Look:
I’m not a genius or anything.
But one thing I know is this…
If I want to be a successful trader, then I need to model the process used by successful traders.
And the best way to do so is to read the best trading books out there.
You’re probably wondering:
“But Rayner, there are thousands of books available. Which are the best trading books to read?”
Well, I’ve got you covered because I’ve personally read more than 200 trading books and these are my top recommendations.
You’ve got:
The Best Trading Books for Interviews and Biographies
The Best Trading Books for Stocks
The Best Trading Books for Trend Following
The Best Technical Analysis Books
The Best Trading Books for Day Trading
The Best Forex Trading Books
The Best Trading Books for Systems Trading
Now…
For obvious reasons I can’t attach a PDF to these books (or I’ll get sued till my undies drop).
So, what you can do is go down to your nearest library and borrow these best books on trading. Or if you wish to, you can purchase them directly using the links below.
Note: I’ll earn a referral fee if you purchase from Amazon but it comes at no extra cost to you.
So are you ready to find out which are the best trading books of all time?
Then let’s dive in.
Best Trading Books for Interviews and Biographies
If you’re looking for war stories and inspiration from successful traders, then these trading books are what you need.
Market Wizards
This book contains interviews with successful traders and it’s one of the most recommended books in the trading business.
Some of the interviews share how a trader who turned $30,000 into $80 million, the hedge fund manager who’s averaged 30% returns every year for the past twenty-one years and the T-bond futures trader who parlayed $25,000 into $2 billion!
What I like about this book
The interview contains legendary traders like of Paul Tudor Jones, Ed Seykota, Richard Dennis, and etc.
What I don’t like about it
There’s nothing I can think of.
Who is this book for?
I highly recommend this book to anyone interested in trading.
It’s definitely one of the best books on trading out there.
However, if you’re brand new to trading, you may not enjoy this book as it requires abasic understanding of technical terms.
The New Market Wizards
This is a follow-up to the earlier Market Wizard book and is written in the same format. The only difference is this book focuses on American traders, whereas the earlier book has traders from all around the world.
Nonetheless, the value it provides is invaluable.
What I like about this book
See above.
What I don’t like about it
See above.
Who is this book for?
See above.
Pit Bull: Lessons from Wall Street’s Champion Day Trader
This book is an entertaining read.
It shares the ups and downs of Martin Schwartz, who started off as a fundamental analyst but couldn’t find success with that approach.
Then, he moved onto technical analysis where he had his breakthrough — making $1.8million in his first two years of trading.
Eventually, he became a champion trader whose nerves of steel and killer instinct earned him the well-deserved name “Pit Bull”.
Definitely one of the best books on trading from one of the best traders ever existed.
What I like about this book
This book is entertaining to read and you’ll get a few laughs along the way.
What I don’t like about it
There’s nothing I can think of.
Who is this book for?
If you’re looking for a good trading story, then this book is for you as it’s easy to read and very entertaining. But if you’re looking for specific trading strategies and techniques, then this book isn’t for you because it’s more of a biography than a how-to book.
Reminiscences of a Stock Operator
If you ask a successful trader which is the one book he’ll recommend, chances are, Reminiscences of a stock operator will appear many times over. That’s just how good it is.
So, what’s this book about?
Well, this is a biography of Jesse Livermore, possibly the most famous trader of all time, on how he speculated the financial markets.
He started trading at a young age and as he developed as a trader, you’ll learn how his trading style evolved.
This is a highly entertaining read as you’ll discover how Jesse Livermore made and lost millions along the way — and was even bankrupt a few times over.
The best part?
As you read this book over again, you’ll learn new things that didn’t occur to you before (well at least that’s how I felt).
Also, there are a lot of detailed explanations regarding the strength and weaknesses of buyers and sellers.
So this could also be considered one of the best price action trading books out there.
What I like about this book
I can relate to the experience of Jesse Livermore as it’s something many traders will go through. And the trading lessons you’ll learn are timeless and would make sense for most traders.
What I don’t like about it
I took a while to finish reading the first time as some of the technical terms were hard to grasp at the start (especially for new traders).
Who is this book for?
If you’re looking for a good trading story that contains trading wisdom, then this is a book to read. But if you’re looking for specific trading strategies and techniques, then this book isn’t for you because it’s more of a biography than a how-to book.
