20 Must Read Investing Books

There are many investing books out there that can help investors expand their stock education. This list highlights 20 great wall street books every trader should read.

1. How to Make Money in Stocks
Author: William O’Neil

how to make money stocks book cover

This is a classic by William O’Neil, describing the ins and outs of his CANSLIM system for finding future big winners in the stock market and how to time entries and exits. It combines fundamental and technical analysis and is a good guide for new investors.

2. One Up On Wall St
Author: Peter Lynch

one up wall street book cover

This is an investment classic that will give the individual investor hope. Peter Lynch explains how Wall Street may not be able to find the best investing opportunities from the start and shows step-by-step how the individual investor can find the next ten-bagger.

3. Buffett: The Making of an American Capitalist
Author: Roger Lowenstein

buffett book cover

This book sheds insight into the ways and means of the Oracle of Omaha. Warren Buffett’s thoughts are insightful and his methods may yield fruitful rewards for investors with enough patience to learn them, understand them and apply them correctly.

4. Reminiscences of a Stock Operator
Author: Edwin Lefèvre

reminiscences stock operator book cover

This book is a true page turner. It is a breath-taking recount of how a young boy managed to amass one of the largest fortunes by speculating despite going broke a few times in his career. He has timeless advice for investors(“I’ve always made my money from sitting, not thinking”) which will help your trading for years to come.

5. Market Wizards
Author: Jack Schwager

market wizards book cover

This book is a collection of interviews of a group of successful traders in the 1970s/80s. Their experiences are interesting to hear and traders may draw useful lessons from them. However, some of them were successful only because they were in the right place at the right time. The 1970s were a great commodity bull market and some of them profited from it. Nevertheless this is a classic to read and enjoy. Jack’s latest book, Hedge Fund Market Wizards, is also a fantastic read.

6. Trade Your Way to Financial Freedom
Author: Van Tharp

trade way financial freedom book cover

This is a gem that encompasses investor psychology and system construction. While it may not give you a “Holy Grail” (an unbeatable method to the markets) for trading, it will give you the basics you need to construct a winning system. There is something for everyone in this book.

7. The Intelligent Investor
Author: Benjamin Graham

intelligent investor book cover

The foundation for value investing and being successful in the market, Benjamin Graham’s classic has sold over 1 million copies and earns its spot on every investors book shelf.

8. A Random Walk Down Wall Street
Author: Burton Malkiel

random walk down wall street book cover

Currently in its tenth edition, this book is a great first read for those starting a portfolio. Indexing, diversification, trends, bubbles, the value of patience coupled with time, alongside many more core concepts are all pronounced within.

9. Trader Vic—Methods of a Wall Street Master
Author: Victor Sperandeo

trader vic wall street book cover

The view the author has is slightly biased in favor of the Austrian School of Economics. Some of his methods are novel—you wouldn’t see them in most books on trading (for instance, his measuring the average length and magnitude of a bull/bear market’s primary and secondary trends, there by gauging the odds for a change in the trend in the market). His views on investor psychology are also interesting to read.

10. Japanese Candlestick Charting Techniques
Author: Steven Nison

japanese candelsticks book cover

This book introduces candlestick charting, which some investors may find useful in their trading. It sure helps to make charts more visual!

11. The Little Book That Beats the Market
Author: Joel Greenblatt

little book beats markets book cover

Explores the basic principles of investing in the stock market. The book breaks down the author’s proven “magic formula investing” method of outperforming the market by investing in quality companies at discounted prices.

12. Liar’s Poker
Author: by Michael Lewis

liars poker book cover

An insider’s account of the late 1980s at Salomon Brothers. An interesting, though perhaps not profitable, narrative of how Wall Street works. Other Michael Lewis great reads: The Big Short: Inside the Doomsday Machine and Flash Boys.

13. Alchemy of Finance
Author: George Soros

alchemy finance book cover

This book, along with Soros’s latest book, The New Financial Paradigm explain the author’s theory of reflexivity and how it relates to the market. Though it may not provide a direct system for trading, it is extremely thoughtful and deepens one’s understanding of how the financial markets work. The book may be a bit dense but it is rewarding for those who are willing to finish it.

14. Fooled by Randomness
Author: Nassim Taleb

fooled randomness book cover

This book, which would go along well with “The Black Swan”, explains the author’s thoughts about how randomness plays a larger role in our lives than we expect. For traders, this would imply that risks are usually large than we expect. Also, it would mean that some things in the financial world aren’t exactly what they seem.

15. The Age of Turbulence
Author: Alan Greenspan

age of turbulence book cover

An interesting narrative of the US economy in the last 50 years as experienced and seen from the eyes of the former chairman of the Federal Reserve, Alan Greenspan. The second half of the book contains some of Greenspan’s own thoughts about the world economy and what the future may hold.

16. Extraordinary Popular Delusions and the Madness of Crowds
Author: Charles Mackay

delusions madness crowds book cover

Tulipomania, the South Sea bubble and the Mississipi Land scheme are covered in this book, showing how herd mentality worked to create bubbles in past eras. It may serve as an interesting read as well as a guide for dealing with future bubbles.

17. Common Stocks and Uncommon Profits
Author: Philip Fisher

common stocks uncommon profits book cover

This unseeming book is written by Philip Fisher, who Buffett credits with most of his success. In the age of quantitative finance, this book is a must-read for those who want to understand how to inspect a company qualitatively.

18. Irrational Exuberance
Author: Robert Shiller

irrational exuberance book cover

As the winner of the 2013 Nobel Prize in Economics, Robert Shiller understands the markets and has spent his career studying their movements. An author of multiple books, Irrational Exuberance explores how trends turn into booms and ultimately bubbles that burst.

19. When Genius Failed: The Rise and Fall of Long-Term Capital Management
Author: Roger Lowenstein

when genius failed book cover

A scintillating narrative of how one of the darlings of the hedge fund world rose and how it fell. A reminder for traders to keep their minds focused on risk and their circle of competence.

20. Encyclopedia of Chart Patterns
Author: Thomas Bulkowski

encyclopedia chart patterns book cover

An extremely detailed work that rivals “Technical Analysis of Stock Trends” and should provide traders with a complete understanding of chart patterns. The hard work is to apply the knowledge.

Further Reading:
View our Investment Education page with over 100 articles covering various stock education topics. Also take a look through 60 Stock Tips For Investment Success and my guide to the best online brokers.

This guide was written by , Trader at Reink Media Group, LLC and was last updated on 2015-07-06.

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