List of Top 7 Stock Trading Books of All Time
- Trading Systems and Methods
- Trading to Win: The Psychology of Mastering the Markets
- Quantitative Trading Strategies
- Trade Your Way to Financial Freedom
- Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders
- Entries & Exits: Visits to 16 Trading Rooms
- Algorithmic Trading: Winning Strategies and Their Rationale
Stock Trading is often confused with investing and those barely acquainted with the stock market can have a hard time differentiating between them. In simple terms, investing is all about putting your money in stocks, bonds, and other securities and just waiting for them to grow before one would think of cashing in on them, which is usually in the long-term.
Trading is much more ‘quick’ in that sense, where investors or traders, to be more accurate, invest for short-term rather than the long-term and day trading the most recognized form of stock trading, although some traders fall somewhere in the middle, parking their funds for a few days to weeks or even months at a time before making any move. Timing the market is a critical factor in day trading and paradoxically, something advised against by most experienced investors and stock traders. This is what makes day trading more of an enigma for an average person.
Here we have compiled a list of works on trading that not only provide necessary fundamentals but offer a unique perspective on stock trading along with effective trading tools and techniques which might make all the difference between success and failure.
#1 – Trading Systems and Methods
Author – Perry J. Kaufman
This book is a comprehensive work that covers an entire spectrum of trading strategies and how they work, meant for both amateur and professional traders, complete with the latest updated information on trading systems, tools, and techniques essential for successful stock trading. Originally composed nearly 30 years ago, this work has helped a number of people understand trading better and it continues to be of relevance today into its updated 5th edition.
What makes the work even more valuable is the way author helps create a deeper theoretical understanding of trading systems and methodology from a purely mathematical perspective, and at the same time goes on to build upon it to explain the integration of fundamental statistics in stock trading techniques and concepts of risk management designed for traders. Despite his thorough treatment of the subject, the author makes sure to make it as accessible and useful for practical traders as might be possible. Supplementary website and tools are also added to bring additional practical value to the readers.
This edition is a detailed professional exposition on trading systems and methodology, an analytical framework for comparing different trading techniques, and tools for developing unique stock trading strategies for individual traders. The author provides a complete treatment of the subject, covering both theoretical fundamentals as well as a practical application of seemingly complex concepts in an easy-to-understand manner. In addition, spreadsheets and Trade Station programs are added for an interactive learning experience. A companion website and supplementary learning material make it a continual learning resource for practical traders.<< Get it here >>
#2 – Trading to Win:
The Psychology of Mastering the Markets (Wiley Trading)Hardcover
Author – Ari Kiev
This is a rare work on the psychology of trading, designed to help traders align their psychological motivations with their trading strategies and goals to succeed like anything. This work is a result of 5-year collaborative effort between an experienced psychiatrist and a seasoned equities trader, making it as authentic an effort as it could be at explaining every aspect of a trader’s psychology and defining a set of psychological and behavioral principles which could help a trader overcome any mental obstacles and achieve his potential as a disciplined and focused trader.
It presents a complete approach to dealing with stress, self-limiting beliefs and potentially destructive behavior patterns which could hurt a trader where it matters most and how self-belief can be reinforced while avoiding the risk of being entrapped by feelings of despair or euphoria, either of which might not do much good for a trader. On the whole, a complete psychological guide on how to improve trading performance while lead a stress-free life to be able to enjoy the fruits of one’s efforts.
An excellent book on stock trading psychology composed of psychological and trading veterans, bringing readers just the right kind of expertise needed for such a topic. It is a well-known fact that mental stamina and positive psychology is as important as expert knowledge of trading techniques and principles to make it a success as a trader. This work covers the lesser-recognized aspect of complex psychological issues and helps a trader learn how to root out negative psychological patterns and master the mental game behind the money game to become a super trader. A recommended read for amateurs as well as experienced traders.<< Get it here >>
#3 – Quantitative Trading Strategies:
Harnessing the Power of Quantitative Techniques to Create a Winning Trading Program (McGraw-Hill Trader’s Edge Series)
Author – Lars Kestner
This book is an interesting work on quantitative trading strategies designed to help traders avoid huge trading losses resulting purely as a result of market volatility. Quantitative trading relies on an analysis of historical data and employs a purely mathematical approach to be able to identify the best entry and exit points for any trade.
While outlining several systematic trading techniques and strategies and comparing their performance potential for efficient risk and money management, the author not only recognizes the limitations of the approach adopted but also offers a novel approach to money management based on optimal averages. What makes this work unique is its focus on developing a highly individualized approach to quantitative trading which could be of great assistance in realizing the potential of trade under some of the most unstable market conditions.
