What are you reading & why?

[Cabin111]

Has anybody else read Spitznagel's The Dao of Capital? Im about 80% through it now and unless these last few chapters are mind blowing I will have to describe it as a pass. I got the idea off of a PTJ recommended reading list and have extracted a few golden nuggets from it but unless you are really interested in the history of Austrian economics then I wouldn't suggest it.

A few things I did like:

The main idea of the book comes from his Mentor's Mantra: "You've got to love to lose money, hate to make money, love to lose money, hate to make money"...which essentially means love to take small losses, hate to cut your profits short. Mark then gives examples from nature (conifer trees) of how sacrificing the quick & easy way in order to profit big in the future is the best practice. nothing really new here but i dig the mantra from the old pit trader.

I do very much like his ideas on how we perceive time. Apparently Einstein said "we should value the past, present, and future times equally". Mark basically says that the future is of equal value to the present yet we value the present moment highest because we have emotional attachment to it and cannot emotionally connect to our future selves...we KNOW how we feel now, but not later. So we tend to "live for today" giving in to desires that satisfy the present emotions all the while making life harder for our future self. The best example given here is human addiction...where we take the easy road and give in to "one more time" not realizing that our future selves will have just as difficult a time with it as our present...maybe even more difficulty as we slip further and further into the addiction.

It hasnt been a bad book, its very well written and edited and i have gotten something out of it, but overall i would have to give it a 6/10 so far.

It sounds a little like Warren Buffet's philosophy...

 

[.sigma]

Has anybody else read Spitznagel's The Dao of Capital?

I have it, but havent read it yet. I skimmed through it a few times and it seems more esoteric, mixing old philosophies of the east into contemporary markets. Kinda cool. Still on my reading list.

Also, about the future and present. Time is important for trading analysis. A trader needs to know what day it is, what time, and where it stands in relation to the time around it.

Options trade based off the future, and the probability path of each strike landing ITM/OTM by its death date.

This is why Gann changed the game when he incorporated time as of much important as traders gave price. He then squared price and projected the probability of it oscillating to some price in the near future, based off its past price/time movements. Traders are visionaries if they know it or not.

 

[zghorner]

I have it, but havent read it yet. I skimmed through it a few times and it seems more esoteric, mixing old philosophies of the east into contemporary markets. Kinda cool. Still on my reading list.

Also, about the future and present. Time is important for trading analysis. A trader needs to know what day it is, what time, and where it stands in relation to the time around it.

Options trade based off the future, and the probability path of each strike landing ITM/OTM by its death date.

This is why Gann changed the game when he incorporated time as of much important as traders gave price. He then squared price and projected the probability of it oscillating to some price in the near future, based off its past price/time movements. Traders are visionaries if they know it or not.

never heard of Gann before so thank you for giving me a whole new branch to research...quick google search and it already has my interest.

You might get more out of Spitznagel's book than I did...I really just felt like he made the book twice as long as it needed to be to really drive home his "roundabout" philosophy. The last 2 chapters where about very undetailed tail hedging "strategies" that really were not worth the wait IMO.

After I finished that book I quickly read Zen in the Markets by Toppel which I found to be enjoyable as I have been into meditation for a long time. Probably should have read it before I ever got started trading to be honest as it is basically a short (almost pamphlet length) description of common mistakes we all make to satisfy our ego. Good reminder that I will read again.

Currently reading Options Math for Traders based on your recommendation. So far so good.

 

[.sigma]

never heard of Gann before so thank you for giving me a whole new branch to research...quick google search and it already has my interest.

You're in for quite the treat. Gann is a legend. He created so many "esoteric" methods for analyzing the prices of underlyings. The Circle of 360, Square of 9, Gann angles, Spiral/Hexagon Chart, using astrology/planetary cycles to price, while also publishing about 10 books.

I just realized Gann was born on June 6, 1878 (666) and died on June 18 (666), this guy was destined to become some type of numerologist.

edit: One more bizarre fact, last night I was skimming through the book "Trading Systems and Methods" by Perry Kaufman and exactly on page 666 he introduces Gann and Gann's methods. I don't know if this was done on purpose, or divine destiny? (lol) I just thought that was odd

 

[Poljot]

You're in for quite the treat. Gann is a legend. He created so many "esoteric" methods for analyzing the prices of underlyings. The Circle of 360, Square of 9, Gann angles, Spiral/Hexagon Chart, using astrology/planetary cycles to price, while also publishing about 10 books.

I just realized Gann was born on June 6, 1878 (666) and died on June 18 (666), this guy was destined to become some type of numerologist.

edit: One more bizarre fact, last night I was skimming through the book "Trading Systems and Methods" by Perry Kaufman and exactly on page 666 he introduces Gann and Gann's methods. I don't know if this was done on purpose, or divine destiny? (lol) I just thought that was odd

It is not odd if you consider that Gann was a 33rd degree Freemason of the Scottish Rite Order.
Source: Bucholtz, Malcolm G. (2013). The Bull, The Bear and The Planets: Trading the Financial Markets Using Astrology.

Btw. financial crisis SPX market low on march, 6th 2009 was 666,8 points.

 

[.sigma]

It is not odd if you consider that Gann was a 33rd degree Freemason of the Scottish Rite Order.
Source: Bucholtz, Malcolm G. (2013). The Bull, The Bear and The Planets: Trading the Financial Markets Using Astrology.

Btw. financial crisis SPX market low on march, 6th 2009 was 666,8 points.

I know all of this, I still can’t get over the crash occurring not only at 666 SPX but on 3/6/9... you can’t make this stuff up.

but yes I’m sure the author chose to introduce Gann at page 666.

 

[Poljot]

I know all of this, I still can’t get over the crash occurring not only at 666 SPX but on 3/6/9... you can’t make this stuff up.

but yes I’m sure the author chose to introduce Gann at page 666.

I've checked my latest sixth edition of this book and Gann is introduced on page 662.
On page 666 there is now a chapter on Hexagon chart method.

When someone says markets are random I show them that SPX bottom

 

[tomorton]

I have read a good 20 or so classic trading titles. But reading more and knowing more do not equate in a linear way with profits......

I am now trading less, reading almost nothing, but thinking much much more.

 

[.sigma]

I've checked my latest sixth edition of this book and Gann is introduced on page 662.
On page 666 there is now a chapter on Hexagon chart method.

When someone says markets are random I show them that SPX bottom

Dude the hexagon chart, the circle of 360, is amazing. I have no idea how Gann could even conceive of this stuff, at the time period, without computers, its really bizaree interesting stuff.

 

[bonnuci]

I am currently reading one of my favorite books Man Search For Meaning by Dr Victor Franks. This book is the has river of emotions in it and it will definitely affect your emotional intelligence. How to survive in life is the main theme of this book. Positivity, spirituality, empathy and emotional intelligence coaching are some key points to get successful in life.