Top 5 Books About Trading

No. 2: “Market Wizards,” by Jack D. Schwager

We know who the best investors are of all time. Warren Buffett, Carl Icahn, Ben Graham and more. You know their names. But do you know some of the most successful traders of the 20th century? Schwaget takes us into a deep dive that there is no one-size-fits-all strategy to tackling the markets. But you do need extreme discipline and a deep understanding of market dynamics. Schwager shows you how.

Best Trading Books No. 3: “Flash Boys,” by Michael Lewis

Michael Lewis is one of the most incredible financial writers of our time. And while “The Big Short” is a great account of the 2008 Financial Crisis, “Flash Boys” takes us into our competition in the financial markets: algorithms and high-frequency trading. This book takes you into the world of how technology shaped the financial markets and removed the need for physical trading pits. “Flash Boys” is why we know that there isn’t a trend in this market, as Stanley Druckenmiller has explained. It’s a fantastic book.

No. 4: “Thinking, Fast and Slow,” by Daniel Kahneman:

This isn’t really a “trading book” so much as it is a behavioral psychology book. You must understand cognitive biases and how to make great decisions as a “trader.” You learn how your brain works, and how to avoid common mistakes that all traders make. The point is to recognize those errors and never make them again. This is how you’ll learn a rational approach to trading and other elements of life..

No. 5: “Reminiscences of a Stock Operator,” by Edwin Lefèvre

If you don’t know the name Jesse Livermore, get ready. He was one of the most famous traders of the early 20th century, and he talks about his experiences — both failures and big wins. This is a book that will take you on the real emotional journey of being a trader. You’ll tackle risk management, how to adapt in any market condition, and how to triumph alongside one of the greatest names in the history of finance.

Bonus

My favorite financial book of all time is “Manias, Panics, and Crashes” by Charles P. Kindleberger.

This book tells the tale of recurring patterns of economic crises. The author digs into the psychological and behavioral factors that drive speculative bubbles, market manias and eventual crashes, drawing parallels across centuries. We as human beings just can’t help ourselves.

Kindleberger tackles the South Sea Bubble to the Great Depression and more, and reminds you the next crisis is just around the corner.

Conclusion

It’s critical that you take the time to read the greatest books in finance. Yes, sometimes they get a little dry, but I assure you that you’ll find yourself captivated by the history of finance and trading like I am. If you’re ever looking for a few more recommendations, just ask. My library is huge.