The following are a selection of books I think should be in any investor’s library.
Reminiscences of a Stock Operator
This is the classic autobiography of Jesse Livermore, and it should be required reading for anyone interested in trading. Many traders read this book multiple times for good reason…it provides numerous lessons on both what to do, and what not to do in the world of trading, and it is also a fun read!
Live The Dream By Profitably Day Trading Stock Futures
Written by private trader Gary Smith in the mid-1990’s, this is my favorite trading book of all time. Smith explains his methodology for day trading the S&P 500 futures and the since discontinued NYFE futures contract. It’s a great read that provides excellent insight into understanding price action and market sentiment. Anyone interested in day trading, or understanding price action and sentiment in the stock market should read this book, over and over again.
Way of the Turtle
Authored by former Turtle trader Curtis Faith, this book provides insights into trend following and the Turtle Trading System that was taught by Richard Dennis and William Eckhardt to a group of people who collectively went on to significant success managing money in the futures markets. The mechanical rules of the system are laid out, along with the reasoning behind the rules. For anyone interested in learning how to trade, this book should be part of the foundation.
Day Trading With Short Term Price Patterns And Opening Range Breakout
Written by hedge fund manager Toby Crabel in the early 1990’s, this book provides further insight into understanding price action. This book is a dry read, but is a critical addition to any trader’s library, as it explains the quantitative approach that many successful hedge fund managers now apply in their trading. The book is out of print, and expensive, but well worth it.
How I Made $2 Million In The Stock Market
This is the classic stock market trading book written by professional dancer Nicolas Darvas detailing how he made a fortune in the stock market during the late 1950’s bull market. This is another book that should be held in every trader’s library.
How To Make Money In Stocks
This is a classic read written by Investor’s Business Daily founder and Market Wizard William O’Neil. This was probably the first book about investing and trading that I ever read. This is another one of those foundational type books that should be in every trader’s library.