Lady Rain works as a daytime stock trader and writes about crafts and hobbies. She likes travelling and making papercraft models.
Whether you are new to trading or you have been trading for many years, there are books that every trader must read because it is one of the best ways to become more successful and improve profitability in trading. It does not matter whether you are trading commodities, forex, or options; or whether you are trading on Wall Street or ASX, knowledge is king when it comes to investing your own money. If you have not done stock trading before, you will need to read some best selling books on how to buy shares before you attempt to trade the stock market.
It is also a good idea to build up a library of trading books because they can be used as a reference whenever you need to revise or elaborate on your trading strategies.
These are the top 10 traders' books that every serious trader should read and own.
1. Reminiscences of a Stock Operator by Edwin Lefevre
This is the most recommended book by top traders. Even though the book was written in the form of a novel, it was actually a disguised biography of Jesse Livermore who was the greatest stock trader of the 20th century. His gains and losses from the stock market were in multi-million dollars.
2. How to Make Money in Stocks: A Winning System in Good Times and Bad by William O’Neil
William O'Neil, a stockbroker and enterpreneur, created the CANSLIM investing system for trading which is being followed by many top traders today. The book described the importance of reading charts and how to identify buying and selling points before the prices make major moves. O'Neil had written many books on investments and trading, this book is a must for traders who want to learn how to minimise risk and maximise gains.
3. Trade Like an O'Neil Disciple by Gil Morales and Chris Kacher
Trade Like an O'Neil Disciple is like a sequel to William O'Neil's book mentioned above. Written by two former employees of O'Neil, Chris and Gil explained O'Neil's trading strategy from their point of view plus additional information on reading the charts. The authors also came up with another way of identifying early buy signals called pocket pivot points. The readers can pick up some useful tips if they read this book thoroughly.
4. Trading Secrets by Louise Bedford
This is an easy-to-read book on trading by Louise Bedford. A really good book recommended for people who are new to trading and want to learn all the "secrets" of how to become a successful trader. The book also covers some useful information on risk management and money management.
5. The Secret of Candlestick Charting by Louise Bedford
There are many types of chart patterns but candle charts are very powerful in determining the buy and sell signals of a stock. Again, Louise Bedford has written the book in such an easy-to-understand approach that the reader can easily understand all the different patterns of candles discussed in the book. There are heaps of examples of candle diagrams for the reader to analyse.
6. Stock Market Wizards: Interviews with Top Traders by Jack D. Schwager
Serious traders will benefit by learning from successful trading gurus. This book is one of the trading books a trader should not miss. It contains a series of interviews with top traders who discussed the different systems each one of them used for successful trading. Readers might be able to learn some methods that suit their trading style by reading this book.
7. Trend Following by Michael Covel
The art of trend following is learning how to react to market prices with positive outcomes. Trend following requires strict self-discipline and use of risk management in order to be successful. An interesting method to learn if you have total discipline on when to enter or exit the market. Some people are good trend followers and can make millions through trend following. Read this book and discover for yourself if trend following is your niche.
8. All About Timing by Leslie Masonson
Leslie Masonson discussed techniques in trading including how to use some simple techniques to time the market to avoid losses and make more gains. He also demonstrated how the timing method is a more effective way to trade than buy-and-hold. If you are using the buy-and-hold method, you might change your trading strategy after reading this book.
9. Secrets of Stock Traders Exposed by Dale Beaumont
This is another book about learning how other successful traders play their game in the stock market. Readers will be able to pick up a few tips from different stock traders mentioned in the book.
10. The Way of the Turtle by Curtis Faith
The Turtles Traders are traders who were coached by trading guru Richard Dennis. The Way of the Turtle was written by Curtis Faith who was the most successful Turtle who made more the $30 million when he was working as a Turtle. He shared his experience in this book on how to implement the strategies and make money the Turtle way.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
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© 2011 lady rain
Jas from United Kingdom on March 01, 2017:
Thanks for listing the books!
Fortunately I have managed to read 5 of the 10 books you listed!
Been in the "game" for 3 decades now,
but there is always room for improvement?!
I am enjoying my time here on HP,
listing my actual daily trades I take.
Mind you, I am doing this for educational and
entertainment purposes only!
Look forward to reading your future articles!
lady rain (author) from Australia on March 19, 2013:
Deron, thank you for sharing your views regarding these books, I really appreciate your comment here :)
Deron Wagner from Southeast Asia on March 19, 2013:
Nice list there.
I have read 4 of the 10 and must agree they are great books.
Of those on your list, #1 and #2 are "must reads" for anyone serious about the markets.
Look forward to seeing more of your hubs.