Happy Friday to you all, I hope you had a great week. I am going to finish this week with my monthly book club recommendation. This months book is a very technical based book which really goes in to the workings of the financial markets and explains the key principles involved when trading them.
Last months book was Barbarians At The Gate by Bryan Burrough & John Helyar. You can find out why I recommend that book by reading the October blog post and clicking on the link below.
This months book recommendation is Long/Short Market Dynamics: Trading Strategies for Today’s Markets by Clive M Corcoran.
Long/Short Market Dynamics is the perfect book for those of you who love to know how the markets work, how they move and how to develop your trading strategies to use this knowledge to your benefit.
The main reason why I really liked this book is because it contains a lot of market research and data analysis to back up the theories that they explain. It really helps you to understand the “dynamics” of the financial markets and how they work which is all explained by a market professional.
One of my favourite passages from the book is how the author explains market liquidity. A lot of new traders have no idea how the markets work, what makes price move the way it does and how your trade orders are even processed. Now a days, it is so easy to just open a trading account and click a button to buy and click a button to sell.
“We suggest that it is better not to view liquidity as having to do with money “sloshing around the system” but rather as having to do with the degree of disagreement among traders. The best way it can be observed, but often it is all too fleeting, is to review the depth of the market’s order book. Expressed in overly simplistic terms, if the order book has depth and is layered in a multi-tiered manner then there is a “healthy” disagreement among traders about the most suitable price for the current time frame of reference. The market could be said to be operating with its normal degree of fractiousness. If the order book empties out very quickly and loses its fractal and temporal structure then the market has (temporarily at least) lost its liquidity.”
This is taken directly from the book Long/Short Market Dynamics by Clive M Corcoran.
This is one of the more expensive trading/finance books that I have recommended in my book club but I really like it and I believe it is worth the money. It is slightly cheaper if you buy the Kindle e-book version.
Both paperback and e-book copies can be purchased via the links below.
Kindle Edition – https://amzn.to/2QD3kmI
Hardcover Edition – https://amzn.to/37ri9P9
Important: A free copy of this book is included with every purchase of my Mastering the Markets – Retail Trading Course.