As one of the top trading book reviewers at Amazon.com, I am frequently asked “What books would you recommend for a new stock trader?” Below is a list of the top trading books from my library. Trading is about more than simply making bets, picking stocks, or even trading a system. Your success in the markets will be determined by your risk management and your mindset, rather than simple buy and sell decisions. You have to combine many principles in order to be success, and these books will show you how. A few questions that they answer:
- What principles do Rich Traders use to trade successfully?
- If you risk too much of your capital per trade, is there is a 100% chance you will fail eventually?
- How are Rich Traders able to deal with multiple losses in a row without getting too stressed or quitting?
- What kind of stocks rise in historical back testing, and when is the best time to buy them?
New Trader, Rich Trader – I wrote this book as a composite of the 200+ trading books I have read in order to give new traders a shortcut. This book has been read and approved by the best names in the business, among them Alexander Elder, Chris Kacher, and John Boik.
Trade Your Way to Financial Freedom -Van Tharp does a great job of getting to what really makes a trader successful. It is not all about the method and stock picks, but the right money management and psychology.
Trend Following – Michael Covel gives readers a an inside look at how some of the best money managers in the world.
Trading for a Living – Professional trader Alexander Elder shows others that they must manage three things to be a successful trader; money, mind, and method.
How to Make Money in Stocks – William O’Neil has spent his life producing some of the best returns in the markets. His method is not his opinion, it is based on how the best stocks performed in the market throughout history.