If you are serious about learning this skill on your own, make sure you finish all these books before you start putting your real money into the market. That was what I did when I started my trading career. This is just the bare minimum, and anything less is likely to end in failure. Even if you finish reading all these books, it is unlikely that you will be able to trade well.
There are many things which cannot be learnt from books, such as “market feel”, behavioral analysis, applied price action, and real trading psychology. These can only be learnt by paying “tuition fees” to the market (paper trading or demo trading is a waste of time), or learning from a real trader who has mastered these skills and get them to guide you. Investing in education is a small price to pay to help you avoid the costly mistakes in trading.
Best Books on Trading:
- The Secrets of Economic Indicators – Bernard Baumohl
- Freakonomics – Stephen Dubner & Steven Levitt
- The Undercover Economist – Tim Harford
- The Pocketbook of Economic Indicators – Manual Jesus-Backus
- International Economics – Paul R. Krugman
- Trader Vic – Methods of a Wallstreet Master – Victor Sperando
- The Trader’s Guide to Key Economic Indicators – Richard Yamarone
- One Up on Wall Street – Peter Lynch, John Rothchild
- How to Make Money in Stocks – William O’Neil
- The Alchemy of Finance – George Soros
- Hot Commodities – Jim Rogers
- Investment Biker – Jim Rogers
- Technical Analysis from A to Z – Steve Achelis
- Technical Analysis – Power Tools for Active Investors – Gerald Appel
- Bollinger on Bollinger Bands – John Bollinger
- Technical Analysis Demystified: A Self-Teaching Guide – Constance Brown
- All About Technical Analysis : The Easy Way to Get Started – Constance Brown
- Technical Analysis for the Trading Professional – Constance Brown
- Fibonacci Analysis – Constance Brown
- Mastering the Trade – John Carter
- Trend following – Michael W. Covel
- Trend Commandments – Michael W. Covel
- The Complete Turtle Trader – Michael W. Covel
- How I made $2,000,000 in the Stock Market – Nicolas Darvas
- Understanding RSI – Edward Dobson, Roger Reimer
- Integrated Pitchfork Analysis – Mircea Dologa
- Technical Analysis of Stock Trends – Robert D. Edwards, John Magee
- Entries and Exits – Alexander Elder
- Trading for a Living – Alexander Elder
- Sell and Sell Short – Alexander Elder
- Come into my Trading Room – Alexander Elder
- Way of the Turtle – Curtis Faith
- Inside the Mind of the Turtles: How the World’s Best Traders Master Risk – Curtis Faith
- The Master Swing Trader – Alan Farley
- The Elliot Wave Principle – A. J. Frost, Robert R. Prechter Jr.
- Truth of the Stock Tape & Wall Street Stock Selector – William D. Gann
- 45 Years in Wall Street – William D. Gann
- New Stock Trend Detector – William D. Gann
- How to Make Profits in Commodities – William D. Gann
- Trend Trading – Daryl Guppy
- Snapshot Trading – Daryl Guppy
- New Trading Systems and Methods – Perry Kaufman
- Breakthroughs in Technical Analysis: New Thinking from the World’s Top Minds – David Keller
- How to Trade in Stocks – Jesse Livermore
- Fibonacci and Gann Applications in Financial Markets – George MacLean
- The W.D. Gann Method of Trading – Gerald Marisch
- Dynamic Trading – Robert C. Miner
- High Probability Trading Strategies – Robert C. Miner
- Candlestick Charting Explained – Gregory L. Morris
- Technical Analysis of the Financial Markets – John J. Murphy
- Intermarket Technical Analysis – John J. Murphy
- How to Get Started in Active Trading and Investing – David Nassar
- Japanese Candlesticks Charting Techniques – Steve Nisson
- The Candlestick Course – Steve Nisson
- Beyond Candlesticks: New Japanese Charting Techniques Revealed – Steve Nison
- Timing the Trade: How Price and Volume Move Markets! – Tom O’Brien
- The Secret Science of Price and Volume: Techniques for Spotting Market Trends, Hot Sectors, and the Best Stocks – Timothy Ord
- Candlestick and Pivot Point Trading Triggers – John L. Person
- Technical Analysis Explained – Martin J. Prings
