The best books for beginning traders

The Books I Picked & Why

Liar's Poker

By Michael Lewis

Book cover of Liar's Poker

Why this book?

This is a fun look at what it was like to work at Solomon Brothers in the 1980s. It’s also a great description of trading culture. Liar’s Poker launched Michael Lewis’s career while it took John Gutfreund, who was then CEO of Solomon Brothers, down a few pegs. Solomon Brothers is no more; even huge trading firms get busted.


When you buy a book we may earn a small commission.

Extraordinary Popular Delusions and the Madness of Crowds

By Charles Mackay,

Book cover of Extraordinary Popular Delusions and the Madness of Crowds

Why this book?

Bubbles happen all the time, and this book chronicles a few of the earliest documented bubbles. Human beings are weirdly susceptible to these. Traders like to say that the four most dangerous words in the English language are “This time is different.” History mostly repeats, but every now and again, things really are different. If you can separate the Next Big Thing from the Next Big Bust, you’re golden. Can you do that?


When you buy a book we may earn a small commission.

The Art of War

By Sun Tzu, Skyhigh Publication

Book cover of The Art of War

Why this book?

This is a 2500-year-old guide to warfare, attributed to a Chinese general. I don’t think this book actually helps with trading, although it seems to be a membership card into the order of traders. Have it on your bookshelf, and other traders will be impressed! It’s also a good reminder that trading is about discipline and strategy. Those are the first principles to success.


When you buy a book we may earn a small commission.

Candlestick Charting for Dummies

By Russell Rhoads

Book cover of Candlestick Charting for Dummies

Why this book?

Great trades come from market analysis, not hot tips on Reddit. Candlestick charts contain an enormous amount of information about market trends and activity. Learning charting takes some time, and this book is a great start. Whatever system you decide to follow, make notes of your trades. Plan them out, then note what worked and what didn’t. 


When you buy a book we may earn a small commission.

Berkshire Hathaway Letters to Shareholders

By Warren Buffett

Book cover of Berkshire Hathaway Letters to Shareholders

Why this book?

Warren Buffett is public and candid about his investment choices. He writes his views up every year in the Berkshire Hathaway annual report filed with the SEC. He’s well known for his buy-and-hold investment style. He is less well known for his trading prowess, but Warren Buffett is very much a trader. Pay attention to his discussion of currencies and commodities. There are few better ways to learn about the markets. 


When you buy a book we may earn a small commission.

Closely Related Book Lists

Distantly Related Book Lists