One thing all traders – both the wannabes and the professionals – have in common is that they love reading books about what they do. This includes everything from books that will teach you a specific part of trading, a trading strategy, or risk management, to broader topics like psychology and motivational reads.
Like so many others, I also enjoy reading books related to trading and finance. Below are some of my favorite trading books to read in 2019. Although not all of these are strictly trading-related, they are all written by former or current traders and deals with topics that will be of interest to anyone who is active in the markets.
So, in no particular order, here is our list of the top trading books for 2019:
- Trend Following, Michael W. Covel – Published in 2009, Michael Covel’s book about the trend following trading strategy is a great introduction to technical analysis for people who have no prior experience with this. He teaches the reader about the techniques used by some of the biggest money managers in the world today, and explains how they are able to make money consistently in both rising and falling markets.
- Pit Bull: Lessons from Wall Street’s Champion Day Trader, Martin Schwartz – Pit Bull is probably among the most recommended trading books out there, praised by many successful traders. It’s also a great motivational read that teaches the reader about the mindset of one of Wall Street’s best traders of all time.
- Skin in the Game, Nassim Taleb – Although not a trading book per se, Nassim Taleb is a former options trader himself, and his philosophy is heavily influenced by his experiences as a trader. He has written a whole range of books on philosophy and risk in particular, with Skin in the Game being the most recent one. A great read for anyone who wants to understand what risk is, why statistical models fail, and how more personal accountability can improve the world.
- The Alchemist, Paulo Coehlo – One of my personal favorites when it comes to motivational reads. The Alchemist is a must-read for traders, entrepreneurs, and anyone else who’s trying to find the right path in life. Highly recommended!
- The Complete Turtle Trader, Michael W. Covel – Related to Covel’s other book Trend Following, this book reveals the fascinating story behind some of the most legendary trend following traders the world has seen. If you are a trader and haven’t yet read the story of the Turtle Traders, then this is your book!
- One Good Trade, Mike Bellafiore – This is Mike Bellafiore of SMB Capital’s original book, and it is certainly an entertaining read for anyone interested in what it’s like to work as a “prop trader” at a proprietary trading firm. It’s also a good motivational read that teaches you the importance of putting down hard work to reach your goals.
- The Playbook, Mike Bellafiore – The second book from Mike Bellafiore, co-founder of the prop trading firm SMB Capital in New York. While the first one focuses on the process in trading, this book is more focused on the work that should be done before and after each trading day to improve yourself as a trader. Both of Bellafiore’s books are entertaining to read and provides a fascinating look at the extremely competitive world of proprietary trading.
What is your favorite trading book? Let us know in the comments section below!