I put together a brief review of some of my favorite trading books that have helped me out over the years, especially when I was first starting out as a newbie trader. They helped me through hard times and getting through the psychological aspects of trading and the fears associated with it. They cover success stories of some of the best traders out there and how they handled the stress and uncertainties associated with trading. If you’re a trader and haven’t read these books, do yourself a favor and give them a read. You won’t be disappointed!
Trading in the Zone: Master the Market with Confidence, Discipline, and a Winning Attitude by Mark Douglas
In this book, the author has sought to explain some of the reasons that lead a lack of consistency throughout the process. It is this lack of consistency that can lead to reduce profits and an increase in unnecessary risks. By understanding the mental habits that successful trader have, individuals who fail to practice these habits will learn the hard way why their actions are costing them money. Trading is much more than just knowing how to place a trade. You have to learn how to handle uncertainties and approach the market with the correct mindset and this book teaches you exactly how to do that.
Another interesting component of this book is that the author tackles some of the myths of the major financial markets, and exposes them by teaching the truth behind each. This will help the reader come to grips with the level of risk that they are willing to take on and to examine the likelihood that any given market will respond in a certain way given the current and prevailing political climate of the day. It is an effective read for all traders who desire to hone their mental acumen and increase their investment prowess.
Market Wizards by Jack D. Schwager
We wholeheartedly recommend Market Wizards. This is a timeless classic that has sold more than 200,000 copies. Its popularity lies in its ability to explore the investing acumen of some of the most prolific traders of the modern and historic eras. Operating on the premise that the principles of trading really have not changed that much through the decades, the author seeks to prove this by exploring the attitudes and actions of a number of traders have followed through the years. Some of the individuals covered in this book include Bruce Kovner, Paul Tudor Jones, and Jim Rogers. These three individuals run some of the largest hedge funds, and readers will gain a great deal of insight through the interviews that are captured by the author of this book.
I personally found this book to be one of my favorites that I still go back and read from time to time. The information you gain from the insight of mega-successful traders is priceless.
Reminiscences of a Stock Operator by Edwin Lefevre
This classic trading book dates all the way back to 1923, an era before the Great Depression. How did people money in the markets during this time? Readers will discover timeless principles that are still just as applicable today as they were back then. This one book will educate readers about stock markets in a way that experience alone could never hope to replicate. The book itself is well written and easy to understand. Personal opinions are kept out of the writing, as the author focus on the act of trading and nothing more. While technology might have changed since this book was first published, the principles of speculative trading have not.