Trading Books are literally everywhere on internet, everyday it’s not uncommon to see 10-20 books getting published. After a quick Google search on “Trading books” many end up in famous blogs or articles which seems to mention some pretty old and unwanted books. There’s nothing wrong in reading old books but we also need to remember that markets change. Markets are changing everyday, a famous book written years ago may not necessarily give good value for today’s market place.
Keeping these facts in my mind, Here is my list of 6 must read books for traders and Investors. This list will be constantly modified and updated according to changing market places and trading environment.
1. Alchemy of Finance
Written By George Soros
One of the greatest gem for finance professionals, simply put this Trading book describes a sound cognitive model for making sense of financial markets. Written by hedge fund manager George Soros where he explains his method of reflexivity. Reflexivity is a method of understanding chaotic market movements through the phases of booms and busts. Even though the book may not give a direct system for trading but engages the reader into thoughtful insights.
2. Trader Vic: Methods of a Wall street master
Written By Victor Sperandeo
The ideas expressed by the author are extremely practical and relevant even in today’s market place. It contains much advice, suggestions, trading strategies for both professional and novice traders. The background topic about economics makes sense and useful as well. Consistent performance is a theme of successful trading – Victor explains it precisely and intuitively. This Trading book is a must read for every trader.
3. Encyclopedia of Chart Patterns
Written By Thomas Bulkowaski
A complete guide you’ll ever need to know about chart patterns, unlike others Thomas goes one step further into chart analysis by incorporating statistical framework for justifying each every chart patterns. This Trading book covers nearly around 60 types of chart patterns with their probabilitical ratios. If you’re a serious market technician then it should be in your list.
4. Fooled by Randomness
Written by Nassim Taleb
One of my favorite book and I recommend it for every trader whether beginner or experienced. Fooled by randomness explains how random things dominate our life more than we think. For traders and investors it provides a detail sketch on risk and probability. Read this Trading book before you believe old and dusty risk management.
5. Reminiscences of a stock Operator
Written by Edwin Lefevre
A biographical epic of Jesse Livermore, though the book is overrated it still has some of the sound advice and suggestions for every traders. This book has been a true eye opener for many successful traders. It doesn’t contain any trading systems or techniques, but will help your trading career more than you think.
6. Trading Price action series
Written by Al brooks
Price action trading is a subjective method, not every price action trader uses the same concept and methods identical to each other. But Al brooks went a step ahead by creating a reference guide for price action traders, if you’re beginner in price action then trading price action series is the way to start. It covers various price action techniques and strategies commonly applied by price action traders. The series has 3 different books which are quite dense to read.
To cultivate your skills and trading habits these Trading books are must read. Of course I did miss out some basic books on technical analysis, candlestick patterns etc. because these are largely irrelevant for practical trader and you can learn them online within a day instead of reading them as trading books. Make sure you have some basic ideas about financial markets before delving into these Trading books. This list is not comprehensive or holistic, if you’ve any suggestions throw them in comments.
