10 Must Read Trading Books To Become A Better Trader

By Margin Hero | Product Review

Mar 11

I have read a lot of trading books to get where I am today as a professional, full-time trader. These are my top 10 recommendations to read.

Look, I totally get it, trading is hard. It isn’t necessarily something you can go to school for and become an expert on over night. It takes a lot of hard work which consists of practice and study.

A few of you have asked me where I started, and to tell you the truth, I jumped in head first and lost a lot of money. My learning curve was brutal, and it was because I refused to listen to the pros. If I would have listened, or if I could start over, I would have consumed all of the valuable knowledge that has been published for MANY years and is still viable in today’s market conditions. I WOULD HAVE SAVED SO MUCH MONEY!

So do me a favor, before you even think of placing a trade, pick up a book or two and STUDY! You will save yourself so much money by getting your head in the right mindset first. 

Keep in mind, there are a lot of garbage resources out there. So I am doing you a favor by putting this list together of my 10 top recommended trading books. 

Enjoy and Happy Reading!

1.Trading for a Living: Psychology, Trading Tactics, Money Management

Dr. Alexander Elder

This is one of the great books that highlights many aspects of trading as a business. The author of the book, Dr. Elder, is a psychologist who has emphasized the essence of business-related psychology, which in turn opens the way for successful business activities.

The book is a treasure trove of knowledge about common psychological behaviors, which were considered the main reasons for the collapse of many traders. Tactics, which should be accepted as a focal point for traders and can also be found in this book.

The book reveals many secrets, including the need to read market sentiment, and the book is valuable because it makes readers understand the impact of loopholes, trends and graph patterns on market psychology as a whole. It also discusses several strategies that are still considered effective in today’s trading standards.

The book combines psychology on business activities, methods to be adopted in different markets, trade empowerment and different ways of protecting capital, which provide the knowledge necessary to make successful trading entrepreneurs.

Get Your Copy Here:

Buy Now

2. Japanese Candlestick Charting Techniques

Steve Nison

This is another interesting book that fits into the best of three trading books. The author Steve Nison is a well-known trader and is the first person to present a famous Japanese candlestick strategy to the trading masses within the western world.

The uniqueness of candle strategies lies in the fact that they are able to ensure operation in the market, especially in identifying reversal points. This book has gained recognition from many trade enthusiasts who have gained knowledge and profits, and it is considered one of the best books out there that provide detailed information on candlesticks patterns.

By reading this book, novice traders can learn many useful candle patterns, which in combination with other technical analysis tools can turn you into a professional full time trader.

Get Your Copy Here:

Buy Now

3.Trading in the Zone

Mark Douglas

Trading in the Zone is another must read, and is one I rate highly. Mark Douglas preaches about the necessary thinking strategies, which according to the writer is the key factor affecting the success rates of a newbie trader.

The author gives five specific issues that allow traders to gain the understanding and insight needed to pave the way for successful results.

The book also explores the real causes of inconsistency which I found to be really relatable to my struggles as a new trader especially when it comes to lack of focus and self-confidence. With Mark pointing out these flaw, I was really able to hone in and get in the “Zone” before every trade.

If you are are the type of person that wants to be successful at trading, but lack the confidence at pulling the buy or sell button on every trade, this book comes highly recommended and can help you gain the confidence you need to succeed!

Get Your Copy Here:

Buy Now

4.Extraordinary Popular Delusions and the Madness of Crowds

Charles Mackay

If you want to understand the psychology of the trade, this is the book you should read. It is also a commendable guide to why people act as they do and force crowds, which manipulate public opinion (even if the opinion is not very good). I have been recommending this book a lot especially with the current sentiment in the crypto community.

As Charles Mackay puts it in his book, “People think of herds, they reap the herd, but they regain their senses one by one.” The Stock Exchange history shows that this is absolutely true. The book also warns of the dangers of mania and why investors should stay away from it.

