FAQ Which Books should a Beginner Read?

Jun 7, 2008
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#16
Beginner's books

I would recommend Trading By The Book by Joe Ross. It introduces the 123 which is a pattern that in frequency, beats the heck out of triangles, heads and shoulders, flags and all the traditional patterns of technical analysis you traditionally read of. You can also find articles about the 123 going online searching for Joe Ross.
Trading in the Zone by Mark Douglas, I definitely agree with the other threads on that.
Street Smarts by Raschke and Connors + I would strongly recommend visiting Linda Raschke's website to view all the presentation and read all the free articles. The lectures are well worth paying for.
 
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Jun 7, 2008
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#17
What books to read for beginners 2

There's another book I forgot to mention which is actually great for beginners:
How I Trade for a Living by Gary Smith, read the review of this book on the Travismorien.com website, this is also a great website for beginners to look at as the investment FAQ is absolutely packed full of information on trading, investing and real estate. Travis Morien isn't a specialist trader however and his mindframe is more biased towards value investing.

A word on Gary Smith's book: it's one of the only books out there that presents a realistic view of the risks of trading. If anything Gary Smith gives you a good example of what not to do, so there's a lot to learn from his mistakes. As a beginner you'll probably come across this statistic quite often: 95% of traders end up net losers. We're not talking about your average punter here. People who get into trading are often highly educated high achievers. Even on CBOE, 50% of the traders don't make enough to cover their annual membership fees. This is not a joke. Trying to make money consistently trading is probably about as difficult as trying to get into an investment bank. The hurdles and the setbacks should not be underestimated. I really like this book because one of the most useful things you can learn is how to improve your judgement. That's going to come primarily from experience but if you can get a bit of useful advice from others to point you in the right direction, that's handy. Considering that the world of trading offers an unlimited number of possibilities in between the techniques and the markets you can trade, it's necessary if you want to get good at it to practice on one market and to practice one technique. Skill comes through repetition and if you get lost in the sea of possibilities offered by trading you'll get nowhere. So the first thing that this book does is that it describes how Gary Smith spent 20 years trading commodities and stocks and shares getting nowhere before deciding to focus on one market. Then it explains what market he chose, why and how he trades it. This book isn't going to give you fantastic techniques and setups but I think it's an excellent baptism in what to expect when you enter the fascinating, dangerous and magnetic world of trading.
 
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normbeef

Active member
Jan 22, 2008
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#18
I Ching or Book of Changes - Yin and yang... etc... order in chance events... acceptance of the inevitability of change

Fooled by Randomness by Nassim Nicholas Taleb -- if not for anything else... learn the lesson about skewness / disproportional odds and the dangers of information.... also some good lessons and funny stories about operating in uncertainty
 
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Aug 7, 2008
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#20
Liar's Poker by Michael Lewis. Gives you a view into Sales & Trading in Investment bank.
 
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Aug 11, 2008
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Beijing
#23
My favorites:
1. Trading Chaos by Bill Williams. This book tells me how to think of the market.
2. High Probability Trading by Marcel Link. This book tells me how to act in the market.

Evey time I read them, I profit from them.
 
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new_trader

Well-known member
Jan 1, 2006
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#24
"New conditions will arise. A new trading public will be born. However, the old cycle of rallies and reactions will roll on."

I wouldn't read anything about trading unless it was originally published before 1940.

I'd also recommend watching :

The Crash of 1929

and

Open Outcry
 
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Aspire

Active member
Apr 16, 2008
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#25
Day Trader's Bible by Richard Wyckoff - .... it's an oldie but a fantastic book
and best of all can be downloaded for free here among other places

Introduction - Traders Laboratory
 
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Sep 6, 2008
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#26
The New Market Wizards by Jack D. Schwager.

Read the Chapter on Monroe Trout.

In part, trading is about discovering and exploiting edges and Monroe Trout explains this well.

Zig.
 
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