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!
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!
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!
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 .