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Favorite trading books

  1. Well, I am new to posting here on Elite Trader. I wanted to share some of the books that I have enjoyed reading about trading, some more than once.

    Market Wizards - Jack D. Schwager - This has been one of the most influential books for me so far. I think this is because of the wide variety of perspectives from traders in different markets and career stages.

    Reminiscenses of a Stock Operator - Edwin Lefevre - I know this is a rather obvious choice for almost everyone. I enjoy following the ups and downs of Livermore's career. Obviously a lot of the ups (and downs) encountered are not what a lot of traders will ever see especially considering these trades in today's dollars-personally I read the book right when I first started trading and I think it led me to some irrational trades. Either way, in the long run it is a valuable book to read and I have since read it several more times. I feel it has helped.

    How To Make Money Selling Stocks Short - William O'Neil - Although there are probably better books by this author, this is the first book by O'Neil that I have read and I am a fan. It is a short read but I like the chart analysis.

    Wall Street Meat - Andy Kessler - While not necessarily a "trading book" per se, Kessler gives us a very good view of the sell side of this business from an ex-analyst's point of view.

    How to Trade in Stocks - Jesse Livermore - I enjoyed the book, although it seems much of the material relates back to his first biography. This was my first real reading in applied Dow Theory, other than during investments class in college.

    Day Trading Online - Toni Turner - It probably wouldn't be on my favorites list, except that it is the first book I ever read regarding retail trading and it was a good, albeit very basic, introduction to Level II, candlesticks, and of course psychology, none of which were mentioned for more than 5 minutes in finance classes during college. Although now it is fairly dated (as it was then), with the tech stocks and fractional quotes, it helped give me an idea of trading in an applied sense.

    Some other books on the bookshelf include:

    The Market Maker's Edge - Josh Lukeman - I feel I need to read this one again. I read this in about 3 days during the time I was working two jobs and taking a class as well. With more trading experience and being more rested I think I may get more out of it a second time.

    All About Technical Analysis - Constance Brown - I felt it was a good overview; its also been a while since I have read it.

    The New Market Wizards - Jack Schwager - I have not finished it. I am about half way through it and so far I have not found the content that the original book contained, but there are some good points.

    Fundamentals of the Options Market -Michael Williams and Amy Hoffman - There are some mistakes; from what I understand they were corrected in later versions of the book. For the most part, however, the authors explain the same topics in simpler terms than the long formulas present in the CFA texts, etc. For example, the "synthetic triangle" explains sythetics a bit better than just memorizing the different combinations.

    I have looked over some of the threads regarding other books. Does anyone have any good recommendations? I have not found any good material regarding foreign exchange except my old economics books and Volumes 2 and 6 of the CFA I curriculum. Most so-called forex stuff seems to be "get rich quick" type superficial material which I'm really not interested in.
  2. I Like the book by Marcel Link also as I like spread trading "The complete guide to spread trading" was good though tough for me
  3. Thanks guys. I think that I will spend some time looking at the Mendelsohn book first. I was looking around at Borders, and the only book I saw was Forex Made Easy and a book Forex For Dummies, or something similar to that.

    I mostly focus on the USD/JPY currency pair, however I have traded the CAD/JPY as well. As far as charting, I know there are a lot of similarities between any market, so I think that is part of the reason why I have not had a lot of problems adapting from equities to foreign exchange. Now that I've been involved with it for a while, I believe I will take in some reading to try to get some different perspectives.
  4. the old wyckoff, neill, tape books are always good. as is schabacker (spelling?)

    darvas, weinstein, and then a bunch from the 90s (hit and run, street smarts, advanced trading strategies) not so much for the specific strategies, but what others MAY use to make / design strategies, how to profit from them and the failed breakouts, how to maximize reward/risk potential...

    i liked the joe ross ones, even though i believe much of the information was gleaned form others. that's fine, it was one of the ones which opened my eyes.

    and, interestingly enough, there are a zillion online sources which are great, and NOT necessarily from marketwatch/thestreet/etc. my successful entry into shortselling occured because of a couple of them.

    in completion: focus on if the material works, and what you can learn from it on a 'deeper' level, rather than who authored it. even 1 lesson in a book (i'll cite trader vic's book which had 2-3) can justify reading something multiple times.
  5. on the psychology side, check out the 2 books by Steenbarger.

