In short: here is my selection of the 10 (+1 bonus) best trading books, ranked from the most memorable to the most technical. You'll find autobiographies of legends (Jesse Livermore), interview series with great traders (Jack Schwager), references on trading psychology (Mark Douglas, Morgan Housel) and hands-on methods (Van Tharp, Linda Raschke). Whether you're just starting out or looking to perfect your technique, there's bound to be a title made for you in this top 10.
A well-chosen trading book can transform the way you approach the markets, whether that means mastering the psychological aspects of trading or sharpening your technical skills. Here is my pick of the best trading books I've read over the years. Truth be told, I've devoured hundreds of them, because I love reading, especially true stories. I love reading about the journeys of people just like you and me who have succeeded in the financial markets.
These favorites are precious to me and have shaped the way I see trading. You'll find a summary of each below. I hope it will motivate you to read them. Be warned, though: a summary isn't enough to truly immerse yourself in the world of trading — to go further, I also recommend our guides on the basics of trading and risk management. In this selection you'll find eye-opening stories of traders. Everyone can dive into the psychology of successful business people and traders. You'll also discover method and technique books on trading. Some of them I don't hesitate to reread from time to time. A few, at least once a year.
Summary table: the best trading books
| Book | Author | Theme | Level |
|---|---|---|---|
| Reminiscences of a Stock Operator | Edwin Lefèvre | True story, psychology | All levels |
| Market Wizards | Jack Schwager | Interviews, method | Intermediate |
| Hedge Fund Market Wizards | Jack Schwager | Interviews, hedge funds | Intermediate |
| The New Market Wizards | Jack Schwager | Interviews, principles | Beginner |
| Rich Dad Poor Dad | Robert T. Kiyosaki | Personal finance | Beginner |
| The Psychology of Money | Morgan Housel | Psychology of money | All levels |
| Super Trader | Van K. Tharp | System & mindset | Intermediate |
| Trading in the Zone | Mark Douglas | Trader psychology | All levels |
| One Good Trade | Mike Bellafiore | Proprietary trading | Advanced |
| Street Smarts (Short-Term Trading Strategies) | L. Raschke & L. Connors | Swing trading, method | Advanced |
| Long-Term Secrets to Short-Term Trading (bonus) | Larry Williams | Short-term trading | Advanced |
The 10 best trading books: the Captain's top picks
Trading Book #1 | Reminiscences of a Stock Operator — Edwin Lefèvre
Reminiscences of a Stock Operator by Edwin Lefèvre is a fictionalized biography based on the life of Jesse Livermore (1877-1940). He was a pioneer of day trading and one of the greatest investors of all time. At his peak in 1929, Livermore was worth 100 million dollars. In today's dollars, that's roughly 1.5 billion. It made him one of the richest people in the world at that time.
The book begins with a series of articles published in 1922 and 1923 in the Saturday Evening Post. They actually trace the story of Livermore's rise. From trading in the “bucket shops,” to speculating on the market, through being a market maker or a market manipulator, all the way to Wall Street's “Boy Plunger,” where he made and lost tens of millions of dollars… This classic of American business writing continues to offer great value: the art and psychology of trading and speculation.
It's one of the most widely read and most recommended investment books of all time.
Edwin Lefèvre (1871-1943) was an American journalist, writer and diplomat best known for his writing about Wall Street, notably Reminiscences of a Stock Operator (1923). He began his career as a journalist and eventually became a stockbroker as well. Edwin Lefèvre's first short stories were published as Wall Street Stories (1901), followed by several novels about money and finance. Lefèvre was appointed United States ambassador by President Howard Taft in 1909, and held posts in Italy, France and Spain. In 1913, Lefèvre returned to his home in Vermont, where he resumed writing novels and short stories for magazines such as The Saturday Evening Post and McClure's.
Trading Book #2 | Market Wizards — Jack Schwager
How did some of the best-performing traders amass millions of dollars in the space of a year, or sometimes just a few hours? Are they the masters of a priceless magic, or simply the very fortunate winners of a random market lottery that lets only a handful of players become extraordinarily rich? What are the secrets of their incredible success?
Market expert Jack D. Schwager interviews the best traders across a variety of markets and finds that an interesting combination of method and mental attitude is largely responsible for it. He presents these exceptional traders in a way that gives the reader insight into how they operate.
This book, Market Wizards, lets the reader explore the minds of these professional traders. It gets to the heart of what makes them successful: the different approaches used across the different markets, the trading rules each of them lives by, and personal advice for fellow traders.
Understand clearly what matters if you want to become a successful trader. Hear it straight from the mouths of those who succeed.
