Best Trading Books for Stocks in 2021
If you are looking for ways to improve your trading and find the next monster stock then these trading books are must-reads. Below we list the best trading books for stocks that we highly recommend.
William O’Neil, also known as WON, is one of the greatest stock traders of our time. He has achieved a return of over 5000% over a 25 year period. William O’Neil founded the trading strategy CANSLIM which combines both fundamental and technical analysis and is covered in this book. If you can only read one of these best trading books, we recommend How to Make Money in Stocks.
Nicolas Darvas is a legendary trader, and with very good reason. In his book How I Made $2,000,000 In The Stock Market, he documents the techniques he used to create his fortune. If you have heard the term Darvas Box before, this book is where he elaborates on his “Box System”.
This is one of our all-time favorite books and for many traders, one of the main reasons they were able to reach consistency. Mark Douglas is a legend when it comes to trading psychology. In this book, Mark Douglas uncovers the many reasons for the lack of consistency you are experiencing and helps traders overcome mental habits that are costing them money. Douglas exposes numerous myths about the market and teaches traders how to become comfortable in an environment of random outcomes by learning to think in probabilities.
Originally published in 1923, this book is the autobiography of the great stock trader Jesse Livermore. This book is one of the most widely read and highly recommended trading books ever. Most of the most circulated trading quotes of all time originated from Reminiscences. Even though this classic was written so long ago the lessons and advice you will find are timeless to the markets. If you are looking to read up on mistakes and lessons of one of the greatest traders of all time we highly recommend this book.
John Coates is a world-class scientist. Before that, he ran a trading desk in New York. This book covers the psychological and biological factors that we experience when under pressure in the markets. He noticed traders became cocky and irrational when on a winning streak and tentative when on a losing streak. Coates identifies a feedback loop between testosterone and success that clouds your judgement as a trader and excellently sheds light on issues that affect us all.
Market Wizards is one of the best trading books in the industry. This book interviews numerous successful traders, with interviews from a trader who turned $30,000 into $80 million and a futures trader who turned $25,000 into over $2 billion. Some of the legendary traders featured include Paul Tudor Jones, Ed Seykota, and more. This book is great for traders that already have a basic understanding of technical terms as it doesn’t focus on beginning topics it just dives into the interviews.
This is an older book written in 1988 by Stan Weinstein. It is relatively unknown but packed with good technical analysis information. The trading knowledge in this book can be applied to any market or timeframe you’re trading. On top of the useful techniques and concepts, there is a quiz at the end of each chapter so you can test yourself along the way and really retain what you are learning.