Top 7 Books to help you Successfully Trade Stocks

We have heard stories and have seen people becoming millionaires overnight by just investing in the stock exchange. The question that people normally ask is: ooh well how did the person actually manage to do it? This would be an answer every stock investor or trader would be looking forward to learn from. Obviously if you want to learn from the pros, you might not certainly get to speak to them in person. However an interesting idea would be to read some of their books, this would give you an idea of how these master minds think and place their investments.

Following are some Books that could be really helpful:

1. How to Trade Stocks by Jesse Livermore

Jesse Livermore was one of the most successful stock trader to have ever lived. He was born on the 26th of July 1877 and died on the 28th of November 1940. He was famously referred to as The Great Bear of the Wall Street. His Nett worth at that time was $100 million considering a $1000 then was worth $23000 in today terms. The money he earned at that time was substantial. In his book he shares with us his methodology on Reading the Market, Shortlistng investment prone sectors, Market Timing, Emotional Control and Money Management. This books also sheds light on Mr. Livermore’s market key, this is a practice that is followed by most stock traders even today.Victor Niederhoffer who is a hedge fund manager, stock market statistician and an acclaimed author. His book is a story of his very trading attributes. The book gives us insights on how a Mr. Niederhoffer’s used his mind and soul to function in his strategy generating process. This sheds light of the positives of human psychology and helps us to penetrate into the mind of one of the world’s most controversial traders.

2. How I Made $2,000,000 In The Stock Market by Nicolas Darvas

A true story of how Nicolas Darvas made $2,000,000 from the stock market with a mere investment of $10,000 only. Mr. Darvas was Hungarian by birth and died in the year 1977. In the book, he explains to us his method of “BOX TRADING”. This is again a method of trading which is widely used by various stock analysts even today. Mr. Nicolas placed stock prices in a box of levels. If the stock would trade within the limits of the box he would wait and only purchase his stock if the prices would rise above the levels of the box limit. Another interesting fact is he never believed in short selling. Although he always optimistically agreed to the fact, with the changing dynamics of the stock market it would be possible for him to resort to short selling using his very methodology. This book also sheds his ideas on how he selected his instruments of investment.

3. Trend Following: Learn to Make Millions in Up or Down Markets by Michael Covel

This is one of the most sought for books among today’s traders. The book explains details on how “market trend” following works. The book features trading methodologies of some of the most successful stock traders and their techniques on how to follow the market. The book also explains how Great Stock Traders like David Harding, John Henry, Jesse Livermore etc used to plan their investment strategies. The book was first published by the Financial Times Press in 2004 and has sold over 100,000 copies till date.

4. Sell and Sell Short (Wiley Trading) by Alexander Elder

A very interesting book that explains us how to profit from the markets by setting targets to book your profits and also at the same time how to secure yourself from making losses by utilizing the stop-loss option. As the name suggests the book emphasizes on learning the tricks of short-selling. This could be very beneficial for investors even during a negative market scenario. The book is a master piece for someone looking to learn how to exit on time.

5. How to Make Money in Stocks: A Winning System in Good Times or Bad by William O'Neil

An excellent book on how to make money written by William O’Neil, who was a very successful investor and the creator of the CAN SLIM strategy. His book sheds light on to his insights and helps investors to understand his money making techniques to benefit from the equity markets. The famous CAN SLIM technique identifies similarity in characteristics; that performing stocks display just before the Bull Run. This technique had earned MR. O’Neil millions of dollars and has positioned him among some of the most successful stock traders of all times.

6. Reminiscences of a Stock Operator (Wiley Investment Classics) by Edwin Lefèvre

A Reminiscence of a Stock Operator is an biography of Jesse Livermore. It highlights the trading techniques of Mr. Livermore. The book offers valuable information on how to trade and speculate in the stock market. The book shares information of the life of Mr. Livermore and his growth from a day trader in an England bucket shop, to first and most successful stock trader in the World had ever seen. The book although very old, but is ranked the 15th best of Fortunes 75 most smartest books.

7. Come Into My Trading Room: A Complete Guide to Trading by Alexander Elder

This book is another classic by Dr. Alexander Elder; the book provides knowledge on Complete Money Management. The book shares Dr. Elder’s secret ideas on how to identify innovative ideas, formulate new indicators and short-list instruments for stock trading. The book focuses on how to convert your routing stock trading into serious profitability.

The books referred above have been written by some of the most famous and successful stock traders, writers and analysts till date. A peep into their vision of stock trading can only help you understand the markets better.