Many people are looking for different ways to succeed in trading. Some take an online course, or a private mentor, or decide to set a predetermined budget they can afford to lose in order to learn how to trade.
But in all cases, trading books are a great addition to any method or trading strategy you decide to take. These books can provide in-depth information, from technical analysis and trading psychology to understanding the dynamics of the markets, and picking the right financial instrument.
To offer more specific insights into trading books, we have divided them into four categories + a bonus one.
Top 4 categories of trading books + Bonus chapter
- Top Technical Analysis Trading Books
- Top Forex Trading Books
- Top Stock Trading Books
- Top Trading Psychology Books
- BONUS: Additional Trading Books We Recommend
So, if you are looking for the best trading books you can find out there, then you’ve landed on the right page. Below, we have listed the top 13 trading books of all time for beginner and advanced traders.
Top 13 Trading Books of All Time
As expected, there are many trading books out there that can help you expand your trading knowledge.
Some of the books are fictional and tell you stories of other traders’ experiences, while other books are more practical and show different techniques and trading strategies to succeed as a trader. Of course, there’s no right or wrong, and it all depends on what you are looking for.
So, with that in mind, here is our list of picking the right book for you based on the price, level, user reviews, and popularity:
Top 13 Trading Books by HowToTrade
- The Art and Science of Technical Analysis
- Charting and Technical Analysis
- Technical Analysis of the Financial Markets
- The Art of Currency Trading
- Day Trading and Swing Trading the Currency Market
- Fundamentals Of Currency Trading
- Reminiscences of a Stock Operator
- A Beginner’s Guide to the Stock Market
- Learn to Trade Momentum Stocks
- The Daily Trading Coach
- The Disciplined Trader
- How to Day Trade for a Living
- Market Wizards
Top Technical Analysis Trading Books
Here are the top trading books about technical analysis:
1. The Art and Science of Technical Analysis: Market Structure, Price Action, and Trading Strategies
Author: Adam Grimes
The art and science of technical analysis is a must-read for every trader who wants to become a technical analysis expert. The book was published in 2012 by Adam Grimes and offers insights on profitable technical analysis chart patterns and trading strategies.
Price: ranges from $40-$95 (e-book or print)
Best for beginners who want to learn the basics of technical analysis
Level: Beginners and intermediate
2. Charting and Technical Analysis
Author: Fred McAllen
Another top-notch book about technical analysis is Charting and Technical Analysis by Fred McAllen. In this book, McAllen provides lots of information about technical analysis strategies, entry and exit levels, and setting stops and taking profits. Though the reviews indicate that the quality of the images is poor, it is still one of the favorite trading educational books you can find in the market.
Price: $14.95 (paperback), $49.95 (hardcover)
Best for traders who want to expand their technical analysis knowledge
Level: All levels
3. Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications
Author: John J. Murphy
Technical Analysis of the Financial Markets is considered a classic book to learn about… you guessed it – technical analysis of the financial markets. With 576 pages to read, this is a detailed book that contains everything you need to know about technical analysis, including chart construction, chart analysis, chart patterns, and technical indicators.
Price: $49.99 (hardcover)
Best for all types of traders who are looking for a comprehensive technical analysis book
Level: All levels
Get free access to our live streams and our market analysts will show you exactly how to trade the markets.
Top Forex Trading Books
Here are the top trading books about forex and foreign exchange trading
1. The Art of Currency Trading: A Professional’s Guide to the Foreign Exchange Market
Author: Brent Donnelly
The Art of Currency Trading is a comprehensive book that helps traders understand how the forex market works and how to trade currencies profitably. Written by Brent Donnelly, who has been a successful interbank forex trader for more than two decades, the book covers a wide variety of topics, including different trading strategies, fundamental analysis tips, and techniques to become a successful trader.
Price: $36.99 (hardcover), $39 (Kindle)
Best book to understand the forex market
Level: Beginners
2. Day Trading and Swing Trading the Currency Market
Author: Kathy Lien
If you plan to focus on day and swing trading in the foreign exchange market, this book could certainly be helpful for you. Kathy Lien’s book focuses on both technical and fundamental analysis and suggests different strategies to make short-term profits when trading currency pairs.
Price: $35.62 (used) – $99.95 (new)
Best for forex day and swing traders
Level: Beginners and intermediate
3. Fundamentals Of Currency Trading: Mastering Technical Analysis, Fundamental Analysis, Trading Psychology and Risk Management
Author: Karen Foo
This book, written by Karen Foo, is not as popular as many trading books, but it certainly covers all aspects of forex trading. So, if you’re going to read one book about forex trading, then this book could be the book of choice for you.