Get Your Copy Here:

Buy Now

5. Reminiscences of a Stock Operator

Edwin Lefevre

This book is a biography of Jesse Livermore (by Edwin Lefevre), one of the largest stockbrokers of all time. The book is full of practical advice about “games” in the stock market.

The fact that the book is still in circulation, about 90 years after its publication, attests to its continued popularity among investors and equity investors. It must be read to all those who want to know more about the risks of excess in the stock market.

Get Your Copy Here:

Buy Now

Notable Mention

Market Wizards

This book is a collection of interviews from some of the best traders in the world! If you are feeling doubt or at the end of your rope and about to quit, give this book a read to find that needed inspiration

“Every trader has strengths and weakness. Some are good holders of winners, but may hold their losers a little too long. Others may cut their winners a little short, but are quick to take their losses. As long as you stick to your own style, you get the good and bad in your own approach.”

Michael Marcus ~Market Wizards


6. The Intelligent Investor

Benjamin Graham

Did you know that Warren Buffett considers Benjamin Graham as his mentor? Benjamin Graham’s The Intelligent Investor is considered the best written book on investing, and is absolutely a must read.

Keep in mind that this book is more in regards to investing rather than trading, but when coming to investing, there is no better book than The Intelligent Investor.

This is the first book that I read where I learned about ‘value’ investing, how to invest in the people that make a company great, and well, that little piece of advise treated Warren Buffett very well in his career.

Get Your Copy Here:

Buy Now

7. Fibonacci Trading

Carolyn Boroden

My followers will know that I absolutely love fibonacci when it comes to trading. I believe that it is one of the most under used trading tools out there, and is the most INCORRECTLY used tool.

This is the book I used to master fibonacci trading, and if you want to know how I buy in and take profit with extreme precision, you NEED TO READ THIS BOOK!

I will no longer take time out of my busy day to answer questions like, “how did you catch that wick?” or “how did you know to sell there?” The answers are all in this book, folks, and it is well worth the read. 

Get Your Copy Here:

Buy Now

8. Common Stocks and Uncommon Profits and Other Writings

Phillip A. Fisher

Philip A. Fischer is one of the first proponents of investment growth. Even when he lived, he was considered a legend for his radical commercial philosophy. His book, Common Stocks and Uncommon Profits is the gospel of investment philosophy remains a classic to this day.

A quote from the back:

“I sought out Phil Fisher after reading his Common Stocks and Uncommon Profits…When I met him, I was impressed by the man as by his ideas. A thorough understanding of the business, obtained by using Phil’s techniques…enables one to make intelligent investment commitments.”
—Warren Buffett

When I saw that Warren Buffett recommends this book, I had to read it. In my personal opinion it lays out fascinating principles when coming to investing for the long hall. Don’t expect to learn how to make a quick buck after reading this book. It’s all about the long game.

Get Your Copy Here:

Buy Now

9. Beating the Street

Peter Lynch

For those of you who have no idea who Peter Lynch is, it’s simple, the man is a legend. He was the head of Fidelity Magellan Fund from 1977 to 1990, which was one of the most successful mutual-funds of all time. 

I found that Peter has a certain charisma about him, and what I like most is his philosophy in keeping things simple.  

This is another book on investing. Remember, it is so important to move those trading profits into a long term investment strategy, and a lot of Peter’s philosophies on beating Wall Street can help you do just that.

Get Your Copy Here:

Buy Now

10. Trading Risks

Kenneth L. Grant

A professional trader must go beyond the limits of money management. While money management is still critical, it represents a subset of the overall picture of profit and loss management in your trading account.

This overall picture is what Kenneth L. Grant is influential in his book. The full management of trading results must address profits and losses in the trading account at two levels – portfolio level and individual trade level.

Get Your Copy Here:

Buy Now

Have I missed anything?

If there are any books you consider to be the holy grail to trading and investing, by all means, please let me know!

Even though I am a full-time trader, I am still reading books all the time. Don’t ever become complacent and think that you know everything. Continue to learn and fine-tune your strategy. 

Also let me know if you picked up any of these recommended books. Did they help you at all? I would love to know.