    Douglas is ok, but can't match Steenbarger.
  6. Oh, and I forgot to mention another one of my favorite readings is the 300-page Market Profile Handbook on cbot.com. I feel that is very valuable because of the way it breaks down specific market actions and volume activity.

    I finally finished reading The New Market Wizards. Like I said before, I really got into the first volume a little more, but there were some good interviews towards the end especially.

    I liked the example Jeff Yass mentioned regarding the old show Let's Make a Deal, where the contestant actually has a better chance by switching doors due to the nonrandomness/history of the host always picking the door with nothing behind it.
  7. Liar's Poker - Michael Lewis - I got this for Christmas and just finished it. Surprisingly, despite hearing a lot about the book, I did not know exactly what it was about until I started reading it. It provides a good insight into Wall Street in the 80's. By the end of the book I felt that I knew some of the characters and it is interesting looking them up to see what people like Lewis Ranieri and others have done with their careers since then.

    I'm still reading Manias, Panics, and Crashes by Charles Kindleberger, slowly, and will post once I finish.
  8. Bogan is also a big fan of Trading Zoo, PureTick and other emini chat rooms. :D
  9. At least he likes the cream of the crop.
  10. ==================

    Old but gold book -Wall Street Wisdom, by Samson Coslow;
    a rule from that book,1933 ,''do not short stocks with limited shares''

    Also excellant-Stock Market Wizards by Schwager, re-reading it;
    Bulls Bears , Millionaires, by Robert Koppel:cool:
  12. Meditations by Marcus Aurelius
    Enhancing Trader Performance by Brett N Steenbarger
    The Art of the Trade by R.E. MacMaster
    Come to My Trading Room by Alexander Elder
    The Zurich Axioms by Max Gunther
    Trade With Passion and Purpose by Mark Whistler
    A Demon of Our Own Design by Richard Bookstaber
    Trading Risk by Kenneth Grant
    The Logical Trader by Mark Fisher ---- the secret sauce for me was that he didn't tell you everything about his method. So you have to do your own investigation. In doing so you will probably come up with something better which will suit you or lead you to find other interesting things.

    Books on evolutionary and cognitive psychology.

    Many of these books are published very recently and I must say I wish they came out earlier because I wouldn't spend so much time reading other books which these were able to sum up what I needed to be and do in one book.
  13. without a doubt - Mark Douglas, "Trading In The Zone." I threw all my other trading books away.
  14. T28 good to see you back you twat?
  15. Buyer beware. The majority of popular trading literature probably would make a person dumber than when he started. If one had to choose between reading all of it or none of it, one would be better off reading none of it.

    Having said that, here is a distilled book list for your consideration. I would probably start with Rand, Hazlitt, Harris and then Douglas -- starting with general principles, then economics, market structure and individual mind set.

    Books on trading, in alpha order:

    Bogle on Mutual Funds: New Perspectives for the Intelligent Investor by John Bogle
    Dynamic Hedging: Managing Vanilla and Exotic Options by Nassim Nicholas Taleb
    Economics in One Lesson: 50th Anniversary Edition by Henry Hazlitt
    Extraordinary Popular Delusions and the Madness of Crowds by Charles MacKay
    Granville's New Strategy of Daily Stock Market Timing for Maximum Profit by Joseph E. Granville
    How I Made $2,000,000 In The Stock Market by Nicolas Darvas
    How To Make Money In Stocks: A Winning System in Good Times or Bad, 3rd Edition by William J. O'Neil
    Market Wizards: Interviews with Top Traders by Jack D. Schwager
    The New Market Wizards: Conversations with America's Top Traders by Jack D. Schwager
    Option Volatility & Pricing: Advanced Trading Strategies and Techniques by Sheldon Natenberg
    Paul Wilmott Introduces Quantitative Finance by Paul Wilmott
    Technical Analysis from A to Z, 2nd Edition by Steven B. Achelis
    Technical Analysis of Stock Trends by Robert D. Edwards, John Magee
    Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications by John J. Murphy
    Trade Your Way to Financial Freedom by Van K. Tharp
    Trading and Exchanges: Market Microstructure for Practitioners by Larry Harris
    Trading for a Living: Psychology, Trading Tactics, Money Management by Alexander Elder
    Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude by Mark Douglas

