The 10 Best Trading Books of All Time

with IG DealerLudwik Chodzko-Zajko

Reminiscences of a Stock Operator
by Edwin Lefèvre

Despite being published nearly 100 years ago, Edwin Lefèvre’s 'Reminiscences of a Stock Operator' remains a popular trading book – so much so, in fact, that it was recommended by more of our analysts than any other title in our top 10.

The book is a thinly veiled biography of Jesse Livermore – one of the most famous traders of the 20th century – who went from trading in small ‘bucket shops’ to making and losing millions on Wall Street several times over. Its enduring popularity stems from its honest reflection on the protagonist’s successes and failures, and the inclusion of the lessons he learnt along the way – lessons that remain relevant to this day.

The book is cited as a major source of learning by the traders in Jack Schwager’s 'Market Wizards', while former Fed Chairman Alan Greenspan describes it as a 'font of investing wisdom'. The 2010 annotated edition includes commentary by Jon D. Markman, which bridges the gap between the fictionalised world of the original and the events of Livermore’s life, and also explains how to apply the strategies described in the book to today’s markets.

Why was it chosen?

'A masterclass revealing the mind, motives and mechanics of a lifetime speculator.'

David Joseph, head of DailyFX USA

'Set in the early twentieth century, the life of Larry Livingston (aka Jesse Livermore) provides valuable lessons and insights about trading in the present day. The book teaches some basic concepts about financial markets and highlights the array of experiences that a trader can face.'

David Song, DailyFX currency analyst

Discover how to trade stocks

with IG Market StrategistJingyi Pan

The Intelligent Investor
by Benjamin Graham

'The Intelligent Investor' is the key text on value investing – an investment approach developed by Benjamin Graham at Columbia Business School during the 1920s. This trading book is so revered that Warren Buffett said it was 'by far the best book on investing ever written'.

The approach outlined in the book involves buying stocks that appear undervalued according to fundamental analysis, such as those that have high dividend yields or low price-to-earnings ratios compared to their competitors. The idea is to find stocks that have prices below their 'intrinsic value', giving them a 'margin of safety' in terms of the likelihood of a future rise, then holding them for the long term.

Graham updated the book four times, most recently in 1972, with this version featuring a forward by Buffett. A revised edition, first printed in 2003, includes additional commentary by financial journalist Jason Zweig, who explains how to apply the principles outlined in the book to today’s markets.

Why was it chosen?

'"The Intelligent Investor" provides a holistic approach to investing in the financial markets for the average person. The updated version provides commentary by Jason Zweig to usher the timeless principles of Graham into the modern financial era.'

Richard Snow, DailyFX Financial Writer

'Ben Graham is known as the godfather of investing. While traders might think it does not hold much for them, Graham’s discussion of how to profit from the whims of 'Mr Market' contains many lessons for all market participants.'

Chris Beauchamp, IG chief market analyst

Learn what CFD trading is

with DailyFX Analyst and EditorMartin Essex

Technical Analysis of the Financial Markets
by John J. Murphy

Written by John J. Murphy – a former director of technical analysis at Merrill Lynch – 'Technical Analysis of the Financial Markets' is widely regarded as a bible for traders. It covers everything from basic concepts through to advanced indicators, and includes more than 400 charts to bring technical analysis to life.

The book is the revised edition of Murphy’s earlier book, 'Technical Analysis of the Futures Markets', which was cited in research papers by the Federal Reserve and used in training programmes by the Market Technicians Association. The revised edition extends the scope to include all major asset classes, making it a useful resource for traders working across markets.

The book includes sections to help the reader put what they’ve learnt into practice, including a technical checklist and guide to coordinating technical and fundamental forms of analysis. There’s also an appendix that outlines how traders can build, test and evaluate a trading system.

Why was it chosen?

'The most comprehensive book on technical analysis and investing out there. Widely referred to as, "the bible of technical analysis", this book is essential for beginners and experienced chartists alike.'

Richard Snow, Daily FX Financial Writer

'The book provides everything you need to know about trading using technical analysis. It’s the perfect handbook for everyone, from beginner to expert, from the day trader to the long-term investor.'

Martin Essex, DailyFX content manager

Find out more about technical analysis

with IG Premium Client ManagerBianca Fischer

The Big Short
by Michael Lewis

'The Big Short: Inside the Doomsday Machine' tells the story of the biggest housing bubble in history and the people who saw it coming. Written by Michael Lewis, the narrative revolves around a few main players who bet against the subprime mortgage market and ended up profiting from the financial crisis of 2007 to 2008.

The book spent 28 weeks on The New York Times non-fiction bestseller list, was shortlisted for the 2010 Financial Times and Goldman Sachs Business Book of the Year Award, and was propelled to fame by the 2015 Hollywood docudrama of the same name.