- The Visual Investor – Martin J. Prings
- Martin Pring on Price Patterns – Martin J. Prings
- Dow Theory for the 21st Century – Jack Schannep
- Trade like Jesse Livermore – Richard Smitten
- The Secret Code of Japanese Candlesticks – Felipe Tudela
- New Concepts in Technical Trading Systems – J. Welles Wilder
- Secrets for Profiting in Bull and Bear Markets – Stan Weinstein
- Stock Market Technique, No 1 – Richard D. Wyckoff
- Stock Market Technique, No 2 – Richard D. Wyckoff
- Studies in Tape Reading – Richard D. Wyckoff
- Wall Street Ventures & Adventures Thru 40 Years – Richard D. Wyckoff
- How I Trade and Invest in Stocks and Bonds – Richard D. Wyckoff
- R N Elliott’s Masterworks, the Definitive Collection – R. N. Elliott, Robert R., Jr. Prechter
- Technical Analysis: The Complete Resource for Financial Market Technicians – Charles D.Kirkpatrick II, Julie R. Dahlquist
- Ichimoku Charts: An Introduction to Ichimoku Kinko Clouds – Nicole Elliott
- Practical Speculation – Victor Niederhoffer, Laurel Kenner
- The Wall Street Waltz – Kenneth L. Fisher
- Stock Market Wizards – Jack D. Schwager
- The New Market Wizards – Jack D. Schwager
- Millionaire Traders – Kathy Lien, Boris Schlossberg
- The Battlefield for Investment Survival – G. M. Loeb
- Fooled by Randomness – Nassim Nicholas Taleb
The Black Swan – Nassim Nicholas Taleb
- The Education of a Speculator – Victor Niederhoffer
- Liar’s Poker – Michael Lewis
- Reading Price Charts Bar by Bar – Al Brooks
- The Lexus and the Olive Tree – Thomas L. Friedman
- The World is Flat – Thomas L. Friedman
- Reminiscences of a Stock Operator – Edwin Lefevre
- Trading in the Zone – Mark Douglas
- The Disciplined Trader – Mark Douglas
- Investment Psychology Explained – Martin J. Prings
- Irrational Exuberrance – Robert J. Shiller
- Beyond Greed and Fear – Hersh Shefrin
- Trading Rules that Work: The 28 Lessons Every Trader Must Master – Jason Alan Jankovsky
- Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves – Kathy Lien
- Bird Watching In Lion Country 2010 – Dirk Du Toit
- Pairs Trading: Quantitative Methods and Analysis – Ganapathy Vidyamurthy
- Quantitative Equity Portfolio Management – Ludwig B Chincarini, Daehwan Kim
- Technical Traders Guide to Computer Analysis of Futures Market – Charles Le Beau, David Lucas
- The Definitive Guide to Point and Figure – Jeremy Du Plessis
- SteidMayer on Markets: Trading with Market Profile – SteidMayer J. Peter, Steven B. Hawkins
- Quantitative Trading Systems, Practical Methods for Design, Testing, and Validation – Howard B. Bandy
- Expert Advisor Programming – Andrew Young
- Future Trend from Past Cycles – Brian Millard
- Cloud Charts: Trading Success with the Ichimoku Technique – David Linton
- A Random Walk Down Wall Street – Burton Malkiel
I will continue to add to this list as I discover and read more good books.
Feel free to recommend any books not on this list! Thanks!
I read Alchemy OF Finance by Soros a while ago. Going to read it again. I would suggest Buffett: The Making Of An American Capitalist by Roger Lowenstein. I read it 23 years ago. I found it a simpler guide to value investing than The Intelligent Investor by Graham.
Thanks for the recommendation, I’ll go check it out!
I don’t have enough time to read through all the books. Can you maybe narrow down to the top 5 books that I should go through first before I go onto paper trading?
Thanks for your question. It really depends on what kind of topics or areas that you are looking to improve on, ie. money management, price patterns, indicators, price action, psychology, etc. But if time is limited on your side, then I would suggest you learn from these guides instead, because they are like a compilation of all the content I have read from hundreds of books.
I see. Then what are your top 5 favorite books?
Haha I don’t really have favourites.
Awaiting more of your book reviews!
I will appreciate if you can give a review or highlights of each book instead of the entire list. Then can decide which book to start with.