In this book, Karen Foo shares her insights on technical and fundamental analysis, trading psychology, and risk management. Foo also explains the process of finding a forex brokerage firm, creating a forex trading plan template, and how to find useful websites for forex traders.
Price: $28.8 (paperback)
Best overall book to learn forex trading
Level: Beginners
BONUS TIP: Check these top forex forums and discussion boards that can add more value to your trading efforts.
Top Stock Trading Books
Below, you can find the top stocks trading books:
1. Reminiscences of a Stock Operator
Author: Edwin Lefèvre
Published in 1923, the Reminiscences of a Stock Operator remains, until today, a must-read book for any trader who wants to enter the trading arena. The book, which was written by one of the greatest traders of all time, Edwin Lefèvre, tells the story of Jesse Livermore, who allegedly earned and lost millions of dollars at the beginning of 20 century.
Though the book is fictional and does not contain many practical trading tips, it is a valuable book for stock traders and investors.
Price: $12.94 (paperback)
Best trading fiction book
Level: All levels
2. A Beginner’s Guide to the Stock Market: Everything You Need to Start Making Money Today
Author: Matthew R. Kratter
If you are a beginner who wants to start trading stocks, then this book is for you. The author Matthew R. Kratter, a former hedge fund manager, explains the essential things you need to know to make the first steps in the stock market. Inside the book, you will find explanations about how to find a brokerage firm and open a trading account, place an order, read stock price quotes, and more.
Price: $6.99 (paperback)
Best overall book to learn stock trading
Level: Beginners
3. Learn to Trade Momentum Stocks
Author: Matthew R. Kratter
Learn How Trade Momentum Stocks is another excellent book by Matthew R. Kratter that shows a unique investment strategy – finding and trading momentum stocks. At just 76 pages, this is a short stock trading book, offering readers a new trading strategy to trade the markets. By finding the current financial trends in the stock market, Kratter’s book explains how this trading system works and what is the magic formula to evaluate the intrinsic value of stocks and better understand value investing.
Price: $6.99 (paperback)
Best to learn how to trade momentum stocks
Level: intermediate and advanced
Top Trading Psychology Books
Below you can find the top trading psychology books:
1. The Daily Trading Coach: 101 Lessons for Becoming Your Own Trading Psychologist
Author: Brett N. Steenbarger
In The Daily Trading Coach, Brett N. Steenberger showcases his ways to control emotions and overcome the challenges traders face in reaching their targets. It is a simply written book with 101 lessons that provide lots of information and tips to help you become a successful trader.
Price: $27 (Kindle), $28.11 (hardcover), and $9.99 (MP3)
Best for trading psychology tips
Level: All levels
2. The Disciplined Trader: Developing Winning Attitudes
Author: Mark Douglas
The Disciplined Trader, written by Mark Douglas, is considered one of the most classical trading books that explain the complexity of the psychology of trading and the importance of mental discipline required to succeed in trading.
In this book, Douglas explains the causes why the vast majority of traders cannot maintain consistently profitable trading methods and suggests different techniques to develop a disciplined trading routine. Much like another famous trading book, The Intelligent Investor, the Disciplined Trader provides unique investment strategies and the basic principles to trade successfully.
Price: $26.58 (hardcover), $30.49 (Kindle)
Best for developing trading discipline
Level: All level
3. How to Day Trade for a Living: A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology
Author: Andrew Aziz
How to Day Trade for a Living, written by Andrew Aziz, is a favorite of many who have read it and is considered one of the most comprehensive and practical trading books out there.
Aziz, a Canadian trader, and official Forbes Business Council member covers all aspects of day trading, including chart patterns, risk management, discipline, and trading psychology.
Though the book primarily focuses on the stock and futures markets, it is a precious book for all traders who need tools and guidance on how to control their trading emotions and maintain a disciplined trading strategy.
Price: $15.99 (paperback)
Best book for day traders
Level: Beginners
4. Market Wizards: Interviews with Top Traders
Author: Jack D. Schwager
The Market Wizards, which was originally published in 1989, is a collection of interviews with dozens of successful traders who share their insights and stories about the trading world.
This book includes a T-bond futures trader who succeeded to leverage $25,000 into $2 billion in a single day. It is a classic read that has gained success and positive reviews over the years and is said by many to be one of the most valuable books for traders.
Due to the success of Schwager’s first book, he has published four more books since then with the same concept of interviews with successful traders: The New Market Wizards, Stock Market Wizards, Hedge Fund Market Wizards (2012), and The Little Book of Market Wizards (2014).
