1. Market Wizards Series- Jack D. Schwager
This is an excellent series of books where Jack Schwager has described his one on one interaction with some of the top traders and hedge fund managers. This should be the first book you should read while entering the stock market. It would not teach you any trading strategies in depth but you’ll learn the real life experiences of people who practically rule the stock markets. The first and original book of this series is named as ‘Market Wizards‘. After this, there were three follow-up books namely ‘The New Market Wizards‘, ‘Stock Market Wizards‘ and ‘Hedge Fund Market Wizards‘.
2) Trading in the Zone- Mark Douglas
This is another interesting read which uncovers the physiological aspects of trading. It will help you to become a disciplined trader and manage your money effectively. The focus of this book is more on preserving capital rather than making it, and this is what makes it a unique read. You will find tons of testimonials all over internet where people claim that they became better traders after reading this gem from Mark Douglas.
3) Technical Analysis Explained- Martin J Pring
This book is the bible for Technical analysis. If you are new to Technical analysis, or you are not convinced that technical analysis ever works, then this is for you. Martin explains everything from the very scratch which would be very beneficial for beginners. You will find basics of charting, pattern analysis, price action trading, advanced technical indicators and some of the proprietary trading systems in this book. Never miss to read this if you aspire to become a serious trader.
4) How I Made $2,000,000 in the Stock Market- Nicolas Darvas
This book portrays the real life story of Nicolas Darvas. It describes how a professional dancer turned into trader and made a fortune with a small initial investment. This book is very inspiring for people even from non-trading world. Nicolas has very convincingly explained every trade he executed to make 2 million dollars from stock market. This book is so addictive that you may even finish it in one sitting. Also, if you have heard about the famous ‘Darvas box’ in technical analysis, you would get to know from this book that how it was actually devised.
5) Beyond Technical Analysis- Tushar S. Chande
This is my personal favourite book. It is a comprehensive end to end guide for Trading system development. As the name suggests, if this book is focussed on many things beyond classical technical analysis. Risk management is one of those things. It has examples and in-depth analysis of various trading systems with backtest reports. However, you need to be an intermediate or adavanced level trader to understand few chapters of this book. It is not recommended for beginners. Tushar Chande is the contributing editor to Technical Analysis of Stocks & Commodities magazine, he has been a registered Commodity Trading Advisor and is the principal author of The New Technical Trader.
Reference: http://tradingtuitions.com/5-books-every-trader-should-read/