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Trader Resources

Ideas for your 2013 trader reading list

Happy New Year and welcome to 2013. Since I know many of you probably have gift cards for Amazon and the like burning a hole in your pocket, I thought I would help you spend that money by offering a up a few suggested purchases. Here is a list of the books which readers of this blog ordered with greatest regularity in 2012.

Of course my own book [easyazon-link asin=”047179063X”]The Essentials of Trading[/easyazon-link] is of interest to everyone. 🙂

As for other people’s writings, here’s the top 10 purchases by readers.

  1. [easyazon-link asin=”0071614133″]How to Make Money in Stocks[/easyazon-link] by William O’Neil
  2. [easyazon-link asin=”0887306101″]Market Wizards[/easyazon-link] by Jack Schwager
  3. [easyazon-link asin=”1118273044″]Hedge Fund Market Wizards[/easyazon-link] by Jack Schwager (My Review)
  4. [easyazon-link asin=”007147871X”]Trade Your Way to Financial Freedom[/easyazon-link] by Van Tharp
  5. [easyazon-link asin=”1118494563″]Market Sense and Nonsense[/easyazon-link] by Jack Schwager
  6. [easyazon-link asin=”B004RJ8PSE”]Mind Over Markets[/easyazon-link] by James Dalton (My Review)
  7. [easyazon-link asin=”0132825244″]Buy and Hedge[/easyazon-link] by Jay Pestrichelli and Wayne Ferbert (My Review)
  8. [easyazon-link asin=”0470398566″]The Daily Trading Coach[/easyazon-link] by Brett Steenbarger (My Review)
  9. [easyazon-link asin=”0887306675″]The New Market Wizards[/easyazon-link] by Jack Schwager
  10. [easyazon-link asin=”007148664X”]Way of the Turtle[/easyazon-link] by Curtis Faith (My Review)

It is no surprise that My Top 5 Trading Books list is well-represented above.

Of course you can always look to my growing list of Trading Book Reviews for additional ideas. And although it isn’t a print book (yet), my Trading FAQs book is a very good resource for new and developing traders.

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Reader Questions Answered

Suggestions for one in the early trading stages

The following comment was left on my Amazon review of Essentials of Foreign Exchange Trading. The poster posed a question that I think has some broad appeal, so I’ve opted to answer it here, rather than just in a reply comment.

I found your review of the Essentials of Foreign Exchange Trading to be composed quite well.

I’m a web developer by trade, but I’m interested in self-educating myself on economics/finance & trading: ForEx, equities, derivatives, commodities.

Would you, perhaps, be willing to share any books that you recommend for getting acquainted with each industry?

Here’s a listing of books that I’ve compiled so far, which I’m considering purchasing:

[easyazon-link asin=”0465022529″]Basic Economics[/easyazon-link] – Thomas Sowell
[easyazon-link asin=”1933550287″]The Mystery of Banking[/easyazon-link] – Murray Rothbard
[easyazon-link asin=”0070132356″]Security Analysis[/easyazon-link] (Fifth edition) – Sidney Cottle
[easyazon-link asin=”0735200661″]Technical Analysis of the Financial Markets[/easyazon-link]: A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance) – John J. Murphy
[easyazon-link asin=”0735201978″]Options as a Strategic Investment[/easyazon-link] – Lawrence G. McMillan
[easyazon-link asin=”0470390867″]Essentials of Foreign Exchange Trading[/easyazon-link] (Essentials Series) – James Chen
[easyazon-link asin=”1601630239″]Financial Statements: A Step-by-Step Guide to Understanding and Creating Financial Reports[/easyazon-link] – Thomas R. Ittelson
[easyazon-link asin=”007166470X”]The Bond Book, Third Edition: Everything Investors Need to Know About Treasuries, Municipals, GNMAs, Corporates, Zeros, Bond Funds, Money Market Funds, and More[/easyazon-link] – Annette Thau

