Although not a "trading book" per se, Nassim Taleb's Fooled by Randomness gives interesting insights on the psychology and behaviour of traders and trading in general. It may help you grow a bit of discipline as a trader (maybe).
What has helped me personally have been two books which gives insights on how the guys who made it did it.
Both are not really in the Indian context, but the rules of the game are the same.
Market wizard series by Jack Schwager is a must for anyone dabbling the market to understand common principles shared by the most successful traders. Trading in the zone by Mark Douglas is also a classic which gives insights into the psychological part of the trading.
The first and most important book to read is Market Wizards by Jack D. Schwager. This is the most important book for you to read as it has great stories to inspire you and get you interested in the markets.
The second book I would recommend is How I Made 2,000,000 in the Stock Market by Nicolas Darvas. Again, this is a very interesting book written by a non-market man.
The third book I'd recommend after you've read the initial two blockbusters is Trading Rules: Strategies for Success by William F. Eng. This book is about trading itself. It covers everything about technical analysis from Moving Averages to even Astrology! It's a must read - let me warn you it's a serious book.
For my fourth book, I'd like to recommend a book which mostly deals in options trading. The book is called Options as a Strategic Investment by Lawrence G. McMillan and covers most everything you need to know about options. This is a must have for all you option geeks, pardon the pun.
The fifth book is not really a book on trading, it's a book about psychology and you. Psychology professor Mihaly Csikszentmihalyi who emigrated to the US at a very early age has written an excellent, inspirational book called Flow: The Psychology of Optimal Experience which teaches us how to get totally immersed in what we do. This should get you through your difficult trading days.
The major books one can read to get confident and discipline in the stock market are below
A) 50 Trading Rules - William F
B) How to Make Money Trading with Candlestick Charts - Balakrishna Sadekar.
C) Futures & Options - Mahajan R.
D) A Simplified Approach to option trading - Jitendra Gala- Ankit Gala.
For more info you can visit http://www.amazon.com/
- 45 Years in Wall Street By W.D Gann
- Trading for a Living Psychology, Trading Tactics, Money Management
- Reminiscences of a Stock Operator by: Edwin Lefvre
- Technical Analysis of the Financial Markets BY-John J. Murphy
- The Intelligent Investor BY-Benjamin Graham
- Market Wizards Interviews With Top Traders
When the Genius Failed - By Roger Lowenstein. This book is about the real life events of the smartest guys in finance, running the largest hedge fund at that point (Early '90s), with the most sophisticated strategies. The book details their success, arrogance and most importantly how they oversaw RISK. Read this if you want to know the importance of Risk Management in your trading/
Thinking fast and slow - Daniel Kahneman. Markets are more often than not puts you in a stressful situation when you need to make a quick decision. Decisions made under such circumstance may lead to regret. Suggest you read this book to help you understand your own thought process and how you can sharpen it when you need to make a decision when you are stressed. The book also talks of Prospect Theory...really good stuff...wont talk about here and kill you curiosity :-)
If you read all the above books, Just to blow off some steam you could read the wolf of wall street, It will teach you what you shouldn’t be doing in the market. Taking tips;)
Will be getting all of the books the above gentlemen have mentioned… presonally am big fan of Dr Alexander Elder… http://en.wikipedia.org/wiki/Alexander_Elder
Trading for a Living - Dr. Alexander Elder
Come into My Trading Room - Dr. Alexander Elder
Entries and Exits - Dr. Alexander Elder
Fibonacci Trading, How to Master Time and Price Advantage - Carolyn Boroden
Also a non- trading book that is a must for every trader…
- Self- Discipline in 10 Days Theodore Bryant
Technical Analysis of Stock Trends by Edwards and Magee
Brian Shannon - Technical Analysis Using Multiple Timeframes
Alex Nekritin & Walter Peters - High Probability Techniques for Trading Without Indicators
Dr. Alexander Elder - Trading for a Living
Mike Bellafiore - One Good Trade
How to Make Money Trading Derivatives
How to Make Money Trading Derivatives
Getting Started With Chart Patterns- Thomas N. Bulkowski
Trading Classic Chart Patterns- Thomas N. Bulkowski
First one gives a very simple introduction to chart patterns, support and resistance, pivots and technical trading ideas with real life examples. Being a novice in this field, it was of great help to me. Second is little advanced.
- Trading and Exchanges Market Micro structure for Practitioners - http://www.amazon.com/Trading-Exchanges-Market-Microstructure-Practitioners/dp/0195144708
2 - Fooled by Randomness
3 - Thinking Fast and Slow
4 - Markets in Profile - James Dalton
5 - Any book on Technical analysis
Firs of all, thank you for this wonderful question. I'd like to add one more name to the list. A very amazing book on trading psychology. The Disciplined Trader by Mark Douglas.
Reading all the books, studying technical indicators, are just forecasting tools to make your broker more money.
Trading is a speculative game and no amount of books or indicators can give you the answers to place your bet.
In the end you are always going to loose money.
I personally like Technical Analysis A-Z by Steven Achelis, gives a great insight on the technical tools and indicators. Once you select your indicator, you can read books which talk specifically only about that indicator. For example, book on fibs by Carolyn Boroden, or ADX by Charles Schwab, etc.
As far as psychology is concerned, I have never read anything as good as Trading in the Zone by Mark Douglas.
Hope it helps.
Hi Dear Friend,
You better visit zerodha varasity for basic understanding & gain knowledge from it.
The best book is you and your experience. As warren buffet is a professional trader he told one simple formula: “BE GREEDY WHEN EVERYONE IS HAPPY, BE HAPPY WHEN EVERYONE IS GREEDY”.
In stock market “PATIENCE” is Money! If you’re beginner, go for product type “CNC” acquire knowledge and in “CNC” you’ll be safe, where as “MIS” are for experts/Automated traders.
Don’t read any books it’s waste of time, Be Practical & Act Practical, You’re the Best Book once you’ve gotten experience in trading.