Price: $26.73 (hardcover), $16.00 (Kindle)
Best for getting insights from successful traders
Level: All levels
BONUS: Additional Trading Books We Recommend
In this bonus section, we share additional trading books on swing trading, futures trading and options trading. Check them out in your free time to level up your knowledge.
Swing Trading Books
Swing trading is the most popular way for individual traders and investors to make extra income in trading.To help you get your hands on one or two books needed to start swing trading, you can find the best swing trading books in this blog post:
10 Most Recommended Swing Trading Books for All Levels of Traders
Futures Trading Books
Futures trading is the most liquid and advanced market out there but also provides a sophisticated type of trading with access to exchanges, a wide variety of assets, and asset trading with different expiration dates. To learn more about this, you can find the best futures trading books in this blog post:
Top 8 Futures Trading Books in 2022
Options Trading Books
Options trading is perhaps the riskiest and yet most exciting form of trading.As an options trader, you first need to recognize that options are meant for hedging and as a protection tool for an investment portfolio. Unlikefutures trading which has a narrow range of books, there are many options trading books for new and experienced investors. Learn more in this blog post:
10 Best Options Trading Books in 2022
Over to you
To sum up, each of the books above can help you improve your trading skills and expand your knowledge, no matter which market you decide to focus on.
By reading trading books, taking an online course, and watching stock movies and trading documentary films, you can gain the knowledge to start your trading journey. Furthermore, you can also sign up for our Trading Room, where you can discuss with our professional trading mentors and watch real live trading examples.
Get your free access today to join our academy to career funded trader program
FAQs
What is the best book for trading for beginners? ›
- The Little Book of Common Sense Investing by Jack Bogle. ...
- A Random Walk Down Wall Street by Burton G. Malkiel. ...
- The Intelligent Investor by Benjamin Graham. ...
- One Up On Wall Street by Peter Lynch. ...
- The Warren Buffett Way by Robert G. Hagstrom.
- Investment Biker. ...
- One Up On Wall Street. ...
- Pit Bull: Lessons from Wall Street's Champion Day Trader. ...
- Reminiscences of a Stock Operator. ...
- The Intelligent Investor. by Benjamin Graham. ...
- Technical Analysis of the Financial Markets. by John J. ...
- The Big Short. by Michael Lewis. ...
- Trading in the Zone. by Mark Douglas.
While experienced investors might look to take a trade against the trend if they see potential, a safe stock trading secret is to try and trade along the trend line. As mentioned before, research is an important secret of investing that is often overlooked by those enamoured by the thrill of buying and selling.
What should a beginner trader learn? ›- Open and fund your live account.
- After careful analysis of the market, select your opportunity.
- 'Buy' if you think that market's price will rise, or 'sell' if you think it'll fall.
- Select your deal size, ie the number of CFD contracts.
- Take steps to manage your risk.
The Intelligent Investor by Benjamin Graham
This is by far one of the best trading books and is referred to as the 'Bible' of the stock market. The book targets value investors and explains the process of value investing.
Yes, you must be looking at some of the top stock market courses too but yea, books can complement the learning experience as well. But, again, the internet can prove to be just as confusing a place. The search engines will, without doubt, show 100's of books for learning the stock market.
Which is the most accurate trading strategy? ›Trend trading strategy. This strategy describes when a trader uses technical analysis to define a trend, and only enters trades in the direction of the pre-determined trend. The above is a famous trading motto and one of the most accurate in the markets. Following the trend is different from being 'bullish or bearish​' ...
What is the most reliable trading pattern? ›Head and shoulders pattern is considered to be one of the most reliable reversal chart patterns. This pattern is formed when the prices of the stock rises to a peak and falls down to the same level from where it had started rising.
Which trading style is most profitable? ›Trend following strategies, when followed correctly of course, are the safest and arguably the most profitable trading strategies out there. They perform best when used over the long-term, as trends take weeks and months to develop, and may potentially last for years or even decades.
Why do most traders fail? ›Some common mistakes that are committed by the intraday traders are averaging your positions, not doing research, overtrading, following too much on recommendations. These mistakes have caused many day traders to take losses. Around 90% of intraday traders lose money in intraday trading.
What is the 10 am rule in stocks? ›
9:30–9:40 a.m. Stocks that open higher or lower than they closed typically continue rising or falling for the first five to 10 minutes… 9:40–10:00 a.m. … before reversing course for the next 20 minutes—unless the overnight news was especially significant.
