Definitive book list for beginners?

[jimbowan]

Hi guys,

I have seen various posts scattered around this site 'read this book by blah, great for newbies'

My question - Is there a definitive list somewhere?

If not we should create one? Within this Trading/Investing Resource forum would be ideal.

Education is everything for beginners and personally I want to read as much as I can BEFORE I start.

The books I have been pointed towards (as a noob) include;

• Rich Dad Poor Dad by Robery Kiyosaki
• Come into my Trading Room by Alexander Elder
• Unholy Grails by Nick Radge
• Secrets for Profiting in Bull and Bear Markets Stan Weinstein
• How to make money in stocks, Complete investing system by William O'Neil

Would other more veteran posters like to suggest any other titles? Can we make a sticky list?

Thanks in Advance.

 

[Klogg]

Security Analysis - Benjamin Graham
If you don't have the accounting/finance knowledge for it, you can opt for The Intelligent Investor.

Most of my reading is focussed on Value Investing, and IMO these top the list.

I actually went the wrong way about things, and read Security Analysis first. I googled things every time they didn't make sense and learned a good deal about accounting and finance.

 

[CanOz]

I've read allot of books on trading...a couple stand out.

For EOD trading: Nick Radge - Unholy Grails

For intraday trading and what it takes to be a trader - Mike Bellifiore - One Good Trade

CanOz

 

[Gringotts Bank]

• Rich Dad Poor Dad by Robery Kiyosaki
  
  

• 
  
  You can cross Kiyosaki off your definitive list. He went broke.
  
  I also like Radge's book.
  
  Above all, I'd recommend a subscription to Stocks and Commodities. Find yourself an edge. Tinker with it.

 

[Joules MM1]

....Kiyosaki ....He went broke.....

nothing like correct knowledge to assist in correct focus....

to wit;

excerpts

Kiyosaki's Rich Global company was ordered by a U.S. judge in April to cough up $23,687,957.21,($US23+million, ed)

Kiyosaki probably won't feel the pinch in his wallet. Forbes pegs his net worth around a cool $80 million, and Kiyosaki, who's written 11 books, operates as many as ten other companies. Rich Global was said to be worth a few million when it went under.

http://today.msnbc.msn.com/id/49393...oor-dad-author-files-bankruptcy/#.UKW5LmciFRw

 

[jimbowan]

Some of his thoughts on buying property with a small cash amount and no real funds made me roll my eyes a bit I will be honest.

But from a newbies point of view his very basic and easy to read style and his easy to relate to story made it a good read. I feel like I got a few great points out of it (something you vets probably take for granted), such as;

pay yourself first
your PPR is a liability not an asset
start now.
dont be scared of your money
study accounting / money management

I agree its no investment bible, but its a great first intro book and I think a great book for younger people, I would probably recommend it to kids 13+

 

[5oclock]

JIMBOWAN, Gday mate, re the books for new traders, i think all of the books by Alex Elder, Nick Radge has three books which are all good,Daryl Guppy ,Martin Pring, Thomas Boulkowski,Jake Bernstein,Van K Tharp,Brett Steenbarger, are all worth a read( trouble is every time you reread them you pick up so much more it just shows no one single book or author read once will do it for you . Also as you learn and understand what trading is really all about and reread its like reading the work for the first time again.) This ASF site has a lot of good information and a lot of good members that are willing to help,read and search through the posts and you will learn a lot.As for a list of books is difficult because everyone has a different approach and risk tollerance and time frame that they are happy with,if you read Alex Elder--Trading for a Living,--Come into my trading room--,the New Sell and Sell Short, and then read Nick Radge 3 books you will be a lot closer to survival than before you started.

 

[Joules MM1]

Can we make a sticky list?

http://booko.com.au/9781876627638/The-Art-of-Trading

been a long time since i've read this and remember thinking it was great for starter stock traders...

Chris Tate

edit: a review
http://www.******************/default.asp?d=0&t=1&id=3193&c=0&excerpt=yes&a=0

moneybags .com .au goes into the astericks

 

[jimbowan]

Cheers guys!

Thats a fair whack of books to keep me entertained.

Sounds like I should start with

Elder
Tate
Radge
?

heard good things about Guppy too.

