READ AND RECOMMENDED
The five I named live on the founding webinar, plus the two price-action books from my own foundation. Original notes are pulled from what I actually said on camera.
01 · TRADING PSYCHOLOGY
Reminiscences of a Stock Operator
Edwin Lefèvre
Wiley Investment Classics paperback (2006 edition). ISBN 978-0471770886. Fictionalized account of Jesse Livermore.
Why Flow recommends it
Written in 1923 and still the best book on the psychology of getting in and out of trades. Livermore made and lost four fortunes. Every fortune was a lesson and every loss was a scar. This is where I first learned that the move is in the volume, not the price. I read it about once a year.
Who it helps
Anybody who trades actively and keeps repeating the same emotional mistake. If you have ever chased a move or refused to take a loss, this book has your name in it.
One takeaway
Watch what the volume does at a price level before you trust the price. Big money leaves footprints.
Original notes
"That is a very, very old book, but they rewrote it to where we understand it today. It's about Jesse Livermore. Jesse Livermore was probably the coldest trader. And what he noticed was that it wasn't even about price, it was about volume."
Flow, founding webinar, at 45:24
Next step: this book is about reading a move before you commit. BEFORE YOU BUY gives you three checks to run before you put money on any stock.
02 · STOCK VALUATION
One Up On Wall Street
Peter Lynch with John Rothchild
Simon & Schuster paperback, revised edition (April 2000). ISBN 978-0743200400.
Why Flow recommends it
How to value a stock without a finance degree. Lynch ran Magellan from twenty million to fourteen billion doing exactly what he describes in here. He coined the ten bagger. His whole philosophy was that he would not put money in a stock unless he expected it to go up ten times, and he laid out the criteria for finding those companies.
Who it helps
The beginner who wants to pick companies instead of guessing tickers. Also the person who keeps buying a $10 stock because it looks cheap.
One takeaway
Know what the company does and how it makes money before you own a piece of it. If you cannot explain it to a friend, you are not investing yet.
Original notes
"One Up On Wall Street is on how to value a stock. Peter Lynch is a very famous investor. He coined the term ten bagger. It's a very great read and it's not hard to read at all."
Flow, founding webinar, at 45:59. Also referenced on The Heavy Returns Show EP 1 at 11:53.
Next step: Lynch's method is the reason BEFORE YOU BUY exists. Run the three checks on the next stock somebody tells you to buy.
03 · TRADING PSYCHOLOGY
Trading in the Zone
Mark Douglas
Prentice Hall Press hardcover (January 2001). ISBN 978-0735201446. Also on audio, which is how I suggest taking it in.
Why Flow recommends it
The book that fixed my all-or-nothing brain. Douglas conditions you to think in probabilities instead of certainties and to focus on the trade in front of you, not the one that already passed. It is the number one book on trader psychology and it is better listened to than read.
Who it helps
Anyone who blows up accounts by holding winners to zero or selling at the first green tick. Read it before you put another dollar on a 0DTE.
One takeaway
Any single trade can lose. Your edge only shows up across a series of trades, so size every position like it is one of many.
Original notes
"He's conditioning your mind to focus on the trade that's in front of you, forget what already passed, and not being greedy and not being fearful. It's all about the psychology and that book is the number one book on trader psychology."
Flow, founding webinar, at 46:28
Next step: the discipline side of trading. Read the 0DTE options guide for how Flow structures risk on the fastest trades there are.
04 · BEGINNER INVESTING
The Motley Fool Investment Guide
David Gardner and Tom Gardner
Simon & Schuster paperback, third edition (2017). ISBN 978-1501155558.
Why Flow recommends it
A funnier version of Peter Lynch. The Gardner brothers walk you through finding quality companies and then leaving them alone. It is more up to date and it is written for the everyday person. This is honestly the best beginner book to read because it is enjoyable and they break it down so anybody can understand it. It taught me to leave the long-term bucket alone.
Who it helps
First-time investors who want the full picture of how Wall Street works before they open an account.
One takeaway
Buy quality companies you understand, then give them years, not weeks. Time in the market beats timing the market.
Original notes
"They're more comical and they give you more insight on how Wall Street works. It's more up to date and they're more for the everyday person. The Motley Fool Investment Guide is probably the best beginner's book to read because it's enjoyable."
Flow, founding webinar, at 47:32. Cut into the Short "The only book you need to quit being broke."
Next step: if this is your first book, YOUR FIRST $500 is your first plan. Free guide, five questions, one page you can save to your phone.
05 · LONG-TERM INVESTING
The Essays of Warren Buffett
Warren Buffett, arranged by Lawrence A. Cunningham
Lessons for Corporate America, fifth edition (Carolina Academic Press, 2019). ISBN 978-1531017507. The letters themselves are free on the Berkshire Hathaway site.
Why Flow recommends it
Buffett's annual shareholder letters, reorganized by topic instead of by year. Cunningham took decades of Berkshire wisdom and stacked it by theme. Buffett talks about everything from management to revenues to the formulas he uses. It is the cheat code for swimming in his thinking without spending a month on every letter.
Who it helps
The investor who wants to own businesses for a long time and needs a mental model for what a good business looks like.
One takeaway
Price is what you pay and value is what you get. Read the letter about the business before you read the chart about the stock.
Original notes
"Every single year for his shareholders he would write a letter, an annual letter, where he broke down terms, insights, and a lot of the ways that he invested. There was so much that I learned from him."
Flow, founding webinar, at 48:49. Also the Short "Buffett Reveals His Entire Strategy Every Single Year."
Next step: Buffett's patience needs a plan behind it. Start with YOUR FIRST $500, then run BEFORE YOU BUY on your first pick.
06 · TAPE READING
A Complete Guide to Volume Price Analysis
Anna Coulling
Paperback (2013). ISBN 978-1491249390.
Why Flow recommends it
This is the book I keep telling members to buy. Livermore taught me the idea that volume tells the story. Coulling taught me how to read it candle by candle. It is why I can see a move setting up before the candle finishes printing.
Who it helps
Active traders who stare at charts and still feel like they are guessing. Especially anyone who day trades index options.
One takeaway
Volume validates price. A breakout on weak volume is a question, not an answer.
Original notes
Flow names this book as one of his foundational reads for tape reading and brings it up on the founding webinar around 37:23 when he explains the three inputs he trades from.
Source: heavyreturns.com/about and the founding webinar
Next step: put the charts up. Flow uses TradingView every day. See the tools page for how to start on the free plan.
07 · PRICE ACTION
Naked Forex
Alex Nekritin and Walter Peters
Wiley hardcover (2012). ISBN 978-1118114018.
Why Flow recommends it
The price-action foundation. Strip the indicators off the chart and learn to read what price is doing at the levels that matter. The book is written for forex but the candles do not care what market you trade.
Who it helps
Anyone whose chart has six indicators and zero conviction.
One takeaway
Mark your levels first. Wait for price to react at them. Indicators confirm, they do not decide.
Original notes
Listed by Flow as one of the three foundational reads behind how he trades, alongside The Motley Fool Investment Guide and Coulling's volume book.
Source: heavyreturns.com/about
Next step: trading education. Read the 0DTE options guide and follow the HR Show for live chart breakdowns.