if I were to buy one or maybe two books to teach me how to trade... which ones would you choose

TIA

Read "When Genius Failed"

Methods of a Wall St. Master by Victor Sperandeo was excellent, but a dense read. Profit with Options by Lawrence McMillan I found to be nearly unreadable; it assumes you've already plodded through his giant doorstop textbooks.

I just got Reminiscences of a Stock Operator from the library but I haven't started it yet.

Yeah I'm wordy today; it's 95F and smoggy and humid outside so I'm chilling in the AC and I'm kinda hungover so I don't much feel like getting off my ass. I guess I should go read that new book instead of yammering away here :)

Of course, there are very specific targeted books regarding Technical trading methods, etc. But when it comes to actual Trading - the books that I recommend to people, and have read a number of times myself are:

Market Wizards, by Jack D. Schwager
New Market Wizards, by Jack D. Schwager
Way of the Turtle, by Curtis Faith

Trading in the Zone Mark Douglas

The Stock Trader: How I Make a Living Trading Stocks By Tony Oz. will HELP teach you how to trade. The other books mentioned are great reads and get you pumped up on trading but wont help teach you how to trade. No book will give you a step by step sure fire way to trade. I believe that doing is the best teacher, but the tuition is unfortunately quite high. Keep your trades small in the beginning, don't swing for the fence and when you have refined your trading and begin to make some cash then start using more of your capital. Try not to use margin. Good luck!

Hello,

I'm new to these boards, but not new to the markets. I came across Karl's insightful posts on the Yahoo CFC board, a stock which I've been bearish on for quite awhile. After his post confirmed my guesses about the CFC convertible deal, I hopped on over to this board, and here I am.

I started trading about 4 years ago, and while I haven't made a killing, I'm still in the game, and I think I can offer some advice.

There are no books that are going to teach you how to trade. The best they can do is offer insight into things you need to CONSIDER before putting on a trade.

Markets change, yet they stay the same. Markets, like people, learn, adapt, forget, and make mistakes. Yet, in most cases, they aggregate and weigh info much better than any single individual or group of individuals can.

There is much you need to know before you can trade.

Because people who participate in markets are not stupid. You need to understand the theory of technical analysis--the study of price action, which is more than just looking at patterns with funny names on the charts.

Even if the market IS acting stupid, much like they did when they ramped up after the debacle in February, or at the August low, it doesn't pay to fight the herd. You have to pick your spots. TA can do that for you.

You need to understand fundamental analysis--REAL fundamental analysis, that digs into the footnotes of financial reports.

You also need to understand economics. But you need to go beyond the superficial textbook info, and figure out how the laws of economics are going to play out in the real world. Reading up on neoclassical economic theory, as well as Austrian versions of classical economics, will give you an insight into markets that many people lack.

Some other useful skills:
1. Quantitative---statistics, econometrics, etc. are very useful, if not essential, for understanding how current market participants think. If you want to develop your own trading system, this is a must.

2. Computer programming: although there are programs that will test things for you, if you know how to write your own programs, you can look for relationships that the software designers had never considered. This will give you great edge. It will also help you improve your quantitative skills, if they are lacking.

Trading: The hardest way to make easy money.

Crash Proof: How to Profit From the Coming Economic Collapse (Lynn Sonberg Books)

by Peter D. Schiff (Author), John Downes (Author)


http://www.amazon.com/exec/obidos/ASIN/0....

video----> http://www.europac.net/video.asp

Here are two suggestions:
1) Read "Fooled by Randomness" and "The Black Swan" both by Nassim Taleb.
They will help you to never think you have a sure thing and always be careful of comments, data and statistics. Listen carefully to Genesis. You will find the down and dirty practical side of Taleb in his comments.
2) Get a good program to play Blackjack and learn the basic rules. This is similar to playing the market and you can actually win at Blackjack statistically. Play it as fast as you can. You will learn that you can make a lot of money quickly. You will also learn the sobering fact that you can lose a lot quickly. Winning has infinite possibility, losing is drastically limited by your financial holdings and your bets.

Quote:

if I were to buy one or maybe two books to teach me how to trade... which ones would you choose

Encyclopedia of Chart Patterns by Thomas N. Bulkowski
http://www.amazon.com/gp/reader/04716682....

...To knowledgeable investors, chart patterns are not squiggles on a price chart; they are the footprints of the smart money. Whether you choose to use technical analysis or fundamental analysis in your trading decisions, it pays to know what the market is thinking. It pays to look for the footprints. Those footprints may well steer you away from a cliff and get you out of a stock just in time. The feet that make those footprints are the same ones that will kick you in the pants, waking you up to a promising investment opportunity. This book gives you the tools to spot the footprints, where they predict the stock is heading, how far it will travel, and how reliable the trail you are following really is. The tools will not make you rich; tools rarely do. But they are instruments to greater wealth. Use them wisely.

Reminiscences of a Stock Operator and Market Wizards for general rules of thumb.

High Probability Trading by Link or Come into my Trading room by Elder - decent intro to Technical Analysis and money management.

For options: Options Made Easy by Guy Cohen - completely practical and will walk you through trades step by step.

"Confessions of an Economic Hitman" for a taste of the dark side...

Yea, trading in the zone is a must..

Well, prior to recommending some books, I ask, What kind of trader are you? Do you know yet? There are 1001 ways to trade but you have to use the method that works best for YOU. IE: Some guys trade the TA & make killer $ others dont use the "tarot cards & Tea leaves" & make killer $. So give us more..Which trading methods are you most attracted to?

I started reading this book, am through a couple chapters and find it so far to be a great book for someone new to TA:

Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications by John J. Murphy

http://www.amazon.com/Technical-Analysis....

Has anyone else read this book? I guess I'll have to look at some other books recommended here afterwards, but so far this is an easy to read book. Highly recommended.

Newbtrader I read that book John Murphy is a great technical analyst and I like how he links eveything together in terms of how gold relates to the dollar ect.....

If you want to try to understand the complete and utter idiocy that can exit in markets you must read:

EXTRAORDINARY POPULAR DILLUSIONS AND THE MADNESS OF CROWDS

You only have to read the chapters about the Ductch "Tulip Mania" & the "South Sea Bubble".

It really helped me come to grips with the lunacy that we saw during the dot.com craze of 99/2000 and today.

Roger that, Emb145. See also "manias, panics and crashes."

Yep, Trading in the Zone is a winner!

I think we should sticky this topic it seems like it would be useful in the newbie section

This is a wonderful thread, and I'm glad KD put a sticky on it (er... I guess it's called a pin here.)

How about another for online resources like http://www.thetradingauthority.com/produ....

Want to check this out.

Mobs, Messiahs and Markets is a new book by William Bonner and Lila Rajiva.

"Entertainingly and irreverently investigates the "do-gooders" and "world-improvers" who stir up mass hysterias, unjustified wars and financial crises, while at the same time it warns readers how to better protect themselves and their pocketbooks."

-- Congressman Ron Paul,
Presidential Candidate

http://www.dailyreckoning.com/index.html

Here's a "No-****ter".....Get this and LEARN !

"The Art of Contrary Thinking"...Humphrey Neill....(who the **** would name their kid Humphrey?)

Its an oldy but a DAMNED goody ! You might be able to find it at Amazon...its way outta print Im pretty sure, but there are still some out there.

The Money Game (1967) & Supermoney (1972) - Adam Smith (pen name for George Goodman)

The Battle for Investment Survival (1957) - Gerald Loeb

The Tao Te Ching...you'll never trade the same way again...trust me on this...best of all, you don't have to buy it....you can have it...

http://www.taoteching.org/