Recommended reading list?
Does anyone who trades successfully have a recommended reading list?
I want to break into prop trading over the summer and want to learn as much as I can before then. Right now I'm reading Option Volatility & Pricing by Sheldon Natenberg. It was written in the 90's, but was on DRW's reading list so I thought I'd check it out.
Options, Futures & Other Derivatives by Hull is a pretty good one.
http://www.amazon.com/DeMark-Day-Trading-Options-Tom/dp/0071350594 This was recommend to me by a top options trader.
I'm sure you've at least read The New Market Wizards: http://www.amazon.com/s/ref=nb_ss_0_11?url=search-alias%3Dstripbooks&fi…+
Thanks for the replies. Also, are there any blogs or anything else I should be following daily? Right now I try and follow the markets through Bloomberg.com
1) I'd hone in on your chart skills and learn which ones that you'd like to employ. Candlesticks, fibs, macd, stochs...etc.
2) I'd get a subscription to www.flyonthewall.com - worth the $25 a month so that you can see the daily action when the news breaks. Some traders like briefing.com and others use tradethenews.com. The reason why I suggested the fly is that was what I've used and found it worth the $25 a month...especially since you are still in school. 3) www.financialchat.com - activetrader is a nice blog. Start familiarizing yourself with the smart people vs the idiots. I only watch 1-2 people...all of the others I pretty much have on ignore. 4) free live charts: http://www.livecharts.co.uk/ForexCharts/eurusd.php - Keep in mind that aside from crude - the currencies are vs spot instead of the futures contract. But there is a way to fiddle around with charts. 5) http://www.freestockcharts.com/ has free streaming stock, currency prices and it has charts as well. 6) Do you know which prop places you want to take a gander at?
Here is a posting of another chimps questions:
//www.wallstreetoasis.com/forums/entry-level-trading-position-0
//www.wallstreetoasis.com/forums/books-for-trading
and this. the list is pretty decent on that thread.
One last idea: http://vse.marketwatch.com/Game/Homepage.aspx
If you're interested in value-investing, I'd suggest Security Analysis and Margin of Safety - two classics.
Chase Us, Break In! http://chasingconsultantsbreakingbankers.blogspot.com/
I've been trying to get a copy of Margin of Safety for some time now, but it's too expensive to purchase. How did you guys get it? My university library doesn't have it, and can't borrow-direct it from others' since it's a rare book.
i like abnormal returns for general market info
What about Soros's alchemy of Finance? quite complicated though!!!
Owlsgalore> Shoot me a PM with your email address. I have a pdf version of Margin of Safety.
To the OP>
For DRW/Jane Street type shops, Natenberg is very helpful. Another book that is great is by Baird called "Options Market Making" : http://www.amazon.com/Option-Market-Making-Financial-Commodity/dp/04715…
Other than that a lot of the on the job functions will be firm specific and desk specific strategies. Plus the in-house classes on MM, poker, and finance they have are pretty awesome.
Way of the Turtle and Inside the Mind of the Turtles, both by Curtis Faith Technical Analysis Plain and Simple, Kahn High Probability Trading Market Wizards and The New Market Wizards, by Jack Schwager How to Make Money in Stocks, O'Neil
the Market Wizards series are classic, in addition, I recommend My Word is My Bond, Technical Analysis by Jack Schwagger (same author for Market Wizards), and Option Made Easy by Guy Cohen
Hope this helps!
Yup prop trading more towards technical analysis so read those recommended books.. candlesticks are the way to go for me
I've read probably 50 books on trading....mostly garbage. My favorites....
Reminiscences of a stock operator (just plain awesome) Speculation as a fine art , watts Dr. Ari Kiev's books (he was Steve Cohen's trading psychologist as well as his traders at SAC Capital) Dailyspeculations.com Traderfeed (steenbargers blog) all market wizard books (find which trader matches your goals and personalities and modify your approach to theres) the gartman letter daily
keep your eye on whatever market you want to trade all day long everyday...take notes on your thoughts and how you actually trade it....you must trade with real money to learn to trade.
