The 10 best trading books of all time…part two
Want to understand the complex world of the financial markets? Then it’s time to delve into a book. Not just any old book though – you need the best. That’s why we’re sharing IG’s top ten trading books to help get you started.
In our last post we looked at the first five in IG’s top ten, today we’re exploring the second half. Add these to your personal library to further your financial brainpower:
One Up On Wall Street, Peter Lynch
What’s it about? Famed fund manager Peter Lynch produced this guide to extoll the virtues of research and what that can mean for investors – and how and where to find inspiration for investments.
Why did IG pick it? What Lynch says is definitely worth listening to, not least because of his track record in which he achieved an average annual return of 29.2% when managing Fidelity Investment’s Magellan fund.
Pit Bull: Lessons From Wall Street’s Champion Day Trader, Martin Schwartz
What’s it about? It’s a look at the career of Martin Schwartz and the tips, tricks and techniques he honed on the way to becoming one of the world’s best traders.
Why did IG pick it? While ostensibly a tale of success, this book doesn’t shy away from Schwartz’s mistakes too and it also explores the human side of what it takes to trade. There’s definitely plenty to take away from this for beginners and experts alike.
Reminiscences of a Stock Operator, Edwin Lefevre
What’s it about? It’s a timeless tale of the challenges a trader encounters. The book is almost 100 years old and, in essence, serves as something of a biography of Jesse Livermore, a famed trader who made and lost millions of dollars on Wall Street. It offers an honest reflection on both success and failure, with the 2010 annotated edition helping to join the dots between the fictional world and the real life of Livermore.
Why did IG pick it? This was actually the most popular choice from IG’s analysts. It’s described by David Joseph, head of DailyFX USA, as: 'A masterclass revealing the mind, motives and mechanics of a lifetime speculator.' Its lessons are still remarkably fresh and the 2010 edition helps the reader by explaining how the strategies in the book can be applied in the modern day.
The Intelligent Investor, Benjamin Graham
What’s it about? This is seen as the key text on the ‘value investing’ approach, developed in the 1920s by Benjamin Graham, which looks at how to pinpoint stocks with prices below their ‘intrinsic value’.
Why did IG pick it? It’s described by Warren Buffett, no less, as 'by far the best book on investing ever written’. The 2003 revised edition helps you to understand how to apply its principles today, thanks to commentary from financial journalist Jason Zweig.
Technical Analysis of the Financial Markets, John J Murphy
What’s it about? A veritable bible for traders – from those looking to brush up on the basics through to those getting their head around advanced indicators. It’s all brought to life with more than 400 charts.
Why did IG pick it? It’s been cited in Federal Reserve research papers and used by the Market Technicians Association for training, which says a lot in itself. The technical checklist and appendix, for example, show how the book helps the reader put its knowledge into practice.
So, there we have it. Clear a shelf, load it with these books and thank us later for the improvement it’ll bring to your investment strategies.
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.