[easyazon-link asin=”0471770884″]Reminiscences of a Stock Operator (Wiley Investment Classics)[/easyazon-link] – Edwin Lefevre
[easyazon-link asin=”0273731963″]Traders, Guns and Money: Knowns and unknowns in the dazzling world of derivatives Revised edition (Financial Times Series)[/easyazon-link] – Satyajit Das
[easyazon-link asin=”1592802974″]Market Wizards: Interviews with Top Traders[/easyazon-link] – Jack D. Schwager
[easyazon-link asin=”0470616539″]Trade Like an O’Neil Disciple: How We Made 18,000% in the Stock Market (Wiley Trading)[/easyazon-link] – Gil Morales

Any recommendations/insight is appreciated.

Thanks.

My initial thought here is that there’s a bit of overkill going on here. These books cover multiple markets and trading styles, and in some cases drill quite deep down. For example, the Murphy book is widely considered the ultimate book on technical analysis. For someone who doesn’t even know if they want to use technicals, though, that book is too much. Similarly, a book on financial statement analysis is way over the top for someone who ends up trading the forex market.

My recommendation for someone like this is to back it down to a bit more of a foundational and/or survey approach. Naturally, I recommend my own book, The Essentials of Trading, because it was written precisely for folks like this. I also think the Market Wizards book ([easyazon-link asin=”1592802974″]Market Wizards[/easyazon-link], [easyazon-link asin=”1592803377″]The New Market Wizards[/easyazon-link]) are potentially very useful for someone looking to get a broad feel for the different markets and trading styles. Similarly, my trading FAQ book, which I developed with a bunch of other traders and market professionals, may be of considerable use here.

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Trader Resources

More Upcoming Book Reviews

The other day I mentioned a pair of books that were new additions to my reading list. Thanks to my brother adding a few more books to my library, I have another pair that I will be reading and reviewing in the weeks ahead.

The first book is Making Sense of the Dollar: Exposing Dangerous Myths about Trade and Foreign Exchange by Marc Chandler. I think I’m going to tackle this one first, as it’s seems likely to be pretty relevant to current market events. From the Amazon description:

“Has the greenback really lost its preeminent place in the world? Not according to currency expert Marc Chandler, who explains why so many are–wrongly–pessimistic about both the dollar and the U.S. economy. Making Sense of the Dollar explores the many factors–trade deficits, the dollar’s role in the world, globalization, capitalism, and more–that affect the dollar and the U.S. economy and lead to the inescapable conclusion that both are much stronger than many people suppose.”

The other trading-related book my brother gifted me was Nerds on Wall Street: Math, Machines and Wired Markets by David J. Leinweber. As I understand it, this book is something of a history of how quantitative trading has developed on Wall Street and throughout the financial markets. The Amazon reviews are mostly good, though one reviewer really takes the book and the author to task for what he sees as short-comings. I don’t go into reading the book with any preconceptions, though.

Remember, I keep a running list of trading book reviews I have written here. Make sure to check it out, and feel free to suggest books not already covered.

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Best Of Trader Resources

The Trader’s Wish List

Welcome to my Trader’s Wish List of good books, audio and video content, and other resources. The list comprises a dozen posts, each with somewhat different themes.

Here’s how they break down:

Entry #1: Books by Brett Steenbarger

Entry #2: The Market Wizards Collection of Books, Audio, and Video

Entry #3: Liar’s Poker – a view from the inside

Entry #4: Paul Erdman Books – great financial fiction

Entry #5: The Darker Side of the Markets – stories of the bad boys

Entry #6: Trading and Markets Movies – drama to comedy

Entry #7: Market Profile

Entry #8: Trading Fiction – great stories around trading

Entry #9: George Soros and Jim Rogers – two of trading’s biggest icons

Entry #10: Risk and Money Management

Entry #11: Metastock – fantastic charting and system development software

Entry #12: Everything Else!

By all means, feel free to add your comments, thoughts, suggestions, and whatnot. What do you like, don’t like, recommended, advise against, enjoy, hate?