This is a list of the stock market investing books that are integral to my stock trading system and are the ones I go back to read time and time again.
The first book I should mention is Unknown Market Wizards by Jack D. Schwager because its real purpose is to highlight there are many different ways to trade and each person needs to develop and implement a system that works for them. It’s not going to be the same for every person. So although these books are valuable to me and my trading style, they might not be to you and yours.
Victory in Stock Trading by Oliver Kell.
This is the system I use and study for my stock trading. I refer back to this book as well as the materials and information from Oliver’s masterclass. Oliver is the 2020 US Investing Champion with a very impressive annual return of 941% (he actually had been over 1000% during the competition but gave some of it back to end at 941%).
How to Make Money in Stocks by William O’Neil. This book fully explains the CANSLIM method in depth. This is the system that a lot of top stock traders style their systems around. They use this as a base and then tweak the system into something that works for them.
How to Make Money in Stocks: Getting Started by Matthew Galgani. Mr. Galgani worked at William O’Neil’s company, Investors Business Daily, and wrote this book as a simplified explanation of How to Make Money in Stocks. I highly recommend it as it breaks the system down into manageable chunks and includes a lot of summaries and bullet point lists to guide you through the system.
Japanese Candlestick Charting Techniques by Steve Nison. Widely known as the western expert on Candlestick Patterns, Mr. Nison wrote this in-depth book on Candlestick patterns that also discusses when those candlesticks should be considered significant and when they should not. For example, every hammer on a chart is not significant. If it’s a hanging man (a type of hammer candlestick), it comes after an advance in a chart and needs bearish confirmation to be significant. A hanging man has more importance when the price of a stock is at all all time high or close to an all-time high. This book explains all the important candlesticks and gives the details of when they are significant.
The Mental Game of Trading by Jared Tendler. Sometimes trades don’t go as planned because our emotions or thoughts get the better of us. This book goes into that and how to overcome those barriers.
Trade Like an O’Neil Disciple by Gil Morales and Dr. Chris Kacher. This also covers the CANSLIM method but introduces some other concepts like Pocket Pivots. It reinforces a lot of the material and ideas presented by William O’Neil.
Trade Like a Stock Market Wizard and Think and Trade Like a Champion by Mark Minervini. Both books go over Mr. Minervini’s trading strategy but also serve as cheerleading for each of us as traders. The book also covers Mark’s background and why he believes anyone who applies themselves can become a top tier trader. (Incidentally, he is one of the winners of the US Investing Championship.
How I made 2,000,000 in the Stock Market by Nicolas Darvas. I have read this book but I found it a bit long-winded. The main point is Darvas’ box method which basically is similar to O’Neil’s basing system and Kell’s Base and Break. What it basically means is that you are looking for basing action in a stock and waiting for a breakout from the base. That really is the important thing to learn from this book.
Stan Weinstein’s Profiting in Bull and Bear Markets by Stan Weinstein explains the system behind Stage Analysis. I personally use the SATA indicator developed for TradingView in my system as I believe there is a price cycle in trading and recognizing where you are in that cycle for any trade your are considering is important. William O’Neil’s system is about buying stocks when they are in Stage 2, therefore, being able to recognize the different stages is important.
Insider Buy Superstocks by Jesse Stine. This also is a bit long-winded but basically outlines the author’s recognition of a stair stepping type action to stocks that are making big moves. This can be thought of as the basing and consolidation periods of the cycle of price action.
Technical Analysis Using Multiple Timeframes by Brian Shannon. As the name implies this book covers looking at multiple timeframes when analyzing a stock. Brain Shannon is known for his development of the Anchored VWAP. I found this explanation (by Ben Bennett) and way of using the AVWAP to be helpful in my strategy.
Read some of my other Book Notes.
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