A condensed yet specialized book about stock trading which focuses on how traders can benefit by integrating quantitative analysis in their broader approach to trading. The author successfully demonstrates how one can utilize a combination of market knowledge along with fundamentals of quantitative analysis can help traders turn the tide in their favor.<< Get it here >>
#4 – Trade Your Way to Financial Freedom
Author – Van K. Tharp
A masterpiece on trading which provides a complete overview of systematic trading techniques and strategies for any trader to succeed and continually improve upon his approach, learning and assimilating newer elements to achieve consistent results. The author presents a 17-step trading model for an average investor along with trading advice on how to avoid common pitfalls and develop your own trading methodology which could potentially provide the best possible results for any individual trader. Several important issues are addressed by the author including the reward to risk multiples and offers guidance to help a trader personalize virtually any strategy and achieve better results. It also features several interviews with top traders which offers a number of useful insights for any trader. Plenty of practical examples are illustrated along with charts and relevant information to demonstrate how a certain strategy might actually work out. An indispensable guide for new as well as veteran traders.
This best book on stock trading is a complete guide to trading which presents a detailed roadmap to success for traders of virtually any level of experience. The 17-step trading model propounded by the author actually makes life easier for novice traders providing them a guideline on how to go about it and ensure the best results with minimal chances of failure. Those who would love to get onto the daunting task of developing their own trading strategy must diligently pursue this brilliantly written masterpiece.<< Get it here >>
#5 – Way of the Turtle:
The Secret Methods that Turned Ordinary People into Legendary Traders Hardcover
Author – Curtis Faith
This best stock trading book is a masterpiece in its own right, describing the details of a 25-year long experiment in trading which not only helped the people involved discover unique strategies for successfully exploiting the hidden possibilities in markets, but also made them millions along the way. The revelations about the ‘way of the turtle,’ as they love to call it, is made by none other than the ace turtle, Curtis Faith himself, who lays bare the secret process they followed to select the ‘turtles’ and how they were trained to become masters of trading strategies in their individual capacity. It is nothing less than a fascinating journey into the world of trading on which readers might as well acquire some invaluable gems of trading and make their own riches. A highly recommended read for traders prepared to make a concerted effort worth its reward.
‘Way of the Turtle’ is a revelation in and of itself about a few individuals out to conquer the trading world against all odds, and how they actually did it with flair. A must-read for the trader who is not on a deadline to success but is prepared to invest time, intelligence, knowledge and dedicated effort to reap the best rewards possible. This work offers a treasure trove of information on utilizing trading rules to go beyond the rules and devise successful long-term trading strategies based on the first-hand experience of the author himself. What more could you ask for?<< Get it here >>
#6 – Entries & Exits:
Visits to 16 Trading Rooms (Wiley Trading) Hardcover
Author – Alexander Elder
In this excellent stock trading book, the author offers a rare peek into the trading rooms of 16 traders who are from completely different molds, operating in different markets and driven by different goals. Each one of them specializes in a certain type of trades and adopts varying techniques in keeping with their individual level of knowledge and experience. Contrary to what some readers might think, this work does not reveal any secret formulas for success, far from that, essential qualities including a disciplined and methodical approach, focus and attention to detail, are what helps them make it through. The work comes with a companion study guide that covers several important areas including psychology, markets, trading techniques, and case studies, lending further practical value to the work. A highly recommended read for anyone looking for a realistic perspective on what trading is all about.
A successful trader would rarely reveal how he or she works and what makes them good at it but here professional lives of 16 traders are laid bare for readers to be able to understand intricacies and real-life challenges of the trading world. Those looking for some kind of ‘quick-fix’ formula would do better to skip the work completely because it focuses more on the qualities and outlook needed to succeed along with the right kind of tools and techniques. A companion study guide makes it a recommended read for practical traders of almost any level of experience and individual capabilities.<< Get it here >>
#7 – Algorithmic Trading:
Winning Strategies and Their Rationale (Wiley Trading)
Author – Ernie Chan
This book is a valuable work on quantitative trading which offers highly useful practical information in a rather easy-to-understand manner which sets it apart from most others in the field. Keeping in mind how complex is the field of quantitative trading, the author does an excellent job of taking readers through the entire process of developing and implementing algorithmic strategies and explore the subtleties of the process without making it difficult to understand at any point of time.
This is a rather concise volume that offers a goldmine of information to those looking to develop their own systematic trading strategies. To bring added value to the work, the author has also provided real examples make it a truly worthwhile read.
This is an excellent book on algorithmic trading, which covers the concepts as well as their application in terms of coding, developing and implementing successful trading strategies. What makes it such a valuable work is the ease with which such complex information is conveyed to the reader which makes it possible to understand the principles and methods for developing personalized trading strategies for optimal results.
A highly recommended read for anyone interested in practical algorithmic trading without the kind of complex approach usually adopted. This a no-frills read on algorithmic laying threadbare the principles and practices of this art. What more could one ask for?<< Get it here >>
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