A Book every Trader should Read
Analysis Technical Analysis

9 Likes 0 Dislike 33 Replies
3 years ago

Hy all,

everyone has a favourite book about Trading.

Mine is "Reminiscences of a Stock Operator by Edwin Lefèvre"

This book traces Livermore's fictional counterpart Lawrence Livingston from the age of 14 into adulthood, as he cuts his teeth in so-called "New England bucket shops," embraces his supreme talent for numbers, amasses a million-dollar fortune, and continues to lose and win it back several times over on Wall Street throughout the first two decades of the 20th century.

Whats Your favourite Financial Trading Book?

Posted 1 year ago 0 Likes   0 Dislikes

Great suggestion. I'll definitely be looking it up. 

Posted 1 year ago 2 Likes   0 Dislikes

Reading books is something I seldom do. But many others read lots of books, and just like those who travel a lot, their minds have an opportunity to be broadened.

However, I seldom travel. But if I did, I would try to get to know my surroundings and join in as much as possible with the local culture.

Most people who read a lot, and that I know personally, do so for pleasure (the same applies to the TV programs and films they watch). 

However, we are talking (oh well writing), here about educating ourselves on a subject we care about. I am not disagreeing with the concept that trying to take up too many ideas from any form of media can be confusing and counter productive - just as using too many indicators to inform our trading strategy can be. 

The big lessons from "Reminiscences of a Stock Operator" are that even the best get it wrong, disasters lead to understanding, be prepared to put your money where your beliefs are, don't be swayed by those who don't have your best interest at heart, and many other things. The big lessons from the film (movie) "The Big Short", are that just because an organisation is a household name doesn't mean you should trust the people running it, nor that they in any way understand what it is they are running, politics is stronger than truth (well at least for a while), and even though you know what the true trajectory of the market will eventually be, you have no idea how long it will take to move in that direction.

My advice is to read and watch for knowledge and understanding, not to decide what kind of trading strategy you will adopt.

Kind regards


Posted 1 year ago 0 Likes   0 Dislikes

That's a very good point, Isialinebe. I agree with you. Reading too many books on investment and trading can indeed lead to a lot of confusion. Different investors, traders, experts, etc. use different methods - and every one of them swears by his or her own method. Thus, different people may at times have contradictory opinions - for example, one trader may say that day-trading is the most profitable trading method while another trader may say that day-trading is actually the most challenging trading method and trades based on longer timelines are likely to yield better results than day-trading. This is just one example that illustrates the kind of contradictory opinions that a reader may get if he reads a lot of books. Such contradictory opinions can very well confuse a reader and leave him unable to take good decisions. Thus, it may be best to read just a few good books and understand their core ideas thoroughly. 

One of my favourite books is Fooled by Randomness by Nassim Nicholas Taleb. I think this is one book that clearly explains why a trader should always keep an open mind - never follow the herd, do not believe the dominant view unquestioningly; this book strongly drives home these concepts. For this reason, I believe this is one book that every trader, investor, etc. should definitely read.  

Posted 1 year ago 0 Likes   0 Dislikes

I think you can read any of the famous books about investment and makeup your mind. But I am against reading too many books, as it will confuse your thinking, and make you lose focus. read one and you will be able to makeup your mind.

Posted 2 years ago 0 Likes   0 Dislikes

Where have all the flowers gone..............?

It never ceases to amaze me why this forum isn't more active, but that is probably because I'm an old codger and yet to travel the paths of The Twittershere, The Faceboot and many other aspects of The Universe Wide Webledom.

We could all learn a lot from you experienced folks - so please come back. 

Posted 2 years ago 0 Likes   0 Dislikes

I would appreciate if all you folks could contribute to my post " A Film (i.e a Movie) Everyone Should See". I think it is under Markets/Forex although it might have been better placed in the Analysis section.

I refer to The Big Short, and I wondered if there were any other really good cinematic portrales of trading etc. out there.

Posted 2 years ago 0 Likes   0 Dislikes

The way I look at it is this Socratic87:-

I don't quite know nothing, and so I am close to being intelligent, but not quite there yet. Like you I will continue to read in order to get closer to realizing I know nothing.

Ah! the path to knowledge is fraught with mystery.

In the FT area of course there is the danger of taking everything one reads (I include articles etc. not just books) too seriously which can lead to confusion - something I have sadly suffered from on occasion. Perhaps I have now found a "cure".



Posted 2 years ago 0 Likes   0 Dislikes

The more you learn the more aware you are of your ignorance on so many different subjects.

I have always enjoyed this.

It can be a very useful tool in determining if someone is intelligent.

Usually the people who carry on as though they know absolutely everything are usually not the brightest.

And the brightest people generally tend to add caveats to their statements.

This has been the case in my experience - what about you?