Must Read Books for Aspiring Traders
I am looking for a few suggestions on key books that should be read by all those who aspire to become traders. I have already read Reminiscence of a Stock Operator (actually currently on my second time through it) and am half way through Trading in the Zone. Any other key suggestions? Thanks in advance for your responses.
p.s. If there is a thread that already contains the list I am asking for, a link to it is sufficient.
Market Wizards is pretty popular. I wouldn't say that there are any must read books. It really helps to have one or more successful mentors who you can talk to though. Be careful trying to trade like a book. There's so much garbage out there, books can hinder development.
Thanks for the response. And I agree with you about the trying to trade like a book suggestion. I am more so looking for books that teach you how to think like a trader rather than a book that teaches a system. I have heard a lot of good things about the Market Wizards series and plan on snagging them soon.
Fooled by Randomness (yea I'm cynical but this book is great)
Classics: The Alchemy of Finance (Skip to trading journal section... learn about how different asset classes impact one another) Pitbull (daytrader clues in on psychology and intermarket analysis Education of a Speculator (Niederhoffer blew up several times but his approach to the market is very unique, aside the statistical analysis side)
More technical and about the general market: Traders, Guns and Money Tail Risk Killers Misbehaivor of Markets
Historical: Devil Take the Hindmost Manias, Panics and Crashes Extraordinary Popular Delusions and the Madness of Crowds
I own probably over 100 of these popular books (not textbooks) related to the financial markets and these are good ones, albeit an incomplete list... I wanted to work in trading.
The Market Wizard books kind of hint that many "top" traders were in the right market at the right time with the right strategy. It has made me quite cynical of being able to consistently produce alpha. I don't doubt it (read guys such as Ed Thorp) but a lot of these are outliers... many others probably just lost the motivation to track the markets after they make the big $ (usually become asset gatherers and do not generate alpha).
Markets Wizards by Jack D. Schwager - the original one focuses on old school legends like Bruce Kovner, Paul Tudor Jones and such and has alot of emphassis on Currency/Commodity trading and it was published in the late 80s
The newer ones, Hedge Fund market wizards for example focus more on equity guys of the 90s and are still probably good but the first one is the most popular
Reminisces of A Stock Operator - Edwin Lefevre. A must read, alot of the stuff he talks about are valid today even though the book is over 80 years old.
More Money than God by Christian Mallary, good book to get insight into the hedge fund / investing industry.
The Quants by Scott Patterson. Insights into what you're up against..battling teams of investors who have billions of capital and armies of rocket scientists to crack the codes of the market
I really don't know of any books that 'teach' you to trade that I could recommend..anything you want is on the internet as far as technical analysis goes. The only technical book I have on trading is Options as a Strategic Investment by Lawrence McMillan and quite frankly its just a manual of every single options configuration you could possibly try and some examples.
The Steven Drobny books (Inside the House of Money, Invisible Hands) are pretty good. Not as "classic" as the Market Wizard series, but a similar format and high quality overall. About to start reading them again actually...
The intelligent investor by Benjamin Graham. Not exactly full on trading related, but shows you a great dael of how one strategy over the course of a century still prevails successful.
Watch this: http://thepiratebay.sx/torrent/6381648/Trader_-The_Documentary(Paul_T… Read this: Trading Catalysts by Robert Webb
Watch this movie on YouTube
Quants: Alchemists of Wall Street
Really recommend Street Freak by Jared Dillian (ETF and Index Arb trader at Lehman up until '08). Really funny book that still has a lot of substance to it. Read it in preparation for the WSO Conf and really enjoyed it.
Read this blog from the beginning to the end:
http://traderfeed.blogspot.com/
Great list mb666, thanks.
Fooled by Randomness, by Nasim Taleb
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