Good luck!
Fooled by Randomness and Option Pricing and Volatility were required readings for a desk I used to be on.
Fooled by randomness was very good....along with niederhoffer's books.
As a trader, one online reading site I must check every night is Between the Hedges. http://hedgefundmgr.blogspot.com/ Absolutely amazing summary of a lot of the news out there. It will have articles from Bloomberg, WSJ, FT, and tons of others, with a generally bulish view I admit. Also as you scroll down he will have updates on late night analyst changes, futures, next days expectations etc... quite a valuable site. He updates it nightly usually at 10:30/11:00 EST, so if it doesn't look current, check back in a few hours.. worth it! It has tons of incredible links on the sidebars as well.
also a good read, but not active trader-ish at all is Hedgehogs by Barton Biggs (Reminicences Of a S.M.O is truly awesome as noted above)
And here is a special link to daily Cashins Comments for UBS clients... usually a good morning read, it's often a good recap of what traders were thinking the day before..comes out early AM..and I usually skip the first paragraph.. :)
http://financialservicesinc.ubs.com/staticfiles/faw/adobe/all/cashin_co…
(It looks like nothing today (the Dec 30th note) but check back, use the same link every day, next week he will be running them again..)
one of my friends said the following:
"Here is a reading list suggested by one of the traders we visited for the Investment Management trek in London. He is working for one of the top hedge funds. If you are interested in long term value investing, this list can give you a good starting point.
If I were you I would start with Warren Buffet's speeches and read some research reports. This should be enough for you "
Yup Intellingent Investor is way to go for long term investments I like Black Swan and Fooled By Randomness as well.
How about Taming the Lion by Richard Farleigh.. not too bad either
i think trading wise, read those books on option trading strategies.. i dont have any recommendations but I tried reading once.. too much for my brain
oh, I forgot to mention... www.zerohedge.com ... I'm not affiliated, but I think it's a great website
I'm reading Fooled by Randomness right now, Black Swan is next. Has anyone ever read Bernstein's Against the Gods? I'm thinking of picking that one up as well. Does anyone have any good currency trading books? Currency options count too.
I've heard good things about "FX Options and Structured Products," just started looking through it, so far mostly review, but looks to be pretty well organized. I picked up the electronic copy (PDF) off ebay for under $15 (and it's printable). Good buy imo.
Hey guys, sorry for the long post. This is a list I've kept of books I've read/would like to read. Nerdy I know. In no particular order:
A Random Walk Down Wall Street Reminiscences of A Stock Operator Advisor For Life Cocktail Economics The Intelligent Investor Barbarian’s At The Gate The Trader’s Guide to Key Economic Indicators Damn It Feels Good to be a Banker The Essays of Warren Buffett The Black Swan 48 Laws of Power Investing With Anthony Bolton The Wolf of Wall Street Atlas Shrugged How to be a Billionaire How to Think Like Benjamin Graham and Invest Like Warren Buffett Wall Street Words Security Analysis Getting Started in Hedge Funds The New Market Wizards Hedge hunting It’s When You Sell That Counts (Cassidy) Extreme Value Hedging The Business of Value Investing No Bull: My Life In and Out of the Markets Active Value Investing Art of Short Selling Sell and Sell Short Market Wizards When Markets Collide All About Hedge Funds Mr. Market Miscalculates Famous First Bubbles The Education of a Speculator The Art of Contrary Thinking Hedges on Hedge Funds Hedge Fund Risk Fundamentals Investment Biker Adventure Capitalist Common Stocks and Uncommon Profits Entrepreneurial Investor The Interpretation of Financial Statements Financial Shenanigans Bernard Baruch – James Grant The Super Analysts Baruch: My Own Story Technical Analysis of