The Best Books on Day Trading Commodities and Futures

Day trading

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Day trading futures is a popular strategy with traders as the highly leveraged futures markets offer many quick trading opportunities. Day trading can also be one of the most difficult trading strategies to use, so you need to be well prepared and do some homework before you start day trading.

There are several good books on day trading in commodities and futures markets. There are also many misleading books that cause traders more trouble than they are worth. Below are some of the most popular books on day trading futures. Some of them include a complete day trading plan, while others mainly discuss specific trading strategies.

Reading Price Charts Bar By Bar by Al Brooks

Al Brooks wrote a comprehensive work on day trading, but many of the concepts are difficult to grasp. This work requires several readings and the time necessary to study and understand the material. Digesting this book will lead to a better understanding of the markets. Al Brooks focuses on trading the E-mini S&P, but the lessons apply to all markets and all time frames.

Day Trading by Joe Ross

Joe Ross has written several excellent books on trading. Ross covers a wide number of issues when it comes to day trading along and suggests many day trading strategies. He has a no-nonsense writing style and is easy to understand.

Street Smarts by Larry Connors and Linda Bradford Raschke

This excellent work is a classic on day trading, but it has faded a little with time. There are several strategies covered in the book, and one should be able to find at least one good strategy to suit individual trading styles. The reader will gain insight into the general topic of day trading with this book.

The Logical Trader by Mark Fisher

Mark Fisher is a professional floor trader, in his book he outlines a trading strategy that he and other professional floor traders have developed. The strategy revolves around a pivot point style of trading. Fisher guides the reader with buy and sell points as well as profit objectives. This book involves an approach that requires study and one should simulate trading before real capital is employed.

Day Trading Grain Futures by David Bennett

Bennett presents a relatively simple strategy to use when day trading in grain futures. The system is momentum-based and highlights the time of day for optimal results. Choosing the right number of contracts, or position size and profit objectives are essential when using the system described in this book. 

Trade Chart Patterns Like The Pros by Suri Duddella

Suri Duddella is a day trader, and he maintains a website where he posts many of his trades each trading day. This book outlines some 65 different trade setups and how to approach them. He also includes some pros and cons along with stop placements and profit objectives. Duddella suggests some novel strategies in his book. You probably won't find a more concise work on many good trade setups.

Advice To Keep In Mind When Reading These Books

There are many different ways to proceed when day trading and each trader develop their approach to markets. The one thing that all successful market participants have in common is discipline. When considering a long or short position always have a plan and stick to it. It is helpful to outline risk-reward parameters before buying or selling in the futures or futures options markets.

Decide how much capital you wish to risk and how much reward you desire. Always remember that risk should be a function of reward. The biggest mistake day traders make is that they either let profits become losses, or they take profits too quickly and allow losses to pile up. 

Remember that markets move for many reasons and you will not make money on every trade. Having a clear idea of where you will close a long or short position when it comes to profit or loss before you enter a trade will establish discipline in your approach.

It is wise never to risk more than you are looking to make. Another important rule is never to risk more than you are willing to lose and only allocate a small percentage of your total capital to any one position. This way, you will be able to afford to survive through periods where the market goes against you.

Commodity futures and options are highly leveraged vehicles that trade on highly volatile assets. Therefore, always be sure to have a plan and stick to that plan. Books on day trading can be very helpful, but no book can teach the discipline that a day trader needs to be successful.