I already purchased O'Neill and Weinstein should I bump these down my list until some others have been crossed off?

 

[pixel]

I definitely agree with 5oclock on Daryl Guppy
and would add Louise Bedford, who has a knack to make complex matters easily understood.

But other than those two, I much prefer the Internet as a source of information. It's much more current.

 

[joea]

Hi guys,

I have seen various posts scattered around this site 'read this book by blah, great for newbies'

My question - Is there a definitive list somewhere?

If not we should create one? Within this Trading/Investing Resource forum would be ideal.

Education is everything for beginners and personally I want to read as much as I can BEFORE I start.

jimbowan

Learning the share market is a journey.
It now depends on your ability to learn, absorb and implement what you learn.
A book is a static medium. It takes a lot of screen captures of charts to illustrate a trade campaign
from entry to exit.

If I wanted to travel from Cairns to Brisbane, I can travel (for example) 3 ways.
By bicycle, by car or by plane. Obviously the decision is mine and I would believe the bicycle, maybe cheap,
but it will involve a lot of pain(physical). Then length of the journey is much the same, however I think you will agree the plane will be quicker and more comfortable.
It has been mentioned on this forum that it takes 10 - 15 years to learn about trading.
Because the market is such a vast area, it will take time to master it.
The pain in the market is financial loss.

If you want to get "paralysis by analysis", then buy 10 books and you can achieve this.

What I will advise is that the first few books you buy, you will learn a percentage of what you need to know.
Following this, you will follow a direction. Then you will change direction.
You will attempt to find the holy grail in the indicator area of a software package you purchase.
Then you may believe you can code the "you beaut indicator".
etc.etc.

In the market you can only make money on price trends.
Indicators are generally lagging. i.e.after the fact.
So as you read the books, my advice it to concentrate on momentum.
Momentum indicators do not always represent price trends.
Momentum indicator represent momentum trends, and they may not necessarily be in the same direction as price.


As mentioned by others, I will attempt to give my opinion on what to read and why.

"Come into my trading room". ...Basic foundation of trading, and money management. Dual time frame.
"Sell and Sell Short". .... How and when to sell.
Both these books are educational...i.e. have questions and answers. Although the study guide for "come into my trading room " is an additional cost.

"Secrets for Profiting in Bull Markets"... this covers the 4 stages of a stock cycle and why you must understand
in what stage you are in. can also be found on internet.

By this time you will have decided to go Technical, Fundamental or a combination of both.
If you believe you are now ready to trade, you will be learning charts, volume analysis, market depth and the seats system.
A trading plan will now be necessary, and a trading strategy.

Now you will need to understand "market direction" to buy and sell, in relation to where the market currently is.

You will need to recognize when a market is in a position to complete a correction or a trend, so you can enter a trade at the end of a correction in the direction of the trend or in the very early stages of a new trend. And sell in the very late stages.
A rule of thumb is to enter in the First 25% of the move and sell in the last 25% of the move.
The 50% in the centre is "no mans land" and belongs to the crowd. Sell and sell shorts gauges slippage in a trade.

If you intend to buy Holy Grails, you will see a number of strategies of which TechTrader is worth understanding.
Radge will explain...
The goal of an active investor is to grow capital, pure and simple.
To achieve this, there a two simple and logical drivers.
1 Be fully invested in stocks exhibiting upside momentum during bullish trends and
2 Defend and revert to cash, 100% if necessary, during sustained bearish trends.

I hope this helps.

joea

 

[jimbowan]

Thanks Joea,

Yep it will be a journey and one I am willing to undertake and put the time into. I understand reading x books wont make me a trader but it seems like an obvious starting point with some excellent authors out there.

I guess my plan as you say is to read x books, get a feel for the terminology and a basic understanding of market principles and then to settle on a starting trade method.

Simulate this method online for free for as long as I need til I either feel comfortable or change my method and need to start again.

Continue studying this whole time.

Then start with a very small investment and see how I go. If I can make it work over a period of months then put in a bit more and so on.

I also plan to hopefully have a mentor by this point, someone to bounce trades off and generally be a guide during my early days of trading where maybe an experienced eye will save me some financial pain.

Cheers to everyone in this thread.