Every person knowledgeable about the financial markets understands that experience alone is not enough to trade at high levels. To succeed in trading, one must continuously learn, study, and explore as much as possible. These are the key factors that can drastically improve our skills and increase our chances of success.
Why Read Trading Books?
Reading the best books about online trading can help us better understand the thoughts, techniques, and strategies used by financial wizards. This knowledge enables us to grasp not only what to do but also what to avoid.
While experience is invaluable, staying updated with the latest strategies and insights from experts can make a significant difference. Here, we’ve compiled a list of the seven best trading books that every trader should read to elevate their trading game.
Getting Started: Open a Demo Account
For novice traders, we often advise initially opening a £100,000 Demo Account (Register here) without depositing your money. This allows you to start gaining experience with financial instruments, leverage, and the online trading platform without any financial risk.
Are these books expensive?
Investing in your education is crucial for long-term success in trading.
However, on average all of these books cost £20. It is possible for anyone to spend this amount of money, but you can also find these books for free or even in PDF format. Below you will find the titles of two trading books you can download completely for free. Following the chart about the free books, you will see a ranking of the seven most important trading books.
FREE books about trading in pdf format
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Books that every trader should read
Here is a list of the 7 books that every trader should take the time to read. They are all fascinating reads and go through the lives and experiences of the authors who wrote them. Also, these books provide useful advice for strategies and techniques you have to follow to be successful in the stock market. They are all very valuable and informative books written by authors like, George Soros, Jack Schwager or Benjamin Graham, to name a few examples. So, if you’re missing one of the authors of these books on the list, why don’t you remedy this by placing them on the bookshelf in your home.
7 Must-Read Trading Books
1) Technical Analysis of Financial Markets (John Murphy)
This book has helped many traders obtain successful results very quickly. In a way, it’s a kind of Bible of trading, for those who want to achieve a decisive and more technical approach in the final market world.
Understanding and knowing the index, as well as how to read graphs is fundamental requirement both in the world of online trading and in investments. Through this book/guide, the author offers some interesting ideas about the techniques to follow, by trying to give priority to the markets of the future.
The reviews of this book are almost wholly positive, which you can see for yourself by doing a simple search. We believe it’s one of the “basic” books to always have to hand. As it is an extremely handy manual about trading that both the newbies and more experienced and even the navigated traders can utilize to achieve success.
2) Market Wizards (Jack Schwager)
An in-depth study of the mentality of the winning trader. The Schwager’s bestseller became a classic thanks to the inclusion of the comprehensive and exclusive interviews with the financial ecosystem stars, from Marty Schwartz to Tom Baldwin.
From the beginning, of the book, you can read through interviews with the experts in futures and currency exchange who, during their careers, have managed to turn thousands of dollars into millions. The second part mainly deals with the raw materials, while the final section of the book discusses the psychology of a trader. The author of the “Black Swan”, Nassim Taleb (not an outsider) described this book as being: “The best book about trading ever written“.
We agree with this statement and, if you haven’t already done so, we highly suggest that you buy this book.
3) The Warren Buffett Way (Robert Hagstrom)
This is one of the most important books for any trader, and it shouldn’t be missing on your bookshelf. It is far more than just a manual of strategies, this is the biography (not without useful advice about trading) of the greatest trader ever existed: Sir Warren Buffett.
The book covers Warren’s life from his teenage years to the foundation of the Berkshire Hathaway. Throughout this book and thanks to some of the stories about the lives of his closest collaborators, you’ll understand why Warren Buffett never missed a shot.
From the techniques to acquire only the most underrated companies in the market, up to the study of the basics of a company. The world of Warren Buffett and all his thoughts are found here in the most essential biographical books in recent years.
Surely, we’re talking about one of the books that every trader should essentially buy.
4) The Intelligent Investor: (Benjamin Graham)
If we talk about Warren Buffett, we also have to talk about Ben Graham. Buffett’s mentor, his teacher at the university and his first employer. The philosophy and the approach to the trading of Ben Graham have changed the fate of many traders (including Buffett) permanently.
Thanks to his most famous work, “The Intelligent Investor“, you will discover all of the techniques used over the decades by Ben Graham and understand which companies you can purchase based on their actual value, and not on the market value.
Only by knowing the real value of a company is what allows you to make an informed purchase to obtain good results for the medium and the long term. In 1929, his way of thinking and by studying the markets changed radically after he suffered disastrous losses due to the impact of the Great Depression. From that moment on he began to examine the companies more closely, and within a few years, he brought his investment company back to the top.
This is a book you absolutely have to read.
5) The Alchemy of Finance (George Soros)
The book was written by the man who wrote, “Who Moves the Markets“, George Soros, and it is a must-read for anyone who is approaching the study of the analysis of current financial markets. This is a guide about trading, rather than a book on how to follow trends, and to refine your investment strategy.
Thanks to this “monument on paper,” Soros highlights his investment strategies including his “theory of reflexivity.” It is a book filled with business lessons and extraordinary advice.
Of course, we have to say Soros isn’t one the most loved traders in the world, however, his results are almost as unquestionable as the ones of Warren Buffett. Discovering what’s behind his trading strategies is necessary for every self-respecting trader to learn.
6) Day Trading Swing Trading The Currency Market (Kathy Lien)
The author of this book is Kathy Lien, she is a currency trader and possesses a very high level of experience. Kathy seems to spend more time on books than in the markets given the number of her published bestsellers. The name of the book is “Day Trading and Swing Trading: Basics Strategies and Techniques To Have a Profit From Market Move“.
This book is “a must” for all those who want to learn how to improve their profits in the largest market in the world.
Traders at any level (beginner or expert) should know all the elements which can influence the prices of currencies perfectly, the so-called “Market Move.” By reading this book you’ll have the point of view of a woman who has seen day trading and swing trading with her own eyes, and you’ll also know all strategies and techniques adopted by the trader Kathy Lien over the years.
It is a really a great book about trading.
7) How To Day Trade for a Living (Andrew Aziz)
In this book, Andrew Aziz outlines all the basics about day trading for any type of market. The book explains the most important trading strategies and the techniques which anyone should know in depth.
As a matter of fact, one of the most important aspects of this book is the section about the strategic guides (obviously). You’ll find this section in the middle of the book onwards. We are sure that, if you can manage to use the notions and suggestions offered by Andrew Aziz, you’ll have a good chance of making as few mistakes as possible in your future trades.
So, these are the seven books about trading and financial markets you really have to read about. Good reading and good trading.