Facing all the risks trading poses is a tough task for any trader or investor. Getting involved in the twists and turns of the trade is an immensely precarious undertaking. The deeper you dive into the depths of the business, the higher the volatility you face.
While trading is a viable route toward financial security, it entails a lot of hard work. A trader doesn’t mature in the business overnight. There are pitfalls along the way, and they may not be encouraging. You may need to learn the basics first during your first few months before you can finally hit it big and get a good feel for the market.
No matter how obsolete the method may seem, reading the best trading and investment books is still the most reliable way to start in the business or make the most of what you have started.
Many experts have written books about trading and investment but only a few of these guides seem definitive and efficiently instructive. Here are some books most traders and investors consider to be the best of all time:
Reminiscences of a Stock Operator by Edwin Lefevre
This is based on the author’s interviews with Jesse Livermore, the legendary trader who had raked in some $10 million in his very first month in the business. Since it was first published in 1923, it has remained a top-selling book, a must-read for stock traders. It is also a clear manifestation that the basic principles of trading have remained the same.
Trading for a Living by Alexander Elder
Most traders start as investors, and those who are making the same transition will find the book useful. It pays much to be acquainted with the various information regarding the wonders and secrets of trading, such as the three M’s: mind, method and money. Applicable to any case of investment and trading, this book which was published on 1993 by John and Wiley Sons is truly worthy of high praises.
Beyond Greed and Fear by Hersh Shefrin
This book uses several studies and exposes some flaws and myths traders have been accustomed to. It shows how trading decisions are reached and how ‘arrogance can calmly bend into our “objective” assay if we are not careful.’
Technical Analysis of the Financial Markets by John J. Murphy
This book (revised edition published in 1999) covers virtually every aspect of trading tactics and technical analysis, a definitive guide from the basics to the advanced. This is a great reference material for beginners to help them determine which direction they should go, introducing helpful concepts such as the ‘Japanese candlesticks.’
The Investors Quotient by Jake Bernstein
Talking about the relevance of the mind in the game of investment and trading, Bernstein’s offering is considered as the ultimate book on investor psychology. It was published in 2000 but it has already acquired the status of a classic. The author was able to put together the mechanics of trading and human emotions as two great factors necessary for the success of every investor and trader.