11 Books Every Would Be Trader Should Read

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December 28, 2017 0 comments

There are many great books out there on financial markets these days, some better than others. Here is a list of the top 11 books every would be trader should read:

Market Wizards: Interviews With Top Traders

A great collection of interviews from Jack Schwager and my personal favorite from this list. So many great insights to be gained from the numerous interview with famous traders. The book was so popular that Jack wrote a further four: The New Market Wizards (1994), Stock Market Wizards (2003), Hedge Fund Wizards (2012) and a summary of essential lessons from nearly 50 interviews – The Little Book of Market Wizards (2014)

Reminiscences of a Stock Operator

I like this book as it’s a fast paced, well written and very interesting read. This book continues to be one of the most useful and most-loved book ever written on the subject of trading and speculation even though it was written in the 1920’s. It tells of the life and times of the book’s protagonist, Larry Livingston, a pseudonym for Jesse Livermore, one of history’s most famous traders. Some of his rules to live by that I like are:

-The trend is your friend.
-History repeats itself.
-No stock is too high to buy or too low to sell.
-Let your winners run and cut your losses quickly

This book is true to the real wall street and a must for anyone’s book shelves.

Trade Your Way to Financial Freedom

There is something for everyone in this book that focuses on investor psychology and trading system construction.

Trading in the Zone

A great book for those traders that need to make the necessary mental shift to become a successful trader.

The New Market Wizards: Conversations with America’s Top Traders

The follow up to Jack Schwager’s classic Market Wizards, the second title in the series includes interviews with William Ekhardt, Stanley Druckenmiller, Gil Blake and Linda Braford Raschke.

Liar’s Poker

Another brilliant read is Liars Poker. This book is highly entertaining and a thoroughly enjoyable read. Liar’s poker is a game played in on the side by workers on Wall Street, the objective of which is to reward trickery and deceit. We see the story told by Lewis of his four years with the Wall Street firm Salomon Brothers, from his bizarre hiring through the training program to his years as a successful bond trader. There are many strange and bizarre stories he tells from 1984 through the crash of October 1987.

Technical Analysis of the Financial Markets

An excellent reference book for beginners and experienced traders alike. The book focussing mostly on swing trading rather than intraday trading and some traders have said it is a better reference than most of the books recommended for the CMT exam.

Options as a Strategic Investment

I call this “The Bible” and is a book I recommend for anyone that is serious about options trading. The only downside is that the content is pretty heavy and while it does cover just about everything, beginners may be a little overwhelmed. Still, if you’re a beginner and you’re serious about options, you need to have this book on your shelf.

Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders

Similar to the Market Wizards book, this epic read follows the Turtle Traders who were a group of students brought together by legendary trader Richard Dennis (featured in Market Wizards) as part of an experiment to see if successful trading could be taught. Dennis and his partner William Eckhardt (featured in The New Market Wizards) selected two groups and taught them their trend following methodology, then provided each with trading capital and set them loose on the markets. Some of the turtles went on to become incredibly successful.

High Probability Trading

This book is primarily about mindset and the psychological requirements for successful trading.  In High Probability Trading, Link reveals the steps he took to become a consistent, patient, and winning trader–by learning what to watch for, what to watch out for, and what to do to make each trade a high probability trade.

When Genius Failed

A fantastic story that follows the collapse of Long-Term Capital Management, a hedge fund filled with the brightest minds in the business who could do no wrong…. or so they thought. A timely reminder that there is no such thing as a mathematical certainty when it comes to financial markets!

Trade safe!

Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.

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Options Trading 101 - The Ultimate Beginners Guide To Options

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