From Rajesh:
Dear Sanjoy, Pl send me the best book for trading for Indian Stock market Conditions
Answer:
Hi,
All the stock markets regardless of which exchange they are traded in, behave the same because the underlying human emotions - fear and greed
One of the books I like is :
"Trading for a living" by Dr. Alexander Elder.
It stresses the importance of risk management. Many people think that position entry is the most important aspect of a trade. Actually it is just one of the aspect. How you size your positions, how you manage risks and how you exit from a trade, your psychological state of mind, your discipline all factor to determine whether you will be successful trader or not.
At present I am reading the book
"Trade you way to Financial freedom" by Van Tharp.
(See the review in the article just below this one )
In that book, he makes entry into a trade by a Random trading system...that is the system just enters randomly..but still manages a positive return by risk control and position sizing.
Using Dreamtai system, we enter trending stocks with high liquidity. We manage our risk to less than two percent of total capital and position size our trades to reflect that.
Another book I love is "Market Wizards" by Jack Schwager
It gives interviews with top traders. If you read that, you will notice that many of the traders stress more on risk control than on any other secret systems or formulas.
Hope you find this information useful.
Sanjoy
