Recently, I’ve been asked by close friends and FinTwit followers about my favorite stock market books so I decided to make a list. This list only includes books I have read over the past few years. My finance to-read list is always growing so I will continually update this over time. Presented in specific no order, they are:
Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications
– This was the first educational book I read that hooked me on Technical Analysis. A friend from college and our investment club lent me a copy of this book for a few weeks back when I considered myself a fundamental investor.. The rest is history. This book covers everything about Technical Analysis anyone new to the space would need to know.
More Money Than God: Hedge Funds and the Making of a New Elite
– This book covers the history of hedge funds, their evolving role in financial markets, major players, their funds, and insight on massive trades they took. I thoroughly enjoyed this book. It cleared up a lot of things I thought I knew about hedge funds. Headline writers who spews the HF word around too often should read this book.
How I Made $2,000,000 in the Stock Market
– This book is a great short read covering Nicholas Darvas’ career as both a speculator and professional dancer who built his fortune in 1958. He traded via telegram from half way around the world by the way.. The book is broken down into 4 sections covering each of his ‘strategies’ until he found what worked best for him.
Stan Weinstein’s Secrets For Profiting in Bull and Bear Markets
– This is the ultimate trend investing book in my opinion. Stan has his own phrases and moving averages for how he defines ‘stages’ of a trend. Even if you don’t become a Weinstein disciple, you can still learn a lot from him. The book is also filled with tons of charts he traded and sent to clients of his highly-price advisory service.
Reminiscences of a Stock Operator
– This book covers the life of Jesse Livermore and his journey on Wall Street, including the highs, lows and everything in between. I highly recommend this for all the wisdom covered, including his famous quotes you usually see on Twitter when the stock market goes down for a day..
Stock Market Wizards: Interviews with America’s Top Stock Traders (2003)
– These two books were the first Market Wizards books I read and loved. I love being given access to the inside the mind’s of some of the planets top traders. There isn’t much else to say. Read them.
Note: The first Stock Market Wizards books were written in the early 1990s, which I have not read. I am not really sure what is changed or added to all these editions. There is also Hedge Fund Market Wizards, the most recent book from the series I haven’t yet read.
The Big Short: Inside the Doomsday Machine
– This is my favorite of the Michael Lewis’ books. If you’ve seen The Big Short movie, you know the plot here. It revolves around the US Real Estate Bubble, CDOs, Steve Eisman and Michael Burry. I read this book two years before the movie came out. As usual, the book and movie were different but I loved this story and recommend reading the book as well.
The Buy Side: A Wall Street Trader’s Tale of Spectacular Excess
– This is a quick, fun read I enjoyed. It covers Turney Duff’s move from a journalist to one of the top traders at Galleon Group. Yep, that firm founded by Raj Rajaratnam with massive insider trading scandal. Note: This read may not be for everyone as it includes a lot of late night party scene details.
What are some of your favorite market related reads? I’d love to hear them. Thanks!