The best trading book for the best traders
The best trading books for the best traders
Based on my experience I would like to recommend the following books that have helped me a lot. Before I get into this list, I am warning those looking for a book on trading, how to trade, or how to become a better trader. Learning about trading via books is like reading an anatomy book and assume that after reading it you can do surgery. You need to read and deeply understand concepts first before you can try to use the knowledge towards building a trading career.
Use these trading books as a foundation, for ideas, but mostly for enjoyment purposes. I think you will find that your trading will drastically improve the day you decide to stop looking for the latest trading book, and “write your own book” on trading.
With that in mind, feel free to add your picks to the “comments” section, along with a sentence or two as to why you liked (or hated) them.
Market Wizards, Updated: Interviews With Top Traders
Chances are you will find this book on the shelf of any serious trader. They are without a doubt the most comprehensive collection of interviews with superstar traders ever published. This book is very informative about how different traders became very successful using their own tactics and systems. The average trader can make money off the markets if they learn how the market works and have money management skills. Despite the fact that the cover of this book has not been updated since it was published in 1988, stage analysis is still relevant today.
How to Make Money In Stocks: A Winning System in Good Times and Bad
As an unnamed trader friend of mine recently said, all you need to do is review the charts in the first 150 pages of this book and you will be good to go. These charts, along with O’Neil’s annotations, give you a great foundation to understand the patterns stocks form before they go on massive runs.
Reminiscences of a Stock Operator
All my fellow trader friends have read this book and it is fantastic. It wont give you technical analysis or fundamental analysis but there are definitely some foundational lessons for trading in this book. But you as the reader have to do the historical conversion in your head from venue’s like “bucket shops” to today’s market. A must read book for sure.
Trade Like a Casino
This book allowed me to think about markets in new ways and has enhanced overall performance, especially the chapter on minimizing trader regret. Really helpful and every trader involved in real trading must adapt to the casino paradigm or else your are lost.
The Trading Book: A Complete Solution to Mastering Technical Analysis and Trading Psychology
I came to know Anne-Marie (AM) from an educational webinar. I knew right away she was not the typical voice that I've come to expect in stock market education. She was unique, in a good way.
If you're serious about trading, and want to hear what you need to hear instead of only what you'd like to hear, you can't go wrong learning from AM's experience and exploring her system and methods. I've had many things to be thankful for in 2011, and discovering Anne-Marie is one of them.
Japanese Candlestick Charting Techniques
If you are serious about trading you need to have this book. I go to this book everyday and look for candles or combo candles I have seen on daily, weekly and intraday charts, so get it as soon as possible. There are a lot of books about candlestick charting, but almost all of them are derivative of Nisson’s tome. It goes through and explains the basic concepts, as well as the most relevant patterns related to candlestick charting.
Trade Your Way to Financial Freedom
Yes the title is cheesy and sounds like something from a late-night infomercial. But this book has one of the best overviews of the different types of methodologies you can use to make money in the market. But more importantly, it shows you how to go about formulating a methodology for trading in the markets. The information on risk and position sizing alone makes the book worthwhile. Please get it as soon as possible.
The Disciplined Trader & Trading In The Zone
These are the best books on trading psychology. I know traders who went from perpetual losers to consistent winners after reading this book. The way Douglas climbs into the psyche of a trader is scary, and there is a good chance you will wonder about how he managed to plant the hidden camera and microphones that he used to take notes on your trading deficiencies.
New Trader,Rich Trader 2: Good Trades, Bad Trades
This book blew me away, it is like eating a piece of candy; you will enjoy it so much but before you know it, it will be done.. I expected something helpful since the first book had lots of information, but the book was far more than just helpful. The Book added to my knowledge on the most important aspect about trading "how to change my mindset enough to become a consistently successful trader."