Sunday, March 31, 2019

Trading Books to Read


General Investment:

Start with “Reminiscences of a Stock Operator”; paperback runs under $20 but the Kindle edition is selling for less than $2! It was first published in 1923 but it’s a good introduction to market psychology https://amzn.to/2FN1IAT

Investors.com has a good newspaper for stock ideas (excluding the Editorials) which is supported by two books, “How to Make Money in Stocks” and “Become a Successful Investor”. The books run for under $20 on Kindle and are available here: https://amzn.to/2U6n2KE. If you want hard copies, then “Become a Successful Investor” should be bought first: https://amzn.to/2HOBujJ, then “How to Make Money in Stocks”: https://amzn.to/2UnN6Ab.  These books give a good introduction to the CANSLIM method, mixing fundamental and technical ideas and each book can be found for around $15 each, so they won’t break the bank.

Technical Analysis

I’m a big fan of John Murphy’s clear and concise writing. His book, “Technical Analysis of Financial Markets: A Comprehensive Guide to Trading Methods and Applications” is a must have. The book can be found on sale for around $50: https://amzn.to/2YBdw0t .  If you are looking for a little more then his other (harder to find) book, “Intermarket Analysis: Profiting from Global Market Relationships” looks at relationships between asset classes but there is no rush to buy this: https://amzn.to/2Wzf2hZ

I use Japanese candlesticks in my charts, for more on this all you need is Steve Nison’s book “Japanese Candlestick Charting Techniques: A Contemporary guide…” found on Kindle here: https://amzn.to/2YDe8ml or paper copy here: https://amzn.to/2WAa5Ft

The other book to consider is “Encyclopedia of Chart Patterns” by Thomas Bulkowski. What I really like about this is it gives you statistics on the success (and failure) rate of each pattern in bull and bear markets. The book is not cheap (even on Kindle) so it’s a bit of an investment: https://amzn.to/2U9c076 . If you don’t want to pay this, there is his cheaper book “Getting Started in Chart Patterns” for under $20. https://amzn.to/2WE5LoV

Bonus Material

You will have a good grounding with the above materials. If you like these style charts – good for long term price targets – then “The Definitive Guide to Point and Figure: A Comprehensive Guide to the Theory and Practical Use of the Point and Figure Charting Method” can also be considered, but this runs at $50 for the eTextbook so I wouldn’t be rushing to get this: https://amzn.to/2YNsKQi

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