Best Trading Books for Stocks
If you’re a trader who wants to find the next monster stock, then you must check out these stock trading books.
How to Make Money in Stocks: A Winning System in Good Times and Bad
William J. O’Neil is one of the greateststock traders of our time, achieving a return of 5000% over a 25 year period.
He uses a trading strategy called the CANSLIM method which combines both technical and fundamental analysis, which is covered in this book.
What I like about this book
The CANSLIM system is relatively easy to understand even for those with little fundamental analysis background.
What I don’t like about it
As you read the book, you’ll get a soft sell to subscribe to the investor’s business daily service. Also, the charts presented are relatively small and hard to see.
Who is this book for?
If you want to learn how to trade stocks using both technical and fundamental analysis, then this book is for you. But if you’re not trading stocks, then this book won’t help much since the fundamental aspects of it are different.
Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market
Mark Minervini is a stock Market Wizard and a U.S. Investing Champion.
In this book, he reveals his proven, time-tested trading system he used to achieve triple-digit returns for five consecutive years, averaging 220% per year for a 33,500% compounded total return.
He uses a similar trading approach to the CANSLIM system, which combines both technical and fundamental analysis.
Now, there can be different types of books out there, such as price action books, fundamental analysis books, and risk management books.
But with Mark Minervini’s book?
They are all compressed into this book, which will save you both time and money.
What I like about this book
A straightforward approach explaining what he looks for when he’s trading stocks.
What I don’t like about it
There’s nothing I can think of. But more trading examples would be nice.
Who is this book for?
If you want to learn how to trade stocks using both technical and fundamental analysis, then this book is for you. But if you’re not trading stocks, then this book won’t help much since the fundamental aspects of it are different.
Stocks on the Move: Beating the Market with Hedge Fund Momentum Strategies
On average, the stock market returns 5 – 6% a year. But for that kind of returns, you need to swallow the occasional drawdown of 50% or more.
So, is there a better way to trade with lower risk and higher returns?
You bet.
Because in this book, Andreas Clenow will show you how to do it step by step, explaining the full details of his momentum trading strategy.
What I like about this book
One thing I respect about Andreas Clenow’s work is he uses statistical evidence and backtested results to back up his claims, which is something rare in this industry.
What I don’t like about it
It can be a little overwhelming for those who have no prior knowledge of statistics.
Who is this book for?
This is for traders who want to learn more about systematic stock trading. But if you don’t trade stocks, then this book isn’t relevant to you.
Best Trading Books forTrend Following
Trend Following is one of my trading methodologies because it’s a strategy that can scale even if you have a $100 million-dollar trading account.
If you want to learn more, then these Trend Following books are a must read…
The Ultimate Guide to Trend Following (Free)
I’m obviously biased since I wrote this trading guide.
The idea behind it is, it explains what Trend Following is about without leaving you confused by the technical jargon out there.
And, I’ve included a simple Trend Following strategy that lets you profit in bull & bear markets.
Trend Following: Learn to Make Millions in Up or Down Markets
This is the first book that got me started on Trend Following.
It explains the concept of what Trend Following is about and how hedge funds use this approach to make their millions.
Plus, it includes the track record of these hedge funds which proves the validity of Trend Following.
What I like about this book
This book explains the Trend Following methodology backed by real evidence based on actual results.
What I don’t like about it
There’s no exact strategy to get you started and you must dig further from other sources/books.
Who is this book for?
Traders who want to get started in Trend Following. If you’re a day or swing trader, then this isn’t for you.
The Complete Turtle Trader: How 23 Novice Investors Became Overnight Millionaires
A true story of how a group of random people is selected for a special trading program. They had a 2-week crash course on trading and are left on their own afterward.
The result?
They made millions. And this book reveals the story behind it, what they did, and the trading strategy they used.
What I like about this book
This book is easy and entertaining to read. And it goes deep into the Trend Following methodology covering risk management, entries, exits, and more.
What I don’t like about it
There’s nothing I can think of.
Who is this book for?
Traders who want to get started on Trend Following. If you’re a day or swing trader, then this isn’t for you.
Following the Trend: Diversified Managed Futures Trading
This is the first book Andreas Clenow wrote which explains how a simple trading strategy (Trend Following) can beat a buy and hold approach, consistently.
He reveals to you the full detail of his trading strategy along with his backtested results.
