Top 10 Futures Trading Books [Updated 2021]
Below is the list of Top 10 Best Futures Books worth reading and learning from.
- A Complete Guide to the Futures Market ( Get this book )
- Futures Made Simple ( Get this book )
- Following the Trend: Diversified Managed Futures Trading ( Get this book )
- Candlestick Charting Explained ( Get this book )
- Encyclopedia of Chart Patterns ( Get this book )
- Fundamentals of Futures and Options Markets, 8th Edition ( Get this book )
- Trading Commodities and Financial Futures ( Get this book )
- Technical Traders Guide to Computer Analysis of the Futures Markets ( Get this book )
- Getting Started in Futures ( Get this book )
- Schwager on Futures: Technical Analysis ( Get this book )
Let us discuss each of the Futures books in detail, along with its key takeaways and reviews.
#1 – A Complete Guide to the Futures Market
by Jack D. Schwager
One is required to have a complete grip on the realities and nuances of the Futures market for successful trading. This futures book offers genuine investors and traders the essential tools to be on the profitable side of the ledger. It offers all insights, including trading systems, technical analysis, and fundamental analysis of optionsOptionsOptions are financial contracts which allow the buyer a right, but not an obligation to execute the contract. The right is to buy or sell an asset on a specific date at a specific price which is predetermined at the contract date., spreads, and practical trading principles.
The following aspects of the futures market are successful covered:
- In-depth analysis of multiple trading and analytical approaches such as technical indicators and trading systems, chart and regression analysisRegression AnalysisRegression analysis depicts how dependent variables will change when one or more independent variables change due to factors, and it is used to analyze the relationship between dependent and independent variables. Y = a + bX + E is the formula., etc.
- It helps in avoiding market myths from real-life scenarios.
- A simplified step-by-step instruction for the robust development of original ideas and systems and how to test them successfully.
- Easy to understand illustrations from a wide range of options trading strategies and explain its implications for each of them.
- A detailed explanation from a wide pool of practical trading guidelines and market insights from an established and recognized trading authority.
This top futures book is prepared in a clear and concise manner with an easy to understand language offering a solid foundation on futures markets, detailed key analysis, and forecasting techniques, exploring advanced trading concepts, and providing real-life examples from the market to understand the implications of the learned concepts.<< Get this book >>
#2 – Futures Made Simple
by Kel Butcher
This futures trading bookTrading BookTrading book is the type of book maintained by the bank, financial institution or a stockbroker banks for recording the transactions of the clients who have given them an opportunity to act as the broker or middle person for dealing in securities. is an uncomplicated version for traders at any level of experience desiring to move into futures trading. It offers expert advice and fundamental guidance for profitable investing. It lays the essential aspects such as what the futures are, how the exchanges are functioning, analysis of the markets, and execution of the futures online or offline. The highlights are:
The highlights are:
- A simplified entry-level guide to futures trading
- The contents are from the experience of a successful trader in equities, futures, options, and other financial products.
- Featuring practical and simple examples and bulleted summaries of key points to further simplify learning.
This book on futures trading outlines basic and complex strategies that investors can use to multiply limited money in the market of futures. One is not even required to hire a financial advisor for further guidance.<< Get this book >>
#3 – Following the Trend: Diversified Managed Futures Trading
by Andreas Clenow
This futures trading book is a highly educational, statistical, and valuable guide written by an experienced Futures Fund manager for anyone who is looking to commence their own funds. It provides fine level detail on the core principles of Diversified Trend following. It can be highlighted as a potential roller coaster ride with the positive and negative angles of trend following.
One must have always observed a group of hedge fundsHedge FundsA hedge fund is an aggressively invested portfolio made through pooling of various investors and institutional investor’s fund. It supports various assets providing high returns in exchange for higher risk through multiple risk management and hedging techniques. or other exotic products which must have outperformed in all kinds of conditions and volatility. The traders will never reveal their strategies and proprietary tradingProprietary TradingProprietary trading refers to the process adopted by the commercial banks and financial institutions to earn profits by investing their funds in the financial instruments rather than making commission by trading on behalf of their clients. algorithms. This book will reveal such tactics and its implementation with relatively simplistic models. Such traders are generally Cross Asset Future Managers, also known as CTA.
This futures book aids in focussing on the wrong things such as buy and sell rules and the importance of trend following. The focus is not necessarily to follow stringent trading rules which have been traditionally established. One may have to take sufficient risks during choppy market conditions and take actions accordingly. By analyzing the trend of performance and attribution on year on year basis, readers will be able to build a deep understanding of how to trade futures on a large scale is and how to identify various problems and opportunities.<< Get this book >>
#4 – Candlestick Charting Explained
By Gregory Morris
This futures book will mould the subjectivity of the Japanese Candlestick analysis by providing the readers with standardized and straightforward coverage of 89 powerful candle-stick charts pattern. It will indicate current trader behaviour and how one can use each of these patterns to instantly improve market knowledge and analytical abilities. The important components covered are:
- Allowing instant analysis of investor attitude and expected market direction
- Established methods for integration of candlesticks with traditional Western Charting analysis for enhanced signal verification.
