the complexity of the author’s presentation are the reasons why a trader falls asleep already on the first pages or loses the essence of the book. This is a signal that the reader does not have the necessary knowledge and it is too early to get into real trading. It is easier for the reader to blame the author for the “abstruseness”.
  • “Books – the personal opinion of the author”. Articles on the Internet are objective. And if not, then there are always commentators who make it clear whether the article should be trusted. Books are the author’s opinion, whether it can be trusted is a difficult question. You can also discuss the book on the forum, but there will always be those who will criticize it.
  • “I’ll forget everything anyway”. Why read a book if in a month 90% will already disappear from your head? An article on the Internet can be quickly found and viewed, so why waste time on a book?
READ  Forex carry trade - a strategy for professionals

According to statistics, about 85% of beginners suffer a loss. At some point, a novice trader realizes that he missed something. After all, the strategy he found on the Internet does not work. Indicators give 80% of false signals, copying deals brings a loss, and quotes go in the opposite direction all the time. And then the trader begins to understand that he lacks knowledge.

Books for a trader are the experience of professional investors. In them, they talk about their path, about the mistakes they made. The books deeply describe the essence of trading. The book makes you think. A trader who has read the recommendations in the article and follows them blindly does not understand the essence. The book reveals the essence, teaches you to think logically, analyze, create something of your own based on the experience of others.

There is no need to “swallow” books one by one from the very first minutes – a glut of information will lead to the opposite effect. You must define the main themes for yourself. For example: risk management, technical and fundamental analysis, trading psychology. Go from the general to the specific: get acquainted with the theory of technical analysis, then move on to its component “graphical analysis”, then read about individual patterns. Fix everything you read in practice on a demo account until you get a positive result.

Books for a trader are the way to professional trading. Don’t ignore them!

About Eric R. Brinkley

CEO Fxbotreview.com Algotrader. Blogger. I write interesting content, do content with you, and also maintain a website with independent reviews of forex software. Trading robots, Indicators etc..

Comments 0

Leave a Reply

Your email address will not be published. Required fields are marked

Best Scalping EA 2022

Get Free Demo
close-link
Click Me