Algorithmic trading is a method that allows information professionals to use their knowledge on the stock exchange and get the most out of it. In this article, we will look at the best books on algorithmic trading and investing, as well as useful online resources for learning about algorithmic trading.
The study of trading is a narrow field of study, so it is difficult to find truly high-quality and capacious materials. As a rule, the process of learning algorithmic trading comes down to studying:
- mathematical and economic models;
- various programming languages for the international FOREX market;
- features of instruments (securities, contracts, etc.).
- The best books on algorithmic trading for beginners: TOP-6
- Alexander Elder – Trading. The first steps
- Brett Steenbarger – The Psychology of Trading. Decision making tools and methods
- Book by Mark Douglas – Zone Trading
- Valentin Vitkovsky – Trading for Beginners
- Steve Neeson’s Trading Books – Candlesticks
- Timofey Martynov – Trading Mechanism. How to build a business on the stock exchange
- The 2 best books on trading cryptocurrencies
- Michael Archer – Forex Trading for Beginners
- Renat Valeev – The Art of Trading. Practical advice for experienced traders
- TOP-3 books for consolidating the material and advanced training in algorading and investments
- Ernest Chan – Quantitative Trading
- Rishi Narang – Inside the Black Box
- Barry Johnson – Algorithmic Trading
- Benefits for the Continuing Trader: 2 Best Books to Go Deeper into Algorithmic Trading
- Ernest Chan – Algorithmic Trading
- Larry Harris – Trading and Exchanges
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The best books on algorithmic trading for beginners: TOP-6
Alexander Elder – Trading. The first steps
Who is Algorithmic Trading for? What is required for this? Is this a difficult area or is it within the power of everyone? The stock market requires self-discipline, but it has its own nuances. This book will not tell about the methods of algorithmic trading, but will only give an idea of this profession, so that a person can understand whether this area is interesting to him or not for him. The author gives advice on the workflow, its features and gives questions that a person must honestly answer for himself. After reading this material, the reader will understand whether he is ready to try himself as a trader or if his strength is not enough to withstand all the material. The book tells what it takes to reach the heights in the market. And if the reader understands that the necessary skills are available, as well as the willingness to try their hand, then he can delve into this topic.
Brett Steenbarger – The Psychology of Trading. Decision making tools and methods
Brett in his book tries to convey to the reader that the life of a trader has a direct impact on his own business. Even minor stress can turn a trade upside down. Making decisions guided by emotions is a path to nowhere and a quick loss to opponents. Self-knowledge and self-control are important strengths of a trader who is able to control the result of his work.
Book by Mark Douglas – Zone Trading
In his publication, the author tells about all kinds of difficulties that a trader faces at the initial stages of the journey. Douglas proposes to deal with them by the method of zone trading.
Zone trading – creating your own trading strategy on the exchange. The method allows a beginner to quickly get involved in the field and avoid contacting brokers, which often provide unreliable results.
In addition, the author invites readers to use their psychological abilities, which in the long term will work for a trader and step by step lead him to success. Despite the fact that Douglas does not provide a ready-made trading system, he helps a beginner: he demonstrates a way of thinking that turns an ordinary user into a successful trader. The publication will be useful to those who want to independently study the exchange and achieve heights on it.
Valentin Vitkovsky – Trading for Beginners
Valentin Vitkovsky’s campaign in the book consists of a mathematical strategy of three components: understanding the stock exchange, the psychological strengths of a market participant, and the ability to competently manage capital.
Steve Neeson’s Trading Books – Candlesticks
The main component of Steve’s book is the skills of identifying candlestick signals and candlestick analysis – a way to predict the charts of financial instruments. Knowledge of this method is an essential skill for any market participant. By applying it in action, a trader can predict the movement of the exchange, making deals without misses.
Timofey Martynov – Trading Mechanism. How to build a business on the stock exchange
The book edition is perfect for novice market participants. The author, moving from easy to difficult, tells the reader all the features of the profession. Also Timofey Martynov tells about strategies, correct thinking and a clear algorithm of actions. Tells not only about success, but also touches on mistakes, giving illustrative examples. Martynov’s works will help a novice trader to delve into the field and understand what awaits him, and experienced market participants will definitely find something new for themselves.