Although it is an entertaining tale, at its heart is an exploration of what it takes to be a successful trader. The book delves into the behaviour of a group of short-sellers and explains why they choose to pursue their strategy. But more importantly, it explores the intricacies of the financial system and the ways in which its weaknesses were exploited when no one else was paying attention.

Why was it chosen?

'"The Big Short" helps to identify some of the tell-tale signs of exuberant greed and the scenario that generally follows.'

James Stanley, DailyFX currency analyst

'Michael Lewis’s ability to explain a complex financial issue to people who do not have much background knowledge of the topic is what makes 'The Big Short' an excellent read. It does a great job covering the buildup and breakdown of the housing bubble in the United States and why it mattered.'

Peter Hanks, DailyFX analyst

Learn how to short-sell

with IG Market AnalystMonte Safieddine

Trading in the Zone
by Mark Douglas

'Trading in the Zone' is a guide to the attributes that traders require in order to become successful. It is the second book written by the late Mark Douglas, who taught investment professionals and individual traders to master their psychology.

This book explains why traders are inconsistent and the ways in which individuals can overcome the behaviours that cause losses. Throughout Douglas’s book, traders will unearth their own misconceptions, and discover the common dangers of trading and myths about how markets move.

Through various exercises, 'Trading in the Zone' equips readers with a variety of tools and techniques to control their emotions and understand the probabilities of market movements. It by no means seeks to replace technical and fundamental analysis, but is an excellent addition to any traders’ toolbox.

Why was it chosen?

'Anything related to trading psychology should be of interest to a trader given its importance. Mark Douglas was one of the greats in the field and made an incredible contribution through this book.'

Paul Robinson, DailyFX currency analyst

'Trading in the Zone was the first trading book that I read and said, "Now that was a great book on trading". It hits on the very core and important elements of psychology and probability, and stands as one of the best practical guides to becoming a better trader.'

James Stanley, DailyFX currency analyst

Learn more about trading psychology

with authorJack D. Schwager

Market Wizards

'Market Wizards' is an anthology of interviews with the world’s best traders, in which they reveal what it is that separates them from the masses and tell the stories behind their biggest trading coups. These include the stories of a T-bond futures trader who turned $25,000 into $2 billion in a single day, and a hedge-fund manager who averaged an annual growth rate of 30% for 21 years.

While these stories make for an entertaining read, the book’s real value lies in the commonalities it reveals between the interviewees. These show that it’s not luck or rare personal attributes that determine success on the markets, but rather a solid methodology and the right mental attitude.

The book features interviews with 17 investing heavyweights including Bruce Kovner, Richard Dennis and Paul Tudor Jones, and covers markets including forex, stocks, futures and bonds. The 2012 edition features an update from author Jack D. Schwager, in which he reveals what he learnt in the 22 years after the book was first printed.

Why was it chosen?

'"Market Wizards" is one of my favourite trading books – the interviews with a variety of legendary investors reveal the characteristics and internal drive required to execute a host of investment strategies, across a variety of asset classes.'

David Joseph, Head of DailyFX USA

'The tales and tribulations of some of the trading world’s best minds is what makes "Market Wizards" worthy of a spot on the list. It provides great insights on the mindset required to be a profitable trader.'

Peter Hanks, DailyFX analyst

Discover what forex trading is

with authorRoger Lowenstein

When Genius Failed

'When Genius Failed' charts the rise and fall of Long-Term Capital Management (LTCM) – a hedge fund that had more than $120 billion under management before it collapsed in 1998, prompting a bailout by the Federal Reserve.

The first part focuses on the firm’s business model, which was developed by two winners of the Nobel prize in economics as well as PhDs from Harvard, and explains its early success in delivering returns of more than 40% between 1994 and 1998. The second part, of course, charts its downfall as the models developed by the 'geniuses' fail to keep pace with the ever-changing markets.

The book is based on interviews with former LTCM employees, the Federal Reserve, banks involved in the rescue and one of the firm’s founding partners. First published in 2000, it foreshadowed the 2008 financial crash and continues to serve as a reminder of what can happen when complacency enters a trader’s mindset.

Why was it chosen?

'The story is very compelling. It draws many parallels to so many tipping points in the global financial system. It is a timely financial history book.'

John Kicklighter, DailyFX chief strategist

'This book is volatility selling 101. In other words, it’s 'collecting pennies in front of a steamroller' for beginners. I would recommend.'

Ludwik Chodzko-Zajko, IG dealer

Discover the worst stock market crashes of all the time

with authorJim Rogers

Investment Biker

'Investment Biker: Around the World with Jim Rogers' explores the world of finance in a completely unique way. It follows the Wall Street legend Jim Rogers – co-founder of the Quantum Fund – throughout his 22-month motorcycle ride through 52 countries. He analyses the market value of each nation, in order to paint a picture of the state of the global economy.