Trading Book #3 | Hedge Fund Market Wizards — Jack Schwager
Fascinating insights into hedge fund traders who consistently outperform the markets, in their own words.
Jack Schwager — bestselling author, investment expert and Wall Street theorist — takes us behind the scenes of the hedge fund world through the words of fifteen traders who have consistently beaten the markets. Exploring what makes a great trader great, Hedge Fund Market Wizards breaks new ground by giving readers a rare glimpse into the trading philosophy and profitable methods used by some of the most successful people in the hedge fund arena.
This book features exclusive interviews with fifteen of the brightest hedge fund traders and what they learned over the course of their careers. It includes interviews with Jamie Mai, Joel Greenblatt, Michael Platt, Ray Dalio, Colm O'Shea, Ed Thorp, and many others. It lays out forty key lessons for traders.
Along with Stock Market Wizards, New Market Wizards and Market Wizards, it is the fourth installment in investment guru Jack Schwager's much-loved, best-selling series of interviews with market experts.
A candid assessment of each trader's successes and failures, in their own words, the book shows readers what they can learn from every one of them, and also presents forty essential lessons — from finding a trading method suited to the investor's personality to learning the value of diversification — that investment professionals around the world can apply in their own careers.
Bringing together the wisdom of true market masters, Hedge Fund Market Wizards is an accumulation of timeless ideas on what it takes to trade in the hedge fund world.
Trading Book #4 | The New Market Wizards — Jack Schwager
Everyone has been impressed by the remarkable profits made by certain traders, like the one who posted a 250,000% gain in 16 years! Still, the risks involved in trading are intense, and it can seem that this field is reserved for only a handful of people.
In The New Market Wizards, Jack D. Schwager unravels the mysteries of trading and shows that anyone can succeed in this field. Schwager, head of research and trading strategy at Prudential Securities, argues that only experience can provide the essential skills needed to succeed in trading. As a result, he examines the stories of fifteen remarkable traders through meticulous interviews. From these traders' successes and failures, the author conveys the essential principles that every trader must follow. The psychology of these masters of finance teaches us how to read the market and how to act at the critical moment. As an example, he stresses that trying to win back your losses can lead to a massive loss if the trader doesn't accept small losses. Ultimately, it's an accessible book that helps us understand finance in an entertaining way.
Trading Book #5 | Rich Dad Poor Dad — Robert T. Kiyosaki
First published in 1997, the famous personal finance book Rich Dad Poor Dad celebrated its 25th anniversary in April 2022 and still holds its place as the best personal finance book ever written. Despite the quarter of a century since its first publication, the book has remained largely unchanged, a testament to its relevance even as the world around us undergoes rapid transformation. With money remaining a crucial part of our lives, the messages in Robert Kiyosaki's acclaimed work are more relevant than ever.
To mark this anniversary, a section on the importance of milestones was added and some of the sidebars were revised, although the core principles remain the same and continue to show that this book is still foolproof.
It's remarkable that the content of this book has stayed unchanged since its first publication, despite the successive anniversaries being celebrated. The sidebars that had been added for the book's 20th anniversary edition have also been updated since, but the core values that were cherished by previous generations and passed on to the young are still the same. These principles emphasize the importance of taking control of your finances and making the most of the opportunities life offers us.
Milestones are essential for people around the world to remember times past, assess their progress, learn from their experiences and celebrate their successes. It is thanks to milestones that our lives take on meaning.
Trading Book #6 | The Psychology of Money — Morgan Housel
In his book The Psychology of Money, Morgan Housel explores the psychological aspects of money and the way it affects our lives. Housel's work specifically examines how money can influence our thoughts, feelings and behaviors. He suggests that understanding the link between our psychology and our finances is essential to making sound financial decisions.
The book covers a variety of topics, including the importance of understanding your relationship with money, the role of money in relationships, the psychology of debt and consumerism, and the impacts of money on mental health. Housel notes how money can be seen as a tool for solving problems, as well as a source of stress. He encourages readers to take an honest look at their relationship with money and to consider how their spending habits, financial decisions and more can affect their lives. Housel's ideas can help readers make more informed decisions about their finances and better understand their relationship with money.
Trading Book #7 | Super Trader — Van K. Tharp
In his book Super Trader, Van K. Tharp offers detailed strategies to help traders master the market and gives a complete overview of the psychology and mechanics of trading. The book starts by covering the basics of trading, such as the types of markets and the difference between investing and speculating. It provides advice on how to develop a trading plan and how to use trading tools such as technical and fundamental analysis. It's also an excellent gateway if you want to build your own trading system from A to Z.
