The "What the hell should I read?!" Thread. Books, Blogs, and News
06-20-2010
, 12:32 AM
07-06-2010
, 10:41 PM
07-09-2010
, 12:47 AM
07-19-2010
, 09:23 AM
07-24-2010
, 04:23 AM
Quote:
Such a common topic in this forum, I've decided to produce a comprehensive list on everything you could or should be reading. I'll divide it into three categories, blogs, books, and news sites, which I'll further divide into three sections; Beginner's Starting Points and Everything Else. In the interest of coming up with the best list possible, I'll be holding off adding the rest of my books pending some suggestions from everyone. I have lists I'm working on but there's many great books out there I've probably missed (especially economics books) so keep me informed by posting in here!
We'll start off with books, since that seems to be the most common topic.
Beginner Investing Books
The Intelligent Investor by Benjamin Graham
Often considered the bible (along with Security Analysis) by many value investors, Graham talks about certain timeless concepts which must be considered by any prudent investor.
Security Analysis 6th edition by Benjamin Graham, Foreward by Warren Buffett (omg warren buffett!!!!1)
Buffett calls this the single most important investing book, and its no stranger why, core company valuations start with ideas formulated in this book. A must read for anyone interested in valuing companies and making prudent investments.
Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets by Nassim Nicholas Taleb
Taleb could almost be considered a cult hero now days, after writing a book about the stupidity of Wall Street trader/banker types, and how the long run and fat tail effect will eventually turn around and crush them, as it has in the past. Personally, the book is a little overrated, since Taleb isn't sporting a beard, white robes, and a halo above his head, but he's a smart guy who makes some very sound points. If you're going to be a trader, or even if you're not, read this.
Market Wizards: Interviews with Top Traders by Jack D. Schwager
Everyone needs a little inspiration, and this is exactly what this book provides. Great stories about how great traders rose from different backgrounds to become the top of their field. If you read this and are still luke warm about finance/investing, find something else to do, because this book should be getting you excited.
Soros on Soros: Staying Ahead of the Curve by George Soros
A legendary trader who's infamy comes from breaking the British Pound single handedly, Soros talks about how he formulates ideas and why he does what he does. Great starting point for how to 'think' like an investor, even if Soros is a 'trader', because its all about conviction and understanding your strengths.
The Dick Davis Dividend: Straight Talk on Making Money from 40 Years on Wall Street by Dick Davis
I think this books better than Graham's, more current, more ideas, and advice that won't lead anyone astray. Based around dividends as both a signaler and a cash returner, Dick Davis is all about timeless wisdom. A classic value investor book that talks about the pros and cons of both index investing and active investing.
Stock Market Primer by Claude N Rosenberg
A straight forward book about what stocks are, why they do what they do, and how you get involved. A little better than the dummies books. Anyone can read this.
Martin Zweig Winning on Wall Street by Martin Zweig
I was exposed to this book through my Dad. This is a nice read to help you branch out into other ideas like market timing, reading statements, and understanding momentum without getting too Technical Analysisy. It's a little bit dated, but great for idea exposure.
Financial Fine Print: Uncovering a Company's True Value by Michelle Leder
The only book on financial accounting and company valuation I've ever read and I've never felt like reading another. Goes through all the methods that companies report as requires by law, and how to break them down and evaluate their true meaning. Great book, and not too huge a read either. I use it as a reference book sometimes too.
Principles of Economics by N. Gregory Mankiw
Probably the best introductory college level text book available. Mankiw runs a popular economics blog (talked about below) and is a traditional economists who is fairly respected by all (except durka). Even if you disagree with his economics, its hard to argue this book isn't a solid introduction to the concepts behind economics.
New Ideas from Dead Economists: An Introduction to Modern Economic Thought by Todd G. Buchholz
Ok, so you don't want to shell out 15 of your .05/.10 buy ins and buy a college level text book. Nor do you want to both to read one. No problem. This book is a great primer on economic history and where all our views came from. Well written and light for a beginner.
Against the Gods: The Remarkable Story of Risk by Peter L. Bernstein
This isn't really an economics book, but more a history lesson in finance, which I believe is essential to truly understanding the heart of economics. Bernstein talks about risk and all the advancements that have led to what the financial markets are today. Talks about more ancient history as well as modern history, a little heavy and name drops a little too often but otherwise a good read.
Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy by Barry Ritholtz
Not so much boring economics but more applied economics/finance. A very new book (only came out 2 weeks ago, I only received mine a week ago), Ritholtz goes into depth about why the economic crisis came about and the failings of governments. He also highlights the absurdity in trying to practice classic economics on a situation where there is no free market. Read this if you want to know more about the current problem, his research is top notch.
Freakonomics: A Rogue Economist Explores the Hidden Side of Everything by Steven D. Levitt
A famous book, very pop, but a must read. It turns economics into a statistical witch hunter, finding the truth in unlikely places. Use it for imagination expansion.
Naked Economics: Undressing the Dismal Science by Charles Wheelan
A more serious version of Freakonomics, Naked Economics talks about why stuff happens in the real world and tries to make it interesting to a newbie reader. Does a good job so here it is!
Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications by John J. Murphy
The bible of technical analysis, Murphy goes through price movements, oscillators, and gives an overview on technical analysis. Probably not profitable to read by itself, but an instrumental first step.
Martin Pring on Market Momentum by Martin J. Pring
I have a soft spot for this book, explains momentum trading really well, and why its an effective and staple trading idea.
Enhancing Trader Performance: Proven Strategies From the Cutting Edge of Trading Psychology by Brett N. Steenbarger
What an amazing book. If you've ever considered becoming a trader or at least dabbling, buy this book. Don't ask questions, just do it. Hell, even if you're just a poker player, replace the words 'trading' for 'poker' and you have the best poker psychology book ever written.
Trade Your Way to Financial Freedom by Van Tharp
Simple advice on trading, how to become a winner, and essential on understanding why multiple tactics can all be winners with the correct mentality and system design.
Reminiscences of a Stock Operator by Edwin Lefèvre
A classic tale about the ups and downs of being a trader, and how bad money management can bring a lifetime of pain, while a clear understanding of your edge can keep you fighting. Written before my grandfather was in school, very old but very timeless.
Trading Day by Day: Winning the Zero Sum Game of Futures Trading by F. H. Chick Goslin
Who needs complex system when you have simple momentum and cross over indicators? I've run some demos of his system and they all do pretty well at keeping out of trouble and letting winners run. Explains his technical analysis trading system in a simple way, another good starting point.
Options, Futures, and Other Derivatives (7th Edition) by John C Hull
The bible on options and futures pricing. A fantastic primer in the world of paper that represents an right to do something later, which is actually a really complicated concept and requires smart people to be paid lots of money to get it right. I heard all new options traders at both ibanks and prop firms have this book and the volatility pricing one (linked later) as the only required reading, that's how thorough this book is.
(These are just awesome books that should be read by all. I may update later.)
Liar's Poker: Rising Through the Wreckage on Wall Street by Michael Lewis
A very well written, thoroughly interesting backdoor peak into the world that was 1980's bond trading. This is where Wall Street really began, with high intensity trading and even higher pay checks. A Wall street primer.
Option Volatility & Pricing: Advanced Trading Strategies and Techniques by Sheldon Natenberg
Simply a kick ass book in showing off how options are priced, how it works, and what tactics can be used to exploit all the anomalies in options pricing. Goes into all that complicated stuff like betas, gammas, and all the different plays you can make on certain options. Once again, required reading for all new options trader's at many firms.
A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial Innovation by Richard Bookstaber
I haven't read this book snce 2007, but it was scary to read then and it probably reads a little 'aww derr' now that all this bad stuff has happened in the markets. Still an excellent historical summary of why cutting edge financial products go wrong and why they will continue too.
Markets in Profile: Profiting from the Auction Process by James F. Dalton
This was my trading light bulb epiphany book. Everything clicked after I read this. It might not do it for you, but I've read this 10 times and each time I've learning something. Information and idea dense, but in a good way. Great exposure to alternative trading ideas like market profiling.
Evidence-Based Technical Analysis: Applying the Scientific Method and Statistical Inference to Trading Signals by David R Aronson
This book explains how to do a real backtest and be sure about your results. Really shakes your belief in technical analysis but goes through how to create scientific reasoning that can back your belief and allows you to give the finger to all those "RANDOM WALK AND EMH RAH RAH RAH" disciples who are usually poor anyway.
