As traders, we must have basic trading knowledge before starting to trade. Trading knowledge covers a very wide range, including technical analysis, trading psychology, economic principles, and other aspects of knowledge. The purpose of trading is to combine this knowledge to establish our own trading system and achieve our trading goal. If traders start trading without having the most basic knowledge, they are essentially treating the market as a casino where this approach is not trading but gambling.

We'd like to share three entry-level books that are perfect for beginners who want to learn more about trading.

1. Japanese Candlestick Charting Techniques 

Japanese Candlestick Charting Techniques was published in 1991 by Steve Nison. This book systematically introduced K-line charts to the western financial world and triggered a revolution in candlestick chart technology for securities investment. For this reason, Steve Nison is hailed as the "father of the modern candlestick chart" by Western financial circles. However, he is not the founder of K-line charts, but the first investment expert to systematically introduce Japanese candlestick charts and securities technology to the West.

The book explains in detail how candle chart technology is based on a series of candle lines that combine different trend patterns. By analyzing the data of these patterns, traders can draw relevant conclusions and use this data to predict the future trend of the market. Candlestick chart technology can be used to analyze bull markets or bear markets in the securities market, as well as to identify the best entry and exit points. With this information, traders can accurately navigate the market.

2. Reminiscences of a Stock Operator

Edwin Lefèvre's Reminiscences of a Stock Operator chronicles the life of legendary trader Jesse Livermore. Through this book, we gain insight into the principles and actual trading strategies used by Jesse Livermore, as told from his own perspective. The book also provides a detailed account of the ups and downs of his life as a trader, making it a valuable reference for beginners who are new to the trading market. It is important to extract the essence of his methods while avoiding the mistakes that Jesse Livermore made. Doing so can help develop a strong trading mentality.

3. Basic Economics : A Common Sense Guide to the Economy

Basic Economics: A Common Sense Guide to the Economy by Thomas Sowell thoroughly explains the basics of economics. Economics encompasses resource allocation, supply and demand, policy impact, and more. Understanding these principles enables traders to build a comprehensive network of relationships. For instance, it helps them understand how policies affect supply and demand, which leads to changes in economic data. With a complete network of relationships, traders can logically infer and predict possible trends in advance. Therefore, it is crucial for traders to understand the logic and principles behind the entire economy.

The content covered by the above three books is different, which makes them very beginner-friendly. If you have read all three books and want to test their principles through trading, but you are afraid of losses, there is no need to worry. VC Plus provides users with a demo account, allowing you to test your trading system continuously without risking real money.

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Trading is a long journey, and no trader can remain invincible all the time. Trading strategies must adapt to changing times. Therefore, as a trader, remember to keep learning and never stop improving.