What is a trick of all trades? ›: a quick or clever way of doing something that one has learned usually as part of one's job. a mystery writer who knows all the tricks of his trade.
How can I teach myself to trade? ›- Read books.
- Follow a mentor.
- Take online courses.
- Get expert advice.
- Analyse the market.
- Open a demat and trading account.
If you have a profitable trading system averaging 15% return a year: $1000 account will make you $150. $10,000 account will make you $1500. $100,000 account will make you $15,000.
What is the number 1 most sold book? ›Harry Potter by J. K. Rowling is the best-selling book series in history. The first novel in the series, Harry Potter and the Philosopher's Stone, has sold in excess of 120 million copies, making it one of the best-selling books of all time.
What are the top three best-selling books of all time? ›- #1 – Don Quixote (500 million copies sold) ...
- #2 – A Tale of Two Cities (200 million copies sold) ...
- #3 – The Lord of the Rings (150 million copies sold) ...
- #4 – The Little Prince (142 million copies sold) ...
- #5 – Harry Potter and the Sorcerer's Stone (107 million copies sold)
Rakesh Jhunjhunwala (5 July 1960 – 14 August 2022) was an Indian billionaire business magnate, Chartered Accountant, stock trader, and investor. He began investing in 1985 with a capital of ₹5,000, with his first major profit in 1986.
Are you ever too old to learn a trade? ›Over the past year, we've had people of all ages and from all backgrounds approach us to learn a trade. If you're willing to learn and capable of picking up the skills and knowledge needed to become a successful tradesperson, age will not stop you!
How many days does it take to learn trading? ›For learning swing trading, it takes at least 6 months and for intraday trading, at least a year. So don't get discouraged by the time required because this is a skill that will make you money for the rest of your life. There is no retirement in trading as you can trade from your home even when you're 80.
Is trading a hard skill? ›Becoming a trader requires a background in math, engineering, or hard science, rather than just finance or business. Traders need research and analytical skills to monitor broad economic factors and day-to-day chart patterns that impact financial markets.
What is the most profitable trading indicator? ›
- Stochastic oscillator.
- Moving average convergence divergence (MACD)
- Bollinger bands.
- Relative strength index (RSI)
- Fibonacci retracement.
- Ichimoku cloud.
- Standard deviation.
- Average directional index.
Moving Average Strategy
It outperforms the asset by 17.73%, has the highest win rate of the bunch, and requires the least amount of trades!
One strategy that is quite popular among experienced options traders is known as the butterfly spread. This strategy allows a trader to enter into a trade with a high probability of profit, high-profit potential, and limited risk.
What are the biggest mistakes a trader should avoid in stock trading? ›- Not Understanding the Investment. ...
- Falling in Love With a Company. ...
- Lack of Patience. ...
- Too Much Investment Turnover. ...
- Attempting to Time the Market. ...
- Waiting to Get Even. ...
- Failing to Diversify. ...
- Letting Your Emotions Rule.
Scalping is one of the best day-trading strategies for confident traders who can make quick decisions and act on them without dwelling. Adherents to the scalping strategy have enough discipline to sell immediately if they witness a price decline, thus minimizing losses.
Is trading a get rich quick? ›Short term trading IS NOT for amateurs, and it is rarely the path to “get rich quick”. You can't make gigantic profits without taking gigantic risks. A trading strategy that involves taking a massive degree of risk means suffering inconsistent trading performance and large losses.
What is the most difficult thing in trading? ›The hardest part of trading, for me at least, is taking profit. The only thing you can control, aside from emotions etc, is how much you are willing to lose. That is set, before you even enter the trade. Now that can make people comfortable as this they can control.
How many hours do day traders work? ›Most independent day traders have short days, working two to five hours per day. Often they will practice making simulated trades for several months before beginning to make live trades. They track their successes and failures versus the market, aiming to learn by experience.
How many trades a day does a day trader make? ›A day trader might make 100 to a few hundred trades in a day, depending on the strategy and how frequently attractive opportunities appear.
What is the golden rule of stock? ›2.1 First Golden Rule: 'Buy what's worth owning forever'
This rule tells you that when you are selecting which stock to buy, you should think as if you will co-own the company forever.
What day of month is best to buy stocks? ›
Stock prices tend to fall in the middle of the month. So a trader might benefit from timing stock buys near a month's midpoint—the 10th to the 15th, for example. The best day to sell stocks would probably be within the five days around the turn of the month.
