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I have literally read hundreds of trading books. Some were good, some were downright bad and a select few were amazing.
Here is a list of the best of the best trading books that I have compiled from my experience and suggestions for other traders.
This is not your typical list of trading books.
The usual suspects are here, for sure.
But I've found some amazing trading books that don't get the attention that they deserve.
So look this list over carefully or you might miss something ๐
Market Wizards
By Jack Schwager
This is the book that started it all for me. I think that it is one of the best books on trading for beginners because it gives you a broad introduction to trading, in an entertaining and inspirational way.
You will see how many of these Traders started out with nothing and through sheer determination and smarts, became some of the best Traders in the world, in some cases, managing billions of dollars in assets. Find out what makes them tick, their huge failures and how they finally got to where they are now.
The Traders interviewed in this book include: Bruce Kovner, Richard Dennis, Paul Tudor Jones, Michel Steinhardt, Ed Seykota, Marty Schwartz, Tom Baldwin, and more!
Packed with the same insights and inspiration as the original Market Wizards, but with new crop of successful Traders.
One of the most educational sections of this book features conversations with some of the original Turtles. If you aren't familiar with the Turtles, then see Way of the Turtle below. For me, it was the first time that I realized that even though a group of people were taught the exact same trading system, they would usually have entirely different results.
This book is packed with many other similar lessons and is one of the best trading books to read.
My favorite Traders in this book were: William Eckhardt, Linda Raschke and Stanley Druckenmiller.
I read it early in my trading journey and it changed how I looked at trading and traders. Before reading this book, I didn't know if it was possible to trade for a living.
But as I read through the chapters in this book, I started to believe that is is possible.
…and that in itself is the first step towards trading mastery.
This one is not as well known as some of the other books on this list, but I really enjoyed it.
I believe that books about Trader experiences and psychology have much more value than books that just talk about entries and exits.
Don't let the cheesy cover fool you. In the same vein as the Market Wizards books, this book focuses on the bad things that happen in trading and how these otherwise amazing Traders met their match in the markets.
In these Trader interviews, you will learn what led to these massive blow ups and how these traders came back from them.
Amazing Life of Jesse Livermore: World's Greatest Stock Trader
By Richard Smitten
Seriously, forget about Reminisces of a Stock Operator. Since that book is supposedly based on Jesse Livermore anyway, why not just read the real biography?
If you want to find out how Livermore traded stocks (in his own words), read: How to Trade in Stocks.
Livermore is considered one of the best stock traders of all time, but I think that he was actually one of the worst traders of all time. Sure, he made millions and had all of the material possessions anyone could want.
But he also lost all of his money on several occasions and ended up committing suicide.
I recommend this book because it's a case study into why we need to keep our trading psychology in check. It's also a rare glimpse into the everyday life of a bonafide Wall Street legend.
Naked Forex: High-Probability Techniques for Trading Without Indicators
By Walter Peters and Alex Nekritin
Looking for simple trading strategies that actually work? This book is at the top of my list of best currency trading books. The trading strategies in this book strip away all of the trading indicators that are present in most other trading systems.
More importantly however, Walter has built an active community around these trading strategies and has proven time and time again that these methods work, if you put in the work to master them.
I consider this one of the most influential Forex trading books ever written.
This book is just plain fun…but you do learn some valuable lessons too. This is one of the best books to learn the stock market or trading any market, for that matter.
Darvas was a world famous dancer who had zero stock market experience. But he ended up turning $10,000 into $2,000,000 in 18 months.
How did he do it?
I think you will find his method surprisingly simple. It's a great lesson in not overcomplicating your trading system.
This book is also a great inspiration for those of you who think that you need a fancy degree to do well in trading. Not so.
Trading Chaos: Maximize Profits with Proven Technical Techniques
By Bill M. Williams
If you are comfortable with an aggressive trading system that adds to winning trades, then this just might be one of the most aggressive systems ever.
But there is a method to this madness.
Over the years, Bill has pioneered several trading indicators and has taught many students how to use them successfully.
Like any other system, this is not for everyone.
But if you like the idea of being super aggressive and having huge winning trades, then this book could give you some ideas. Learn how to trade Bill's method in this book.
The thing that I like the most about this book is that is shows us that we have to be ready to adapt to change.
Lewis was already a successful futures pit trader. But then the game changed. As pit trading started to get phased out, in favor of electronic trading, he realized that he need to adapt, or his livelihood would soon go away.
There are also some great tips on day trading psychology and strategies that you could only get from a true trading veteran. His path had its ups and downs, but learn how he figured it out.
Trading Price Action Trading Ranges: Technical Analysis of Price Charts Bar-by-Bar for the Serious Trader
By Al Brooks
“Al Brooks has written a book every day trader should read. On all levels, he has kept trading simple, straightforward, and approachable. By teaching traders that there are no rules, just guidelines, he has allowed basic common sense to once again rule how real traders should approach the market. This is a must-read for any trader that wants to learn his own path to success.”
–Noble DraKoln, founder, SpeculatorAcademy.com, and author of Trade Like a Pro and Winning the Trading Game
Final Thoughts on the Best Trading Books of All-Time
So those are the best trading books that I know of.
A good trading book is worth its weight in gold and can give you the knowledge that can help you get to the next level in your trading. The best part is that used trading books can be purchased for cheap.
Take advantage of these amazing resources and don't skimp on your trading education.
Now that you are finished with this list, here are some other useful resource lists:
Sounds like you and me have similar goals and read similar books. I have read Jesse Livermore, Elliott Waves, WD Gann, Robert Kiyosaki (all his books), own Cashflow 101, Market Wizards books, and a few other trading psychology books (but cant remember the titles as I need to dig them out of retirement). Hopefully when i catch up on my knowledge, we could trade experiences and knowledge to be successful trades together. ๐
Hi Hugh
Sounds like you and me have similar goals and read similar books. I have read Jesse Livermore, Elliott Waves, WD Gann, Robert Kiyosaki (all his books), own Cashflow 101, Market Wizards books, and a few other trading psychology books (but cant remember the titles as I need to dig them out of retirement). Hopefully when i catch up on my knowledge, we could trade experiences and knowledge to be successful trades together. ๐