Financial Markets Sell and Sell Short The Little Book That Beats the Market The Accidental Investment Banker Valuation: Measuring and Managing the Value of Companies (Copeland) The Entrepreneurial Investor A Colossal Failure of Common Sense Jesse Livermore: World’s Greatest Stock Trader Moneyball The Money Game – Adam Smith The dark side of valuation Confessions of a Wall Street Shoeshine Boy Goldman Sachs: The Culture of Success How To Make Money Selling Stocks Short Japanese Candlestick Charting Techniques Investment Valuation – Damadoran Paths to Wealth Through Common Stocks Confessions of a Street Act You Can Be a Stock Market Genius The Little Book That Beats the Market Madness of the Crowds The Contrarian Manager Hedgehogging The Madness of Crowds One Up On Wall Street Bonfire of the Vanities The House of Morgan Trade your Way to Financial Freedom The Logical Trader Fundamental Analysis How I Made $2mm in the Stock Market How to Make Money in Stocks Alchemy of Finance The Two Trillion Dollar Meltdown Methods of a Wall Street Master The Little Book That Builds Wealth Contrarian Investing Strategies Dressing The Man Where are the customer’s yachts? Confessions of a Wall Street Analyst Decision Traps: 10 Barriers to Brilliant Decision- Making
Continued...I've basically pulled these books from lists on WSO and other sites and compiled the ones that sounds interesting.
Fooling Some of the People All the Time (Einhorn) Value Investing (Greenwald) Security Analysis on Wall Street (Hooke) What Works on Wall Street Contrarian Investment Strategies (Dreman) The New Money Masters (Train) The Art of Contrarian Trading (Futia) Dow Theory UnPlugged (Sether) In an Uncertain World: Tough Choices from Wall Street to Washington (Rubin) Developing an Investment Philosophy (Fisher) Accounting for M&A, Equity, Credit Analysts (James Morris) Analysis for Financial Management (Higgins) How to Win Friends & Influence People Investment Strategies of Hedge Funds Hedge Fund of Funds Investing Pit Bull Soros Jack Page Six The Deal Predators' Ball Stocks for the Long Run The Gorilla Game The Power of Story Blood Sport Stock Market Wizards The Power of Story Sustainable Wealth Superfreakenomics Fooled by Randomness Beyond Greed and Fear Beating The Street Winning On Wall Street Yes, You Can Time The Market Running Money Conspiracy of Fools Freakonomics Monkey Business Den of Thieves The Snowball Bloomberg by Bloomberg Applied Value Investing Guru Investor Wall Street Meat Fiasco When Genius Failed Liar’s Poker House of Cards Talent is Overrated Value Investing (Whitman) Wall Street People (Ellis) Art of War John Neff on Investing (Neff) A World of Wealth Use The News A Bull In China Hedge Fund Operational Due Diligence Margin of Safety Traders, Guns & Money
MarketFolly has a number of reading lists compiled by various managers, with a short summary of each one and why it's worth reading. Here's a link to Buffett's, all the others are linked on the right hand side:
http://www.marketfolly.com/2009/10/warren-buffetts-recommended-reading…
There are so many books that involve trading...I can't stress how much I have learned from Dr. Ari Kiev's books. He helped steve cohen so much that he hired him full time to consult the other traders of the firm for 15 years.
I feel like there is a black hole of endless views and information on trading I even stopped reading most blogs that offer recommendations and very strong one sided view points. Mark Douglas' books are similar to Kiev's but his are better in my opinion.
Any particular suggestions for rates-related desks (treasuries, swaps, vol, treasure futures, etc.)?
FWIW "Reminiscences of a Stock Operator" is available free through Project Gutenberg at: http://ebooks.gutenberg.us/WorldeBookLibrary.com/confessstock.htm
whats the best book to bet started on futures?
Im very new to all this . But I guess also start with the basics'?
intelligent investor, Security analysis, margins of safety etc. and then switch at some point to futures books?
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