Top Ten Stock Trading Books and Other Essential Reads

Top Ten Stock Trading Books and Other Essential Reads

Today there are so many ways to learn about stock trading that it can feel overwhelming. There are trading videos, websites, twitch accounts, podcasts, blogs, magazines, you name it. However, in our opinion, there is one way that is superior to all of these, and it’s the traditional way, by reading books.

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Over the last hundred years, thousands of stock trading books have been published. Unfortunately, most of them are a waste of time and they don’t offer advice that is good enough, others are already outdated, and some have been proven to be wrong. But that still leaves us with hundreds of really useful books that can help take your trading to the next level.

Because of this, we took the time to put together a list of what we think are the best and most influential stock trading books out there. These are the top sellers, the classics, and the books that have helped us on our trading journeys. We call them the top ten best stock trading books.

“Market Wizard and The New Market Wizard” – Jack Schwager

If we could only recommend reading one book it would be the Market Wizard or to be more precise the updated version called the New Market Wizard. They say the best way of learning how to trade stocks is to learn from others and this book does that and so much more.

Jack Schwager has interviewed some of the best and most effective stock traders of all time and collected all their combined knowledge about the market in a book. It’s highly quotable, well written, and incredibly inspiring to read. There are a few differences between the old version and the new one, and we suggest you read them both. Although, if you can only read one of them you should opt for the latest one.

“The Intelligent Investor” – Benjamin Graham

Benjamin Graham is famous for two very specific things. Firstly, he is considered to be the founder of value investing and he laid the groundwork for today’s most popular analytic methods. Secondly, Graham was the teacher of Warren Buffett and we all know how that ended – in extreme success! Buffett’s own view of The Intelligent Investor is that it’s “by far the best book on investing ever written.”

The Intelligent Investor is an epic book for anyone who wants to learn more about trading principles and how to best approach the market. Just don’t expect to get tips on how to pick the best stocks – if that is what you’re looking for we recommend reading Graham’s “Security Analysis” instead.

“How To Make Money in Stocks” – William J O’Neil

O’Neil is the founder of the CANSLIM system, and he has outlined the method in this classic trading book. If you’re a beginner looking to start trading stocks and want to learn more about both technical and fundamental stock analysis, then this book is for you.

In fact, we advise you to read this book before you even start trading since it will teach you the most basic systems for stock picking.

“Trade Your Way To Financial Freedom” – Van K. Tharp

To become really successful as a trader you need to be able to handle your own trading and more importantly do your own analytic work. If you don’t you will be following others and the people you follow will always do better than you, that’s just how things work.

By reading “Trade Your Way To Financial Freedom” you will learn everything needed to take your first steps towards independent trading. Tharp has created an incredibly detailed book that covers everything from charting to leverage, and his own proven and tested 17-step model. It also features interviews with some of the markets highest performers and it is a must-read for every stock trader out there.

“Amazing Life of Jesse Livermore: World’s Greatest Stock Trader” – Richard Smitten

Jesse Livermore is one of the best and most famous stock traders to have ever traded in the Western world. He was active in the early 1900’s and has inspired thousands of traders after him. Livermore also became one of the most famous short traders of all time after he made billions of dollars (in today’s value) from the 1907 and 1929 market crashes.

What is even more impressive is that Livermore lost all of his fortunes and was forced to declare bankruptcy more than once in his life. And each time he managed to build his fortunes back up in a matter of years.

Amazing Life of Jesse Livermore: World’s Greatest Stock Trader is the best biography that has been written about this legendary trader and possibly one of the most inspiring trading books to ever have been published.

“Reminiscence of a Stock Operator” – Edwin Lefèvre

This is a fictional novel inspired by Jesse Livermore’s life, and it’s a true page turner from page one. It follows the inspirational journey of a young boy (Livermore started trading at the age of 14) from poverty to extreme wealth and all of the hardships in between.

Some would argue and say that this is better than the Amazing Life of Jesse Livermore, but we would recommend that you read both.

“Common Stocks and Uncommon Profits” – Philip Fisher

Philip Fisher is one of the most influential stock traders of the past hundred years and his techniques and strategies are still relevant today, many decades after he first created them. Fisher based most of his investments on a company’s ability to grow and increase production and revenue, and that is exactly what this book is about.

Common Stocks and Uncommon Profits will teach you how to evaluate a company’s ability to grow in order to only invest in the stocks with the highest possible potential.

Fisher’s book has been used as a stock analysis manual by thousands of traders from all over the world, and all the examples and lessons in the book have been proven to produce excellent results.

“A Random Walk Down Wall Street” – Burton G. Malkiel

A highly controversial book that has gained a lot of popularity due to its alternative way of looking at the stock market is A Random Walk Down Wall Street. In essence, Malkiel suggests that the stock market isn’t following any pattern but is instead highly random and that you can never win. Malkiel is a Princeton economist, and the book is based on a large selection of studies and research material that helps back his hypothesis.

The beauty of this book is that it describes some of the most popular charting methods and analytic strategies before Malkiel continues to outline why they don’t work. Because of this, you can learn a lot about how to analyze the stock market whether you agree with the author’s standpoint or not.

“The Essays Of Warren Buffett: Lessons For Corporate America” – Warren Buffett and Lawrence Cunningham

By sharing most of the letters that he sent to his shareholders during the last few decades while also providing comments on the letters, Warren Buffett discusses the principles behind his investment strategies.

This book provides an insight into the head of one of the world’s most successful stock traders, but there is more to read about Buffett than this. Some of our favorite books about the Oracle of Omaha include:

  • “Buffett: The Making of an American Capitalist” – Roger Lowenstein
  • “The Warren Buffett Way” – Robert Hagstrom
  • “Warren Buffett: Investing & Life Lessons On How To Get Rich, Become Successful & Dominate Your Personal Finance From The Greatest Value Investor Of All Time” – Ashton Marshall

“The Little Book on Common Sense Investing” – Jack Bogle

Would you like to learn to trade from one of the best in the industry? Then this book is for you.

Jack Bogle is the founder of the world’s largest management house which currently handles more than $3 trillion in assets. Bogel is also an advocate for a very simple investment strategy, “keep cost low and invest in market indices for the long-term.”

This bestseller provides an array of useful investment lessons that you can apply to your stock trading strategies but also on other markets. In addition, Bogel has written another popular trading book called “Common Sense on Mutual Funds”.

“Encyclopedia of Chart Patterns” – Thomas Bulkowski

Maximize your charting skills with this detailed encyclopedia covering every chart and analytic method you could ever wish to know.

As you might imagine, it’s a heavy read that you need to take your time with. There is no point in rushing it and for the people that manage to master what Bulkowski is sharing, the sky will be the limit. Honestly, the shared knowledge kept in this book is incredible, and there is no other source of useful information that is as comprehensive as this book.

Read it. Then read it again. Then start applying Bulkowski’s lessons and you will start to see immediate results.

Let Us Summarize the Best Stock Trading Books

There are obviously hundreds of other useful books that will teach you useful skills and strategies, and we recommend you try to read as many as you can. There is really no better way to learn stock trading than to study what others have done and books are the best way to do so.

For more practical tips and advice, we also recommend you check out our educational segment where you can learn more about CFD trading, leverage and margins, how to maximize your ROI, and so much more. If you are looking for a top class broker then we highly recommend that you read our eToro Review, IQOption Review or Plus500 Review. All these brokers are great for trading.

Find the best trading platform. You capital is at risk when trading. Be careful.

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