Books: Top 10 Trading Books
Read, Trade, Repeat: Building Your Trading Wisdom
New Year is around the corner - it is time when we take New Year’s resolutions. Attempting to change things from the beginning of the New Year - start fresh and redefine our goals.
However, they often crumble or fizzle out. The problem isn’t with the resolutions themselves but with how we approach them. As the excitement of January fades, so does our resolve.
“You do not rise to the level of your goals. You fall to the level of your systems”
So the antidote is to build sustainable habits. One habit that has stayed with me for the last several years is reading. I can say from my personal experience that books have played an important role in my development.
So, I would urge you not to wait for the new year to turn. Start building the momentum, and open a book today. As Clear emphasizes, “Habits are the compound interest of self-improvement.” A few pages a day can lead to real, lasting transformation.
A lot of you have asked me about starting the journey in the stock market. IMO the way forward is to Read - Implement - Learn. Read Voraciously. Understand Concepts and then tailor your trading to your psychology.
We have seen from the super-investors - there are multiple pathways. You, me and everybody else has to find their own path. You can't simply copy and paste from others as each one's psychology is different.✅ Reading is my hobby…so I have added a new section on the website www.learninglifelong.in where I will keep updating my learning from different books as time permits.
Trading Books that helped me evolve as a trader
I have seen myself grow from 0 in the past 5 years. I was purely a fundamental investor but gradually in the last 5 years, I have integrated technical analysis into my approach.
...and I am still hungry to learn and improveThe market has a funny way of humbling even the most confident among us, and books are where you learn from the scars of others without having to bear the pain yourself.
Trading isn’t a "get rich quick" scheme; it’s a craft. And like any craft, it requires dedication, practice, and a willingness to learn from your mistakes. Books teach you techniques and strategies, but only through practice can you turn those into consistent results.
Re-read good books - what makes sense to you as a novice might take on a whole new meaning once you’ve got some trades under your belt. Re-reading a good trading book isn’t redundant; it’s essential. As you evolve as a trader, so does your interpretation of the lessons within those pages. A book you dismissed as "too basic" might suddenly reveal profound truths when you’re grappling with real-world challenges.
List of Books
1. "How to Make Money in Stocks" by William J. O'Neil:
CANSLIM strategy - a powerful approach for identifying and profiting from winning stocks.
The book is a foundational course with many of the super traders attributing their success to this book. He shares his insights on market timing, stock selection, and risk management, providing practical guidance for traders as well as investors. 2. "Reminiscences of a Stock Operator" by Edwin Lefèvre:
A classic - this book recounts the life and career of Jesse Livermore, one of the greatest traders in history.
Through engaging narratives, it explores the psychology of trading, the art of risk management, and the critical role of discipline. Vividly portrays Livermore’s triumphs and setbacks in the markets, providing invaluable insights into market speculation and the emotional hurdles that traders encounter.3. "Trade Like a Stock Market Wizard" by Mark Minervini:
4. "Think and Trade Like a Champion" by Mark Minervini:
Mark Minervini’s books are a treasure trove. In Trade Like a Stock Market Wizard, Minervini shares the SEPA (Specific Entry Point Analysis) strategy that catapulted him to success, blending technical and fundamental analysis to identify high-potential stocks. His follow-up, Think & Trade Like a Champion, dives deeper into the psychological edge required to navigate the markets, emphasizing discipline and mindset.
Momentum Masters brings insights from 4 super traders to the table. It shows how your approach can be so different yet you can make super returns.6. "Market Wizards" series by Jack D. Schwager:
This acclaimed series features multiple books where Schwager conducts in-depth interviews with some of the world’s top traders, uncovering their strategies, philosophies, and personal experiences. It provides a rare look into the minds of successful traders and is packed with practical insights and actionable strategies. By exploring a variety of trading styles and approaches, Schwager delivers a rich collection of lessons and techniques that cater to traders of all backgrounds.7. "Trading in the Zone" by Mark Douglas:
Douglas delves into the psychological hurdles traders encounter and offers practical strategies to conquer the mental aspects of trading. He highlights the critical roles of discipline, consistency, and effective risk management in achieving long-term success. The book underscores the importance of prioritizing the process over outcomes and developing a solid grasp of market probabilities to maintain a winning mindset.8. "Stan Weinstein's Secrets for Profiting in Bull and Bear Markets" by Stan Weinstein:
Weinstein provides an in-depth guide to technical analysis, focusing on the critical role of understanding market trends and patterns. He introduces his stage analysis method, offering practical tools for spotting and profiting from top-performing stocks. Covering key topics like volume analysis, price patterns, and trend identification, the book equips traders with a strong foundation in technical analysis.9. "How I Made $2,000,000 in the Stock Market" by Nicolas Darvas:
Darvas recounts his journey from a novice investor to a multi-millionaire trader, revealing the development of his distinctive trading strategy, the Darvas Box method. This approach centers on identifying high-momentum stocks and capitalizing on their upward trends. The book outlines his trading process in detail, including clear entry and exit rules, while offering valuable insights into his mindset and strategies for managing risk effectively.10. "The Perfect Speculator" by Brad Koteshwar:
Koteshwar delves into the attitudes and traits essential for successful speculation. He highlights the critical roles of research, risk management, and adapting to market fluctuations, offering valuable advice for traders aiming to enhance their speculative abilities. The book underscores the necessity for a disciplined mindset, patience, and a comprehensive grasp of market dynamics.*****
Invest in yourself…. be a learning machine.
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What I am Reading this Month:
Finished reading:
1. Co-Intelligence: Living and Working with AI
It is a book on how Humans and AI will collaborate in the future.Explores the concept of systems thinking - how interconnected elements within systems influence outcomes.Supporting my work
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Disclaimer: I am not SEBI registered. The information provided here is for educational purposes only. This is not a buy or sell advice. I will not be responsible for any of your profit/loss based on the above information. Consult your financial advisor before making any decisions.
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Good article