21 Must Read Stock Trading Books

While there are many books available about trading and investing, we recommend first looking into these twenty-one books below.  They will give you very diverse views and approaches to the stock market, from perspectives of day trading, swing trading and long term investing. We enjoyed them and we think you will too.

 

1) The Little Book of Market Wizards:  Lessons from the Greatest Traders

by Jack Schwager

The author gives insightful and enlightening lessons on trading he learned after interviewing dozens of the world's great traders.  Plenty of gems there.

 

2) Secrets for Profiting in Bull and Bear Markets

by Stan Weinstein

Sam explains how to pick stocks, when to buy and sell, as he believes that all stocks go through various stages.

 

3) How To Make Money in Stocks:  A Winning System in Good Times and Bad

by William O'Neil

This system involves stock fundamentals, technicals and trend momentum.  A great book for the beginning stock trader.

 

4) Reminiscences of a Stock Operator

by Edwin Lefevre

A classic. Jesse "Boy Plunger" Livermore was a fearsome bear who made (and lost) a lot of money during the 1920's-1930's.  Ultimately, his life didn't end well; but the trading lessons are timeless.

 

5) How I made $2,000,000 in the Stock Market

by Nicolas Darvas

That would be about $20 million in today's dollars.  Darvis developed his system of buying and selling stocks, called the Darvis Box System.  This book is a classic, one of our favorites.

 

6) Japanese Candlestick Charting Techniques

by Steve Nison

Invented in the 18th century by a Japanese rice trader, candlesticks charting is now a widely used form of technical analysis.  It was introduced to the West by the author. The book is full of big and sight-for-sore-eyes charts.

 

7) The Intelligent Investor

by Benjamin Graham, Jason Zweig

The bible of value investing.  A classic with timeless investing wisdom.  You can't be a true investor if you never read this book.

 

8) Security Analysis

by Benjamin Graham, David Dodd

Another bible of value investing.  Warren Buffett has followed the roadmap laid out in the book for over 60 years.  This book is easier to read for those with a finance background.  [Nerd Alert]

 

9) The Snowball: Warren Buffett and the Business of Life

by Alice Schroeder

The author delves into the work and life of the most successful stock market investor the world has ever seen - Warren Buffett.  Extensive interviews of his family, friends, and acquaintances give us a glimpse of the life behind the legend.  We love this book.

 

10) The Bogleheads' Guide to Investing

by Mel Lindauer

This book is about passive investing, focusing on low maintenance and low cost portfolio management.  If you can't beat the market, it makes sense to just join it.

 

11) The Little Book of Common Sense Investing

by John Bogle

Direct from the horse's mouth. There is wisdom in following John Bogle's approach to simply buy the market.  John Bogle is considered the father of index investing.

 

12) One Up on Wall Street

by Peter Lynch

Peter Lynch was the portfolio manager of the highly successful Magellan Fund back in the days.  This book is for the layperson who wants to invest on his/her own.  Lynch recommends buying stocks that you know and whose products you use everyday, and you'll probably do just as good as the pros.  He coined the term "tenbagger" - stock going up 10 times.

 

13) The Disciplined Trader: Developing Winning Attitudes

by Mark Douglas

This book explores the psychological aspects of trading - why some traders succeed and why others fail, with everything else being equal.  We think there may be something there. 

 

14) Poor Charlie's Almanack

by Charlie Munger

Inside the mind of Charlie Munger, from the horse's own mouth.  Filled with business and life wisdoms and Mungerisms.  [Nerd Alert]

 

15) Berkshire Hathaway Letters to Shareholders 1965-2014

by Warren Buffett

Every year since 1965, Warren Buffett writes a letter to his shareholders.  It touches on the company, the financials, the acquisitions, the economy, the market and just about everything else in between.  A super gem.

 

16) You Can Be a Market Genius

by Joel Greenblatt

Joel Greenblatt is a fund manager who believes that big money can be made in hidden gems like bankruptcies, mergers, spin-offs, restructurings and asset sales. This is the kind of stuff that Warren Buffett was involved with when he was a younger investor.

 

17) Common Stocks and Uncommon Profits

by Philip Fisher

Philip Fisher was a legendary investor whose focus was on growth stocks. Warren Buffett has often said that he is part Ben Graham and part Philip Fisher.

 

18) Principle

by Ray Dalio

(We haven't read this book yet because it's not available until Sept 19,2017.)

Ray Dalio runs one of the biggest hedge funds in the world.  The Bridgewater fund has made more money for their clients than any fund in history.  This book undoubtedly will be about business and life lessons accumulated over the years.

 

19) The Little Book That Still Beats the Market

by Joel Greenblatt

The author proposes an automatic investment system that generates high returns by buying well known companies when they are cheap.

 

20) The Beanieville System: How I Trade Stocks for a Living

by Trader Beanie

This author proposes a trading system to trade "around a core position".  This book, like Ray Lichello's book, is a theoretical construct that can be useful in a bear market or sideways market.

 

21) A Random Walk Down Wall Street

by Burton Malkiel

Malkiel believes in the efficient market hypothesis; that is, the market is efficient and there is no persistent way to beat the market.  He is a proponent of the low cost index fund.

 

There you have it, all 21 stock investing books that we highly recommend reading for all investors and traders alike.  In the aggregate, it will give you a very diverse view of stock market investing.  For further reading, check out our free education page.


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