5 Best Trading Books for 2020
There are many trading books out there that can help new investors expand their stock education. This list highlights 5 great markets books every trader should read.
- A Random Walk Down Wall Street
- Author: Burton Malkiel
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.
- The Little Book of Common Sense Investing
- Author: John C. Bogle
Author is the founder of The Vanguard Group, known for providing the lowest cost funds in industry. Vanguard is also the largest asset management house in the world with over $3 trillion in total assets under management. Jack’s message is simple, keep costs low and invest in market indexes for the long run. Jack’s other book, Common Sense on Mutual Funds, is another bestseller and breaks down mutual fund investing. Another great book with a similar message can be found in Jeremy Siegel’s Stocks for the Long Run.
- How to Make Money in Stocks
- Author: William O'Neil
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.
- The Most Important Thing Illuminated
- Author: Howard Marks
Using his Oaktree Capital client memos as a foundation, Howard assembled a collection of the 21 most important things to know about investing. The book introduces multiple keys to long-term success, including “Second-level thinking,” the price/value relationship, patient opportunism, and defensive investing. Reminiscences of a Stock Operator Edwin Lefèvre 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.