- Real-life insights into the psychology of the traders and how does it impact the buyers and sellers.
For millions of traders around the globe, candlesticks have become a key tool in the creation and verification of trading signals, and this is the only book one requires for the integration of proven versatility and effectiveness in the technical trading program. It is an in-depth exploration of traditional as well as all-new candlestick charts expressing a logical, understandable, and profitable component of the current trading program. With respect to each of the candlesticks, the following components are covered up:
- Commentaries giving detailed explanations
- Rules of Recognition
- Scenarios and Psychology behind the pattern
- Pattern Flexibility
- Pattern Breakdown
- Related Patterns
- Sufficient and real-life examples
#5 – Encyclopedia of Chart Patterns
by Thomas Bulkowski
This encyclopedia is a deep dive understanding of various aspects of technical trading providing enhancement with new performance statistics for both bear and bull marketsBull MarketsA bull market occurs when many stock prices rise 20% from a recent low for an extended period. In addition, it is expected that prices will continue to go up. The bullish phase marks an increase in investor's confidence, corporate profits, reduced unemployment, and an improving GDP. and 23 new patterns inclusive of a second edition devoted to 10 event patterns. Overall, it is roughly a 1000 page book containing 53 chart patterns plus 9 more event patterns, which largely covers up all possible combinations within technical trading. Some of the event patterns are:
- Broadening Formations (Right Angled Ascending/Descending)
- Cup with Handle
- Island Reversals
- Double Tops (Eve and Adam/Eve and Eve)
- Dead Cat Bounce/Inverted
- Stock Downgrades/Upgrades
- FDA Drug Approvals
In a nutshell, this futures book provides raw information on how the good and bad patterns are and what does the movement of each chart depicts. The various financial events such as Quarterly Earnings announcement, retail sales, stock upgrades, and downgrades will have an impact on the share price of the firm, which will also be reflected in the various kinds of chart patterns. This book will teach the readers how to interpret the same in all kinds of scenarios and also during the normal course of business.<< Get this book >>
#6 – Fundamentals of Futures and Options Markets, 8th Edition
by John C. Hull
This futures book is predominantly targeted towards students pursuing a career in financeCareer In FinanceA appropriate degree, such as a B. Com, CPA, or MBA, is required to pursue a career in finance. Then one can choose from a variety of financial careers such as equity analyst, investment banking, asset management, risk management, corporate finance, and so on. and would like to have a very strong base on Futures and Options. Current and aspiring professionals can also make use to have a broader perspective on the products. This top futures book is packed with numerical examples and accounts of real-life situations, thereby effectively guiding the readers on the material and equipping them with essential knowledge and skills to combat the working world.
It offers a clear overview of the topic without the use of calculus or any complex models. Some of the components covered are:
- Mechanics of Futures Market
- Hedging strategies using futures
- Determination of forwarding and Future Prices
- Interest Rate Futures
- Swaps in FinanceSwaps In FinanceSwaps in finance involve a contract between two or more parties that involves exchanging cash flows based on a predetermined notional principal amount, including interest rate swaps, the exchange of floating rate interest with a fixed rate of interest.
- Mishaps from the use of Derivatives and learnings from them
It is also covering up some important aspects of being abreast with the changing requirements in the financial marketFinancial MarketThe term "financial market" refers to the marketplace where activities such as the creation and trading of various financial assets such as bonds, stocks, commodities, currencies, and derivatives take place. It provides a platform for sellers and buyers to interact and trade at a price determined by market forces., such as:
- The changes taking place in the manner OTC derivativesOTC DerivativesOver the counter (OTC) is the process of stock trading for the companies that don't hold a place on formal exchange listings. The broker-dealer network facilitates such decentralized trading of derivatives, equity and debt instruments. are traded
- New non-technical explanation of the Black-Scholes-Merton formula
- Reflecting the importance of Principal protected notes
- Understanding of various exotic optionsExotic OptionsExotic options, as the name suggests, are more complex variations of the simple vanilla options, in terms of trigger points, payoff determination, expiry, underlying assets and other such features. They are designed to suit to the needs of the partaking investors and therefore sell through the Over-the-Counter (OTC) market., including a discussion of cliquet and Parisian options.
- Enhancement on the use of Credit Derivatives and its importance in the market.
