Reminiscences of a Stock Operator has stood the test of time. You know that you are talking to a trader when they love this book and have read it over and over again. It teaches principles that successful traders will be using for many years to come. Like all classic texts, this book doesn’t feel dated, despite being in print for nearly a hundred years.
Market Wizards was a landmark trading book. Jack Schwager wanted to write a book like Reminiscences of a Stock Operator, so he followed the yellow brick road lined with profitable trading returns, and interviewed the most successful trading wizards. Schwager did an amazing job of interviewing the right people, asking the right questions, and editing the book flawlessly. The wizards were generous with their time and wisdom, providing a fascinating glimpse into the mind of a successful trader.
Trend Following was another landmark book that brought professional futures management trend following to the masses. This book was a game changer for me as it explained how trend followers operate their business. It explains in great detail, how reactive technical analysis and risk management can dramatically help a struggling trader attain profitability.
Trade Like a Casino will create a paradigm shift in thinking for new traders, as they will have a difficult time continuing to gamble in the markets with the odds against them. It will cause its readers to realize that having a statistical edge and managing risk is paramount to their success. Traders want to be the casino taking the money from the gamblers and not gambling themselves. This book will change the way traders think.
Trading for a Living does a great job of bringing together the three M’s: money management, method, and mindset of trading, and explaining how they are all needed for trading success. Without all three legs on a stool, it tips over regardless of the strength of any one leg.
These five trading books are a great foundation for the journey ahead. I still recommend “New Trader 101” as a new traders very first book, but of course I am biased.