by Barbara Mitchell

Created on: January 24, 2009   Last Updated: February 28, 2009

If you are passionate about being the best investor you can be, you'll want to surround yourself with the best advice you can find on the subject.

I have selected the following as the top 5 investment books for three reasons: 1) they continue to be very popular in their specific area of investment, 2 ) they are frequently cited in other investment books, and 3) together they round out an investor's education. Each book covers an important area of investing and they are listed here in alphabetical order:

"Japanese Candlestick Charting Techniques", Second Edition, by Steve Nison (Hardcover, 2001)

This should be your reference guide to candlestick charting. Steve Nison writes in an easy-to-understand style, with lots of examples covering a variety of markets. He conveys how candlesticks can provide market insight and the importance they play in timing entrance and exit strategies. If you're not using candlesticks, this book will help you to realize you may be leaving profits on the table.

"Market Wizards: Interviews with Top Traders", by Jack D. Schwager (Hardcover, 2006)

Jack Schwager, an investor himself, interviews others at the top of their game when the book was written - the best in bonds, stocks, futures, currencies, and options. These are trend traders, strong on technical analysis, with other common threads. Each is passionate about trading and self-disciplined in their trading styles. Some of their worst mistakes are detailed in the book. You may not come away with actual strategies you can use, but this book is full of insight. It may help you to correct mistakes you've been making as well as help you to avoid making new ones.

"The Neatest Little Guide to Stock Market Investing", by Jason Kelly (Paperback, 2007)

This is the perfect book for those just starting out in stock investing, and also one you will want to keep as a reference. Jason Kelly assembles the best advice about stock investing in a book that is easy to understand. He explains the stock picking philosophies of some successful investors and teaches you how to profit from the market consistently.

"Reminiscences of a Stock Operator", by Edwin Lefevre (Paperback, 2006)

This is a classic favorite of many investors that was first published in 1923. The most recent edition is published by Wiley Investment Classics and has a forward written by author Roger Lowenstein. It details the life and times of the famous stock and commodities investor, Jesse Livermore. Much insight can be gained from him about market behavior (and thus investor behavior). It is still very timely for today's markets, as people and their behavior haven't changed.

"Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications", by John J. Murphy (Hardcover, 1999)

As important as fundamentals may be to the markets, most if not all traders will benefit from using some form of technical analysis. John Murphy does an excellent job at teaching the fundamentals in a way that can be understood by the average investor. It is not a dry read, as many technical analysis books are, but contains many helpful graphs and clear explanations that give better understanding to the subject matter.

There are many more highly valued, well-written investment books out there. These 5 however, are ones investors read over and over again. You should definitely have them in your collection.

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