Apprenticed Investor: Reading Is Fundamental
Today's Apprenticed Investor column -- Reading Is Fundamental -- is part 1 of a two part suggested reading list for traders and investors. It includes an Introduction to Investing, some Historical Perspectives, as well as an overview of Investor Psychology.
Here are the books I suggested:
Introduction to Investing
Stock Market Wizards : Interviews with America's Top Stock Traders
The New Market Wizards : Conversations with America's Top Traders
The Investor's Anthology: Original Ideas from the Industry's Greatest Minds
Bull: A History of the Boom and Bust, 1982-2004
Historical Perspectives
Why Smart People Make Big Money Mistakes And How To Correct Them:
Lessons From The New Science Of Behavioral Economics
The Winner's Curse
Robert R. Prechter Jr.: Prechter's Perspective
Part II should be out tomorrow, and covers Technical Analysis, Economics, life on Wall Street, and the Fundamentals.
If anyone has any additional book suggestions, please send them to me here.
Prior Apprenticed Investor columns can be found here.
Tuesday, December 06, 2005 | 02:46 PM | Permalink
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Comments
RITHOLTZ,
THANKS FOR THE BLOG...
JUST FINISHED
FORECASTING FINANCIAL MARKETS 4TH ED.
BY TONY PLUMMER
ITS AN UPDATED VERSION OF AN OLDER CLASSIC THAT I SAW YOU MENTION HERE A WHILE BACK...
HIS SECTIONS ON THE DYNAMICS OF THE GROUP AND PSYCHOLOGY WERE EYE OPENING...
RESPECT,
SINGER (TOURO LAW TRADING DESK)
Posted by: Dave Singer | Dec 6, 2005 4:15:52 PM
Not specific to the markets, but I recommend Scott Plous - Psychology of judgement and decision making. Not worth the whole book, but worth trip to the library to read the chapter on traders' appetite for risk and loss in Nigel Nicholson's 'managing the human animal'
Great Book list thanks. Thaler is particularly good and has some free articles available on his site.
Posted by: Dave Evans | Dec 6, 2005 5:00:07 PM
One of THE best books on trading psychology is Trading In The Zone by Mark Douglas.
See http://www.amazon.com/gp/product/0735201447/103-2558752-8056607?n=283155
Posted by: PC | Dec 6, 2005 5:03:56 PM
I do a little supply & demand work based on Wyckoff's timeless musings. His books are worth the read. Some brief comments based on his works......This rise, albiet strong, is significantly weaker than the similar runs earlier in the years. Positive volume is not nearly as strong. ie, I believe there is distribution taking place in the underlying market. I'll also say that the TRIN readings have been unusually high lately which also points to underlying distribution.
In fact, the 21 day TRIN is at a level on both the NAS and NYSE that has signaled major tops many times. That includes December of 2004 and the wonderful 2000 top. Hmmm and the COT data on S&P futures shows life might get bloody as the majors have placed the biggest negative bet on the market since December of 2004.
Does all of this mean we are headed for a major correction or a minor pull back before another assault? Who the heck knows? Only the CNBC swamis know the answer. But, I will say as I said before that if we jam higher here, we will likely pay the piper as we'll become so oversold it will likely be at the expense of 1H 2006 equity performance.
I just can't get very bearish here in terms of a major decline. Equity valuations are just too damn cheap and unless the long bond craters, alternative investment returns are pathetic. But, I do think the market will someday need to shake out all of these hedge funds chasing the same returns. That would mean crushing the fools first who have thrown caution to the wind to get into positive return territory and stay in business. The market can't seem to get the really oversold situation it needs to make a bull run and cleaning a few hedge fund clocks would be just the right medicine for a nice bull run.
Read the Wyckoff books and Rem of a Stock Operator
Posted by: B | Dec 6, 2005 10:07:18 PM
Big B,
I really enjoyed that book rec article on street.com.
I was surprised that in the TA section, I didn't see Bruce Kamich's "How Tech Analysis Works." It just came out I think last year and its very accessible. For those who want to understand charts but not have to go through John Murphy's tome, I like this one.
And for fundamentals on stocks, I refer people to books like John Tracys "How to Read a Financial Statement" and Domash's "Fire Your Stock Analayst" (great title) --- Both of these are no nonsense books.
Posted by: CMG | Dec 7, 2005 1:42:11 PM
