If you’ve been trading for a while—or even just thinking about starting—you’ve probably heard this question: “What trading books do you recommend?”
It’s a reasonable question, but let’s be honest: What’s going to help you make money today?
The answer isn’t another book.
The Truth About Trading Books
Let’s clear this up: I’m not saying books aren’t useful—they are. Some books offer insights that can shape your thinking, refine your strategy, or solve specific trading problems. But here’s the catch: Trading isn’t an academic exercise.
You’re not preparing for a PhD defense or trying to impress someone with your knowledge of stochastic processes. You’re trying to do one thing: turn money into more money. And that means focusing on practical problem-solving and execution, not theoretical exploration.
Books won’t trade for you. They won’t teach you the emotional discipline to cut a losing trade or the grit to stick to your system. That comes from doing the work.
When Should You Read Trading Books?
The best time to read a trading book is when you’ve hit a wall.
- Struggling with position sizing? Find a resource on risk management.
- Confused about how options work? Look up books that break down options mechanics.
- Uncertain about the math behind your strategy? Pick up a statistics primer.
Books should be tools you reach for to solve real, specific problems—not a substitute for experience. Reading books without a practical purpose isn’t learning; it’s procrastination disguised as productivity.
Books Worth Your Time (and Why)
If you’re going to read, focus on books that give you an edge—actionable insights that apply directly to your trading. Here are a few:
1. Expected Returns by Antti Ilmanen
Why: This book dives into the core drivers of returns across asset classes, helping you understand risk premia and build strategies that work over the long term.
2. The Laws of Trading by Agustin Lebron
Why: A modern take on trading principles that emphasizes thinking like a trader—making decisions based on probabilities and risk.
3. Positional Options Trading by Euan Sinclair
Why: Options aren’t just about guessing direction. This book is about building profitable systems and understanding the nuances of options trading.
4. Getting the Best of It by David Sklansky
Why: While not a pure trading book, it’s a masterclass in probability and decision-making—skills every trader needs.
5. Practical Statistics for Data Scientists by Peter Bruce and Andrew Bruce
Why: Learn practical statistical techniques that can help you analyze market data and backtest strategies effectively.
6. Trading and Exchanges by Larry Harris
Why: This is the ultimate manual on how exchanges work, from order books to margin mechanics. Even though it’s an older book, it’s still a goldmine of practical knowledge.
The Market Doesn’t Care How Much You Know
Here’s the harsh truth: The market doesn’t care how many books you’ve read. It only cares about your edge.
- Do you have a clear, actionable trading strategy?
- Can you execute it consistently under pressure?
- Are you disciplined enough to manage your risk and stay in the game?
These are the things that matter—not how well you can quote trading theory or explain complex econometrics.
Learn by Doing
The best education you’ll ever get as a trader comes from trading.
- Take small trades to gain experience.
- Track your results meticulously to identify patterns.
- When you hit a problem you can’t solve, then dive into a book or reach out to the trading community for help.
Books are tools, not shortcuts. Don’t let reading replace doing.
Final Thoughts
Trading books have their place, but they’re not the magic bullet for success. Focus on solving real problems with the tools and knowledge you already have. Build your edge by learning from experience, and use books as a resource to fill the gaps when necessary.
At the end of the day, spend more time trading than reading about trading. That’s how you turn knowledge into profit.