Thanks for your suggestion, that is something we can definitely consider in the future. Maybe not for every single book, but the more popular ones. Stay tuned!
Yes, I myself am definitely looking forward to these!
??
Count me in!
I love and enjoy the review you had for “Die with Zero”. You should do more of such reviews!
You’re welcome!
I also enjoy reading the book a lot <3
Do you feel that certain concepts or principles covered in older books are outdated?
I think the core concepts and tools are still very relevant, but some of the strategies and trading parameters need updating, that is why we need to understand the principles, so that we can improve and formulate our own strategies that work for the current markets.
There are many trainers out there who claimed to have “read so many books”. And when I see their review, they don’t really understand what they are talking about. That’s why I agree with Jenise if you can recommend books that are more relevant in today’s time.
Most people who claim to have read many books probably just read about 20 books lol
Got any video version of the books that you read? I don’t like to read.
I don’t think there are video versions of the full books, but on my Youtube channel, I have pretty comprehensive videos that cover all the main aspects of trading and investing.
So do you mean that if I go through all your guides and videos, I don’t really need to read these books?
I think what he meant is that if you have free time, you can read the books. I don’t think its a must before trading.
Nowadays, there are many people who just trade blindly or just follow what the top traders do.
It is a must to know what you’re doing, but the knowledge can come from anywhere – books, videos, online, mentor, etc.
The guides and videos will pull out the essential ideas and practical concepts which you will need to start trading, but if you want a more in-depth coverage on any particular topic, then you can consider reading the books as well!
You mention that reading a lot of books is bare minimum, and might not be useful at the same time. Then should we even bother to read as its a waste of time.
It depends on whether you can turn the book knowledge you acquire into practical trading strategies. If you can’t do that, then it will be a waste of time, but if you don’t read to acquire the knowledge, then how are you going to craft the strategies in the first place?
I totally agree. There is no point doing useless reading since we are reading to gain some form of advantage. If we can’t read to apply it in the real-world, then all the reading might be all wasted.
A Random Walk Down Wall Street by Burton Malkiel.
Since this is the 10th edition. this speaks for itself. This book is a great first read for those starting a portfolio. Indexing, diversification, trends, bubbles, the value of patience coupled with time, and other core concepts are also covered in this book.
Do consider reading it.
HI Alex, I also got this book. Recommended by my friends too!
Thanks for the recommendation! I have read it before and it is indeed a good book!
Then why is this book not on your recommended list?
Thanks, I have added it in!
So did you manage to finish reading this book yet?
What a pity. Mr John Bogle died on Jan. 16, 2019. His “The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns” was an excellent book for me!
Yup that was a good book!
I rarely go online or bookstores to find books. Even this website contains all the relevant information to get me started 😀
That’s great to hear! Maybe when you want to go more in-depth into a particular topic, then you can read a few books on that topic.
Yup will share more books after going through them.
Thanks for the recommendation for the list of books!
I feel asleep reading books. I prefer looking at videos and pictures/diagrams to learn better.
You can check out our Youtube channel! https://www.youtube.com/c/Synapsetrading
Yup! I have followed and subscribed to your channel! I hope you come up with more videos with your dedication!
I am also your subscriber for your youtube channel!
The Nature of Investing. Have you read this book before?
The author has over 20 years in the field and has an interesting connection between natural laws and the manmade world of investment.
In the long run, embrace sense of rigid adaptability versus short term fixes that inevitably snowball to bigger problems.
This book sounds like a history/philosophy book though.
Have not come across this book, who is the author?
Its by Katherine Collins. You can get the book on Amazon!
Maybe you can consider some books that deal with crytocurrency?
There are a lot of online resources for that. Not sure if you need books on crypto further?
The thing is the world of cryptocurrency changes so fast, so by the time a book gets published, the info is already outdated. So learning about it online might be better and more up-to-date.
Are there any books that covered how various markets that are affected from adverse events such as the recent Russia-Ukraine conflict?
It will be good to know how markets should move in such events in advance.
Such events are always unique, so I don’t think it is possible to have a book which can cover all of them.
The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness
Give it a read. Its useful for me.
Thanks for the recommendation!
Yes I have also read this book and its really an eye opener!
