dasleben
That's just, like, your opinion, man
So, I realized that I told mikecweb that I'd make a list of investing/trading books I really liked, but totally forgot about it...again. I'm also always looking to expand my own knowledge, so I thought I'd make my own list here, and see what else others could recommend. Keep in mind that I primarily use technical analysis, so others may be able to recommend books for fundamental analysis (i.e., balance sheets, P/E ratios, etc.).
Books that helped me the most, in order:
1. Trading in the Zone, by Mark Douglas. This is a book about psychology in trading, which also applies to investments. It gets the reader thinking in terms of probability, and thinking objectively. Learning that it's okay to be wrong was a very important mental transition for me.
2. Stikky Stock Charts, by Laurence Holt. This book reads like a children's book, but don't be deceived. This is a fantastic primer for basic technical analysis, and teaches foundational knowledge of trend lines and major chart patterns.
3. The Day Trader's Bible, by Richard Wyckoff. This was written in the 1920s, back when stock "operators" only had basic price and volume information to make decisions. This is pure market analysis; no stochastics, moving averages, fib zones, or anything else. I equate this book (and the next one I'll list) to learning how to fly VFR before adding instruments. It describes the basis of all market movement. Don't let the title fool you; it's quite useful for long-term holdings. This can be found online for free in .pdf form.
3. Master the Markets, by Tom Williams. A continuation of Wyckoff's work, updated for current trading platforms. This also can be found in .pdf form online for free, and please ignore the plugs for their proprietary trading platform. You don't need it. The information in the book is more than enough.
4. Reminiscences of a Stock Operator, by Edwin Lefèvre. A book written about Jesse Livermore, one of the great traders of the early 1900s. You can probably skip this book, but it helped me get a better sense of how markets move, and how they can be manipulated by big money.
5. The New Market Wizards, by Jack Schwager. A book of interviews with some of the top traders and investors of our day. Some very important lessons to be learned from the successes and failures of some of the biggest traders out there.
The last one isn't a book, but probably should be put as #1...
6. Screen time. You can read all you want, but you simply must get into the charts. This will probably take into the thousands of hours. It has for me, at least.
Notice how I haven't said anything about system trading. I simply can't recommend a system, as this will more than likely change from person to person. What makes sense to one person may not make sense to another. I know guys who make great money intraday scalping index/commodity futures, but it doesn't suit my personality, and for me led to a steady loss of capital. I've since moved into medium term swing-type trades in the Forex markets, which suit my methods and personality better, and my account is much happier.
Anyone else have recommendations they care to share?
Books that helped me the most, in order:
1. Trading in the Zone, by Mark Douglas. This is a book about psychology in trading, which also applies to investments. It gets the reader thinking in terms of probability, and thinking objectively. Learning that it's okay to be wrong was a very important mental transition for me.
2. Stikky Stock Charts, by Laurence Holt. This book reads like a children's book, but don't be deceived. This is a fantastic primer for basic technical analysis, and teaches foundational knowledge of trend lines and major chart patterns.
3. The Day Trader's Bible, by Richard Wyckoff. This was written in the 1920s, back when stock "operators" only had basic price and volume information to make decisions. This is pure market analysis; no stochastics, moving averages, fib zones, or anything else. I equate this book (and the next one I'll list) to learning how to fly VFR before adding instruments. It describes the basis of all market movement. Don't let the title fool you; it's quite useful for long-term holdings. This can be found online for free in .pdf form.
3. Master the Markets, by Tom Williams. A continuation of Wyckoff's work, updated for current trading platforms. This also can be found in .pdf form online for free, and please ignore the plugs for their proprietary trading platform. You don't need it. The information in the book is more than enough.
4. Reminiscences of a Stock Operator, by Edwin Lefèvre. A book written about Jesse Livermore, one of the great traders of the early 1900s. You can probably skip this book, but it helped me get a better sense of how markets move, and how they can be manipulated by big money.
5. The New Market Wizards, by Jack Schwager. A book of interviews with some of the top traders and investors of our day. Some very important lessons to be learned from the successes and failures of some of the biggest traders out there.
The last one isn't a book, but probably should be put as #1...
6. Screen time. You can read all you want, but you simply must get into the charts. This will probably take into the thousands of hours. It has for me, at least.
Notice how I haven't said anything about system trading. I simply can't recommend a system, as this will more than likely change from person to person. What makes sense to one person may not make sense to another. I know guys who make great money intraday scalping index/commodity futures, but it doesn't suit my personality, and for me led to a steady loss of capital. I've since moved into medium term swing-type trades in the Forex markets, which suit my methods and personality better, and my account is much happier.
Anyone else have recommendations they care to share?
