It’s been one of the craziest years we’ve seen in decades. A record number of new traders are entering the markets. Most have no clue what they’re doing. Luckily for these traders, there are many great trading books out there to build a basic foundation of knowledge for a very low cost.
If you’re a new trader reading this, stop trading. Get educated, study the markets before risking your hard-earned money.
Doctors don’t start treating patients until after years of study. Lawyers go through rigorous training before setting foot in the courtroom. Treat trading like a business.
Most of us are in quarantine, working from home. Time is not an excuse anymore.
Stock trading books alone will not make you a consistently profitable trader. But they can get your feet wet, and are a great way to use the extra free time productively. Here are my top trading books for aspiring traders to read this summer:
Trading in the Zone
Mark Douglas
This is one of the best trading books for understanding psychology. Mark Douglas breaks down the biggest mental obstacles for consistently profitable trading.
In terms of getting yourself in the correct trading mindset for profitable trading, this book is second to none.
The lessons and insights you learn from this book about human nature apply to more than just trading.
Of course, reading this book will not solve all of your trading issues immediately. You still need to identify the issues in your own trading and build a game plan for yourself to overcome them. This book will make you AWARE of the issues that are holding you back.
The Market Wizards Series
Jack Schwager
The whole series is a must-read. Multiple versions, written by Jack Schwager, he goes into dozens of in-depth interviews with some of the greatest traders of all-time, from all markets, to learn how they achieved their exceptional trading results.
Bruce Kovner, Richard Dennis, Paul Tudor Jones, Michel Steinhardt, Ed Seykota, Marty Schwart, are just a few of the dozens of traders he interviews in this series.
Many of these traders traded through market conditions like we’ve seen this year. Bear markets, bull markets, side-ways markets.
To become the best, study the best.
Reminiscences of a Stock Operator
Edwin Lefevre
An autobiography of one of the best and most renowned stock traders of all time. The lessons in this book are timeless.
Jesse Livermore said it himself: “ Another lesson I learned early is that there is nothing new on Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market to-day has happened before and will happen again
One of the first traders ever, this book a must-read for all momentum traders. Especially during this year of high market volatility, which will likely continue throughout the rest of the year.
Trade Your Way to Financial Freedom
Van K. Tharp
This one of the best books to read to learn how to build a profitable trading system. This is one of the most important steps when starting to trade: Building a trading system that works best for YOU.
Every trader is different, there is no one-size-fits-all system. From timeframes, risk management, entries, exits, it covers all the essential components of a successful trading system, and how to find the right one for you.
Many trading books gloss over the importance of aligning your trading system to your personality, needs, and desires. This is one of the best books for system development out there for new traders who are just getting started in the markets.
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