When compared with many other markets, futures trading offers lots of advantages for traders. It is not only the most liquid and advanced market out there but also provides a sophisticated type of trading with access to exchanges, a wide variety of assets, and asset trading with different expiration dates.
Not surprisingly, many traders prefer trading via the futures market. But with every good thing, there is a bad side – futures trading could also be a bit complicated compared to other markets. So you need to understand how futures contracts work, know what deliverable contracts are and the value of ticks, the reports you need to follow, and get familiar with the fees and commissions involved in futures trading.
What’s the best way to start then? Well, reading a book about futures trading could be a good idea. So, in this article, we suggest the top 8 books about futures trading and the futures market.
8 Best Books for Futures Trading
Here are top picks for futures trading books as of 2022:
1. A Complete Guide to the Futures Market: Technical Analysis, Trading Systems, Fundamental Analysis, Options, Spreads, and Trading Principles
Author: Jack D. Schwager
If you are a beginner who wants to get essential information about futures trading, this is your book of choice. A complete guide to the futures market is the most comprehensive book you can find about futures trading and the practical trading principles of the futures market.
This book, written by Jack d. Schwager, covers everything from fundamental and technical analysis to options trading and spreads.
With 720 pages, some say it is the bible of futures trading and the most detailed book newcomers can find. So, if you plan to start trading futures, this is certainly the most comprehensive book to read about the futures market.
Price: Between $33-$100
Best for beginners who want to start trading futures
2. Trading Commodities and Financial Futures: A Step-by-Step Guide to Mastering the Markets
Author: George Kleinman
Written by an experienced commodity trader George Kleinman who originally published this masterpiece in 2004, this book is a precious tool that every futures commodities trader must read.
The author explains in detail how the commodity futures market works and how it has changed over the years. Further, it provides information about practical trading guidelines and how to use different reports published by the Commodity Futures Trading Commission (CFTC)
In this book, you will learn how futures and options trading works and how to use advanced trading techniques to become a successful futures trader. To summarize, this book is among the most educational books for beginner futures commodities traders.
Price: Between $29.89 to $45
Best for all commodities futures traders
3. Day Trading Micro Futures for Income: The Beginner’s Gateway to Trading for a Living
Author: Don A Singletary
Here’s the thing about futures trading – it’s costly. Meaning the contracts are large, typically something around $100,000 or more. For day trading, you can use a margin, of course, but still, every tick has a high value and is one of the biggest challenges of futures trading. This is one of the primary reasons why most futures traders access the futures market via proprietary trading firms.
So, how can you solve this problem? Futures micro trading! Micro futures are basically smaller contracts of the popular and larger stock index futures contracts traded on the Chicago Mercantile Exchange (CME). If you are confused about it, just read the book above, and you will understand how to start trading micro-futures contracts.
Price: Between $9.95 to $18.95
Best for futures traders with low budget
Mimic how professionals trade. Discover your inner talent.
Learn everything you need to know about trading the markets from beginner level to the most advanced, helping you to create critical skills and techniques to you can apply in your trading right away.
4. Commodity Spread Trading – Volumes 1 & 2
Author: David Carli
Commodity spread trading is a specific trading technique in which traders buy and sell the same commodity but for contracts with different expiration dates, meaning trading the spread between the contracts. Because seasonality is an important concept for traders looking to trade commodity products, trading spreads is a highly profitable strategy.
Written by David Carli, Commodity Spread Trading is one of the best books that explains spread trading in the futures market. Even if you are not planning to entirely focus on spread trading strategy, we highly recommend reading this book to better understand the dynamics and mechanism of the commodity futures market.
Best for seasonal commodity traders
5. Technical Traders Guide to Computer Analysis of the Futures Markets
Author: Charles Lebeau and David Lucas
If you want to start with algorithmic trading and have no idea how to start, this book is for you. First, you must know that the futures market is a great place for computer trading due to the fast market executions, generous rebate programs offered by exchanges, tight buy and sell spreads, and relatively low fees and commissions.
So, if your goal is to automatically trade futures contacts using algorithmic trading, then this is an excellent book that shows a trader exactly what is needed to develop an automatic trading system. It essentially provides all the required information from setting up a computer trading system and using the proper technical analysis indicators to develop trading algorithms.
Price: Between $33 to $64
Best for traders who want to develop an automatic trading system in the futures market
6. Getting Started in Futures
Author: Todd Lofton
Another excellent book for beginner traders interested in trading futures is Getting Started in Futures by Todd Lofton. This book, which comes at a reasonable price of around $12, explains the futures market basics, including everything you need to know about the futures market and how to start your futures trading journey
At 304 pages, this book is one of the best for those who wish to learn the basics of the futures market, including how to forecast price movements, how hedging works, and how to understand the (new) electronic nature of futures exchanges.
Best for those who want to start futures trading
7. Schwager on Futures: Technical Analysis
Author: Jack D. Schwager
Schwager on Futures: Technical Analysis, written by Jack D. Schwager and published in 1995, is possibly the most recommended book for traders and investors looking for a comprehensive guide to technical analysis.
The book was written from the perspective of an experienced trader and provides users with lots of technical analysis tools and chart patterns to use in futures trading.
Crucially, Swagger, the author of some of the bestsellers’ trading books, gives his readers plenty of technical analysis tools and information to use in the futures market. It is an excellent book for those who make their first steps in the trading world but also for seasoned traders with experience and knowledge in trading.
Best for those who want to learn technical analysis and focus on futures trading
8. Mastering The Trade: Proven Techniques for Profiting from Intraday and Swing Trading Setups
Author: John F. Carter
Although this book does not entirely focus on futures trading, it is undoubtedly one of the best books to read about intraday and swing trading. And, because futures trading is mainly about intraday and swing trading, we highly recommend you read Mastering the Trade by John F. Carter.
Mastering the Trade is considered a classic book for understanding intraday and swing trading as it explores advanced trading concepts and market insights. The book offers plenty of day and swing trading strategies and advanced trading concepts, with many examples and over various types of markets. It is, therefore, precious for futures traders who typically engage in short-term trading.
Best for intraday and swing traders
In summary, futures trading is a complex and exciting form of trading one must understand before stepping into the field. Expectedly, there are many things to know, and this sort of knowledge could be handy to succeed as a futures trader.
One of the best ways to get familiar with the futures market and how it works is by reading one of our suggested futures trading books in the list above. Additionally, we suggest you visit our guide about top trading books and even watch a trading documentary film to educate yourself on how financial markets and the trading world work.
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