Great Trading Books -Just Read If U Have Time

MY-LIBRARY

Trading Psychology :

  • “Trading to Win: The Psychology of Mastering the Markets”
  • “Trading in the Zone: Maximizing Performance with Focus and Discipline”
  • “The Psychology of Risk: Mastering Market Uncertainty”
  • “The Mental Strategies of Top Traders: the Psychological Determinants of Trading Success”
  • “Hedge Fund Masters: How top Hedge Funds Set Goals, Overcome Barriers and Achieve Peak Performance”
  • “Mastering Trading Stress: Strategies for Maximizing Performance”
    • Prior to his passing, I had been organizing a conference with Dr. Kiev.  He revolutionized the hedge fund industry in terms of trader performance
  • “Psychology of the Stock Market” – G.C. Selden
    • The book was written in 1912, but offers great insight in stock market speculation.
  • “On Managing Yourself” – Dr. Mario F. Conforti
  • “As a Man Thinketh” – James Allen
    • A timeless classic in my opinion.
  • “Fighting Attachment in Trading” – Jon Ossoff (Active Trader, August 2011)
  • “The Crowd: A Study of the Popular Mind” – Gustave Le Bon, 1896
  • “Who Are You?” – Linda Bradford Raschke (SFO, Aug. / Sept. 2003)
    • Linda has made a number of contributions to trading and I have utilized several of her general market observations and concepts.
  • “Maintain Your Mindset: Using the Three R’s & Positive Thinking” – Linda Bradford Raschke (SFO, July 2004)
  • “The Hour Between Dog and Wolf: Risk Taking, Gut Feelings and the Biology of Boom and Bust” – John Coates, 2012
  • “Deny Your Inner Gamble Monkey” – MarketWatch.com (December 11, 2012)
  • “Why Smart Traders Do Dumb Things: Understanding Prospect Theory” – David Silverman (SFO, July 2005)
  • “Self-Attribution Bias in Consumer Financial Decision-Making: How Investment Returns Affect Individuals’ Belief in Skill” – Arvid O. I. Hoffmann Thomas Post
  • “Conquering Sabotage Traps in Your Trading” – Adrienne Toghraie – INO.com
  • “Five Guiding Principles of Trading Psychology” – Brett N. Steenbarger, Ph.D.
    • Brett is one the must follows in the field of trading psychology. He has written so much on the topic and all is easily accessible on the web.
  • “Explaining the Wisdom of Crowds: Applying the Logic of Diversity” – Michael J. Mauboussin (Legg Mason, Mar.2012)
  • “The Playbook: An Inside Look at How to Think Like a Professional Trader” – Mike Bellafiore, 2014
    • The most comprehensive book I’ve read on what it takes to become a professional trader.  A lot of books talk about the concept, but this lays out a step-by-step blueprint. Very well written.

