books to read on TA/stock mkt:
you were expecting a list of books? more like a review <ggg>
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Subject: From the Trading Desk
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To: gary rosenberg (2322 )
From: Robert Graham Sunday, Jan 18 1998 1:34PM EST
Reply # of 2333
I have a few favorites. I try to look for books that will illuminate the author's thinking behind his approach to the markets rather than just state a set of rules and examples of application. Here is where I attempt to learn from someone else's experience as much as possible. If I go ahead and make mistakes, which I will, then what observations that an author has made related to my mistake has new meaning as I say to myself: "Oh, is THAT what he meant". I also look for books that provide intelligent observations and insights into how the market operates rather than give definitions and pontifications on the author's beliefs about the market.
Here is what I believe to be a basic set of very good books on the market and trading.
1. "Reminiscences of a Stock Operator" by Edwin Lefevre
Thew classic book on a classic floor trader of the early 1900s. Still a very worthwhile read in the way the trader documents his plays and what he was thinking about at the time, and how he changed his approach as he learned. Gives good insights that can apply even to the current day market. People will be people no matter what time in history we talk about. And trading is about people.
3. "West of Wallstreet" by Gorge Angell and Barry Haigh
This is an excellent book by a very good writer on trading from a floor trader's perspective. Also gives very intelligent observations about markets and what needs to be a part of a good trading strategy. A very practical and insightful book. Even though the book is by a S&P Futures floor trader, much of the book can apply to the trader of stocks.
4. "The Market Wizards" and "The New Market Wizards" by Jack Schwager
Very good books on what goes through the minds of successful traders.
5. "Tape Reading and Market Tactics" by Humphrey Neil
The only very accessible book I have found on tape reading. One book of only two books on tape reading that are still available, but hard to find.
6. "Sure Thing Options Trading" by George Angell
Yes, I know the title is a bit much. It must of been his publisher's pick of the title. The book content is practical and realistic.
7. "The Stock Market" by Richard Teweles, Edward Bradley, and Ted Teweles
Good basic but lengthy book on the stock market. It includes coverage on the market itself and how it operates and basically covers the different instruments that are traded and some about the markets that they are traded in. A shorter book on this subject that I think appears to be worthwhile to read is a book called "How the Stock Market Works" by John Dalton. This second book does attempt to cover too large of a scope like the analysis of stocks, stock market theories, and taxation. But it does provide good introductory material about the stock market.
7. "Traders: The Jobs, The Products, The Markets" by David Weiss.
This is an unusual book that describes the professional trader, which includes the specialist and market maker. It covers their operation and some of what goes through their minds in the performing of their role in the markets. Not a complete book on this subject by any means, but does provide insight to the reader in the form of an introduction to this topic.
4. "How to Make Money in Stocks" by William O'Neal
I think any winning strategy of a trader that can provide consistent returns needs to incorporate the elements outlined in this book. However, the book does not cover much at all in terms of taking the short side of the market. This is the book's only inadequacy. Here are some of the statements a full-time futures day trader made to me about trading: "A trader needs to be able to take both sides of the market. What is he going to do when the market is no longer a bull market? A trader who cannot take the short side as well as the long side of the market I would not call a trader". O'Neal does state in this book that he has previously written a booklet on short selling.
There is also a book called "Guide to the Markets" that is published by Investor's Business Daily. Even though it is a book on how you can use their newspaper to profit in the markets, this book contains worthwhile information about the different markets and in particular the stock market. This can be considered a supplimentary book to the markets.
5. "Trading for a Living" by Dr. Alexander Elder
This book by Alexander has allot of worthwhile information that causes one to think. Any book that promotes thinking is a worthwhile read. But IMHO I do believe some of what is covered in this book is at best misleading. That is why I do not see this as a book for beginners in the stock market. This book still provides very worthwhile reading material, some of which is difficult to find in any other book on the subject. Its best part is where the author attempts to communicate the hard realities of the market. Many can benefit from a read of these parts, particularily those with some experience in the markets. Those are the people more likely to listen. Also the parts about crowd psychology is worthwhile to read. The author does attempt to give the reader a view of the irrational behaviour of other traders that the trader with some experience can relate to which he can use to gauge his own trading behavour. Also, the book does provide an introduction of the use of TA for trading purposes, including soem practicalities like the placement of stops.
6. "Winning in the Futures Market" by George Angell
For those interested in leanring about the futures market, this does appear to be a very good book on the subject. Since I am not a futures trader, I will defer to an experienced futures trader for a more "official" evaluation of this book. So I am basing this critique on previous books that I have read on the subject. This book does provide that "Angell" approach to the subject of intelligent observations and insights into the futures market, and covers the pracitiaclities on what a trader needs to do in order to succeed in the futures market. This book covers different types of trading including the trading of options on futures. Also covers the use of Gann techniques and his own version of Taylor's Book Method of swing trading in the futures market. This ends up with a chapter that helps the reader evaluate themselves and decide on if they should consider pursuing day trading in the futures market.
Bob Graham |