- Value at Risk explained with real data example supplemented.
#7 – Trading Commodities and Financial Futures
by George Kleinman
This best futures trading book is a masterpiece on how to handle the trading of commodities as well as Futures Contract in the world of derivatives. It offers an insight into how trading psychology functions in a high-frequency computer trading world and how to avoid the latest pitfalls. Extensive coverage of electronic trading is offered with present level contracts and advanced trading techniques, including the author’s exclusive Pivot Indicator approach.
It has the updated information on algorithmic tradingInformation On Algorithmic TradingAlgorithmic trading is an automated buying and selling process with a programmed algorithm to determine the price, volume and timing of order. Algo-trading is a high-frequency trading technology that enables the exchange of stocks and other assets in the financial market., peculiarities of electronic trading, and all aspects which a new or veteran trader is required to dominate the market using a step by step guide. The guide is written in a straightforward, easy-to-read style, which makes it interesting and exciting.
The author also exactly reveals how the commodities markets have evolved over a period of time and the consistent discipline to avoid choppy market conditions and manage the dangerous risks of the markets. It also magnifies the fact that one should include a decent amount of commodities in their overall portfolio.<< Get this book >>
#8 – Technical Traders Guide to Computer Analysis of the Futures Markets
by Charles Lebeau and David Lucas
With the low cost of modernized computer hardware and software combined with communications on prices with the aid of satellites, regularly updated and expanding the market of traders making use of computers has developed rapidly. This top futures book helps in bridging the gap between basic instructions accompanied by software programs and what a trader is required to know for developing and maximizing the futures trading system.
With specific information on how to set up and use of computer-generated technical studies of the most popular indicators which include:
- How to build a trading system tailored to the specific needs of the trader
- Practical instructions on how to display and analyze technical information from the markets
- Offering advice for developing and disciplined money management with risk control strategiesRisk Control StrategiesRisk control is the activity of analyzing, interpreting, and assessing the business environment and decisions in order to minimize losses by detecting pitfalls and preventing businesses from falling victim to calamities, hazards, and avoidable losses..
- Techniques to be adopted for monitoring of trading systems for detection if something has gone wrong before any mishap occurs.
The authors are real-life traders with many years of experience, giving an in-depth insight into the most common indicators and oscillators used in the market. Most of the indicators which are essential to be learned about while operating the trading systems have been highlighted, and real-life studies for each technical indicator have been provided along with its performance under different conditions.<< Get this book >>
#9 – Getting Started in Futures
by Todd Lofton
The author has made use of simple and easy to understand terms on everything one is required to know for the successful trading of futures. One will learn all the basics of futures as well as other critical components such as:
- Accurate forecasting of prices
- Understanding the mechanics of hedgingHedgingHedging is a type of investment that works like insurance and protects you from any financial losses. Hedging is achieved by taking the opposing position in the market. and conditions under which it should be implemented
- Taking advantage of the new electronic trading opportunities
It highlights the role of futures markets in foreign currencies, equity indexes, interest rates, and smooth management of money. It also displays an intelligent manner to understand all the complex financial strategies in an organized manner.
Some critics have argued in the book not providing sufficient examples of techniques like calling spreads and triangle formation and also limited information on money management; this book is a definite read for beginners. It can also be used as a referencing guide for experienced traders in the future.<< Get this book >>
#10 – Schwager on Futures: Technical Analysis
by Jack Schwager
The author, Jack Schwager, is perhaps one of the most visible and iconic figures in the futures industry today. Through this best futures trading book, the author has created one of the most comprehensive guides to understand and use technical analysis for the trading of futures. It offers in-depth coverage of technical analysis from the perspective of a trader. The focus is not only on covering the subject but also on exploring ideas that practically can or cannot work in the markets. With the focus being on trading applications, the book will cover:
- Separate module for illustrations of chart analysis in the practical world
- Detailed illustrations on several original trading systems
- Insight on the understanding of cyclical analysis
- Highlighting the concepts and use of “continuous futures” while comparing 10-year continuous futures
- It also offers a completely separate section to understand the importance of trading strategies and philosophies, including more than 100 trading tips.
The text has been written in the most informative, insightful, and non-technical style to make the readers understand the most complex information and how to process them successfully. The beginning of this futures book is an elementary method but completely describes the basic technical techniques to be followed. The subsequent chapters talk about building trading systems using combinations of the techniques which were learned in the initial chapters. A fair amount of history lesson has also been provided as to how the methods were excavated. It provides a detailed analysis to the reader about the various methods and can convince them to adopt the methods because of possible successes involved.
Here is the guide to Top 10 Futures Trading Books to read in 2021. Here we what those books propose, their reviews & key takeaways. You may refer to the following books to learn more –
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