I get asked about my favorite trading books a lot by the traders I train and my readers so I decided to create this list of the best trading books of all time that every trader must read. Now while reading these trading books won’t turn you into a superstar trader overnight, they will help you to hone your trading skills and motivate and inspire you.
1. Reminiscences of a Stock Operator by Edwin Lefevre
Despite being published nearly 90 years ago, this fictionalized account of the life of Jesse Livermore is packed full of timeless trading lessons. The challenges, successes, and tribulations that Livermore goes through in his turbulent career are the same that traders face today. If you read this book and aren’t fascinated, then trading probably isn’t for you.
2. Enhancing Trader Performance: Proven Strategies From the Cutting Edge of Trading Psychology by Brett Steenbarger
Dr. Steenbarger is the foremost trading psychologist and performance coach in the world. In this book, he shares how to approach trading as a performance activity, including how to structure your learning process to generate maximum results as well as how to review your performance. This book helped me take my own trading to the next level by teaching me how to properly review and analyze my trading.
3. The Daily Trading Coach: 101 Lessons for Becoming Your Own Trading Psychologist by Brett Steenbarger
This is my favorite book by Dr. Steenbarger because it’s structured in a series of daily lessons for you to complete that will have an immediate impact on your trading. It thoroughly guides you through the process of becoming your own trading coach, including lessons on using imagery, how to set effective goals, and how to avoid fear while trading.
4. Market Wizards: Interviews with Top Traders by Jack Schwager
5. The New Market Wizards: Conversations with America’s Top Traders by Jack Schwager
These two classic trading books contain dozens of interviews with highly successful traders from all markets and styles. These books include interviews with such superstar traders as Paul Tudor Jones, Marty Schwartz, Michael Steinhardt, Stanley Druckenmiller, and Blair Hull. These books do an excellent job of both giving you a broad overview of many different approaches to trading while at the same time diving into the specifics of each trader’s particular strategy.
6. One Good Trade: Inside the Highly Competitive World of Proprietary Trading by Mike Bellafiore
The only book out there that gives an in-depth look into the high-stakes world of proprietary trading. As a prop trader myself, I especially enjoyed the various stories of all the colorful traders who have passed through the firm. This is a great book to read if you’re thinking of a career in proprietary trading.
7. Pit Bull: Lessons from Wall Street’s Champion Day Trader by Martin Schwartz
This is a complete account of one superstar day trader’s career, told in a refreshingly candid style. While you won’t gain any great insight into the strategies Schwartz used to get rich, you will get a taste of the triumphs and failures that every trader goes through during his career. It’s a very entertaining tour through the career and mind of one unforgettable trader.
While these books won’t give you some top-secret trading strategy, they will give you insight and wisdom only cultivated after a long career in trading. I highly recommend you read all of them. Let me know what you think of the books I’ve included in the list and if you think I left any out in the comments below.