This is probably a more complex question than meets the eye initially. I've traded for over a decade and read probably 75 books on the subject, and looking back, I think many books were innapropriate reading for the particular stage I was in.
For example, someone suggested Market Wizards. While I consider it a "must read" for traders, I don't think it's appropriate for a newbie because it may conjure up unrealistic expectations of profit. It's difficult enough to control the tendency to look at trading as a get-rich-quick scheme without reading of traders who have become fabulously successful at it.
Mark Douglas books are awesome, but pretty heavy reading for a newbie. Part of the benefit of reading his books are identifying our own tendencies in trading as he describes them. You can read them and it's like he has been spying on you. However, if you have no experience, the text loses its impact.
All this said, I think a newbie should read plenty on technical analysis, fundamental analysis if interested in equities, and a book that discusses the realities of trading.
Probably the best TA books I read were written by John Murphy (Technical Analysis of the Financial Markets) and Jack Schwager (not sure of the exact title, but a thick, red TA book). The latter gives you page after page of exercises in chart reading. Schwager also has a fundamental analysis book, but even more simple books like "Atlas of Economic Indicators" go a long way in solving the mysteries of what drives price movement in the markets.
Finally, a book like "Trading Is a Business" by Joe Ross does a good job of giving you a more realistic view of trading.
Just my 2 cents.
For example, someone suggested Market Wizards. While I consider it a "must read" for traders, I don't think it's appropriate for a newbie because it may conjure up unrealistic expectations of profit. It's difficult enough to control the tendency to look at trading as a get-rich-quick scheme without reading of traders who have become fabulously successful at it.
Mark Douglas books are awesome, but pretty heavy reading for a newbie. Part of the benefit of reading his books are identifying our own tendencies in trading as he describes them. You can read them and it's like he has been spying on you. However, if you have no experience, the text loses its impact.
All this said, I think a newbie should read plenty on technical analysis, fundamental analysis if interested in equities, and a book that discusses the realities of trading.
Probably the best TA books I read were written by John Murphy (Technical Analysis of the Financial Markets) and Jack Schwager (not sure of the exact title, but a thick, red TA book). The latter gives you page after page of exercises in chart reading. Schwager also has a fundamental analysis book, but even more simple books like "Atlas of Economic Indicators" go a long way in solving the mysteries of what drives price movement in the markets.
Finally, a book like "Trading Is a Business" by Joe Ross does a good job of giving you a more realistic view of trading.
Just my 2 cents.
