20 Best Stock Trading Books in 2024
There are numerous stock trading books available that can help new investors broaden their stock education. This list includes 20 great stock market books that every trader should read. Many titles promise the moon and stars. We are sorry to announce that none of these books will instantly make you a millionaire (sorry), but this collection can serve as a foundation for the market acumen you will gain through experience.
1. A Random Walk Down Wall Street
Book: A Random Walk Down Wall Street
Author: Burton G. Malkiel
This book, now in its thirteenth edition, deserves most of the credit for the expansion of index ETFs and passive investing in general. It is an excellent read for anyone interested in the subject of whether markets can be forecast, and it draws some shocking (and passionately argued) conclusions. Indexing, diversification, trends, bubbles, the virtue of patience combined with time, and many other fundamental principles are thoroughly discussed.
Malkiel highlights the futility of regularly outperforming the market through stock picking or market timing, and instead advocates for a passive, index-based approach to investing. The book delves into a variety of investment vehicles, including stocks, bonds, mutual funds, and real estate, highlighting the value of diversification and long-term investing. With its combination of academic rigor and practical insight, "A Random Walk Down Wall Street" is an essential guide for investors looking to navigate the complexity of financial markets with confidence and prudence.
2. The Little Book of Common Sense Investing
Book: The Little Book of Common Sense Investing
Author: John C. Bogle
John Bogle founded the Vanguard Group, which is notable for offering the industry's lowest-cost funds, including the first index fund. John's message is straightforward: keep costs low and invest in market indices over the long term. John’s other book, "Common Sense on Mutual Funds", is a bestseller that explains mutual fund investment. "Stocks for the Long Run" by Jeremy Siegel is another excellent book with a similar concept.
3. How to Make Money in Stocks
Book: How to Make Money in Stocks
Author: William J. O’Neil
How to Make Money in Stocks by William J. O'Neil is an in-depth guide on navigating the stock market and attaining investment success through a disciplined approach to growth investing. Drawing on his personal experience as a successful investor and founder of Investor's Business Daily, O'Neil describes his CAN SLIM strategy, which focuses on discovering firms with significant profits growth, creative goods or services, and institutional sponsorship, among other critical requirements.
The book teaches readers how to choose profitable stocks, time entry and exit points, and manage risk effectively through extensive explanations and real-world examples. With a focus on basic and technical research, as well as psychological aspects like investor sentiment and market trends, "How to Make Money in Stocks" provides investors with the knowledge and tactics they need to succeed in the volatile world of stock market investing.
4. The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor
Book: The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor
Author: Howard Marks
Howard compiled a list of the 21 most important things to know about investing, building on his Oaktree Capital client memos. The book discusses several factors to long-term success, including as "second-level thinking," the price/value relationship, patient opportunism, and defensive investing.
5. Reminiscences of a Stock Operator
Book: Reminiscences of a Stock Operator
Author: Edwin Lefèvre
This book is a real page turner. It is a fascinating account of how a young child managed to accumulate one of the largest fortunes of his time through speculation, despite going bankrupt several times during his career. Though this book covers how people traded in the past, it contains timeless investment advice ("I've always made my money from sitting, not thinking") that will benefit your trading for years to come. It is one of the best stock trading books of all time. Yes, we said it.
6. Buffett: The Making of an American Capitalist
Book: Buffett: The Making of an American Capitalist
Author: Roger Lowenstein
This book provides a captivating and well researched overview of Warren Buffett's life and financial philosophy, one of the most successful investors in history. Lowenstein follows Buffett's rise from humble beginnings in Omaha to his status as a legendary investor and business leader, offering light on the concepts, techniques, and experiences that inspired his extraordinary career.
Through analytical analysis and revealing anecdotes, the book digs into Buffett's methodical approach to value investing, his emphasis on long-term thinking, and his remarkable ability to uncover undervalued companies with durable competitive advantages. "Buffett: The Making of an American Capitalist" provides a unique peek into the brain and practices of a true financial icon.
7. Intermarket Analysis: Profiting from Global Market Relationships
Book: Intermarket Analysis: Profiting from Global Market Relationships
Author: John Murphy
According to the author, financial markets are interconnected, thus your estimates must take into account how other markets perform. Bond prices, for example, are related to stock prices, and oil prices will almost likely have an impact on the aviation industry. This book gives a framework for getting the broadest, most comprehensive view of markets.
8. Trade Your Way to Financial Freedom
Book: Trade Your Way to Financial Freedom
Author: Van Tharp
Do not disregard this work because of its overly dramatic title. This is a treasure that combines investor psychology with system design. While it may not provide you with the "Holy Grail" (an unbeatable approach for trading the markets), it will provide you with the fundamentals necessary to build a profitable system. This book has something for everyone.
9. The Intelligent Investor
Book: The Intelligent Investor
Author: Benjamin Graham
Benjamin Graham's masterpiece has sold over 1 million copies and should be on every investor's bookshelf. To put it simply, when Warren Buffett writes the preface to a book, it is worth reading.
10. One Up on Wall Street
Book: One Up on Wall Street
Author: Peter Lynch
This is an investment classic that gives private investors a chance to outperform the big giants. Peter Lynch describes how Wall Street may not be able to identify the best investment prospects from the outset, and he demonstrates step by step how the individual investor might locate the next winner.
11. The Little Book That Still Beats the Market
Book: The Little Book That Still Beats the Market
Author: Joel Greenblatt
This book teaches the fundamentals of stock market investment. It explains the author's tried-and-true "magic formula investing" strategy for outperforming the market by investing in high-quality companies at low prices. The quotation marks are there because there is no "magic formula" for winning the market; rather, there are several key aspects of value investing that every investor should understand.