Inside the Investor's Brain: The Power of Mind Over Money by Richard L. Peterson
We're all pre-designed to be market fish. This is the why, what studies have shown, and how we can avoid it. Really interesting to read from a poker perspective, too.
&~~Coming Soon~~&
Other Investing Books
Other Economics Books
Other Trader Books
We'll start off with books, since that seems to be the most common topic.
-------------------Starting Points-------------------
Beginner Investing Books
The Intelligent Investor by Benjamin Graham
Often considered the bible (along with Security Analysis) by many value investors, Graham talks about certain timeless concepts which must be considered by any prudent investor.
Security Analysis 6th edition by Benjamin Graham, Foreward by Warren Buffett (omg warren buffett!!!!1)
Buffett calls this the single most important investing book, and its no stranger why, core company valuations start with ideas formulated in this book. A must read for anyone interested in valuing companies and making prudent investments.
Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets by Nassim Nicholas Taleb
Taleb could almost be considered a cult hero now days, after writing a book about the stupidity of Wall Street trader/banker types, and how the long run and fat tail effect will eventually turn around and crush them, as it has in the past. Personally, the book is a little overrated, since Taleb isn't sporting a beard, white robes, and a halo above his head, but he's a smart guy who makes some very sound points. If you're going to be a trader, or even if you're not, read this.
Market Wizards: Interviews with Top Traders by Jack D. Schwager
Everyone needs a little inspiration, and this is exactly what this book provides. Great stories about how great traders rose from different backgrounds to become the top of their field. If you read this and are still luke warm about finance/investing, find something else to do, because this book should be getting you excited.
Soros on Soros: Staying Ahead of the Curve by George Soros
A legendary trader who's infamy comes from breaking the British Pound single handedly, Soros talks about how he formulates ideas and why he does what he does. Great starting point for how to 'think' like an investor, even if Soros is a 'trader', because its all about conviction and understanding your strengths.
The Dick Davis Dividend: Straight Talk on Making Money from 40 Years on Wall Street by Dick Davis
I think this books better than Graham's, more current, more ideas, and advice that won't lead anyone astray. Based around dividends as both a signaler and a cash returner, Dick Davis is all about timeless wisdom. A classic value investor book that talks about the pros and cons of both index investing and active investing.
Stock Market Primer by Claude N Rosenberg
A straight forward book about what stocks are, why they do what they do, and how you get involved. A little better than the dummies books. Anyone can read this.
Martin Zweig Winning on Wall Street by Martin Zweig
I was exposed to this book through my Dad. This is a nice read to help you branch out into other ideas like market timing, reading statements, and understanding momentum without getting too Technical Analysisy. It's a little bit dated, but great for idea exposure.
Financial Fine Print: Uncovering a Company's True Value by Michelle Leder
The only book on financial accounting and company valuation I've ever read and I've never felt like reading another. Goes through all the methods that companies report as requires by law, and how to break them down and evaluate their true meaning. Great book, and not too huge a read either. I use it as a reference book sometimes too.
Beginner Economics Books
Principles of Economics by N. Gregory Mankiw
Probably the best introductory college level text book available. Mankiw runs a popular economics blog (talked about below) and is a traditional economists who is fairly respected by all (except durka). Even if you disagree with his economics, its hard to argue this book isn't a solid introduction to the concepts behind economics.
New Ideas from Dead Economists: An Introduction to Modern Economic Thought by Todd G. Buchholz
Ok, so you don't want to shell out 15 of your .05/.10 buy ins and buy a college level text book. Nor do you want to both to read one. No problem. This book is a great primer on economic history and where all our views came from. Well written and light for a beginner.
Against the Gods: The Remarkable Story of Risk by Peter L. Bernstein
This isn't really an economics book, but more a history lesson in finance, which I believe is essential to truly understanding the heart of economics. Bernstein talks about risk and all the advancements that have led to what the financial markets are today. Talks about more ancient history as well as modern history, a little heavy and name drops a little too often but otherwise a good read.
Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy by Barry Ritholtz
Not so much boring economics but more applied economics/finance. A very new book (only came out 2 weeks ago, I only received mine a week ago), Ritholtz goes into depth about why the economic crisis came about and the failings of governments. He also highlights the absurdity in trying to practice classic economics on a situation where there is no free market. Read this if you want to know more about the current problem, his research is top notch.
