These 5 Books Will Make You A Better Trader
By Mohsen Hassan
5. Irrational Exuberance (Robert J. Shiller)
This book is all about bubbles and the irrational human behaviors that cause them. Nobel Prize winner Rober Shiller develops on concepts of heard behavior and human irrationality. Humans don’t change and their emotions will cause history to repeat itself; this is an important read for anyone wanting to be involved in the stock market.
4. Trade Mindfully: Achieve Your Optimum Trading Performance with Mindfulness and Cutting Edge Psychology (Gary Dayton)
Managing one-self is by far the most important skill a trader can have. This book guides traders on how to handle mental and emotional states during market hours. Through mindfulness a trader can be more aware, focused and mentally free to do the right things.
3. Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market (Scott Patterson)
Dark Pools is by far one of my favorite books. It tells the story of Joshua Levine as he started one of the first ECNs (Electronic Communication Network). Throughout the book you get an understanding of how the microstructure is built to benefit the robot traders and how the new market operates.
2. Market Wizards, Updated: Interviews With Top Traders (Jack D. Schwager)
Both Market Wizard books are considered classics in the business and every trader HAS to read them. In these books Schwager interviews and gets insight from the world’s top/best traders. There is no better insight that you can get about trading than from actually practitioners who were wildly successful.
1. Reminiscences of a Stock Operator (Edwin Lefèvre)
Even though this book was first published in 1923, it teaches us how people affect prices in a simple time when computers and speed were not as intrusive as today. This gives us an insight about crowd psychology and its effect on the market; something that is still present in the markets today but harder to trace with all the noise. Definitely number one book on my list.