These books are aimed at people who have a solid understanding of finance and/or trade for a living. There are quite a few on technical analysis for the chartists out there. Update 8/16/2006

• Steven B. Achelis

Elliott Wave Explained: A Real-World Guide to Predicting and

Profiting from Market Turns

• Jake Bernstein

  The Compleat Day Trader: Trading Systems, Strategies, Timing

  Indicators, and Analytical Methods

• Peter Bernstein (ed.)

  The Portable MBA in Investment

• Warren E. Buffett and Lawrence A. Cunningham

  The Essays of Warren Buffett: Lessons for Corporate America top10 pick fidelity

  This book is a collection of annual report letters by legendary investor Warren E. Buffett to shareholders of Berkshire Hathaway, Inc. the holding company for which he serves as chairman and CEO. Buffett is widely regarded as one of the most successful investors of the 20th century. Reading this collection of shareholder letters, carefully arranged and edited by Lawrence A. Cunningham, is like taking a course from Buffett himself, as you learn the thoughts and theories behind his investing practices.

  In his shareholder essays, you won’t find Buffett commenting much about the stocks he owns, but he loves to discuss the basic principles behind his investments. Many of his principles are derived from his study at Columbia University, where he learned — and later worked — under the tutelage of professor Benjamin Graham (The Intelligent Investor, Security Analysis).

  Buffet’s folksy writing style has made his letters among the most widely read financial documents on Wall Street each year. In his company’s 1989 report, Buffett wrote:

  We hope to buy more businesses that are similar to the ones we have, and we can use some help. If you have a business that fits the following criteria, call me or, preferably, write. Here’s what we’re looking for:

  (1) Large purchases (at least $10 million of after-tax earnings),

  (2) demonstrated consistent earning power (future projections are of little interest to us, nor are turnaround situations),

  (3) businesses earning good returns on equity while employing little or no debt,

  (4) management in place (we can’t supply it),

  (5) simple businesses (if there’s lots of technology, we won’t understand it),

  (6) an offering price (we don’t want to waste our time or that of the seller by talking, even preliminarily, about a transaction when price is unknown).

  We will not engage in unfriendly takeovers. We can promise complete confidentiality and a very fast answer — customarily within five minutes — as to whether we’re interested. We prefer to buy for cash, but will consider issuing stock when we receive as much in intrinsic business value as we give.

  Buffett is not immune to owning up to poor investing results, either. Witness this commentary from 1999’s annual report letter:

  Even Inspector Clouseau could find last year’s guilty party: your Chairman. My performance reminds me of the quarterback whose report card showed four Fs and a D but who nonetheless had an understanding coach. ‘Son,’ he drawled, ‘I think you’re spending too much time on that one subject.’ My ‘one subject’ is capital allocation, and my grade for 1999 most assuredly is a D. What most hurt us during the year was the inferior performance of Berkshire’s equity portfolio — and responsibility for that portfolio, leaving aside the small piece of it run by Lou Simpson of GEICO, is entirely mine.

• John F. Carter

  Mastering the Trade fidelity chk

• Tushar S. Chande and Stanley Kroll

  The New Technical Trader: Boost Your Profit by Plugging into the

  Latest Indicators

• Robert W. Colby and Thomas A. Meyers

  How I Made $2,000,000 in the Stock Market fidelity chk

• Thomas R. Demark

  New Market Timing Techniques: Innovative Studies in Market Rhythm

  and Price Exhaustion

• Mark Douglas

  The Disciplined Trader fidelity chk

• Robert D. Edwards and John Magee

  Technical Analysis of Stock Trends top10 pick fidelity

  Many traders who use technical analysis mentioned the Edwards and Magee book as the bible of technical analysis. The book claims to be the first to produce a methodology for interpreting and profiting from the predictable behavior of investors and markets. What traders feel strongly about is that this book shows them how to use technical analysis to make money trading regardless of market conditions. It thoroughly explains all of the key technical trading concepts, including chart patterns, relative strength, candlesticks, oscillators, momentum and volume, moving averages, and other indicators. In addition, the authors explain how to spot trends through the use of these technical indicators.

  Professional trader Kornstein explains why he feels the Edwards and Magee book is so essential. Basically, technical analysis is graphing the changes in price, time, and volume, and the mathematical derivatives that are formulated from this data, he says. The concepts taught in this book are as useful today as they were fifty or sixty years ago.

  For a less-intensive understanding of technical analysis, Kornstein recommends Martin J. Pring’s book Technical Analysis Explained. Pring covers the technical indicators of the markets by explaining the concepts in simple, easy-to-understand language.

• Alexander Elder

  Dr. Elder, a trader and psychiatrist, was one of the first traders to recognize the importance of the emotional aspects of trading. He pointed out that a superb trading system with a poor psychological profile often leads to an unprofitable portfolio.

  Elder focused on giving first-time traders their own trading plan so that you not only knew where to start, but you also had a good formula for managing risk, says Deron Wagner, president of Morpheus Trading Group. It was the first book I read after I got into trading and it helped me get my feet wet.

  Wagner says that the sections of the book that deal with psychology and risk management are must reads.

  On a personal note: Every time I discuss trading with Dr. Elder, I gain additional insight about what really goes on behind the scenes in the stock market. And that’s the essence of his book: It reflects his knowledge and understanding of what makes markets move up or down. Elder followed his first best-selling book with another, Come Into My Trading Room.

• Alan S. Farley

  The Master Swing Trader fidelity chk

• George A. Fontanills

  The Stock Market Course fidelity chk

• Marc Friedfertig and George West

  The Electronic Day Trader