There are many good stock market books out there on every topic. The following 10 are the best trading books in my opinion. Technical analysis is mainly use for swing trading or day trading purposes. Technical analysis shows a trader how to use stock chart to find trade setups, buy and sell short term for profit. Long term investors should read about fundamental analysis books. If you are a trader or learning to trade stocks, below are the must read trading books that you should have on your shelf.
Best Technical Analysis Books
This is a very comprehensive book on technical analysis and it gives you a step by step instruction on how technical analysis work and how to apply technical indicators to real trading. If you are a stock market beginner and looking to short term trading, this is the first book you should pickup.
Trading for a Living is a great book where it teaches you 3 major concepts in short term stock trading, Psychology, Trading Tactics, and Money Management. You will need all 3 of these skills in order to survive and make money trading stocks. This book teaches you how to use technical indicators and give detail analysis on charts. Whether you are a stock market beginners or an experienced trader, you will learn something new from this book.
This book has some unique insight on how to use technical indicators which you won’t find in any other book. Again, you will learn how to use technical indicators like stochastic, MACD and how to apply them in swing trading.
4. Profitable Candlestick Trading: Pinpointing Market Opportunities to Maximize Profits
If you want to make money swing trading, candlestick patterns is the key. You will learn all the basic candlestick patterns and reversal patterns that allows you to jump on a trade before the beginning of a trend. You will learn how to apply these candlestick patterns with real trading and how to recognize profitable trade setups.
This is both a technical analysis and fundamental analysis book written by William O’Neil, founder of Investor’s Business Daily. The author uses his CAN-SLIM investing method in the 1960’s to make himself a multi-millionaire. The CAN-SLIM investing strategies still applies today. This is not a pure technical analysis book, but certainly one of the best stock market books.
This is one of the first technical analysis books that I read on technical analysis and it is the 2nd book written by Alexander Elder, the author of “Trading for a Living”. This book shows you how to apply the trading strategies that you learn from “Trading for a Living” with great details. You will see how Dr. Alexander trades and applies his own trading systems.
Whether you are a swing trader or a day trader, this is a good book to learn about trading skills and trading strategies. You will learn about the author’s 7 steps approach to the stock market. You will learn about risk-reward ratio and when to enter and exit a trade.
If you ever thinking about day trading online, this is the book that you should read. Day trading requires strict discipline and this is a good book to get started.
Encyclopedia of Chart Patterns is yet another great book on technical analysis and chart patterns. The book is written by Thomas N. Bulkowski and has over 1,000 pages. It is a very detailed book and great for beginners.
This book is a compilation of trading strategies used by 16 traders. You will see how they trade and they apply their trading strategies. This book is an easy read, but not for stock market beginners. You should at least know how to use technical indicators before you pickup this technical analysis book.
Free Trading Ebooks
The following is 3 bonus ebooks on how to trade using technical analysis and stock chart patterns.
Learn how technical analysis work and how to use trend lines to recognize profitable trade setups.
Learn the 10 keys that successful traders follow in order to make consistent profitable in the stock and the Forex market.
Learn the 3 strategies that expert traders are using to beat the Forex and the stock markets. These trading strategies may give you inspiration on how you trade the market.
Check out the Trading System that combines a scanning system, charting platform, trading system and trader education all in one place.