Since this is my inaugural post as a Traders' Library guest contributor I thought it would be appropriate to list a few of the books that I believe should be on every trader's bookshelf. Most of these I have mentioned at one time or another in my own blog so to my readers they will come as no surprise. Instead of giving a summary of each one I will allow the author's own words to provide an idea of what is in store for the reader. Although these are categorized please approach the books with the understanding that each one could fall under any or all of the categories mentioned.
ONE HOUR LIFETIME BOOKS: these books are easily read within an hour or so yet provide a lifetime of trading wisdom.
1. Zen in the Markets by Edward A. Toppel. Although deceased Mr Toppel has provided a trading book that will outlive his children's children. "Egoless people have nothing to protect. They just do whatever the market tells them to do" (11).
2. 8 Ways to Great by Doug Hirschhorn. I recently had the pleasure of interviewing Dr Hirschhorn and came away with a greater understanding of risk. "Frequently, what they [successful traders] learn from losing money is more valuable than what they learn when they make money" (90).
3. How I Made $2,000,000 in the Stock Market by Nicolas Darvas. An oldie but goodie not for its $2 million system but for its wisdom that has not changed since it was written some 50 years ago. On losing $100,000 in a few short weeks: "I can hardly believe it. Now I know it was cause by egotism leading to vanity leading to overconfidence, which in turn led to disaster. It was not the market that beat me. It was my own unreasoning instincts and uncontrolled emotions" (113).
NEW NEW BOOKS: these are books that were recently published and will most likely become time honored classics.
1. One Good Trade by Mike Bellafiore. I have provided a detailed book review of OGT and recommend it. "Developing a bias can be helpful when trading a stock, but when the price action contradicts your theory, then you must exit" (137).
2. The Daily Trading Coach by Brett Steenbarger. Although Mr Steenbarger has left the blogging world this book encapsulates much of his teachings in 101 lessons. "The drive for self-improvement is different from the desire to make money and is far more rare" (108).
3. Trading From Your Gut by Curtis Faith. This former turtle trader reveals the psychology behind the turtle trading rules. "As with the moves of a chess master, the master trader makes trades with purpose and passion" (55).
4. Technical Analysis Using Multiple Timeframes by Brian Shannon. Almost exclusively for the technically inclined, TAUMT is full of information on how to understand market behavior as seen through the eyes of moving averages and various time frames. My signed copy is highlighted and marked up in such a manner than I couldn't give it away. "If you anticipate all possible scenarios, it is easier to maintain objectivity and avoid costly emotional decision making" (5).
CLASSY PSYCHOLOGY: these are books about the psychological and behavioral aspects of trading. In my opinion, these should be read first before any technical analysis is even attempted. If the mind is not right, no chart is going to look right.
1. The Disciplined Trader and Trading in the Zone by Mark Douglas. These two books make up the Bible, both the old and new testaments, of stock trading psychology. Must haves. "If I had to distill all of the reasons [for success] down to one, I would simply say that the best traders think differently from the rest" (Trading in the Zone, p.7).
2. The Investor's Quotient by Jake Bernstein. Personally recommended to me by world renowned trader and cycle forecaster Charles Nenner, Bernstein's book is one of the best treatises on behavior psychology and its effects on our trading. "The final test of any trading methodology is inextricably tied to the individual who is using the technique" (55).
This is by no means an exhaustive list but does give a good base upon which to build a solid understanding of the stock trading game. See you later...in the crosshairs.
nice list, thanks for including my book!
Posted by: Brian S | August 25, 2010 at 12:12 PM
Great books!...There are so many good ones.
My pick is Trading For A Living by Dr. Alexander Elder. It captures all the Essentials:
Psychology
Money Management
Systems and Strategies
Great book for the Beginner & Advanced stock trader!
Posted by: Dean StockMarket-Coach | August 29, 2010 at 04:56 PM
You have mentioned some great books here and would have to say Trading in the Zone would be my favourite. I have read it several times now, and learn something new with each read.