He then delves into the psychological side of trading, helping readers understand their own fears and biases. In addition, Super Trader covers the impact of news on the markets, how to choose the right brokerage firm — for crypto traders, solid, regulated platforms like OKX are among the recommended references — and advice on the difficult art of position sizing. Finally, the book offers a series of case studies to illustrate the principles covered. Overall, this book is an invaluable resource for any trader who wants to take their activity to the next level. With its comprehensive advice and practical strategies, it's sure to help traders maximize their success.
Trading Book #8 | Trading in the Zone — Mark Douglas
Trading in the Zone by Mark Douglas is a complete guide to succeeding in the financial markets. It covers a wide range of topics, from the basics such as risk management and trading psychology to systems and risk/reward analysis. The book is designed to help traders of all experience levels better understand the market and trade with more confidence.
It also offers a step-by-step approach to building a trading plan and money management, along with a step-by-step walkthrough of a complete trade. In addition, it addresses a variety of other topics, such as the difference between gambling and trading, the importance of discipline and consistency, and the impact of emotions on trading. Trading in the Zone is an invaluable resource for traders of all levels, as it offers a wealth of information and strategies that can take years to learn through experience.
Trading Book #9 | One Good Trade — Mike Bellafiore
Mike Bellafiore's book, One Good Trade: Inside the Highly Competitive World of Proprietary Trading, is an excellent resource for anyone who wants to learn the strategies and techniques of professional traders. The book is divided into seven parts covering topics such as order types, strategies, risk management and trading psychology. Bellafiore lays out the fundamental principles of trading and provides advice to help traders improve their performance. He stresses the importance of discipline and risk management, suggesting a number of strategies traders can use to mitigate their risks.
Throughout the book, he explains how to stay focused and disciplined during periods of market volatility. Bellafiore also addresses trading psychology, discussing the fear and greed that so often come with the practice. He shares his own experiences and gives advice on how to stay calm and objective in potentially stressful situations. The discipline he advocates is built day by day: for that, nothing beats keeping a trading journal to analyze your decisions with a cool head. This book is perfect for anyone looking to get into proprietary trading. It's also useful for seasoned traders who want to refine their skills and gain an edge in the market. For those who want to take it to the next level, One Good Trade is essential reading.
Trading Book #10 | Street Smarts: High-Probability Short-Term Trading Strategies — Linda B. Raschke & Laurence A. Connors
Published in 1996 and written by Larry Connors and Linda Raschke, this 245-page manual is considered by many to be one of the best books ever written on futures trading. Twenty-five years of combined trading experience are revealed as you learn 20 of their best strategies.
Among the methods you'll be taught are:
- Swing Trading – The backbone of Linda's success. Not only will you learn exactly how to swing trade, but you'll also learn specific advanced techniques never made public before!
- News – Among the strategies revealed is an intraday news strategy she uses to exploit the herd when the 8:30 a.m. economic reports are released. This strategy will be especially appreciated by bond and currency traders.
- Pattern recognition and pattern trading – You'll learn some of the best short-term setup patterns available. Larry and Linda will also teach you how they combine these patterns with other strategies to identify explosive moves.
- ADX – In our opinion, ADX is one of the most powerful and most misunderstood indicators traders use. Now, for the first time, they reveal a handful of short-term trading strategies they use in conjunction with this indicator.
- Volatility – You'll learn how to identify markets that are about to explode and how to trade these exciting situations.
- You'll also find chapters on volatility trading, Crabel trading, smart money index trading, gap reversal trading, a special chapter on professional money management, and other trading strategies!
Bonus | Long-Term Secrets to Short-Term Trading — Larry Williams
The wildly popular market guru updates his popular trading strategy for a post-crisis world.
From Larry Williams, one of the most popular and respected technical analysts of the past few decades, Long-Term Secrets to Short-Term Trading, second edition, provides the blueprint needed for healthy, profitable short-term trading in a post-crisis economy. In this updated edition of the book, Williams shares his years of experience as a highly successful short-term trader, while highlighting the pros and cons of what can be a very demanding yet potentially rewarding endeavor.
Conclusion: which trading book should you start with?
There you have my Captain's top picks. If I had to suggest a starting point: begin with Reminiscences of a Stock Operator for the passion and the history, then Trading in the Zone and The Psychology of Money for the mindset, before tackling the more technical methods of Van Tharp and Raschke & Connors. Remember: no book replaces practice. Combine these reads with our free training guides, a rigorous trading journal and real risk management, and you'll turn this knowledge into concrete results. Happy reading, and good trades!
