The Best Trading Books for New Traders

With the market in correction, I thought a great article topic would be 20 Key books for traders to read that would help build a foundation for proper trading. If you read one of these every two weeks this year, you will significantly build up your trading background, and learn many concepts that you can put into practice right away.

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The Booklist

How To Make Money In Stocks by William O’Neil

This is the foundational text for CANSLIM based traders. It presents an entire system that pairs both fundamental and technical analysis to find and manage True Market Leaders. A must read for any growth stock trader or investor.

How I made 2 Millions Dollars in the Stock Market by Nicolas Darvas

This was the first stock market book I ever read. It introduces many key concepts like buying leaders breaking out of bases and showing relative strength. These concepts are shared through an engaging story where Darvas walks us through his trades and many early mistakes. I highly recommend this as your first trading book and also a great option if you want to introduce your kids to trading.

Think and Trade Like a Champion & Trade Like a Stock Market Wizard by Mark Minervini

Minervini’s books are excellent. They build off of the classic O’Neil methodology and explain the specific details of entry and risk management. You should read both of these books together.

Mindset Secrets for Winning by Mark Minervini

This book synthesizes Mark’s experience over the past few decades and goes over key principles that will help you work towards your goals. A strong mindset is key for longevity and performance.

Momentum Masters

This book includes Mark Minervini, David Ryan, Dan Zanger, and Mark Ritchie II being interviewed and asked common trading questions. I highly recommend it.

The Market Wizards Series by Jack Schwager

Jack’s Market Wizard Series is great. Hearing about so many different styles helps you find the common traits and practices of great traders.

Technical Analysis Using Multiple Timeframes by Brian Shannon

Brian’s book is an excellent, no fluff explanation of trends and market structure. This book is comprehensive and has great graphics. Highly recommended.

Reminiscences of a stock Market Operator by Edwin Lefevre

This book depicts Jesse Livermore’s story of learning and trading in bucket shops. It’s an engaging read with many lessons and trading truths embedded in the pages.

How To Trade In Stocks by Jesse Livermore

This is a short but golden book by Jesse himself describing his methods. For many CANSLIM traders a lot of the concepts will seem very familiar to you. Despite this being a quick read I would say it it a must have for any trading library.

The Mental Game of Trading by Jared Tendler

This is a new one for me this year but I believe it provides an excellent framework for working on the mental side of trading. It’s all about working on that C game.

Trading In The Zone by Mark Douglas

Along with Jared's book I would highly recommend reading Trading in the Zone if you haven’t yet. It’s essential reading that will help you accept losses and probabilities.

Secrets for Profiting in Bull and Bear Markets by Stan Weinstein

Stage Analysis is another full system that every trader should learn. It will help you identify and stay cognizant of the long term trend of any stock.

How Legendary Traders Made Millions,

Lessons from the Greatest Stock Traders of All Time,

and Monster Stocks by John Boik

John Boik’s books are excellent and provide a great overview of leadership stocks as well as the great traders in history and how they handled different market cycles.

The Lifecycle Trade by Eve Boboch, Kathy Donnely Eric Krull and Kurt Daill

Kathy, Eve, Eric, and Kurt did an awesome study covering how to identify and trade super-performance stocks and IPOs. It's a great read especially if you are looking to work on your sell rules and trade more IPOs.

Pitbull by Marty Schwartz

This is an engaging, in the moment book with once again many trading lessons spread throughout the stories. I highly recommend adding it to your library.

Victory in Stock Trading by Oliver Kell

Finally I think Oliver’s book provides a great framework to learn especially when it comes to his price cycle terminology. I’ve learned a lot from Oli and it has helped my interpretation of price action and trends immensely.

Full List

• How To Make Money In Stocks by William O’Neil

• How I made 2 Million Dollars in the Stock market by Nicolas Darvas

• Think and Trade like a Champion by Mark Minervini

• Trade like a Stock Market Wizard by Mark Minervini

• Mindset Secrets for Mastery by Mark Minervini

• Momentum Masters by Mark Minervini

• Market Wizards by Jack Schwager

• New Market Wizards by Jack Schwager

• How To Trade In Stocks by Jesse Livermore

• Technical Analysis Using Multiple Timeframes by Brian Shannon

• Reminiscences of a stock Market Operator by Edwin Lefevre

• The Mental Game of Trading by Jared Tendler

• Trading In The Zone by Mark Douglas

• Secrets for Profiting in Bull and Bear Markets by Stan Weinstein

• How Legendary Traders Made Millions by John Boik

• Lessons from the Greatest Stock Traders of All Time by John Boik

• Monster Stocks by John Boik

• The Lifecycle Trade by Eve Boboch, Kathy Donnely Eric Krull and Kurt Daill

• Pitbull by Marty Schwartz

• Victory in Stock Trading by Oliver Kell

Key Takeaways

If you read all these books over the course of a year I am confident you will become a better trader. Many of these are fun and easy reads with essential lessons for traders. Even if you have read many of these already including How To Make Money In Stocks, I have found that each time I re-read one of these trading books after going through a new period in the market, I learned new lessons. Enjoy!

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Have a great weekend!

-Richard