Alpha Trader: The Mindset, Methodology and Mathematics of Professional Trading

This book came recommended by Ben Melkman (Founder, Light Sky) and John Mauldin (Mauldin Economics) and based on Brent's excellent previous book 'The Art of Currency Trading', I had to pick this one up. It works well for both experienced and amateur traders and some of the examples of trading sequences in the book remind me of similar experiences I've faced and my mindset during those times. Brent has done an amazing job at capturing the challenges encountered by traders on a daily basis and how best to navigate today's markets.

If I had to recommend a single book for any serious trader, it would be this. The book discusses many different aspects of trading that are often overlooked. Brent spends a lot of time discussing biases, self-awareness, risk management, psychological pitfalls, and so on. It doesn’t teach you how to trade (The Art of Currency Trading by Brent is slightly better in that domain), but how to become a better trader. Brent writes from experience and is humble enough to describe his own flaws and mistakes. He lays out the personality traits that make a good trader and outlines how to approach trading in a more calculated way. There are certain things that I don’t necessarily agree with him on, but this is what he encourages: being an independent thinker. Brent is one of the few voices in the trading space worth listening to, and for any retail trader looking to get beyond the marketing bs and take trading seriously, this is a great step in the right direction.

With a ton of trading & finance books in your library one can maybe be excused for becoming a bit jaded about additions to the field. Do we really need more? Yes, we do. For those who do not know Brent Donnelly's work yet, check out his also excellent "The Art of Currency Trading". Neither a boring intl. finance textbook nor a simple through-some-indicators-on-a-chart type of trading book this teaches you to really think deeply about trading currencies and how to tie fundamentals, news, sentiment, narrative etc. into a coherent whole in order to trade FX. So why another book I was wondering. While Brent's trading focus is FX this new work is applicable to any type of trading. Actually, it is indirectly applicable to many other performance disciplines both inside and outside of financial markets. There is so much to it that it would break the boundaries of an amazon review; suffice it to say - were I to run a trading desk at a bank, fund or prop firm I would put this on the required reading list. And any individual / retail traders should have a go at it too because there is a lot in it that no one else will tell you, anywhere. Let's just pick one example. "Trading psychology". How beaten to death is that topic? We have those who say trading psychology is nonsense because most individuals' inability to trade profitably, consistently, is simply down to a lack of edge. No amount of psych training can cure this. On the other end of the spectrum sit the people who make it sound like you only have to find out what works "for you", that it's all about attitude. While the latter position is utter nonsense and the former has a lot of truth to it, neither captures it all. Brent puts it in perspective and teaches how we need to take an inventory of ourselves, psychologically speaking (not in a touchy feely but in a very pragmatic and systematic way). Then, to analyze where we sit on the continuum with a view to various important traits and what needs to be done in order to level up and be able to do this job successfully. No two persons are alike and, hence, there can be no one-size-fits-all advice on trading psychology. The solution needs to be tailored. Everything is presented in a very concrete and structured way and citing the academic literature and studies where relevant for readers who would like to dig deeper. We have all the greats of trading psychology like Douglas or Steenbarger (for whom I have great respect) and still - you will find stuff here that you have not yet seen elsewhere. That is the part on trading psychology and it is only one small part of the book. If you trade, you owe it yourself to read it (because otherwise you will be at a disadvantage to others who did). If you have a spouse who would like to know how it is to trade and why it is fascinating - give them the book. Maybe only the first chapter (which - together with the related web link) will give them an impression what it is that drives trade(r)s. Oh and one thing I forgot: Forword's by Ben Hunt. That alone tells you: You won't agree with everything in it but it also won't be dull :)

Good book filled with valuable insights. I wish I had it when I was starting, and recommend it to anyone interested in trading.

Miglior libro sul trading che io abbia mai letto, Svariati spunti per il miglioramento personale, numerose spiegazioni sulle principali bias comportamentali e come affrontarle, per niente noioso, l'ho divorato

This was the most practical book on trading I've ever read. Brent provides first-hand knowledge on developing personal trading systems, routines, and the best ways to approach the markets. He does a thorough job of addressing profit-generating fundamentals (ie. risk management, mindset, managing trades), while also providing theory, historical context, and even short exercises that help you recognize personal strengths and shortfalls. Brent also shares a ton of suggested reading as they apply to concepts. I read this book with a highlighter (and notepad nearby). Each chapter had TLDRs, summaries, and bite-size takeaways. To me, this is my new trading 'handbook' (thanks to his killer glossary too)! Overall, this book is a must-read for any trader. I contend it's on the reading list between Market Wizards (which teaches trader style / mindset) and Reminiscences of a Stock Operator (teaches about markets), while Alpha Trader is your battlechest for war. Highly recommend!