Would you like to learn more about the basics of trading by market technique? If you want to understand how prices are formed on the exchanges, I recommend:
"Das große Buch der Markttechnik" ("The Big Book of Market Technique") by Michael Voigt (German edition)
This book also describes the influence of the various market participants on trading in an easy-to-understand way.
What I find particularly interesting is that a storyline runs through the book like a novel. The technical content fits into the development of the main character into a professional trader. The way Mr. Voigt conveys the expertise, even to beginners, is truly remarkable in my view. Many easy-to-understand examples give the reader an understanding of the market. The section on how a price comes about alone delighted me with its vivid explanation.
Experience the market step by step
It starts with a young man who wants to learn market technique through an internship at a trading office. Here the reader is picked up in their own desire to trade in the markets. Because the story is told in the style of a novel, you can empathize with the situation as a reader. Then you are open to the homework given by the experienced colleagues, each of which represents a section of the technical part.
This approach is developed further in the accompanying workbook on market technique. There the trader learns, through the tasks set, to discover their own trading style.
Find your way
Besides the important connections in the market, there is one more key message of the book. The reader is introduced to the influence of character and psychology on their trading. Knowledge of charts, pricing, market participants, and the order book is fundamental. But the best system is of no use once emotions come into play.
Since the markets are driven primarily by fear and greed, it is important to be able to recognize these phases. Panic and euphoria are often named as well. The value of a stock is also determined in part by investors' expectations about the company's future development.
By reading the book you gain valuable basic knowledge. This also helps you understand the strategies presented elsewhere. With this knowledge you then set off on your journey through the markets. Once you have found your style, the journey is certainly not over. The many facets of trading encourage constant learning.
This article is for information purposes only and does not constitute investment advice.