What day of the week is best to buy stock? ›One of the most popular and long-believed theories is that the best time of the week to buy shares is on a Monday. The wisdom behind this is that the general momentum of the stock market will, come Monday morning, follow the trajectory it was on when the markets closed.
How can I trade without losing? ›Let's say you buy a stock when it breaks above the 200-day high. You can use a time stop where if the stock doesn't go up more than 2% over the next two weeks, you will exit the trade. This is what we call a time stop loss, where you put a time factor to determine when you'll exit your trade to cut your loss.
How do you trade without losing money? ›- Knowledge Is Power.
- Set Aside Funds.
- Set Aside Time.
- Start Small.
- Avoid Penny Stocks.
- Time Those Trades.
- Cut Losses With Limit Orders.
- Be Realistic About Profits.
Regardless of what you decide to do, the most important thing is for you to learn how to win consistently and not placing trade after trade. To this point, by placing just one trade a day, you are able to build up your skills while reducing the risks of blowing up your account.
How do I start a trade with no experience? ›- Graduate from high school. Most trade positions require at least a high school diploma or its equivalent. ...
- Determine what trade you want to pursue. ...
- Attend an educational program on your trade. ...
- Get an apprenticeship. ...
- Obtain a license. ...
- Consider becoming a journeyman.
One of the easiest ways is to open an online brokerage account and buy stocks or stock funds. If you're not comfortable with that, you can work with a professional to manage your portfolio, often for a reasonable fee. Either way, you can invest in stocks online and begin with little money.
Where can I learn to trade for free? ›Offering a massive range of topics from investing basics to trading strategy guides, the investing and trading library from TD Ameritrade is useful for beginners and seasoned stock traders alike—and it's free, making it our choice as the best free stock trading course.
Where should a beginner trader start? ›- Open a trading account. You will need a broker to make trades, so you'll want to find one that you like and trust. ...
- Set your budget. ...
- Learn the basic types of stock analysis. ...
- 3 books on technical analysis to get you started. ...
- Practice with a stock market simulator. ...
- Plan your first trade.
- Confidence.
- Numerical skills.
- IT skills.
- Communication skills.
- An interest in financial markets.
- Analytical skills.
- Interpersonal skills.
- Teamworking skills.
What should I study to become a trader? ›
Finance. You can't go wrong with a finance degree if you want to become a trader. As a finance student, you'll gain a solid understanding of many trading concepts, such as the translation of accounting statements, derivatives, fixed income securities, and corporate finance.
What trader turns $1500 to $1 million? ›Sykes said the service serves two purposes: "creating public track records for gurus, newsletter writers and students everyone to learn from both the wins and losses of other traders to benefit the entire industry." One of Sykes' students, Tim Grittani, was able to turn $1,500 into $1 million in three years by trading ...
How hard is it to make 100 dollars a day day trading? ›You're really probably going to need closer to 4,000 or $5,000 in order to make that $100 a day consistently. And ultimately it's going to be a couple of trades a week where you total $500 a week, so it's going to take a little bit more work. Want to learn more about trading?
How to day trade with $100 dollars? ›Minimum Deposit: Your broker of choice should have a minimum deposit requirement of $100 or less. Otherwise, you can't deposit just $100. This is why you need to trade on margin with leverage. For example, if you are in the United States, you can trade with a maximum leverage of 50:1.
How do I start trading with $100? ›- Look for high-probability trade setups. ...
- Don't place your stops too tight. ...
- Don't shoot for high reward-to-risk ratios. ...
- Manage your trades actively. ...
- Follow your trading plan. ...
- Review your trades. ...
- Grow your account responsibly.
Intraday trading: This trading type makes you buy and sell your stocks on the same day before the market closes. You need to track your market position the entire day, looking for a good opportunity to sell your stocks.
Who is the best day trader to learn from? ›Day trading penny stocks is considered a particular niche in the trading arena, and there's no better penny stocks day trader or instructor than Timothy Sykes, making his course the best for learning how to day trade penny stocks.
How can I earn 500 a day in trading? ›- Believe in booking small profits and consider doing multiple trades. ...
- Focus on the shares having a high volume. ...
- Start trading in trending shares. ...
- Focus on entry and exit points. ...
- Management of trading costs. ...
- Take advantage of stop-loss.
In terms of money, that means not giving up very much profit potential. For example, a part-time trader may find that they can make $500 per day on average, trading during only the best two to three hours of the day.
Can you make 500 a day trading? ›Now the question that arises is whether one can earn Rs 500 from the stock market daily. The answer to this is, yes, one can, provided one has the required knowledge, skill, experience, discipline and the ability to time the market.