Four Top Must-Have Books To Help You Become A Winning Trader

Top Books Everyone Must Read to become a winning stock trader


Becoming a winning trader is certainly one of the most difficult careers (90% of retail investors fail). I certainly struggled at the start. It can take an average of one year to become a winning trader (but most never become one). At the start of my trading career, I didn't know where to begin and I was often clueless. I had to constantly research on my own, and my trading suffered as a result. Below, I have a few books ranked in order of importance that helped me greatly into becoming a purely technical, winning trader. The books listed below will offer a boost for the losing traders and winning traders looking for a bit more of an edge!

The following 4 books are ranked in order of importance (one being the most important).

Japanese Candlestick Charting Techniques, Second Edition - Possibly the easiest and most important book on this list. This book describes candlestick patterns in detail. It has a very easy learning curve and can do wonders for your trading. Once you understand candlestick patterns, you will start seeing stock charts in a new light.

What you will ultimately learn
: Understanding candlestick patterns, helps prevent you from making the easy/stupid mistakes of going long at bearish trend reversals, or going short on bullish trend reversals (as Candlesticks are the most reliable in identifying these trend changes).

Two free great articles on this site cover candlesticks Mastering the Art of Japanese Candlestick Reading (recommended to read first), as well as How To Unlock The Power Of Japanese Candlesticks.

Bollinger on Bollinger Bands - Bollinger Bands are the most powerful indicators I use (I don't use many). Bollinger Bands help you determine, when a stock is overbought/oversold in a very reliable way since this indicator is about providing mathematical statistics on price movement. This book will provide the basics of Bollinger Bands and exploit patterns that develop with this indicator. 

What you will ultimately learn: Bollinger Bands help cover your shorts near the bottom and avoid being squeezed, and similarly will aid you in selling your longs when they are overbought. There is so much more to Bollinger Bands, reading this book will give you a head start (the rest of the knowledge comes through experience).

Check out our in-depth article on Bollinger Bands: Why Mastering Bollinger Bands Is A Must


Hedge Fund Market Wizards: How Winning Traders Win - The author of the book, interviews the best traders/investors of this current generation. This book offers tons of gems, tips, and trading philosophies, that you can't find else were. 

What you will ultimately learn: Reading through the interviews, I found patterns into why all these traders were successful. That pattern is all traders knew their edge and just constantly exploited their edge, and never deviated! Ultimately, this will be the book that will transform losing traders into winning traders (out of all of them in this list).

Encyclopedia of Chart Patterns - This book is perfect for understanding and learning about chart patterns, as the title says it all. It is the 1st and last book needed in chart patterns. This is the type of book that you constantly pull out, reading a few pages here and there until it is embedded in your brain. 

What you will ultimately learn: Aside from learning about chart patterns, which is a given, what you ultimately should take away is the statistics and reliability of each pattern. Reading this book, you should realize what the edge is in using these patterns. You will learn which ones are worth paying attention to in terms of profit and reliability and those that must be ignored.

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