The article “Trading Books: Let’s Get Real about What You Actually Need” was originally published on Robot Wealth blog.
People often ask me for book recommendations. But here’s a better question: What’s going to help you make money today?
Reading a book probably isn’t the answer.
I’m not saying books aren’t useful. They absolutely are.
But you’re not preparing for a PhD defence – you’re trying to turn money into more money through trading.
And that means focusing on solving real problems with the tools and knowledge you have right now.
Sometimes, you’ll hit a wall where you need specific knowledge to solve a problem.
That’s when you crack open a book or ask other traders for help.
But consuming trading literature before you have any practical use for it? That’s just procrastination dressed up as education.
You wouldn’t dive into stochastic calculus or advanced econometrics just for fun, would you? (If you would, we need to have a different conversation…).
You’re a trader, not an academic researcher. The market doesn’t care how many books you’ve read – it only cares whether you have an edge and how well you manage it.
That said, there are some books that genuinely deserve space on your trading desk:
- Expected Returns by Anti Ilmanen
- The Laws of Trading by Augustin Lebron
- Positional Options Trading by Euan Sinclair
Why these? Because they focus on stuff that actually makes money.
For the math and stats side of things, I’d recommend:
- Getting The Best of It by David Sklansky
- Practical Statistics for Data Scientists by Peter Bruce and Andrew Bruce
These books teach you tools you’ll actually use, not just theoretical stuff.
And if you want to understand how exchanges work – limit order books, trade matching, margin mechanics and the like – grab Trading and Exchanges by Larry Harris.
Yes, it’s old, but it’s like a mechanic’s manual for the trading machinery you’ll use daily.
Bottom line? Learn by doing. Read when you need to solve specific problems.
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Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Robot Wealth and is being posted with its permission. The views expressed in this material are solely those of the author and/or Robot Wealth and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Disclosure: Options (with multiple legs)
Options involve risk and are not suitable for all investors. For information on the uses and risks of options read the "Characteristics and Risks of Standardized Options" also known as the options disclosure document (ODD). Multiple leg strategies, including spreads, will incur multiple transaction costs.
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