What I read, have read, and recommend to anyone to get more out of yourself and your portfolio.

This page contains affiliate links. If you use these links to buy something I may earn a commission. Hey, I’m here trying to give financial advice – do you blame me? However, that in no way affects my recommendations below. Borrow these books, check them out of your local library, buy used copies locally or online, etc. – whatever you do, I highly recommend that you read these books. Thanks.

“Atomic Habits” by James Clear

This is going to be one of the few non-financial books I’m going to recommend, but I cannot emphasize enough how much of a life-changing book this is. In “Atomic Habits”, James Clear lays out in simple terms how to not only develop positive habits, but stick with them. The book extensively discusses external forces upon you and how to manage them, as well as developing a personal environment that helps you stick with them. No matter what you’re doing or where you are in life, you can definitely learn something from “Atomic Habits”. We also highly recommend subscribing to his weekly email newsletter; we’ve been a loyal subscriber of his for years, and he recently noted that he now has over a million subscribers to his weekly email – go to jamesclear.com to sign up for it.

“How I Made $2,000,000 in the Stock Market” by Nicholas Darvas

A classic investment book, “How I Made $2,000,000 in the Stock Market” by Nicholas Darvas documents how an immigrant and famous dancer made $2,000,000 in the stock market. Though many people who read this book take away from it the classic “box system” for determining when a stock is about to break out to new highs, I took away something different: TMI. You see, when Mr. Darvas was making his millions, he did not sit in front of a computer watching trades tick-by-tick, or watch the market daily with various commentators and prognosticators constantly giving their opinions. Instead, he used a weekly “Barron’s” magazine, which was usually at least a few days old when he received it, as he had his stock broker send it to him while he was traveling. Regardless of your own takeaway, it’s a classic book and a must read.

“Market Wizards” by Jack D. Schwager

This is one of the finest books to read to get in the mind of a professional, individual trader. “Market Wizards” by Jack Schwager is a series of interviews of anonymous, but proven, professional individual traders. Not hedge fund managers, or those close to Wall Street, but people who have come up with the mental fortitude and market systems to beat the market soundly. While none give away their algorithms or systems, all freely discuss what it personally takes to be a great trader. The read is great, and you’re going to learn a lot about yourself when you try to personally do what they suggest. As most of you know, the market is an impossible creature to master, but these traders have found a way to make solid money nonetheless. A must read when trading that “active” part of your portfolio.

“The Madness of Crowds” by Charles Mackay

Technically titled, “Extraordinary Popular Delusions and the Madness of Crowds” by Charles Mackay, this nearly two-century old book is spot-on for helping to avoid the next panic or bubble, as well as to give clarity for the general times we live in. The part that may fascinate investors most is the analysis of the Dutch tulip bulb mania of the early-1600s in Holland. How could something so tangible, replicated, and common become worth so much? The answer lies more in psychology than in market analysis per se. The book continues on to discuss many other crowd or “mob” delusions, such as the witch hunts, etc. Worth a read to better understand yourself, your fellow man, and the markets which we all create.

“The New Market Wizards” by Jack D. Schwager

Given the previous recommendation, it goes without saying that the next recommendation would be “The New Market Wizards” by Jack Schwager. More of the same from the prior book, but that “same” is a treasure trove of mental strategies to take your active trading to the next level.

“Trading Options for Dummies” by Joe Duarte

While options are often the purview of the high-risk, high-reward investor, there are a lot of ways to play the options market, and not all are as risky as you might think. “Trading Options for Dummies” by Joe Duarte is a great book to introduce you to options, from the very beginning of what they are and represent, to complex trading strategies such as straddles and strangles. Knowing how options work is essential to determining if this is something you may want in your portfolio.

“A Random Walk Down Wall Street” by Burton G. Malkiel

Another classic investing book, this one may be the “if you could only buy one, buy this one” book for overall insight into how to build wealth in the stock market. “A Random Walk Down Wall Street” by Burton G. Malkiel gives a great overview of the market, and insight into exactly how and why the “experts” don’t necessarily do better than buying a diversified basket or index of stocks. Find the time to read this one.