Reading List from Famous Traders of Our Time

Before I put out my list of books to read on trading techniques and related topics, I like to share this list of books to read according to the famous traders of our time. I asked these famous traders the question several years ago and reported back with the results in a few posts. I think including the complete list in the series is a great idea.

Ms. Linda Raschke, LBRGroup

Ms. Raschke names the top three trading books she would recommend to aspiring traders. She also provided her reasons behind for choosing these books.

Technical Analysis and Stock Market Profits by Schabacker

• The importance of chart formations
• Has withstood the test of time
• Served as the foundation for all other Technical Analysis books, such as Edwards and McGee

Profits In The Stock Market by H. M. Gartley

• Has withstood the test of time
• The important of volume
• Good writing style, no nonsense mish mash stuff

The Taylor Trading Technique by George Douglas Taylor

• Withstood the test of time
• The importance of staying in the moment, taking one day at a time, each day has own type, the important of the play around precious swing highs and lows
• Excellent look into one person’s "process" that allowed for them to trade within a structured framework

Ms. Raschke states clearly that everyone must find their own consistent process.

(Notes: The books listed above are books published from long time ago. They can be quite expensive to purchase. One good way to get those books is to borrow it through either the public library system or the inter-university library system.)

Ms. Constance Brown, Aerodynamic Investments

Ms. Brown indicates that she does not read trading or technical books per se. She prefers books that teach you to think outside the box. She provided an example, The Joy of Thinking: the Beauty and Power of Classical Mathematical Ideas by Prof. Michael Starbird and Prof. Edward Burger from The Teaching Company.

Ms. Brown finds that, "People she teaches have lost the connection between defining a question and seeing it as an opportunity to go find the answer. Most cannot be bothered and shrug their shoulders and move on to the next thing. Then the opportunity to learn has been lost."

Tim Knight, Slope of Hope

Mr. Knight has a recommendation list of books to read for aspiring traders. Two books stand out from the rest that Mr. Knight recommends are:

Market Wizards by Jack Schwager

Trading in the Zone by Mark Douglas

Notes: Tim is a permabear.

Al Brooks, Brooks Trading Course

Mr. Brooks think that there were no books out there that does a satisfactory job of explaining price action and that all of the books lacked insight. His opinion is that the best trading books are the ones he wrote.

Al Brooks Trading Books Available From Amazon

Bob Volman

Mr. Volman likes to convey this message to the beginning traders:

"The best advice any trader could give another is to first invest in a decent charting package with historical data. The amount of information to be found in, say, a year’s worth of price action on the 5-minute (on any reasonably active instrument of choice) is simply priceless, no book could top that. In the end, when a trader is all by himself, facing his charts, his only tool of relevance is his own price technical insight.

As far as trading books are concerned, I never recommend on the matter. It really is a personal thing and what is helpful for one may not do for another. Studying charts, though, will help all traders."

Mr. Volman is the author of the book, Forex Price Action Scalping: An In-Depth Look into the Field of Professional Scalping

Vadym Graifer, Reality Trader

The 3 trading books that Mr. Graifer recommends to beginners:

Reminiscences of a Stock Operator by Lefevre

• All-time classic, as true as ever

The Nature of Risk by Justin Mamis

• One of the best explanations how to understand, perceive and incorporate risk in trading, delving into the very nature of the markets

Trading in the Zone by Mark Douglas

• As far as trading psychology is concerned, this is one of the best

Mr. Graifer likes to tell beginning traders that,

"The most important thing to focus on is themselves. Everyone starts and continues with trying to learn the best setup, chart formation, execution trick etc. etc. – but all this is simple stuff. Real and most difficult to overcome obstacle on a trader’s path is trader himself – his discipline (or rather lack of), incorrect mindset, inability to trade in accordance with his system while not allowing emotions to dictate his actions."

Mr. Graifer is the co-author of the book, Techniques of Tape Reading

Thomas Bulkowski, The Pattern Site

Mr. Bulkowski has written two books with beginners in mind:

Getting Started in Chart Patterns, Second Edition

Visual Guide to Chart Patterns

Mr. Bulkowski thinks that beginners should read his Evolution of a Trader series to learn how he was able to retire at 36. His advice is to start with buy and hold then progress up to position trading, swing trading, or day trading to find a style that works for you.

You can find all the books written by Mr. Bulkowski at Amazon

Part of the A Smarter Way to Learn Day Trading E-Mini S&P 500 series

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