Trading can be a minefield for beginners who do not know what to expect from their skills and the market. As most experienced traders remark, the difference between a winning and a losing trader is the psychological aspect of trading, the reason why it is so counter-intuitive, and why it is required to change your mindset before you get to work.
To give a true sense of what it takes to be a trader, all beginners are recommended to read these books before beginning a serious trading journey. Note that this list of books is a casual suggestion, but an essential requirement in trading. These books must be read with as much seriousness as your college material.
Here is the list of the top 5 books required for traders to succeed
Trading in the Zone - Mark Douglas
This book is a classic on trading mentality. Author Mark Douglas is considered one of the world's leading experts on teaching traders the importance of trading mentality, confidence, and self-belief. Trading in the Zone - originally published in 1995 - continues to be a bright lighthouse for lost traders who find their way into trading from other professions and academies needing to adjust their mindsets
Hedge Fund Market Wizards - How Winning Traders Win by Jack D. Schwager
Jack D. Schwager sits down and interviews some of the most successful hedge fund managers over the past decades with various trading and investing styles to bring to the world firsthand what these managers have done right and wrong in their career. A read of Hedge Fund Market Wizards gets you the insights of legendary and famed managers like Ray Dalio, Michael Platt, Joel Greenblatt, Jamie Mai, etc. Naturally, one needs to know how the best players play before getting into the game and this classic by Jack D. Schwager is a brilliant first step at that.
The New Trading For a Living by Dr. Alexander Elder
Having written in detail about psychology, discipline, trading tools, vehicles and systems, risk control, and trade management, Dr. Alexander Elder's masterpiece goes one step ahead with a more technical view on the topics Trading in the Zone spoke about. The book Trading for a Living first published in 1993 has been re-written as The New Trading for a Living for a newer audience considering newer development in the field of trading and is a must-read for any aspiring trader hoping to make it a career.
The Big Short - Inside the Doomsday Machine by Michael Lewis
You may know this book by the movie it is based on, but an in-depth read of The Big Short - Inside the Doomsday Machine is recommended to aspiring traders. It is important to understand that no market is a straightforward place and there can always be irregularities in any market, whether bonds or stocks, due to manipulation, and the ones who can spot it may thrive, the rest may not even survive. This classic by Michael Lewis is a humbling reminder of the greed aspect of human nature and how it can affect global economies.
Reminiscence of a Stock Operator by Edwin Lefèvre
Arguably the greatest stock trading book of all time, this legendary masterpiece by Edwin Lefèvre is told in the first person by a character inspired by the life of stock trader Jesse Livermore. Livermore was considered the pioneer of day-trading and at one point was among the richest people in the world. Reminiscence of a Stock Operator chronicles the life of this legendary trader who is widely accepted as the founder of technical analysis and known as the Great Bear of Wall Street, which includes his incredible trades and his harmful lifestyle that eventually lead to his deadline. In the 98th year since the first publication of this book, traders of today must know and remember the impact of Jesse Livermore on stock markets and traders the way it is today.
If you would like to know the 5 books every long term stock investor must read, check here!
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