5 Stock Trading Books You Should Read

Author: James Clark

5 Stock Trading Books You Should Read

Having a great understanding of trading and evolving markets is essential. The more you know, the better you will get. Unfortunately, they don’t teach trading and investing in high schools or colleges. There are many ways you can educate yourself, such as magazines, and websites. Still, the most effective way to learn about trading is by reading trading books.

In this post, we’ll share 5 books every trader should read to boost their chances of becoming a successful stock, commodities, options, or foreign exchange (forex) trader.

5 Trading Books Every Trader Should Read

There are hundreds of books about stock trading out there that can help new traders expand their stock education and develop their skills. Our list highlights five great trading books every trader should read:

1. A Random Walk Down Wall Street, Burton Malkiel

A Random Walk Down Wall Street is a great first read for trading enthusiasts starting a portfolio. It encompasses several concepts, such as indexing, diversification, trends, bubbles, and the value of patience. It’s a great read for anyone who would like to be financially intelligent and contains many valuable lessons about predicting the market and beating it, index funds, and balancing risk.

2. Trading in the Zone, Mark Douglas

Trading in the Zone is a must-read for traders struggling to attain consistency in the stock market. It teaches you about the psychology of trading and provides a roadmap for overcoming personal inclinations, such as seeking short-cuts, getting distracted, or succumbing to fear or greed. By addressing these issues, it can help traders act more rationally. However, you’ll need a good understanding of trading practices and techniques before reading this book.

3. Market Wizards, Jack Schwager

Marketing Wizards is primarily a collection of interviews of successful traders in the late 70s and 80s. Most interviewees were top Wall Street fund managers, including Paul Tudor Jones, Jim Rogers, and William O’Neil. The book emphasizes the importance of developing a unique trading style and seizing opportunities when they come. More importantly, it highlights the risk of management and how human emotions are the enemy of successful trading.

4. Reminiscences of a Stock Operator, Edwin Lefevre

Reminiscences of a Stock Operator is one of the oldest trading books out there. The book, which dates back to the Roaring Twenties, tells the story of pioneering trader Jesse Livermore. He introduced the concept of trends and different strategies and practices to manage risks and make enormous profits during the Great Depression in the 1930s. This trading book is ideal for both beginners and seasoned professionals.

5. Irrational Exuberance, Robert J. Shiller

Irrational Exuberance analyzes the broader stock market boom from 1982 to 2001. It especially highlights the happenings from 1995-2001, known as the dotcom years. It shows the dark side of the stock market in which investors become so greedy for profits that they overlook deteriorating economic fundamentals.

Need More Literature?

So here they are. Our top five picks of books every trader should read. The knowledge you gain from these books can come in handy the next time you pull the trigger in the markets. These books discuss many important trading concepts and events, such as risk management, patience, the ins and outs of the market, and crashes.