It is of the utmost importance that you educate yourself before you start trading, regardless if your goal is to become a professional day trader or a long-term stock investor.
Having a great understanding of the market your trading on is essential and the more you know the better you will get. In the end, your knowledge or lack thereof is what will set you apart from everyone else.
Naturally, there are many ways that you can educate yourself about trading such as forums, websites, magazines like ours, and more. Although, the most effective and tested way to learn how to trade is through trading books.
Because of this, we asked the experts over at BullMarketz.com to help us put together a list of the five most important trading books that they think everyone should read before they start trading. If you haven’t read these titles yet, we advise you to do so as soon as you can.
Market Wizard / The New Market Wizard
Market Wizard and the New Market Wizard are two different versions of the same book, written by Jack Schwager. The first version is Market Wizard which was later updated under the name the New Market Wizard, and to many, they are considered the holy grails of trading. Both books consist of interviews with some of the most successful traders of all time, and they are packed full of important trading advice.
To most, the best way of learning a new skill is by studying others that have excelled in that field, and these two books offer just that – an opportunity to learn how to trade directly from some of Wall Street’s highest performers, such as Bruce Covner and Paul Tudor Jones.
The New Market Wizard also happens to be one of the top 15 most popular trading books on Amazon.
Trade Your Way to Financial Freedom
This book has it all and then some. It was written by Van K. Tharp and the latest edition is an encyclopedia of important and useful trading advice. It includes Tharp’s own 17-step trading model, tips on how to best use leverage and margins, detailed charting examples, and interviews with some of the most prominent day traders today.
However, the most important part of this book is that it teaches you how to become an independent trader. For example, you’ll learn how to make profitable trading decisions based on your own calculations without being influenced by others.
We can guarantee that you will be a better trader after reading this book and we recommend it to everyone.
“Sound trading advice and lots of ideas you can use to develop your own trading methodology.” The author of Market Wizard, Jack Schwager (above), once said about Trade Your Way to Financial Freedom.
Day Trading and Swing Trading the Forex Market
Kathy Lien is an extremely experienced and quoted forex trader that has written several books on the subject and that has covered the market for many of the industry’s leading publications. She is also the author of the most important forex trading book to ever have been published.
The full name of the book is Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Move, and it is a must read for everyone wanting to learn how to maximize profits on the world’s largest market.
Forex traders need a great understanding of how currency prices are affected and that is exactly what this book will teach you. Besides that, many of the techniques and strategies Lien outlines can be applied by most traders, especially for day and swing traders.
The book is currently in its third edition, and it has been adjusted to perfectly reflect today’s highly volatile market.
Amazing Life of Jesse Livermore: World’s Greatest Stock Trader
We have already mentioned that the best way to learn how to trade is from other traders, so why not try to learn how to trade stocks from the greatest stock trader of all time?
Jesse Livermore is considered to be the most influential stock trader and securities analysts ever. He is most famous to have made a fortune from short trading on the market crashes in 1907 and 1929, as well as losing his fortune on several occasions before rebuilding them again.
His strategies and investment techniques are still used on the stock market today and have proven to be highly accurate. Livermore himself claims that every time he was forced to declare bankruptcy, he had stepped away from his own strategies.
This biography was written by Richard Smitten, and it provides an insight into the mind of Jesse Livermore and his unique view of the market.
Reminiscence of a Stock Operator
A bonus tip regarding Jesse Livermore is to read the fictional biography called the Reminiscence of a Stock Operator. This book is full of important trading and life lessons from one of the most prominent traders of all times. It was written by Edwin Lefevre, and even though it was published in 1923, it still remains highly relevant today.
How To Day Trade For a Living
How To Day Trade for a Living by Andrew Aziz is the ultimate introduction to day trading. The book outlines all the fundamentals regarding day trading on any market such as the difference between day trading and other types of investments, as well as explanations of important strategies that everyone needs to know.
To us, the key aspect of this book is the detailed strategy guides that are offered from chapter seven onward. If you can master the tips that Aziz offers, you will be well on your way to succeeding as a day trader.
Also, How To Day Trade for a Living happens to be the second most sold trading book on Amazon.
Summary of Every Trader’s Must-Reads
These are the five most important trading books that are available today, but it doesn’t mean you should stop there. The market is constantly changing, new strategies are being developed, and more trading books are being published every day. Therefore, it is your duty as a trader to stay up to date with the latest information.
Education is the key to success for every trader, and we highly advise you to keep learning for as long as you can.