Sunday, October 2

The best books for trading at a professional level

The best tool that traders have to face the market is training. This is the one truth that all trading experts agree on.

Currently there are hundreds of online courses for a first contact, many of them offered free by the brokers themselves.

They can all be helpful, but the real leap in quality to the expert level is achieved with daily practice and good reading.

And here you have to be very selective because the bibliography is very extensive. These are the best trading books for an expert level, according to the opinion of the reference traders consulted by

A.- The Wyckoff method. Enrique Diaz Valdecantos

This work of Enrique Diaz Valdecantos, one of the reference traders in Spain develops in depth the theories of Richard Wyckoff (1873-1934), one of the most legendary investors in history. It is essential reading for Jose Luis Herrera, analyst at Banco BIG.

The book helps to understand why prices move according to the laws of supply and demand and in the processes of accumulation and distribution. Everything happens to analyze the naked charts, with price and volume.

It develops reactive strategies, that is, investment techniques that do not predict the movement of the market, but simply provide a roadmap to react to a certain context. It is about waiting for something to happen in the market to position yourself.

It is also a work that takes fundamental analysis into account, which is not usually frequent. Wyckoff himself liked to understand company balance sheets, even though he thought that the graph is more than enough to detect the action of professional money.

B.- Advanced Master Trader. Javier Alfayate

Among the selection of works proposed by the head of analysis of INVESTMENT and, Josep Codina, you will find this book of Javier Alfayate, another reputed Spanish trader.

The author proposes six different investment systems, from the classic Weinstein-Alfayate to the techniques with the MACD, the bullish inertia or the golden cross.

It also reviews advanced and important concepts, such as market breadth or the AD line. Likewise, it studies the influence of the bond market on market liquidity and its effects on equities.

What’s more, Alphayate, who is also a fund manager, explains important concepts for positioning portfolios with low risk and high returns.

C.- One step ahead of Wall Street. Peter lynch

Another mythical investor, Peter Lynch, is the author of this ‘best seller’ that appears between the reference bibliography from Sergio Avila, IG analyst.

It is a reference work to have a broad vision of the market with the particular philosophy of Lynch that has seduced the masses: “Any normal person using 3 percent of his brain can choose actions as well as the average expert of Wall Street, if not better ”, points out the investor.

The work of Lynch It is not a compendium of technical analysis or investment strategies. It is the review of a successful philosophy of life full of concrete examples from real life.

It is the typical book that a novice trader would put aside but that will help a more advanced investor to understand the secrets of the market. Its merit is simplicity. “I try to think whenever I can as an amateur,” he points out. Lynch.

D.- Trading Systems & Methods. Perry Kaufman

Another reference work for Codina is this book of Perry Kaufman, a recognized expert in the development of trading systems.

Take an in-depth look at mathematical and statistical concepts to create an index or determine certain market probabilities.

The idea is for traders to build their own tools to identify trends, impulses, and patterns, while building a full-blown analytical framework.

Kaufman, a mathematician by training, is president of the firm Kaufaman Analytics and has worked for major brokers and investment funds in the United States.