The 2 best books on trading cryptocurrencies
Michael Archer – Forex Trading for Beginners
The works of Michael Archer are recognized as one of the best manuals for novice traders who begin to study the FOREX market, which contains a lot of valuable information. The author tells not only about theoretical and practical material, but also provides detailed instructions that will help you first understand and understand the field, and then lead you to the beginning, to the start of this big world game. The reader will figure out step by step how to open your trading account; the illustrations attached to the text will clearly show the possible difficulties that you will have to face.
Michael Archer explains in detail how to place and close orders, thereby protecting the reader from failure. Methods for analyzing the stock exchange are also described in detail. In addition to all of the above, the author’s theoretical and practical experience, his thoughts and conclusions drawn over more than 40 years of active participation in the market are presented. The book edition has a lot of valuable information about the FOREX portal and a terminological dictionary with phrases that are used by traders on the currency exchange.
Renat Valeev – The Art of Trading. Practical advice for experienced traders
The book edition is focused not on experienced specialists with more than 5-10 years of experience in the market, but on relative newcomers who have studied the field for more than one year. The author focuses on the methods of competent capital management and trading psychology, because it is these aspects of the profession that lead a person to success. Rinat Valeev has extensive experience of participation in financial markets, of which five years he was a trader at the Central Bank of the Russian Federation, where he was a member of the team responsible for managing gold and foreign exchange reserves. The material provided in the book edition is based on examples from the currency exchange, but in fact it can be used in any market. The advice given by the author is applicable to any market, from Forex to cryptocurrency exchange.
TOP-3 books for consolidating the material and advanced training in algorading and investments
Ernest Chan – Quantitative Trading
In his writings, Ernet Chan spoke in detail about the formation of a “retail” trading system that belongs to an individual, and not the market, using the MatLab and Excel tools. After getting acquainted with the material, a novice stock market participant begins to understand how to solve the problems of making money on the stock exchange by developing special programs.
Quantitative Trading is a good guide to understanding how algorithmic trading works. It also lays the groundwork for traders’ professional terms.
Rishi Narang – Inside the Black Box
In his writings, the author spoke in detail about how hedge exchanges function in the field of quantitative trading. Initially, the book focuses on investors who cannot decide whether to invest in a “black box” or not. The book also raises questions about the importance of transaction cost accounting and risk management.
Barry Johnson – Algorithmic Trading
Barry Johnson, the author of his precious works, is the creator of trading software for an investment banking organization. The material helps private exchange participants to understand how the market functions and to assimilate the “market microstructure”, thereby increasing the level of effectiveness of the trader’s personal strategies.
Note! Literature is hard to understand and read, but it carries very valuable information.
Once you understand the basics of algorithmic trading and understand the concepts used in the stock market, it’s time to start developing trading strategies. It is not difficult to find one, but the effectiveness of the chosen strategy will also directly depend on the participant’s personal characteristics, positively or negatively affecting his business. https://youtu.be/nVoU4qaSP0A
Benefits for the Continuing Trader: 2 Best Books to Go Deeper into Algorithmic Trading
Ernest Chan – Algorithmic Trading
This is the second large-scale work of this author. The first edition deals with the topics of market impulses, and other aspects of the sphere, and effective strategies were also touched upon. In this work, Dr. Chan develops both old topics, only with greater depth, and new ones, introducing already more experienced market participants into the very nuances of the work of stock exchanges.
Larry Harris – Trading and Exchanges
The main focus of this book is the microstructure of stock exchanges. This is knowledge about how traders communicate with each other within the order book. The material helps to understand how the market functions and what happens when a participant places an order to buy or purchase securities and other financial instruments.
After a novice trader has studied the works of experienced specialists presented in this article, he will be prepared to start entering the stock market. It is important to familiarize yourself with each element before entering the market so that, when taking the first steps, you do not stumble on an obvious place that was inadvertently missed during training.
- 1 The best books on algorithmic trading for beginners: TOP-6
- 1.1 Alexander Elder – Trading. The first steps
- 1.2 Brett Steenbarger – The Psychology of Trading. Decision making tools and methods
- 1.3 Book by Mark Douglas – Zone Trading
- 1.4 Valentin Vitkovsky – Trading for Beginners
- 1.5 Steve Neeson’s Trading Books – Candlesticks
- 1.6 Timofey Martynov – Trading Mechanism. How to build a business on the stock exchange
- 2 The 2 best books on trading cryptocurrencies
- 3 TOP-3 books for consolidating the material and advanced training in algorading and investments
- 4 Benefits for the Continuing Trader: 2 Best Books to Go Deeper into Algorithmic Trading