3 books that leveled up my trading

Reading books has never been an interest of mine throughout my entire life. It wasn't until a few years ago when I discovered my passion for trading that I finally decided to bite the bullet and read a book "for fun" for the first time in nearly a decade.

Since then there have been 3 books that really impacted me and caused a near instant increase in successful trades. Each book below covers different aspects of trading that are extremely useful, especially when combined together.

Reminiscences of a Stock Operator

This is the perfect first book for anyone who's new to trading or is interested in taking their next step into turning trading into a full-time job.

This book reflects on the career of a stock operator from the early 1900's and the rollercoaster of a life he lived.

The most astonishing part of this book is how similar investors from the early 1900s are to the rogue crypto traders we see today. It's funny because it makes you realize every single generation of traders thinks the same no matter how different the world around us is.

Reminiscences of a Stock Operator is more captivating than you'd expect from a biography of a stock trader. I plan on reading it again very soon.

Market Wizards

The amount of knowledge in this book is insane. Market Wizards is comprised of numerous interviews from some of the proven best traders of our lifetimes. Almost every single trader has an extremely different style and perspective on the market which makes the book really insightful.

There are too many gems in this book to list them all but Market Wizards is an absolute must-read if you want to master the psychology of trading. My biggest takeaway from this book is that everybody needs to find a trading style that works for them.

Candlestick Course - Steve Nison

This book was my first introduction to technical analysis and it truly changed my life as a trader. I thought all TA was bullshit until I read this book and then was able to recognize the things it explains play out in real-time. This book teaches you how to identify reversals in trends using candlesticks. Almost instantly I started noticing the accuracy of candlestick patterns as a predictor of what price movements will happen next.

This book isn't just about memorizing patterns. The powerful part is that it helps you understand WHY these movements happen.

To keep it simple, candlesticks are maps of human emotion. Once you learn to read these objectively it helps you get a much better pulse on market sentiment.

*story time*

Shortly after reading this book (and with a lot of luck) I managed to profit ~$50k from $1,000 initial in less than a month on a brand new shitcoin that launched in Spring 2021 - all while using zero leverage. Somehow I had managed to hit a 10x on the way up, 10x on the way down, and 5x on the way back up by blindly following what I had just learned. My profits could have been much bigger but the coin was so illiquid it was nearly impossible to extract everything without crashing the market. This was my first experience becoming a whale and it was exhilarating.

Final thoughts

Whether you hit a winning trade or not, it's all a game of probability. Fundamental analysis helps you determine the probability of a specific outcome. Technical analysis does the same.

Once you understand trading psychology and are able to avoid common mistakes, adding technical analysis to your repertoire allows you to trade with much more confidence. The information in all of these books can be applied to trading NFTs, coins, stocks, and anything else you can think of.

For anyone looking to improve their overall trading skills relatively quickly, these are the 3 books I'd start with. I spent the previous bear market reading these and it helped me enormously through this past bull run.

Order I read them in case you're wondering:

  1. Reminiscences of a Stock Operator

  2. Candlestick Course

  3. Market Wizards