best books you've read on trading
- Thread starter Rocko1
- Start date
"Trend following" is not a good one. It's just a report card on the traders Covel's able to interview and their performances. No discussion of how these traders spot or exit a trends. Books relating to TA breakouts is more helpful. As far as the section on $$$ mgmt, u could read a bk on hw poker pros protect their cash, which has more details. Seems the book is trying to entice you to sign up for his online course.
Nobody mentioned this yet:
"Evidence Based Technical Analysis" by David Aronson
A must for systems traders.
What I found most useful were his techniques for estimating randomness and data-mining bias observed during backtesting. If you've ever wondered why your systems which backtest perfectly over the last 5-10 years always blow up the moment you start trading them, read this.
"Evidence Based Technical Analysis" by David Aronson
A must for systems traders.
What I found most useful were his techniques for estimating randomness and data-mining bias observed during backtesting. If you've ever wondered why your systems which backtest perfectly over the last 5-10 years always blow up the moment you start trading them, read this.
I disagree. I can sum it up in one sentence: simple automated technical systems don't work.
The rest of the book is very nice statistical analysis of WHY, but the final conclusion is that he tested thousands of automated systems, and none of them had any statistical validity.
He hints at "more complex systems do better", but then spends no time on that. I would have preferred to see the conclusion of the book be, "Here's what DOES work" rather than, "nothing works."
Reminiscences of a Stock Operator - Lefevre
Manias, Panics and Crashes - Kindleberger
Dynamic Hedging - Taleb
Devil Take the Hindmost - Chancellor
The PDF floating around documenting the Turtles trend-following strategy in excruciating detail - Curtis(?)
If what you're looking for is a cookbook - forget it - none of them "work", are filled with gross inaccuracies, and will lead you down the rose garden path to damnation. You are far better off minimally-funding an account and trading until you blow up. Pay attention, keep notes, reflect before setting up the next account, and you will be miles ahead of the cookbook crowd.
Remember: there is no spoon.
Manias, Panics and Crashes - Kindleberger
Dynamic Hedging - Taleb
Devil Take the Hindmost - Chancellor
The PDF floating around documenting the Turtles trend-following strategy in excruciating detail - Curtis(?)
If what you're looking for is a cookbook - forget it - none of them "work", are filled with gross inaccuracies, and will lead you down the rose garden path to damnation. You are far better off minimally-funding an account and trading until you blow up. Pay attention, keep notes, reflect before setting up the next account, and you will be miles ahead of the cookbook crowd.
Remember: there is no spoon.
To those of you who aren't simply looking for a short cut, it takes really good understanding of how the markets operate before you can even think of exploiting inefficiencies for a profit.
With that, here's a book I've found extremely helpful. Hopefully it'll do the same for you.
"An arbitrage guide to the financial markets"
by
Robert Dubil
With that, here's a book I've found extremely helpful. Hopefully it'll do the same for you.
"An arbitrage guide to the financial markets"
by
Robert Dubil
Since everyone reads the aforementioned books, they probably become a wash. An out of print book by Bacon, "Secrets of Professional Turf Betting" provides many a market lesson. This book is available, used, on Amazon but is extremely expensive.
Anything by N.N. Taleb.
Trader Vic--Methods of a Wall Street Master ; Victor Sperandeo