A mix between travel writing and investment advice, the book has piqued the interest of motorcycle enthusiasts and market participants alike. For traders, the book provides an interesting take on the future of international economies and gives advice on what opportunities can be found in foreign markets.

It encourages adventure in both experiences and investment opportunities – so much so that Rogers has been heralded as the 'Indiana Jones of finance' by Time magazine.

Why was it chosen?

'This is one of those rare books that combines investment advice with adventure, written by one of the towering figures in the financial industry.'

Martin Essex, DailyFX content manager

'Twenty-five years later, Jim Rogers’s book still reveals insights into the populism sweeping Western economies. If you want to understand more about why the global economy is in the shape it is, this is a must-read – and re-read for those that haven’t touched it in years.'

Christopher Vecchio, DailyFX currency strategist

Discover the difference between trading and investing

with IG DealerAndreas Vassiliou

One Up On Wall Street
by Peter Lynch

'One Up On Wall Street' was written by Peter Lynch, one of America’s most famous fund managers and investors. In an easy-to-read guide, he explains how the average investor can become an expert in their field and outperform even Wall Street experts, simply by doing their research.

The book explores the investment opportunities that are hiding in plain sight – Lynch explains how anywhere from a shop to the workplace can provide the layperson with inspiration for investments, including opportunities that financial experts might not be aware of yet.

'One Up On Wall Street' is a popular trading book because Lynch delves into his own spectacular achievements, including the steps he took to achieve an average annual return of 29.2% during his time managing Fidelity Investment’s Magellan fund.

Why was it chosen?

'A phenomenal read that provides the average investor with strategies to help them make wise long-term investment decisions – with no accounting or finance background required.'

David Joseph, head of DailyFX USA

'An honest account from one of the most successful fund managers in the world. It is written simply and highlights small changes to everyday thinking which could aid better stock selection.'

Andreas Vassiliou, IG dealer

Learn more about fundamental analysis

with authorMartin Schwartz

Pit Bull: Lessons from Wall Street’s Champion Day Trader

'Pit Bull: Lessons from Wall Street’s Champion Day Trader' is a walk through of the career of Martin 'Buzzy' Schwartz, who earned the nickname 'Pit Bull' after years of successfully trading on Wall Street. The book details the true story of how Schwartz became considered one of the best traders in the world, and the tricks and techniques he used along the way.

This trading book is popular because Schwartz’s candid account details both his killer instincts, and his mistakes. He does not shy away from the human aspects of his story, including the significant losses and problems he faced at the start of his journey.

'Pit Bull' provides fascinating lessons to beginners and experts alike on the attitude, styles and strategies required to become a winner. This book not only gives insight into how to make money, but into the lifestyle required to be a professional trader.

Why was it chosen?

'A revealing dissection of the mind of a floor trader, money manager and investment legend.'

David Joseph, Head of DailyFX USA

'Tells the story about how Marty Schwartz went from practically nothing to becoming one of the best traders around. I believe that his success was based on a core talent as a discretionary day trader, who could read psychology and momentum really well.'

Konstantin Oldenburger, IG financial writer

Learn what CFD trading is

IG’s top 10 trading books

Discover the top 10 trading books of all time, then select a title to find out more about the book and why it was chosen.

Reminiscences of a Stock Operator
by Edwin Lefèvre

The Intelligent Investor
by Benjamin Graham

Technical Analysis of the Financial Markets
by John J. Murphy

The Big Short
by Michael Lewis

Trading in the Zone
by Mark Douglas

Market Wizards

When Genius Failed

Investment Biker

One Up On Wall Street
by Peter Lynch

Pit Bull: Lessons from Wall Street’s Champion Day Trader

IG’s top 10 trading books

Discover the top 10 trading books of all time, then select a title to find out more about the book and why it was chosen.

Reminiscences of a Stock Operatorby Edwin Lefèvre

The Intelligent Investorby Benjamin Graham

Technical Analysis of the Financial Marketsby John J. Murphy

The Big Shortby Michael Lewis

Trading in the Zoneby Mark Douglas

Market Wizards

When Genius Failed

Investment Biker

One Up On Wall Streetby Peter Lynch

Pit Bull: Lessons from Wall Street’s Champion Day Trader

About the project

Why was it chosen?

Why was it chosen?

Why was it chosen?

Why was it chosen?

Why was it chosen?

Why was it chosen?

Why was it chosen?

Why was it chosen?

Why was it chosen?

Why was it chosen?

Reminiscences of a Stock Operator
by Edwin Lefèvre

The Intelligent Investor
by Benjamin Graham

Technical Analysis of the Financial Markets
by John J. Murphy

The Big Short
by Michael Lewis

Trading in the Zone
by Mark Douglas

One Up On Wall Street
by Peter Lynch