Books for learning the reasons behind market moves
- Thread starter timothylee
- Start date
I agree with dead dog, Wyckoff & Schaubacker have done better than most describing the ingredients to spark the big market moves.
Another good book for a description of the the different type of market days is Jim Dalton's 'Mind Over Markets'. This book has been called the 'bible' for prop traders.
Another good book for a description of the the different type of market days is Jim Dalton's 'Mind Over Markets'. This book has been called the 'bible' for prop traders.
Are you referring to Richard W. Schabacker's "Stock Market Theory and Practice" and "Technical Analysis and Stock Market Profits"?
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I agree;
with about 80% of that. Market Makers Edge, by Joshua Lukeman+ Investors Business Daily book solve much of the 20% mystery.
Dont worry about books being out of date.Even a bid ask spread of 1/2,LOL may be out of date; but 1/2 or 50% is still helpful...………………………………………………………………………………………..[But do not enter an order of $100.50 as 100 1/2/LOL]
never read the book myself, but that book is pretty much considered required reading by all my peers.
the 'why' is kind of a nebulous topic but most explanations are probably grounded in economics and behavioral finance theory - Schleifer, Kahneman, Shefrin, and Thaler come to mind.
while these are certainly worth studying, as traders we usually care more about the 'what'.. which is a different issue altogether.
And given today's announcement, let's include Milgrom and Wilson, eh!
https://www.reuters.com/article/us-nobel-prize-economics-idUSKBN26X172
Reading it would be a good start, it’s a great descriptive book. The taxonomy of traders is insightful and explains a variety of motivations from participants. Adding Michael Lewis’s work like ‘Flash Boys’ gets one’s understanding of the development of ECN’s fairly current.
Wyckoff is classic and WON’s canslim method builds upon his principles.
The older classics are just such a great place to start and the basic principles are as applicable today as back then.
The most comprehensive fairly contemporary approach to the markets is the work of the late Jack Hershey buried in the ET archives. He is certainly a controversial character who’s work requires developing discernment, with which one can see the markets with a unparalleled clarity, ymmv.
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YES;
another among the best==== Market Makers Edge, by Joshua Lukeman,market maker.Dont let the fractions/bid ask spread worry you; its mostly still up to date...………………………………………………………………………………………………………………………………...