Top Books Every Trader Should Read.Apr 03, 2022
Many people would like to learn how to become successful traders, however trading and investing are not subjects commonly addressed in either high schools or colleges in the United States. Thankfully, a wealth of excellent books are available on every aspect of trading for those with the desire and motivation to teach themselves the craft of trading. These books, and many others, can provide in-depth information on the complexities of investor trading from basic how-to tips to the psychology behind making investments.
"Reminiscences of a Stock Operator," written by Edwin Lefèvre and published in 1923, is possibly the single most recommended book for aspiring traders and investors. The book is a fictionalized account of the life of the man considered by many to be the greatest stock trader of all time, Jesse Livermore, presented as the main character, Larry Livingston, in the book. This book, which is also noted as simply a good read, is one of the few attempts at a detailed biographical account (albeit fictionalized) of one of the famous investors in stock market circles in the early 20th century and provides interesting insights into Livermore's self-education as a trader. The book is also filled with numerous pearls of wisdom on trading that are still often quoted today. A highly recommended read especially since much of the ideas mentioned are ideas that can relate to how to trade in current modern market conditions.
Next on is the list is "A Random Walk Down Wall Street." Although this book talks negatively about using either technical analysis or fundamental analysis it is still a great book for traders, simply because it goes over the importance of investing for the long term. Far too many individuals get into trading in the market and neglect the power of long term investing. On top of compound interest, and tax benefits of the buy and hold strategy, every trader should also become an investor this way they can always participate in the market and not always battle timing the market.
Another great book for trading is "Essential Technical Analysis, Tools And Techniques To Spot Market Trends." This 383-page tome covers technical analysis (TA) from many perspectives. For the investor or trader who is new to TA this book will have to be read a few times so that the critical concepts sink in. It is not the most complete book on the subject, nor the simplest one to understand, but right in the middle. For those readers with a basic knowledge of the subject who are looking for a review of the key concepts and tools, this book provides an excellent refresher with many detailed charting examples to make the teaching points. This book go overs a varieties of different types of charts, trendlines, support and resistance, trading ranges, patterns and much more. Overall this book offers a solid background on the tools of TA, and how to interpret the charts and related factors. As such it will aid the investor/trader (who seriously studies the subject matter) to make better informed investing/trading decisions.
Lastly on this list is "Market Wizards." The author Jack Schwager has put together two very popular books on trading: "Market Wizards" and "The New Market Wizards." Both books consist of interviews with some of the most successful traders of the past half-century, such as Paul Tudor Jones, the billionaire founder of Tudor Investment Corporation. It is often argued that the best way to learn any craft or occupation is to be mentored by people who have already attained success in the field. Schwager's books offer readers the opportunity to pick up some mentor-like advice from very successful traders. The interviews offer both interesting biographical information on the interviewees and exposure to a wide variety of investing strategies.
Although these are great titles to read for anyone who is a trader, there is a multitude of great information in other books and learning material out there. You can also find these books and many more on audible which is an online audiobook and podcast service that allows users to purchase and stream audiobooks and other forms of spoken word content.
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