After reading several hundred trading books I have come to the conclusion that the vast majority are a complete waste of time. However the 10% or so that are good can be life changing and improve your trading dramatically. In looking through my trading library for life changing books, checking out the top sellers on Amazon, and checking the rankings for past polls I have done on trading books here are the books I consider the best ever written.
Market Wizards, Updated: Interviews With Top Traders : In this classic book Jack Schwager sits down to talk to some of the greatest traders in the world and edits the interviews to share their wisdom with all traders.
Reminiscences of a Stock Operator : You know a trader is serious if he has read this book. This almost century old book was the birth place of much of the trading wisdom that still works to this day. A cloaked autobiography of Jesse Livermore that is a fun read and can improve your trading.
How to Make Money in Stocks: A Winning System in Good Times and Bad, Fourth Edition: This is the how-to manual for trading growth stocks from both a fundamental and technical aspect. This book continues to go through updates and improve over the years.
Trend Following (Updated Edition): Learn to Make Millions in Up or Down Markets: This is the trend followers bible. Once you understand to quit trying to predict and instead trade with the actual trend in your market everything changes.
Trade Like a Casino: Find Your Edge, Manage Risk, and Win Like the House : In the markets the 10% of profitable traders are actually exercising an edge over the 90% that lose money. The winning traders operate like a casino and the unprofitable traders act like gamblers with the odds stacked against them.
The New Trading for a Living: Psychology, Discipline, Trading Tools and Systems, Risk Control, Trade Management : Alexander Elder brings all the components of successful trading together here in his landmark book. A profitable trader must manage their mind, manage the risk to their money, and create a robust method. If one is missing nothing else will work either.
Trade Your Way to Financial Freedom :This book covers all the necessary elements of successful trading in great detail. The explanation of the mathematical risk of ruin is one of the most important lessons in the book and can change a traders course to success.
How I Made $2,000,000 in the Stock Market : The rare true story of how an ordinary guy made millions trading the right stocks with the right timing, in the right market. An inspirational story that has many principles that foreshadow trend following.
Stan Weinstein’s Secrets For Profiting in Bull and Bear Markets : This is a great book that gives traders actionable ideas on how to trade markets step by step. A great place to start learning the mechanics of real trading.
I am sure you have heard the term ‘do your homework’ thrown around by more experienced traders. This is a big part of what they are talking about. Learn the right principles, learn some history, learn how to manage yourself and implement winning systems with discipline. These books are a great place to start.