    Trading related novels and non-fiction:

    Atlas Shrugged by Ayn Rand
    Barbarians at the Gate: The Fall of RJR Nabisco by Bryan Burrough, John Helyar
    The Bonfire of the Vanities: A Novel by Tom Wolfe
    Den of Thieves by James B. Stewart
    The Education of a Speculator by Victor Niederhoffer
    Goldman Sachs: The Culture of Success by Lisa Endlich
    Hedgehogging by Barton Biggs
    Liar's Poker by Michael Lewis
    Reminiscences of a Stock Operator by Edwin Lefèvre
    Rigged: The True Story of an Ivy League Kid Who Changed the World of Oil, from Wall Street to Dubai by Ben Mezrich
    Ugly Americans: The True Story of the Ivy League Cowboys Who Raided the Asian Markets for Millions by Ben Mezrich
    Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron by Bethany McLean, Peter Elkind
    When Genius Failed: The Rise and Fall of Long-Term Capital Management by Roger Lowenstein

  16. I love the old books from the old guys on the street, like in the 1930s or before. There is so much wisdom in the words, and I believe that markets fundamentally never change(per se)-but great knowledge cannot always be obtained from what happened 2 months ago or even 20 years ago, because it is too fresh in history and too many people still remember it. But by looking back further one gains information that not everybody knows about or understands.

    Stock Market Wizards is also on my list of must-reads, since I have finished the first two.
  17. The Logical Trader by Mark Fisher sounds like my cup of tea. I'm not really into other people's systems anyways, even if I learned one I would probably never follow it! It may be off topic because I have not looked at the Logical Trader but that is what I like about the Market Profile studies-the ultimate simplicity in the words but the ultimate relation to any market really-like the writing says, whether you are trading "beans or bonds."

    Steenbarger seems to be a favorite for many people.
  18. I actually got "Enhancing Trader Performace" by Brett Steenbarger as a christmas gift, I read it while on vacation in Cozumel 2 weeks ago. I actually really liked it, there are few trading books I find worth reading these days (that I havent read already) but this was one of them.

  19. The same person who gave me Liar's Poker also gave me Goldman Sachs by Lisa Endlich. I have looked at it a little but have not started reading it yet.

    The Market Wizards books are a favorite of mine as well, only because of the mass of different opinions and the fact that ideas are not repeated and monotonous, like many books by one author.

    I agree with you that much trading literature (along with investing, real estate, forex, online auctions, etc.) is only about how much you can make, etc. and that is really not what I am interested in reading-as a matter of fact I find myself lately reading more about economics and things that dont even directly mention trading in a strict sense. But it is funny because the shelves of the average bookstore are packed with stuff like you mention in the first paragraph-I guess thats what people want to read, or want to hear I guess you could say. Trading for Dummies? What?
  20. Well Steve, it looks like it is unanimous then! I just finished reading the article from Ellis's link-I agree that the concept of "flow" is the driving force towards success, not just in trading but in all endeavors, and I think that all too often myself and probably most people know that much better than they actually put it into practice.

    "While he advocated a set of strict therapeutic procedures to be followed, his own published cases deviated from these significantly." -Amen
  21. Ari Kiev...

    I haven't really touch his books only skimmed through them.

    He wrote so many of them I was personally wondering if you only had to read only one or two, which one would it be.

    The reason I am asking is because I just recently hired a trainee and she gave me a list of his books and wondering which would be worthwhile.
  22. Well what was also very interesting and enlightening is his approach and way of seeing how time plays a part in one's P and L.
  23. :(

    My spouse threw all my trading books away!
  24. %%
    Good points, nothing like a 7 + year trend or 20 year....LOL