5 min read 

In trading, education is of utmost importance. However, trading is usually not addressed in schools and universities (there are some exceptions but for most people chances of acquiring a degree in trading are slim). How are you supposed to learn how to trade then?

Largely, by reading. Articles, blog posts and books — all will do. In IQ Blog we provide you with bite-sized pieces of information that could enhance your trading strategy and trading routine. However, that is not the only way to learn. More than that, you will be better prepared for the harsh reality of financial markets if, in your pursuit of knowledge, you combine different sources of information. Today we take a closer look at three essential books that traders of all levels can benefit from.

“Market Wizards” by Jack D. Schwager

Key takeaways: world’s most successful traders are NOT natural-born geniuses or lucky winners. Behind every success story there are two factors: solid methodology and proper mental attitude, that, when combined, can lead to success.

A collection of interviews rather than a single narrative-driven story, this book is a source of timeless wisdom and important information for novice and intermediate traders who want to step their game up. Read this book to know what Bruce Kovner, Richard Dennis, Paul Tudor Jones, Michel Steinhardt, Ed Seykota, Marty Schwartz, Tom Baldwin — all high-performing speculators — have to say about success in the financial markets. All their stories are different, and all their lessons are truly valuable.

“Market Wizards is one of the most fascinating books ever written about Wall Street. A few of the ‘Wizards’ are my friends — and Jack Schwager has nailed their modus operandi on the head.”

—Martin W. Zweig, Ph.D., Editor, The Zweig Forecast

“The Disciplined Trader: Developing Winning Attitudes” by Mark Douglas

Key takeaways: you can influence the outcome of your trades by adjusting the mental attitude you have.

By reading the previous abstract you already know that a proper mental attitude is an essential part of a trading strategy that pays out. According to Mark Douglas, the way you trade is defined by the way you think. Both novice and experienced traders can benefit from reading this book, no matter their preferred asset and timeframe. The book is not a mere inspirational chatter, as most professional traders agree on the importance of psychological factors.

In this book, the author will guide you through the process of mindset transformation, hopefully elevating your trading results in the process.

“Reminiscences of a Stock Operator” by Edwin Lefèvre

Key takeaways: technical aspects of trading change over time, people involved in the global financial market don’t. Market psychology never changes.

First published in 1923, this book is still one of the most recommended books for traders ever written. It is a fictionalized account of the life of Jesse Livermore, an outstanding trader of the early 20th century. As if that weren’t enough, this book is entertaining, fun to read and depicts numerous scenes of self-education — something you can put to good use.

 

“A must-read classic for all investors, whether brand-new or experienced.”

—William O’Neil, founder and Chairman, Investor’s Business Daily

What is your favorite trading-related book? Let us know in the comments.

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