Here are the next five of Dr. Tharp's favorite trading books:

6) Schwager, Jack. The New Market Wizards. New York: Harper Collins, 1992. There are a lot more than 16 great traders and Schwager presents some more of them in this classic book. I personally think the William Eckhardt’s interview alone is worth the price of the book.

7) Wilder, Wells. New Concepts in Technical Analysis. Greensboro, NC: Trend Research, 1978. This is the oldest book on my list and I’ve included it because it is the original presentation of some of the classical tools of trading including ADX, ATR, and many other classics. If you are not familiar with these concepts, now is the time to start and this is the book to start with.

My books:

8) The Definitive Guide to Position Sizing: How to Evaluate Your System and Use Position Sizing to Meet Your Objectives. Cary, NC: IITM, 2007. I’m a little reluctant to put this book in my list because we haven’t released it yet, but it’s already written and I think it is a new classic. It includes how to measure the quality of your system objectively, no matter what style of trading you have or what instruments you trade. And then it includes everything you could possibly want to know about how to use position sizing, depending upon the quality of your system, to meet your objectives. It’s that simple and I’ve very excited about it. We’ll probably release it in 3-4 months.

9) The Peak Performance Course for Traders and Investor (5 books I’ll count as one). Cary, NC: Van Tharp, 1989. When I developed the Investment Psychology Inventory to measure strengths and weaknesses of traders, people started saying, “I totally agree with your analysis, but how can I use this information to improve my trading.” As a result, I wrote the home study course over a five year period to do just that. The course should be must reading for anyone who is serious about trading or investing. And if there is a number one choice among the ten books, this is it.

10) Trade Your Way to Financial Freedom, 2nd Edition. New York: McGraw-Hill, 2007. I’ve been profiling this book in my tips over the last few months. If you really want to understand systems and how to approach the markets, then this book is also a must read. You can find out more information about it at www.iitm.com