Reading list: Useful books about investing and trading (NOVEMBER 2021)

Due to a big interest wave towards investments, a huge number of different books on that have been published. In order for you not to get confused in all this abundance, we have compiled for you a selection of basic books about the stock market. The selection will help novice investors and traders, although some of the books may be useful for experienced readers as well.

Reading list: Useful books about investing and trading

1. “Reminiscences of a Stock Operator” by Edwin Lefèvre

First published in 1923, this slightly fictional biography of Jesse Livermore, one of the greatest market speculators, is considered one of the best investment books of all time.

The Memories of a Stock Operator is a resource that generations of investors have turned to when they needed a deeper understanding of their investment habits and the habits of others. Listen to this work and you will very soon see your portfolio growing in an unpredictable way.

Reminiscences of Stock Operator is a 1923 Roman key by American writer Edwin Lefebvre. This is told in first person by a character inspired by the life of stock trader Jesse Livermore up to that point.

In December 2009, Wiley published an annotated hardcover edition, which bridges the gap between Lefebvre’s fictional story and real people and places mentioned in the book.

The book’s content can be divided into three thematic parts:

  • 1890-1910: Livermore was able to cash in easily by taking advantage of the bid / ask spread on inactive stocks at 100 to 1 leverage in bucket shops.
  • 1910-1920: Livermore was a stock trader on the New York Stock Exchange, where he crashed again and again due to too much leverage.
  • 1920s: Livermore is involved in market manipulation, charging a commission of 25% of the market value of the stock being manipulated. This was before the establishment of the US Securities and Exchange Commission in 1934.

This book explores the thoughts, strategies and practices of one of the best speculators of all time.

This book can be considered as historical fiction, that puts in its basics the life and experience of Jesse Livermore, who one of the greatest stock traders in US history. This can be highly recommended that you read this along with Jesse Livermore’s biography. To understand a person as a whole, you need to have both points of view.

While there is a lot to learn from Livermore’s investing rules, his life is more like a Shakespearean tragedy. He was obsessed with stock trading and speculation to the point of addiction. With great personal discipline, he mastered the art of high risk for a gigantic reward.

However, a mess developed in his personal life, which led to his fall and suicide. His personal life was in many ways the exact opposite of his life on the stock exchange: no rules, no discipline, no discernment and a generous life without limits. In general, a very sad story.

His methods are as reliable today as they were in his day. Whether you are a serious trader or just starting out, this book will complement your research.

2. “The Black Swan: The Impact of the Highly Improbable” by Nassim Nicholas Taleb

“Black Swan” is a 2007 book by author and former options trader Nassim Nicholas Taleb. The book focuses on the extreme impact of rare and unpredictable anomalous events, as well as the human tendency to retrospectively find simplified explanations for these events. Taleb calls this the Black Swan Theory.

The book covers topics related to knowledge, aesthetics, and lifestyle, and uses elements of fiction and anecdotes from the author’s life to develop his theories. He spent 36 weeks on the New York Times bestseller list.

The book is part of a five-volume series by Taleb entitled Incerto, including Deceived by Chance (2001), The Black Swan (2007-2010), The Bed of Procruste (2010-2016), Antifragility (2012) and Skin in the Game. (2018).

Taleb called the book an essay or narrative with a single idea: “our blindness to randomness, especially large deviations.” The book moves from literary subjects at the beginning to scientific and mathematical subjects in later ones. portions. Part one and the beginning of part two go deeper into psychology. Taleb turns to science and business in the second half of Part Two and Part Three. The fourth part contains tips on how to approach the world in the face of uncertainty and still enjoy life.

Taleb acknowledges the contradiction in the book. He uses a precise metaphor, the idea of ​​the Black Swan, to oppose “the unknown, abstract and imprecise indeterminate — white ravens, pink elephants, or the disappearing inhabitants of a distant planet orbiting Tau Ceti.”

3. “Study Guide for Trading for a Living: Psychology, Trading Tactics, Money Management” by Alexander Elder

“Trading for living” book is based on three principles: mind, method and money. Trading for Life will help you master all of these areas:

  • How to become a cool, calm and collected trader
  • How To Profit From Reading Market Crowd Behavior
  • How to use a computer to find good deals
  • How to develop a powerful trading system
  • How to find deals with the best chance of success

“Trading for a Living” will help you in disciplining your mind and thoughts, it will show you how to trade in the markets and how to manage the money in your trading accounts so that no losing streak will throw you out of the game. To help you profit even more from the book ideas, look for the companion volume. It asks over 200 multiple choice questions, with answers and 11 rating scales to hone your trading skills. For example: Markets for questions rise when

  • there are more buyers than sellers
  • buyers are more aggressive than sellers
  • sellers are afraid and demand a premium
  • more shares or securities are traded.

Each price change reflects what is happening in the battle between bulls and bears. Markets rise when bulls feel stronger than bears. They rally when buyers are confident and sellers demand a premium to play against them. There is a buyer and a seller behind every trade. The number of shares or futures bought and sold is equal by definition. Read more to understand what is going on.

Reading list: Useful books about investing and trading

4. “Japanese candlestick charting techniques” by Steve Nison

About the system of technical analysis, which is well known in the East, but in the West is only timidly studied by the most daring innovators. On the skills of recognizing candlestick signals and candlestick analysis as an independent forecasting method.

The ability to “read” candlestick charts is a valuable skill for any person who trades on the stock exchange or the Forex market. By the shape of a single candlestick, the moment of its occurrence and the combination that it forms with neighboring elements, it is possible to predict further market movements with a high probability, to identify trend reversal points, to find confirmation of signals from other indicators, and therefore to conclude deals exactly when it is necessary, avoiding mistakes.

And there is no magic in this – only centuries-old observations of the psychology of traders. Once Steve Neeson was the first in an accessible form and with numerous examples to tell the Western world about Japanese candlesticks. Here is an updated edition of his classic book, addressed to both beginners in trading and professionals.

A Japanese proverb says, “The first hour of the morning governs the whole day.” Likewise, the period of the market opening sets the vector of further price movement: by this moment, all the evening news are already filtered and comprehended, and all trends that form in the market seem to converge at a single point in time.

5. “The Miracle Morning” by Hal Elrod

What if you could wake up tomorrow and every area of ​​your life could change? What would be different? Would you be happier? Healthier? More successful? In the best shape? Would you have more energy? Less stress? More money? Better relationship? Which of your problems would be solved?

What is now being practiced by thousands of people around the world may be the simplest approach to creating the life you have always dreamed of. It was right in front of us, but this book finally brought it to life.

The book is not directly related to investments, but it will help you master them.

When you start to study a new area, a huge amount of information falls on you. It is usually difficult to rebuild an established lifestyle and set aside time for self-development. “Magic of the morning” will just help to cope with this. Experienced traders and investors will find this book useful too. For example, it can help you set aside time to analyze companies or charts.

This book is for everyone who starts to learn something new, who does not have enough time for themselves. It will teach the reader how to receive practical advice on how to increase their productivity, allocate time for self-development.

Pained by financial indecision? Want to invest with Adam?

Adam is an internationally recognised author on financial matters, with over 440.2 million answers views on Quora.com and a widely sold book on Amazon

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