What I like about this book
Not only does Andreas Clenow uses statistical evidence and backtested results to back up his claims, he also walks you through the trades the strategy would have executed and the psychological aspect of trading, on a year by year basis.
What I don’t like about it
There’s nothing I can think of.
Who is this book for?
Traders who want to get started on Trend Following. If you’re looking a day or swing trader, then this isn’t for you.
Best Technical Analysis Books
Here’s the deal:
There are hundreds of Technical Analysis books out there and most of them not worth the paper they’re printed on.
So, if you just want to focus on the stuff that matters, then start with these Technical Analysis books…
The Ultimate Guide to Price Action Trading (Free)
This is the second book I wrote that teaches you the essentials of Price Action Trading.
Because you don’t need to know every technical indicator, chart pattern, candlestick pattern, to be a consistently profitable trader.
You just need to know the essential stuff — that works.
And I share them with you in The Ultimate Guide to Price Action Trading.
Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications
This book is written in a textbook style covering the essentials of technical analysis like chart patterns, candlesticks, and etc.
You will be equipped with the necessary skill to read a chart and to identify patterns on it.
What I like about this book
This book is easy to read and it gets straight to the point, unlike other technical analysis books I’ve come across.
What I don’t like about it
It might give the illusion that all technical analysis is all you need. But in reality, you need much more than that.
Who is this book for?
This is for traders learning how to trade and have little to no knowledge of trading.
The Art & Science of Technical Analysis: Market Structure, Price Action & Trading Strategies
This book takes on the traditional aspect of technical analysis and gives it a whole new spin — by backing it up with statistics.
In my opinion, this book is a gem as Adam Grimes has done all the hard work for you. He has backtested different chart patterns so you know which ones give you an edge in the markets, and which doesn’t.
This book feels like an amazing combination of one of the best price action books out there, and one of the best systems trading books out there.
What I like about this book
A detailed look at what works and what doesn’t in technical analysis.
What I don’t like about it
There’s nothing I can think of.
Who is this book for?
This is a must-read for all traders unless you’re scalping based on the order flow.
Stan Weinstein’s Secrets for Profiting in Bull and Bear Markets
This book is written by Stan Weinstein back in 1988 (just look at the book cover and you’ll know how ancient it is).
But don’t let this relatively unknown book fool you. It’s packed with practical trading knowledge that you can apply to any markets or timeframe you’re trading — I’ve even adopted some of the concepts till this day.
What I like about this book
A simple book that shares practical trading concepts and techniques. Plus it includes a quiz at the end of each chapter so you can test yourself.
What I don’t like about it
There’s nothing I can think of. But you should note the examples are mainly stocks that have ceased to exist (since it’s written some time ago).
Who is this book for?
This is a must-read for all traders unless you’re scalping based on the order flow.
Best Day Trading Books
Unlike the higher timeframes, day trading is fast paced and requires you to make quick decisions.
And as a day trader, you’ll use tools and techniques which are different from other timeframe traders.
I’m talking about stuff like market profile, order flow, depth of market, etc.
Anyway, if you want to learn more, then check out these books…
One Good Trade: Inside the Highly Competitive World of Proprietary Trading
This book is written by Mike Bellafiore, a co-founder of a proprietary trading firm in NYC.
In this book, he talks about the key ingredients to successful trading, why some traders succeed whereas others fail, and how to find the “correct” stocks to trade.
Plus, you’ll learn how to make sense of the order flow and use that knowledge to your advantage.
What I like about this book
An entertaining read that gives you a real insight into the world of proprietary trading (something that is rarely spoken about).
What I don’t like about it
There are no examples on how to find stocks in play.
Who is this book for?
Anyone who is a trader, in particular, proprietary traders.
Forex Price Action Scalping
If you’re not familiar with price action trading, then this book will open a whole new world to you. Because this book focuses solely on price action trading and is written by Bob Volman, an independent forex trader.
You’ll get valuable insights into price action trading, and the trading thought process of Bob Volman.
What I like about this book
His take on price action trading differs from what’s being regurgitated elsewhere because he goes into a much deeper level. This gave me an insight I never thought of before.
What I don’t like about it
It’s wordy and may require you to re-read a paragraph a few times to understand what he’s trying to say.
Who is this book for?
If you’re trading using a chart, then I would recommend reading this book because the techniques and concepts can be applied to all markets and timeframes.
