There are many investing books out there that can help investors expand their stock education. This list highlights 20 great wall street books every trader should read.
1. How to Make Money in Stocks by 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.
2. One Up On Wall St by Peter Lynch
This is an investment classic that will give the individual investor hope. Peter Lynch explains how Wall Street may not be able to find the best investing opportunities from the start and shows step-by-step how the individual investor can find the next ten-bagger.
3. The Warren Buffett Way by Robert Hagstrom
This book sheds insight into the ways and means of the Oracle of Omaha. Warren Buffett's thoughts are insightful and his methods may yield fruitful rewards for investors with enough patience to learn them, understand them and apply them correctly.
4. Reminiscences of a Stock Operator by 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.
5. Market Wizards by Jack Schwager
This book is a collection of interviews of a group of successful traders in the 1970s/80s. Their experiences are interesting to hear and traders may draw useful lessons from them. However, some of them were successful only because they were in the right place at the right time. The 1970s were a great commodity bull market and some of them profited from it. Nevertheless this is a classic to read and enjoy. 2012 UPDATE: Jack's latest book, Hedge Fund Market Wizards, is also a fantastic read.
6. Fooled by Randomness by Nassim Taleb
This book, which would go along well with "The Black Swan", explains the author's thoughts about how randomness plays a larger role in our lives than we expect. For traders, this would imply that risks are usually large than we expect. Also, it would mean that some things in the financial world aren't exactly what they seem.
7. Trader Vic---Methods of a Wall Street Master by Victor Sperandeo
The view the author has is slightly biased in favor of the Austrian School of Economics. Some of his methods are novel---you wouldn't see them in most books on trading (for instance, his measuring the average length and magnitude of a bull/bear market's primary and secondary trends, there by gauging the odds for a change in the trend in the market). His views on investor psychology are also interesting to read.
8. Japanese Candlestick Charting Techniques by Steven Nison
This book introduces candlestick charting, which some investors may find useful in their trading. It sure helps to make charts more visual!
9. Trade Your Way to Financial Freedom by Van Tharp
This is a gem that encompasses investor psychology and system construction. While it may not give you a "Holy Grail" (an unbeatable method to the markets) for trading, it will give you the basics you need to construct a winning system. There is something for everyone in this book.
10. The New Reality of Wall Street by Donald Coxe
A thoughtful book by Donald Coxe that examines market cycles in various asset classes. It contains a wealth of knowledge useful for any investor.
11. The Right Stock at the Right Time by Larry Williams
Larry Williams reveals some of his observations of cyclical tendencies in the stock market. It may serve as a ray of light for investors battered by bear markets.
12. Intermarket Analysis by John Murphy
This books delves into the correlations between different asset classes and different markets. It adds an additional tool to the investor's toolkit.
13. Alchemy of Finance by George Soros
This book, along with Soros's latest book, The New Financial Paradigm explain the author's theory of reflexivity and how it relates to the market. Though it may not provide a direct system for trading, it is extremely thoughtful and deepens one's understanding of how the financial markets work. The book may be a bit dense but it is rewarding for those who are willing to finish it.
14. The Great Crash 1929 by Kenneth Galbraith
A brilliant recount of the events leading up to and after the financial meltdown in 1929.
15. The Age of Turbulence by Alan Greenspan
An interesting narrative of the US economy in the last 50 years as experienced and seen from the eyes of the former chairman of the Federal Reserve, Alan Greenspan. The second half of the book contains some of Greenspan's own thoughts about the world economy and what the future may hold.
16. Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay
Tulipomania, the South Sea bubble and the Mississipi Land scheme are covered in this book, showing how herd mentality worked to create bubbles in past eras. It may serve as an interesting read as well as a guide for dealing with future bubbles.
17. Common Stocks and Uncommon Profits by Philip Fisher
This unseeming book is written by Philip Fisher, who Buffett credits with most of his success. In the age of quantitative finance, this book is a must-read for those who want to understand how to inspect a company qualitatively.
18. Liar's Poker by Michael Lewis
An insider's account of the late 1980s at Salomon Brothers. An interesting, though perhaps not profitable, narrative of how Wall Street works.
19. When Genius Failed: The Rise and Fall of Long-Term Capital Management by Roger Lowenstein
A scintillating narrative of how one of the darlings of the hedge fund world rose and how it fell. A reminder for traders to keep their minds focused on risk and their circle of competence.
20. Encyclopedia of Chart Patterns by Thomas Bulkowski
An extremely detailed work that rivals "Technical Analysis of Stock Trends" and should provide traders with a complete understanding of chart patterns. The hard work is to apply the knowledge.
Honorable Mention - The Intelligent Investor by Benjamin Graham