Updated: Jun 5
When it comes to learning about Trading and Investment, the internet provides plenty of options. Besides, Amazon has millions of books on the topic of ‘Stock Market Trading.’ However, it’s tricky for beginners and intermediate-level traders to find good books on Trading and Investment.
Here I have compiled a list of some of the best books that can guide anyone looking to boost their Trading or Investment skills. So, be with me for the next few minutes for the insight and short review of all these books.
11 - Bonus
12 - Summary
|Also Read: Top 10 Most Influential Books to Change Your Life
This book is recommended for all types of traders.
This book is ranked #1 on my list of 10 must-read books on the stock market. I have multiple versions and copies of this book. It is written by Edwin Lefevre and can be described as a fictionalized biography of Jesse Livermore, one of the most famous and debated traders of all time.
Jesse was known as "Boy Plunger" for his ability to make money in the bucket shops. Later, he also got the title "The Great Bear of Wall Street" as he made several million dollars during the 1907 and 1929 market crashes. He was carrying a massive short position during the 1929 crash and made over 100 Million Dollars, which is equivalent to 1.5 Billion in today's dollars.
Jesse started his carrier as a quotation board boy in a broker office. He was fascinated by the price fluctuations and maintained a diary to log his observation every day. It's only after receiving a "hot tip" from a colleague; he jumped into betting in bucket shops to put his theories into practice. Very soon, he started making good money in bucket shops, and all of the bucket shops banned him. Left with no choice, he moved to New York and created havoc many times on Wall Street.
During his stint at the initial stage, Jesse experienced both wild successes and massive failures. He was a contrarian in some of the approaches and looked at markets in many ways that others simply did not understand. Jesse made a fortune on trades that are placed before the earthquake in 1906. After this incident, he became a known figure on Wall Street.
Even though it's a century-old book, the advice which is present in the book is still relevant today; after all, whatever happens in the stock market today has happened before and will happen again.
One of the book's lessons is that Jesse made money when he followed his own advice and lost it when he followed others.
Jesse is considered a great trader of all time. There are many debates over his death and fortune at the time of death. Besides, his trading style (going bankrupt a few times) may not get the nod from investment giants like Warren Buffet, Charles Munger, and John C. Bogle. However, this book is a must-read book for all the traders because of the many remarkable lessons. It's also a fascinating guide to the psychological aspects of trading. I have copied some of the lessons here:
10 Quotes from Reminiscences of a Stock Operator
- There is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again.
- I always made money when I was sure I was right before I began. What beat me was not having brains enough to stick to my own game — that is, to play the market only when I was satisfied that precedents favored my play.