12. Liar's Poker
Book: Liar's Poker
Author: Michael Lewis
An intriguing, if possibly not profitable, account of how Wall Street operates, or did in the 1980s. It is so good that we re-read it every few years. Remember that in the 1980s, a million or billion dollars was a large sum of money. Other fantastic Michael Lewis readings include "The Big Short: Inside the Doomsday Machine" and "Flash Boys". Almost everything Lewis ever wrote is a wonderful read. We would read his grocery lists if they were published.
13. Fooled by Randomness
Book: Fooled by Randomness
Author: Nassim Taleb
This book, which pairs well with "The Black Swan," illustrates how randomness plays a larger influence in our lives than we may realize. For traders, this implies that dangers are typically bigger than we perceive.
This book is a thought-provoking examination of the role of chance, randomness, and probability in our lives, particularly in relation to financial markets. Taleb questions common wisdom, stating that humans tend to underestimate the impact of chance and overestimate the importance of talent or foresight. Through fascinating anecdotes and keen insights, he reveals the fallacies of hindsight and survivorship bias, demonstrating how randomness may distort our perceptions and lead to poor decisions. With its blend of wit, intelligence, and academic rigor, "Fooled by Randomness" challenges readers to reassess their ideas about achievement, risk, and the nature of uncertainty in an unpredictable world.
14. Alchemy of Finance
Book: Alchemy of Finance
Author: George Soros
Alchemy of Finance explains the author's idea of reflexivity and how it applies to the market. Though it does not give a direct trading method, it is incredibly intelligent and contributes to a better knowledge of how financial markets work. The book may be difficult to read, but those who persevere will be rewarded.
This book provides an engrossing view into his revolutionary approach to financial markets, which combines principles from philosophy, psychology, and economics to deconstruct market intricacies. Soros reveals his reflexivity theory, which holds that market participants' perceptions influence market fundamentals, resulting in feedback loops that can lead to boom-and-bust cycles.
He explains how reflexivity impacts market dynamics through a series of reflective articles and case studies, highlighting the ramifications for traders, investors, and policymakers. With its interdisciplinary approach and profound insights, "Alchemy of Finance" questions conventional thinking and provides a compelling framework for comprehending the complex interplay between perception, reality, and financial markets.
15. Japanese Candlestick Charting Techniques
Book: Japanese Candlestick Charting Techniques
Author: Steven Nison
This book is a comprehensive guide to learning and applying the ancient Japanese technique of candlestick charting to current trading and technical analysis. Nison methodically exposes readers to candlestick charts' rich symbolism and subtle patterns, explaining each formation and its significance for market trends and reversals. He shows how to use candlestick patterns to determine entry and exit points, evaluate market mood, and improve overall trading success using simple drawings and real-world examples. This book is an invaluable resource for traders who want to use candlestick charting to comprehend market dynamics and make informed decisions. It combines historical context with practical ideas.
16. Extraordinary Popular Delusions and the Madness of Crowds
Book: Extraordinary Popular Delusions and the Madness of Crowds
Author: Charles Mackay
This is also an investment classic and is a timeless investigation into the illogical actions and collective follies that have plagued human communities throughout history. Mackay investigates numerous historical incidents, ranging from the Dutch Tulip Mania to the South Sea Bubble, to identify the psychological and social mechanisms that underpin speculative bubbles, public hysteria, and irrational exuberance.
Through dramatic storytelling and astute analysis, he demonstrates how humans are vulnerable to the impact of groupthink, herd mentality, and emotional contagion, resulting in widespread stupidity and financial catastrophe. With its profound insights into human nature and the pitfalls of unfettered conjecture, "Extraordinary Popular Delusions and the Madness of Crowds" is both a cautionary tale and a thought-provoking analysis of the persistent attraction and dangers of mass madness.
17. Common Stocks and Uncommon Profits
Book: Common Stocks and Uncommon Profits
Author: Philip Fisher
Warren Buffett thanks Phillip Fisher for most of his success. In the age of quantitative finance, this book is a must-read for everyone who wants to learn how to analyze a firm beyond its raw figures. The emotional preface to the most recent edition by Phillip Fisher's son, Kenneth, is worth the price of admission on its own.
18. Irrational Exuberance
Book: Irrational Exuberance
Author: Robert Shiller
One of the best stock market novels ever written treats stocks and other investment instruments like tulips and Beanie Babies. Robert Shiller, the laureate of the 2013 Nobel Prize in Economics, understands markets and has spent his career analyzing their behavior. Irrational Exuberance investigates how trends evolve into booms, and then bubbles that explode.
19. Technical Analysis Explained, Fifth Edition: The Successful Investor's Guide to Spotting Investment Trends and Turning Points
Book: Technical Analysis Explained, Fifth Edition: The Successful Investor's Guide to Spotting Investment Trends and Turning Points
Author: Martin Pring
This book is a comprehensive and easily available resource that demystifies the complex realm of technical analysis, equipping investors with the skills to detect trends and critical market turning points. The book covers key concepts such as chart patterns, indicators, and oscillators, providing readers with the skills they need to make informed trading decisions. With a focus on practical application and strategic insights, new edition is an essential resource for both rookie and seasoned investors looking to navigate financial markets with confidence and precision.
20. Encyclopedia of Chart Patterns
Book: Encyclopedia of Chart Patterns
Author: Thomas Bulkowski
The "Encyclopedia of Chart Patterns" is a comprehensive guide that methodically catalogs and analyzes a wide range of chart patterns used in technical analysis, giving traders and investors with priceless insights into market dynamics. It is meticulously organized and provides thorough explanations and pictures of many patterns, ranging from classic forms such as head and shoulders to lesser-known ones, all supported by statistical data and historical performance analysis.
The book's systematic methodology and amount of material make it an invaluable reference for anybody looking to improve their grasp of chart patterns and use them effectively in financial markets.
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