Posted by: Cheryl | September 8, 2010 at 10:11 PM
Brilliant books you just shared! What you had written is awesome. Thanks for sharing it online. Trading is not an easy task and it needs a lot of knowledge on so many things so reading is very important to upgrade such knowledge. Books are indeed necessary to support and educate traders, especially the new ones.
Posted by: Kristine | September 16, 2010 at 06:31 AM
Online trading or become a day trader isn't as complicated as it sounds. I'm glad a lot of articles and blogs are coming out. It actually helps new traders to become more knowledgeable when it comes to trading!
Posted by: Online Trading | September 27, 2010 at 09:26 AM
I've read Trading in the Zone and as a Day Trader, it really helped me a lot understanding the ins and outs of day trading! Those are good recommends!
Posted by: Online Trading | September 27, 2010 at 10:28 AM
There's a lot of good suggestions here. I should try to work on my stock trading skills after reading one of 'em. Two thumbs up!
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Posted by: Penny Stocks | January 4, 2011 at 03:35 AM
Options Trading is my main investing vehicle and I really enjoyed your book, The Iron Condor. I learn options trading by finding great sites like this. I got started with a series of videos and the education I found at http://www.optionsource.net Many Thanks!
Posted by: Wayne | January 24, 2011 at 06:23 PM
I want to have a copy of that book. I heard that it has a lot of information and guides that you can read in that book. That book is a must have.
Posted by: trading seminar | February 3, 2011 at 12:34 AM
I really need to get a copy of those books. I really want to learn more about this stuff and I am so sure that those books are going to be a great help and guide.
Posted by: trading seminars | February 7, 2011 at 03:14 AM
To completely understand something, you sometimes need to see the information several times in different formats. Books are great and so are videos. I have watched a series of free options trading tutorials that really help support what you read in books. It you are a day trader these videos are a must. You can find them at http://www.optionsource.net
Posted by: Learn Options Trading | February 9, 2011 at 02:23 AM
The best stock trading books are really helpful for all the people doing the business. It is giving the helping hand to all the beginners especially. These books should be available in the rooms of all the traders. I liked the book One Good trade. It has been written wonderfully. thanks for it. It is useful for all those who are doing
Options Trading.
Posted by: Smith | February 14, 2011 at 05:08 AM
Interesting. There's some titles here I've never even seen before.
Posted by: Day Trading Stocks | February 22, 2011 at 10:33 AM
I have a web site where I research stocks under five dollars. I am a astute value investor.I would like to suggest the stock traders almanac.this is a seasonal guide to moves in the stock market.
Posted by: james moylan | March 24, 2011 at 11:15 AM
The best stock trading books are no doubt very knowledgeable and helpful for those who want to know more about trading in stock market, penny shares and penny stocks.
Posted by: penny shares | September 9, 2011 at 12:35 PM
Another list of great trading books; http://www.theeverydaytrader.com/trading-books/
Posted by: dave | September 27, 2011 at 09:55 PM
Although it is necessary for all traders to read great books about trading but for a novice who wants to progress very fast the best is to find an affordable online trading course.
Posted by: Carl Klinski | October 9, 2011 at 03:22 PM
Good post... Valuable information for all. Thank you so much for important topic!
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Posted by: Hot Stocks | January 18, 2012 at 02:21 AM
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Posted by: Stocks to Buy | January 19, 2012 at 03:32 AM
Nice collection of Source to learn stock trading thanks for post
Posted by: cfstraderus | May 24, 2012 at 12:09 AM
Thanks for the great list of books! Which do you recommend the most for a beginner? Thanks.
Posted by: How to become a day trader | June 8, 2012 at 06:31 AM
Great collection! I've always wanted to try my hand at the stock market. I just never get to build enough guts to really do it.
Posted by: Harpar | June 15, 2012 at 06:13 AM