Spencer, maybe you can consider giving this a book review like how you did for the Die with Zero book!
I’ve only read a few of these books, but I’m excited to tackle the rest. It’s always inspiring to see how much other people have read and get motivated to read more. Which ones are at the top of your list?
What’s the point of reading all these books if everyone has the same knowledge on how to beat the market? Then why aren’t there more professional traders despite reading and understanding all these books?
Thanks Mr. Li, for all the compilation of these forex books, this is what i like to do more reading because reading is like discovery of hidden knowledge by others, i have found some of these books very good and full of knowledge on trading , please add more as you read,
to other traders out there go to pdfroom.com to search for Mr. Li recommended books, you find some free downloading it there and read.
God bless you all .
This information is really valuable. Thanks for being so kind and helpful!
Thank you for sharing the link!
My favorite trading book is “The Intelligent Investor” by Benjamin Graham. It has taught me a lot about value investing and how to analyze stocks. I would definitely recommend it to anyone interested in investing.
I agree with you on “The Intelligent Investor”. That book was a game changer for me as well. Another book that I found really helpful was “The Psychology of Trading” by Brett Steenbarger. It’s not about specific strategies, but more about the mindset and emotions involved in trading.
I’ve heard great things about “The Psychology of Trading”. Another book that I really enjoyed was “Reminiscences of a Stock Operator” by Edwin Lefèvre. It’s a classic book that talks about the life and experiences of Jesse Livermore, one of the most successful traders in history.
I’ve read “Reminiscences of a Stock Operator” too and I really enjoyed it. Another book that I found really helpful was “The Little Book of Common Sense Investing” by John Bogle. It’s a great book for beginners who want to learn about passive investing and index funds.
I agree with you on “The Little Book of Common Sense Investing”. Another book that I would recommend is “Market Wizards” by Jack D. Schwager. It’s a collection of interviews with some of the most successful traders in the world and provides a lot of insight into their strategies and thought processes.
I loved “Market Wizards” too! Another book that I would recommend is “One Up On Wall Street” by Peter Lynch. It’s a great book for beginners who want to learn how to invest in individual stocks and provides a lot of practical advice.
I agree with you on “One Up On Wall Street”. Another book that I would recommend is “The Four Pillars of Investing” by William Bernstein. It’s a comprehensive guide to investing that covers everything from asset allocation to risk management.
I’ve heard great things about “The Four Pillars of Investing”. Another book that I would recommend is “The Black Swan” by Nassim Nicholas Taleb. It’s a fascinating read that talks about the impact of rare and unpredictable events on financial markets.
I’ve read “The Black Swan” too and I found it really interesting.
I’ve read about half of these books so far! Some of them were required reading for school, but others I picked up on my own.
Which school did you attend to? Its quite impressive that your professors asked you all to read them!
I have to give a shoutout to “The Little Book of Common Sense Investing” by John C. Bogle. It’s a great introduction to index investing and how to build a portfolio that will perform well over the long term.
Yes I agree to. I love this book a lot and the information provided is practical to what I need.
For those interested in technical analysis, “Technical Analysis of the Financial Markets” by John J. Murphy is a must-read. It covers everything from charting patterns to market indicators.
“The Warren Buffett Way” by Robert G. Hagstrom is another great book for those interested in value investing. It provides a deep dive into Buffett’s approach to investing and how he has achieved such incredible success.
Do you still believe what he has shared in the book still applies to current economic situation?
My favorite trading book is “Market Wizards” by Jack Schwager. This book is a collection of interviews with some of the most successful traders in the world. It provides a lot of insight into the mindset and strategies of successful traders, and I think it’s a great resource for anyone who wants to improve their trading skills.
Another great trading book is “The Disciplined Trader” by Mark Douglas. This book emphasizes the importance of discipline and psychology in trading, and provides a lot of practical advice for managing emotions and developing a consistent trading plan.
I highly recommend “The Outsiders” by William N. Thorndike. It’s a book about eight unconventional CEOs who achieved outstanding results by focusing on long-term value creation rather than short-term profits. The book provides a lot of valuable lessons about leadership and investing.
“The Psychology of Money” by Morgan Housel is a relatively new book that has quickly become one of my favorites. It explores the psychological biases and emotional factors that influence our financial decisions, and provides a lot of practical advice for managing our money effectively.