Freakonomics: A Rogue Economist Explores the Hidden Side of Everything by Steven D. Levitt
A famous book, very pop, but a must read. It turns economics into a statistical witch hunter, finding the truth in unlikely places. Use it for imagination expansion.
Naked Economics: Undressing the Dismal Science by Charles Wheelan
A more serious version of Freakonomics, Naked Economics talks about why stuff happens in the real world and tries to make it interesting to a newbie reader. Does a good job so here it is!
Beginner Trader Books
Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications by John J. Murphy
The bible of technical analysis, Murphy goes through price movements, oscillators, and gives an overview on technical analysis. Probably not profitable to read by itself, but an instrumental first step.
Martin Pring on Market Momentum by Martin J. Pring
I have a soft spot for this book, explains momentum trading really well, and why its an effective and staple trading idea.
Enhancing Trader Performance: Proven Strategies From the Cutting Edge of Trading Psychology by Brett N. Steenbarger
What an amazing book. If you've ever considered becoming a trader or at least dabbling, buy this book. Don't ask questions, just do it. Hell, even if you're just a poker player, replace the words 'trading' for 'poker' and you have the best poker psychology book ever written.
Trade Your Way to Financial Freedom by Van Tharp
Simple advice on trading, how to become a winner, and essential on understanding why multiple tactics can all be winners with the correct mentality and system design.
Reminiscences of a Stock Operator by Edwin Lefèvre
A classic tale about the ups and downs of being a trader, and how bad money management can bring a lifetime of pain, while a clear understanding of your edge can keep you fighting. Written before my grandfather was in school, very old but very timeless.
Trading Day by Day: Winning the Zero Sum Game of Futures Trading by F. H. Chick Goslin
Who needs complex system when you have simple momentum and cross over indicators? I've run some demos of his system and they all do pretty well at keeping out of trouble and letting winners run. Explains his technical analysis trading system in a simple way, another good starting point.
Options, Futures, and Other Derivatives (7th Edition) by John C Hull
The bible on options and futures pricing. A fantastic primer in the world of paper that represents an right to do something later, which is actually a really complicated concept and requires smart people to be paid lots of money to get it right. I heard all new options traders at both ibanks and prop firms have this book and the volatility pricing one (linked later) as the only required reading, that's how thorough this book is.
Art's Picks
(These are just awesome books that should be read by all. I may update later.)
Liar's Poker: Rising Through the Wreckage on Wall Street by Michael Lewis
A very well written, thoroughly interesting backdoor peak into the world that was 1980's bond trading. This is where Wall Street really began, with high intensity trading and even higher pay checks. A Wall street primer.
Option Volatility & Pricing: Advanced Trading Strategies and Techniques by Sheldon Natenberg
Simply a kick ass book in showing off how options are priced, how it works, and what tactics can be used to exploit all the anomalies in options pricing. Goes into all that complicated stuff like betas, gammas, and all the different plays you can make on certain options. Once again, required reading for all new options trader's at many firms.
A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial Innovation by Richard Bookstaber
I haven't read this book snce 2007, but it was scary to read then and it probably reads a little 'aww derr' now that all this bad stuff has happened in the markets. Still an excellent historical summary of why cutting edge financial products go wrong and why they will continue too.
Markets in Profile: Profiting from the Auction Process by James F. Dalton
This was my trading light bulb epiphany book. Everything clicked after I read this. It might not do it for you, but I've read this 10 times and each time I've learning something. Information and idea dense, but in a good way. Great exposure to alternative trading ideas like market profiling.
Evidence-Based Technical Analysis: Applying the Scientific Method and Statistical Inference to Trading Signals by David R Aronson
This book explains how to do a real backtest and be sure about your results. Really shakes your belief in technical analysis but goes through how to create scientific reasoning that can back your belief and allows you to give the finger to all those "RANDOM WALK AND EMH RAH RAH RAH" disciples who are usually poor anyway.
Inside the Investor's Brain: The Power of Mind Over Money by Richard L. Peterson
We're all pre-designed to be market fish. This is the why, what studies have shown, and how we can avoid it. Really interesting to read from a poker perspective, too.
&~~Coming Soon~~&
Other Investing Books
Other Economics Books
Other Trader Books
08-02-2010
, 07:33 PM
08-03-2010
, 12:57 AM
