TradeTravelJournal.com | 5 Books Every Trader Should Read | 75% of self-made millionaires have reported reading at least two books a month. An essential insight about reading is that you can pick and choose your inner group of influence, which eventually affects who you become as a person. There are so many books out there that massively successful people in different fields write. Their mindsets and ideas are all waiting to be shared.
Here we have picked out 5 best books every trader should read because trading is not just an act but also an art. Therefore, reading a good book will help you to hit the bar or start well.
1. Technical Analysis of the financial market
Originally published in 1997, this book by John J. Murphy is a true gem for understanding technical analysis. This book is widely read across the globe & highly recommended because of the great generalization. Technical analysis is a broad concept, and different trading books tend to focus on various aspects. Some focus on chart patterns, some on indicators, price section, system trading, etc. It’s kind of like a textbook of technical analysis that includes different types of trading concepts. It gives a little introduction to everything that a trader should know in technical analysis. It is like a buffet where you can dabble in everything. This book is like a premier to new traders.
2. The Art and Science of Technical Analysis
Author Adam Grimes has two decades of experience as a trader and system developer. He has helped a thousand traders to achieve trading excellence through his extensive personal experience. This book provides you with a deeper insight into the stock market. It is recommended for those who already understand the basics when it comes to technical analysis. Also, it covers stuff like risk management and trade management. This book is the right choice when you’re leveling up your trading, or you want to dive deeper into the trading world.
3. Market Wizards
Market Wizards, written by Jack D. Schegwar, consists of 16 interviews of some famous traders worldwide. Some names include Ed Seykota, Richar Dennis, Paul Tudor, and many more. Market Wizards gives you a broad overview of how successful traders trade. There are different types of traders depending on how they treat the market, such as systematic traders, day traders, macro traders; the list can go on and on. Therefore, this book shows you different types of trading methods out there. Once you find a trading methodology that resonates with you, you can dive deeper into other resources available else.
4. Reminiscences of a Stock Operator
This book, in essence, is the biography of Jesse Livermore, one of the most famous and successful traders of all time. Edwin Lefevre is the author of this gem for traders. It was published in 1923, but it still is a timely classic and highly recommended book of investment.
There are many great lessons you can learn from this book. Most important of them being “don’t over-leverage yourself.” It could hurt both financially and mentally. Second, being “always trade with a plan.” Jesse Livermore was trading with a plan from the very beginning; he knew what stocks to buy and when. That’s where his trading took off like a rocket. One of the principles he keeps highlighting is to buy stocks that are trading at high, with no laws. He considers those stocks as the leaders that tend to outperform the market, and it is true even today. This book is extremely recommended if you want to inquire about a profundity in investing. There are great lessons from a great trader to instill in your life as well.
5. Trading in the Zone
“Trading is the zone” is the book for you if you are struggling with your trading psychology. Though trading psychology is something personal, this book breaks it down in a way that lets you understand the market. Whatever be your trading system or strategy, there is a normal distribution between your wins and losses. This book explains how you have both a winning streak and a losing streak and how the market does not know who you are or what you want to do. This book helps you to understand your trading psychology and identify what strategy suits you.