Whether you are a new or experienced trader, developing a culture of reading will be invaluable to you. It will help you improve your trading skills and learn from the mistakes of other traders. It will also equip you with the insights you need to know about the markets. Here are some of the best books you need to try out.
Alexander Elder | Come Into My Trading Room
Dr. Alexander Elder is one of the most prominent traders and trading educators in the world. He has authored five books that have become best sellers. Come into my trading room was his first book, published in 1993. It gives traders all the basics they need about trading. It teaches them about the different types of markets, how to become a disciplined trader, and how to become a successful pro trader.
Day Trading and Swing Trading the Currencies Market | Kathy Lien
Kathy has authored multiple books and is regarded as an influential person in the currencies market. She is a regular contributor at major finance publications. She is also the founder of a trading company called BK Asset Management. In this book, she writes about the forex market, its history and relevance, and the strategies traders can use to succeed.
Millionaire Traders | Kathy Lien
One of the best way to succeed as a trader is to learn from the experiences of other traders. This was Kathy’s goal when she wrote this book which she interviews 14 regular traders. Regular in that all of them started from the bottom and no one works for a top financial institution like Goldman Sachs. In the interviews, she dives into their trading strategies, how they got started, and how they plan their days.
Stress Test: Reflections on the Financial Crisis | Tim Geithner
The 2008/9 financial crisis was the most significant financial event. A lot of books and memoirs have been written about the crisis but none matches that of Tim Geithner, the then Treasury Secretary. In this book, he writes about his upbringing but most importantly, he writes about his experience during the crisis. This book will help you have an insider view about how the crisis happened and how you can anticipate the next one.
Octopus | Guy Lawson
As a trader, your likely end goal is to manage other people’s money and live the lives of the hedge fund stars. If this is the case, this is one book you should read. The book is about Sam Israel, a disgraced hedge fund manager who is serving time for losing his investors’ money and lying about it. Sam built a sizeable hedge fund and after a few bets, lost the money and then lied to his investors about it. He is now serving his 22-year sentence.
Black Edge | Sheelah Kohlkhata
In the history of hedge funds, few traders have reached the heights reached by Steven Cohen. Cohen is a multibillionaire who started SAC Capital, a now defunct hedge fund. For years, he had some of the best returns for his investors. This book writes about the rise of Cohen, and his eventual ‘downfall’. Unknown to most of his investors, Steve used to use insider information – which is illegal – when buying and selling stocks. He was forced to shut down his fund and pay a billion dollar fine. He now runs Point72, another hedge fund that he recently opened to new investors.
The Big Short | Michael Lewis
Before the financial crisis, a few contrarian investors warned the investment community about the risks of investing in the housing market. Some placed huge bets against the market. This book – which was later adopted as a movie – highlighted the experience of one such investors. For years, Michael Burry wrote about the housing bubble. He made presentations about it and even shorted the stocks. Very few listened. Years later, as he had predicted, the stock market crashed.