Mind over Markets: Power Trading with Market Generated Information
This book contains the essential knowledge on how to trade using Market Profile.
You’re probably wondering:
“What’s that?”
Well, it’s another form of chart interpretation but this time round it also considers the time factor.
The benefit of using Market Profile is that it gives you an insight into what type of day it will be, whether it’s a range day, a trend day, high volatility day, and etc. From there, you can formulate a plan for your trading day.
What I like about this book
It covers Market Profile in-depth which is something you’ll not commonly find.
What I don’t like about it
There are no practical examples on how traders can use this knowledge to profit in the markets.
Who is this book for?
This book is relevant for futures day traders. If you don’t belong to this category, then this book is probably not for you.
Best Forex Trading Books
The Forex market is a different beast from Stocks.
You can go long/short, trade 24/5, and start as little as a few hundred dollars.
So, if you want to get started in Forex trading, then go read these Forex trading books…
Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves
If you want to know how fundamental data affect the currency markets, then this book is for you.
You’ll learn what are the important news release to pay attention to and why.
Also, it includes a few technical trading strategies for you to trade the Forex market.
What I like about this book
Fundamental analysis explained in a simple step by step manner (for the layman).
What I don’t like about it
There’s no logic or statistical validity to prove that the technical trading strategies work.
Who is this book for?
Forex traders who rely on fundamental analysis in their trading.
Beat the Forex Dealer: An Insider’s Look into Trading Today’s Foreign Exchange Market
This book dives deep into how the Forex market works by explaining the participants in the Forex market and their reason for trading.
Then, it tells you why the odds are stacked against you (the retail trader) and how you can apply specific trading strategies to level the playing field.
What I like about this book
It’s a no-BS-straight-talk book about how the Forex market really works.
And I like how it explains the concepts behind why the trading strategies work.
What I don’t like about it
Some of the trading strategies are no longer applicable in today’s environment.
Who is this book for?
Forex traders.
Best Systems Trading Books
Systems Trading is a great way to trade the markets because the rules are fixed and there’s no second guessing yourself.
However, the tricky part is finding trading systems that work (and with proven backtest results).
So here are some Systems Trading books with specific trading rules and backtest results, check it out…
(Note: Following the Trend and Stocks on the Move also belong to this category but I’ve covered them earlier, so I didn’t add them here.)
Unholy Grail – A New Road to Wealth
You rarely get a book that teaches you a trading system that’s backed by results.
But Unholy Grail is different.
It offers not 1 but 7 stock trading systems that beat the markets.
Every trading system is backtested over 10 years and across different market conditions (including the 2008 financial crisis).
What I like about this book
It offers easy-to-understand trading systems that anyone can use to beat the markets.
What I don’t like about it
There’s nothing I don’t like about.
But you should know the trading systems are all based on the same concept (Momentum and Trend Following) and it’d be great if it explored different types of trading methods as well.
Who is this book for?
Systems traders who trade the stock markets.
Short-term Trading Strategies That Work
This is a Systems Trading book that focuses on trading Exchange Traded Funds (ETF).
As usual, you’ll get specific trading rules along with backtested results of each trading system.
What I like about this book
This book popularized the 2-period RSI and you’ll learn how to use the RSI indicator to time pullbacks in the markets.
What I don’t like about it
It would great to show the month to month performance of each trading system so you can see the “ups and downs” of the system.
Who is this book for?
Systems trader who trades Stocks or ETFs.
Mean Reversion Trading System: Practical Methods for Swing Trading
This book focuses on Mean Reversion trading and shares different techniques to trade it.
What I like about this book
It covers a variety of methods to trade Mean Reversion — something I’ve not seen elsewhere.
Plus, it gives you the code of each trading system (on Amibroker) so you can do your own backtesting.
What I don’t like about it
It’s not the easiest trading book to read for the layman.
A background in programming and statistics would help immensely.
Who is this book for?
Systematic Mean Reversion traders.
Frequently asked questions
#1: Besides reading all these books, where is the best starting point for a novice trader?
This is a good place to start your trading journey: TradingwithRayner Academy
Conclusion
I took years to compile this list of best trading books and I’m looking to add more over time.
So, here’s what I want to know…
Do you have other trading books in mind I should add to the list?
Leave a comment below and let me know.