“Thinking, Fast and Slow” by Daniel Kahneman is not specifically an investing book, but it provides a lot of insight into the cognitive biases and heuristics that influence our decision-making. I think this book is a great resource for anyone looking to improve their decision-making skills, whether it’s in investing or other areas of life.
Thanks a lot! I managed to get this book earlier today!
Honestly, I haven’t read any of these books yet. I’ve been meaning to get around to some of them, but I always end up getting distracted by other books. Which ones do you recommend I start with?
One of my favorite trading and investing books is “The Psychology of Trading” by Brett Steenbarger. It provides a deep insight into how psychology can impact the trader’s mindset and their success in the market. The book is divided into three sections that cover the psychological aspects of trading, the psychological strategies for trading success, and the psychological challenges that traders face.
This is a really classic investing book. Never fails to impress me with the thoughts that he undergo when he trades.
“The Art of Possibility” by Rosamund Stone Zander and Benjamin Zander is one of my favorite trading books. It is not a typical trading book but is a great resource for learning how to approach challenges with a positive and creative mindset. The authors provide practical tools and strategies to help traders shift their perspectives and achieve their goals.
My favorite trading book is “Trading in the Zone” by Mark Douglas. The book provides a comprehensive guide to developing a winning mindset for trading. It emphasizes the importance of discipline, patience, and emotional control in trading and teaches readers how to develop a winning attitude.
I am actually not convinced about the psychology portion for trading? If I follow the trading rules, then my emotions are not in play. Then, I can just learn how to trade better.
“Beating the Street” by Peter Lynch is one of my favorite investing books. The book provides practical advice on how to identify good investment opportunities and avoid common investing mistakes. Lynch’s approach to investing is straightforward and emphasizes the importance of doing your own research and sticking to your investment strategy.
“Security Analysis” by Benjamin Graham and David Dodd is a classic investing book that provides a detailed analysis of the principles of value investing. The book emphasizes the importance of analyzing financial statements and balance sheets and provides practical tools and strategies for identifying undervalued stocks. It’s a great resource for anyone interested in learning more about value investing.
Here are 5 books I will recommend:
“The Psychology of Money” by Morgan Housel – This book provides a unique perspective on investing, focusing on the psychological aspects of money management rather than just technical analysis.
“The Essays of Warren Buffett: Lessons for Corporate America” by Warren Buffett – This book is a collection of letters from Warren Buffett to his shareholders and provides insight into his investment philosophy.
“Market Wizards: Interviews with Top Traders” by Jack D. Schwager – This book features interviews with some of the most successful traders in the world and provides valuable insights into their strategies and approaches.
“One Up On Wall Street” by Peter Lynch – This classic book is a must-read for any investor, and provides a valuable perspective on investing in companies with strong fundamentals.
“Security Analysis” by Benjamin Graham and David Dodd – This book is a classic in the field of value investing and provides a comprehensive guide to analyzing securities.
How many other books have you read? I enjoy how you provided a simple summary for each book!
One of the learning points from some of the books I read is that technical analysis is a popular method for analyzing financial markets, and there are many different tools and techniques that traders use to make decisions.
For me, its fundamental analysis is also important in evaluating investment opportunities, and can involve analyzing economic indicators, company financials, and other factors that may impact market prices.
Trading psychology is a critical component of successful trading, and books on this topic can help you develop the discipline and emotional intelligence needed to make smart investment decisions.
The common learning theme is while there is no one “right” way to trade or invest, discipline, patience, and a commitment to ongoing learning and improvement are important traits for successful traders and investors.
There are many different investment styles and approaches, and what works for one trader may not work for another. It’s important to find a style that aligns with your personality and risk tolerance.
One thing to keep in mind is that some of the books on this list are quite old and may not reflect the most up-to-date information or trends in the market. It is always a good idea to supplement your reading with current news articles and market updates to stay informed.
Wow, that is quite a comprehensive list! These books cover a wide range of topics related to economics and finance, from economic indicators to technical analysis, and from trading strategies to the psychology of investing. Some of the authors on this list, such as Paul Krugman and Nassim Taleb, are well-known experts in the field, while others are lesser-known but still have valuable insights to offer.