  • RISK Management
    •  “Trading Risk”- Kenneth L. Grant
      • The author created the risk programs of Tudor Investments and SAC Capital
    • “The Nature of Risk: Stock Market Survival & the Meaning of Life” – Justin Mamis
    • “Managing Your Money” – Gibbons Burke (Active Trader Magazine, July 2000)
    • “The Poker Face of Wall Street”– Aaron Brown
    • “Black Swan of Cairo” – Nassim Taleb and Mark Blyth (Foreign Affairs / May-June 2011)
    • “Understanding Risk-Reward and Position Sizing” – Van K. Tharp, Ph.D. (Active Trader Magazine, October 2005)
    • “The Babe Ruth Effect: Frequency vs. Magnitude” – Credit Suisse
    • “A Tail of Two Worlds: Fat Tails and Investing” – Credit Suisse First Boston – April 9, 2002
    • “Position-sizing Effects on Trader Performance: An Experimental Analysis” – Johan Ginyard
    • “Determining Optimal Risk” – Ed Seykota & Dave Druz (Stocks & Commodities V.11:3)
      • Whenever Ed Seykota speaks you should listen.
    • “Information, Time and Risk” – William X. Scheinman (MTA Journal / Summer-Fall, 1994)
  • RESEARCH / Indicators / General Market AnalysisI’m a big believer in the importance of historical precedent analysis, whether it is the general market or stocks.  It is an objective approach that stacks the probabilities on your side.  I have done a lot of proprietary work in this area ranging from IPO studies to industry group leadership.
    • “Finding the Next Super Stock” – Frank A. Cappiello
    • “Profile of a Growth Stock” – Kermit C. Zieg Jr. & Susannah H. Zieg
    • “Selecting Superior Securities” – Marc R. Reinganum
      • Comprehensive study of 222 stock market winners during 1970-1983.  The research was partially funded by the William O’Neil Company.
    • “The Anatomy of a Stock Market Winner” – Marc R. Reinganum (Financial Analysts Journal / March – April 1988)
    • “New Ideas in Technical Analysis: The Pocket Pivot Buy Point” – Dr. Chris Kacher (April, 2011)
    • “The Research Driven Investor” – Timothy Hayes
      • Tim is the Chief Investment Strategist at Ned Davis Research.  I’m a big fan of their objective research.
    • “The Capitalism Distribution” – Blackstar Funds
    • “Momentum – A Contrarian Case for Following the Herd” – Tom Hancock, GMO (2012)
    • “How to Make Money in Stocks” – William J. O’Neil
      • It was the second book I ever read on trading / investment.  It just made sense.
    • “Winning on Wall Street” – Martin Zweig
      • More than 6,000 subscribers were paying $95 a year for 18 mimeographed editions of The Zweig Forecast, his investment letter – Miami Herald.
    • “Identifying Market Bottoms: IBD Follow-Through Days” – TradeStation (June 13, 2012)
    • “Top Stocks Yearly Editions” – MarketSmith
      • MarketSmith compilation of the top stocks for each calendar year along with charts.  Great historical source.
    • “Momentum Investing Can Achieve Market-Beating Returns” – Matthew Tuttle (Advisor Perspectives)
    • “Identifying Bear Market Bottoms and New Bull Markets” – Paul F. Desmond (Lowry’s Reports Inc., 2002)
    • “Investor’s / Trader’s Corner” – Investment Business Daily
      • Investor’s Corner (the section was called Trader’s Corner back in the day) has played a huge role in my development as a trader.  In fact, prior to IBD going online (more than 10 years ago) I used to have the hard copy shipped to Chile just for the Investor’s Corner section.  I have compiled 18 booklets covering about 13 years of Investor’s Corner publications.
    • “The Relative Strength Concept of Common Stock Price Forecasting” – Robert A. Levy, Ph.D., 1968
      • Perhaps the best book I’ve read on using relative strength in stock selection.  One of the core books on my trade desk.
    • Year-End Rally” – Active Trader Staff (Active Trade, January 2014)
    • “Secrets for Profiting in Bull and Bear Markets” – Stan Weinstein
    • “Technical Analysis of Gaps: Identifying Profitable Gap for Trading” – Julie R. Dahlquist Richard J. Bauer Jr. – 2012
    • “How to Make Money Selling Stocks Short” – William J. O’Neil
      • I regard this book as the foundation of my shorting program.  It is a concise approach that removes much of the uncertainty regarding short selling.
    • “Trading with the Cup-With-Handle” – Greg Kuhn (Stocks & Commodities V.13)
      • Introduces the Cup-Completion-Cheat pattern.  A strategy for getting into the Cup-with-Handle pattern early.
    • “Low-Risk Trades Using Cup-With-Handle” – Dale Glaspie (Stocks & Commodities V. 27:6)
    • “The Puzzling Pre-FOMC Announcement Drift” – David Lucca and Emanuel Moench (New York Fed)
    • “Deemer on Technical Analysis: Expert Insights on Timing the Market and Profiting in the Long Run” – Walter Deemer and Susan Cragin, 2012

    COMPILATIONS / Economics / Classics

    • “Skyscrapers and Business Cycles” – Mark Thornton (The Quarterly Journal of Austrian Economics / Spring 2005)
    • “The Professional Commodity Trader” – Stanley Kroll
    • “Bob Farrell’s 10 Rules For Investing”
    • “Market Wizards: Interviews with Top Traders” – Jack D. Schwager (This is the first book of the series.)
      • In my opinion this is the best collection of elite market operators every compiled.
    • “Trading: The Best of the Best – Top Trading Tips for Our Times” – Brian C. Lund
      • I have the privilege of being included in this book of real life traders.
    • “Reminiscences of a Stock Operator – Illustrated Edition” – Edwin Lefévre
    • “The Game in Wall Street and How to Play It Successfully” – Hoyle, 1898
    • “A Bubble that Broke the World” – Garet Garrett, 1932
    • “Principles” – Ray Dalio
    • “The Fear Index” – Robert Harris, 2011
    • “Nonmonetary Effects of the Financial Crisis in the Propagation of the Great Depression” – Ben Bernanke (1983)
    • “Margin Debt Balance vs. Stock Market Movements and Expected GDP Growth” – Shuo Chen, State University of New York at Geneseo & Anthony Yanxiang Gu, State University of New York at Geneseo (Academy of Accounting and Financial Studies Journal, Volume 15, Number 2, 2011)
    • “Scientific Stock Speculation” – Charles Henry Dow, 1920
    • “The Geometry of Art and Life” – Matila Gyka
    • “History of the Terrible Financial Panic of 1873” – A Journalist, 1873
    • “The Stock Market Trading Secrets of the Late Jesse Livermore” – American Academy of Financial Management, 1965
    • “The Unincorporated Man” – Dani Kollin and Eytan Kollin, 2009