Whether you’re day trading or swing trading, these momentum investing books are a top read. Let’s look at a quick review of this style of trading. Then below, you’ll find the best books to learn more.
Momentum investing is a popular trading strategy. It can help you find and buy assets with rising prices. It’s like riding a wave. You jump in when prices are going up and get out before they drop. This strategy can bring big profits, but it requires skill and knowledge.
Want to learn how to ride the momentum wave? Start with the right books. We’ve picked the top three momentum trading books. These books share expert tips and real trading examples. You’ll learn many proven strategies to boost your trading skills.
Best Momentum Investing Books
1. Trading: Technical Analysis Masterclass
by Rolf Schlotmann and Moritz Czubatinski
This momentum book is a useful great guide for trading analysis. This is a core piece of learning how to trade based on momentum. This book also focuses on real trading use cases. Both authors are experienced traders and they share lots of insights and trading strategies. By reading this book, you’ll see how they find winning trades to profit. Trading: Technical Analysis Masterclass covers many different topics. You’ll fund chart patterns, indicators, and even trading psychology. This all works together to improve your momentum investing strategy. Even though it can seem complex, there are step-by-step rules for this analysis and using momentum in your own trading.
This is easily one of the best momentum trading books because it hones in on useful advice. The authors, Schlotmann and Czubatinski, show readers lots of real trading examples. And anyone can use these trading research techniques to improve. It helps uncover trading opportunities and better manage risk. With this trading book, you’ll find many tips and tricks for avoiding mistakes. A disciplined approach with your trading is a top challenge to overcome. By sticking to a strategy, you can better measure your process and results. If you haven’t already, click on the book covers. This will open up the Amazon book page and you can see more details. One source of useful insight also comes from the comments section. You’ll see reviews from other readers.
2. Technical Analysis of the Financial Markets
by John J. Murphy
This momentum investing book focuses on technical analysis. Written by John J. Murphy, it’s one of the best guides to technical analysis and finding momentum. This is why it’s become a common read in the industry. Although this book was published in 1999, its still plenty useful today. This trading book gives a better understanding of momentum trading concepts. You’ll find lots of different charts and patterns. This also includes many different indicators and trends. Murphy’s book is also good at covering many challenging concepts. He makes it easy for readers to understand complex ideas. This trend trading book is filled with real-world examples and case studies. This helps to see how you can use momentum to your advantage.
This is also one of the best books to read if you want to go deep into learning technical analysis. Murphy is an expert and his tips are invaluable for both short-term traders and longer focused investors. You’ll find a wide range of useful topics. For example, you learn about basic chart analysis and candlestick patterns. That’s just scratching the surface and there are many advanced techniques like Elliott Wave theory as well. For traders of all levels, “Technical Analysis of the Financial Markets” is a great book. With this in hand, you can improve your trading skills and become a better investor.
3. Charting and Technical Analysis
by Fred Mcallen
Charting and Technical Analysis is a great read for beginners. But not only that, it can help experienced traders improve upon the basics. The author, Mcallen, is an analyst and trader. With plenty of hands-on experience, he explains many complex concepts. Although, you’ll find them in simple terms. This book is easy for readers to get through and learn technical analysis for trading. The momentum investing book goes through chart analysis and other basic topics. For example, you’ll find many different trends, patterns, and indicators. With this book in hand, you’ll find a step-by-step guide to create and analyze charts.
This book also focuses on visuals. This can help with different learning styles and make the lessons more memorable. Mcallen shows lots of charts and diagrams that cover key momentum concepts. If you pick up this book, you see lots of useful technical analysis and trend finding. It also includes exercises and quizzes. This hands-on approach tests your understanding and can reinforce what you learn. If you want to learn more about momentum investing strategies, pick up a copy of Charting and Technical Analysis. It’s one of the best trading analysis books available. It’s a useful guide that can help build better momentum trading strategies.
Types of Momentum Investing Strategies
Most momentum traders focus on short-term trends. This could be buying and selling in a single day. Or if swing trading, the trends and strategy might focus on holding for a week or two.
As the time component changes, so should the momentum strategy. Holding a position for longer can lead to higher risk. There’s more opportunity for more data and news to affect the position. This is a key consideration for some of the world’s best momentum traders.
For long term momentum investors, they might focus on global macro trends. Or larger country and industry changes. They tend to play the long game and wait for mean reversion. For example, holding U.S. stocks for decades to avoid cashing out during a downturn.
What to Read Next to Become a Better Investor
There are countless investing strategies at play. And the best momentum investing books cover one core topic. If you want to become a better trader and investor, here are more lists of books to review:
Psychology is a recurring subtopic with the best momentum investing books. Improving how you think can help you avoid mistakes and lock in better trades. That’s why I’ve included that list of books as well. Feel free to check it out and once again, click on the books above for more details.