Top Trading Books (and questions about others)

[pavilion103]

I know there are similar threads around about particular trading books and their merits but I was thinking it would be good if we could rate the top books we have read in this thread and also post any questions we have about books we haven't read yet).

My favourites:
- Stan Weinstein's Secrets for Profiting in Bull and Bear Markets - Stan Weinstein
- Master the Markets - Tom Williams
- Trade Your Way to Financial Freedom - Van K Tharp
- Way of the Turtle - Curtis Faith
- Curtis Arnold's PPS Trading System - Curtis Arnold


Others I would like an opinion on:
- Trade Like an O'Neil Disciple - Kacher
- Guppy Trading - Daryl Guppy
- How to Make Money in Stocks - O'Neil

 

[highgoals]

I always wonder when reading Ray Blanco's work....

"As you know, Vertex Pharmaceuticals Inc. (NASDAQ: VRTX) recently received FDA approval for its breakthrough hepatitis C drug Incivek. Shortly after the event, I recommended taking some profits while retaining a core position. Some of our readers emailed me, reporting gains ranging from 8-51%. In the long run, Vertex isn't only about Incivek, and I think it will continue to produce new marketable therapies in hep C, cystic fibrosis as well as other indications.

Since Incivek's approval came hot on the heels of the approval for Merck's Victrelis, also for hep C, my chief concern would be whether Incivek would win the majority of the market when facing off against a large competitor like Merck. I suspected, however, that Incivek's superiority would negate a lot of that advantage."

But whatever the reason, I keep up with them and a variety of other 'gurus' as food for thought.

My best investment was one I found myself without the help of inside knowledge.

Karen

www.howto-tradestocks.com

 

[Porper]

I've just finished "Unholy Grails" by Nick Radge which gets down to the grass roots of what is required to become a successful trader/investor. In other words how to achieve a positive expectancy which is something that very few starting out on this journey ever achieve. There is no need to read between the lines like in so many trading books with clear instruction provided at each step of the process to becoming a profitable trader.


Much of the book focuses on momentum strategies with several methods studied accompanied with comments on how and why each system works. The strategies are also statistically backtested giving a clear appreciation to how they performed in the past with suggestions on how they could be improved upon. Nick Radge also takes a look at the emotional side of trading and how a systematic approach can alleviate this problem to a large extent. Drawdown is the nemesis of many within the markets at the moment which is a subject that is also discussed. Logical suggestions are provided in regard to overcoming the mental hurdles.

I am not a great advocate of interviews at the end of books though in this case the knowledge gained makes it well worthwhile. Several traders/investors discuss their strategies with much emphasis on the timeframe used which in itself is somewhat of an eye opener.

In summary, an excellent book that is an easy read making it suitable for both those starting out in the markets as well as the more seasoned trader.

 

[pavilion103]

I'm reading that one at the moment. Just started. Sounds good.

 

[Porper]

I'm reading that one at the moment. Just started. Sounds good.

As much as anything it emphasises that being an excellent stock picker doesn't automatically make you profitable. It's how you manage the trade that matters most.

 

[ceasar73]

Read everything on dravas and livermore.

 

[CanOz]

I've just finished "Unholy Grails" by Nick Radge which gets down to the grass roots of what is required to become a successful trader/investor. In other words how to achieve a positive expectancy which is something that very few starting out on this journey ever achieve. There is no need to read between the lines like in so many trading books with clear instruction provided at each step of the process to becoming a profitable trader.


Much of the book focuses on momentum strategies with several methods studied accompanied with comments on how and why each system works. The strategies are also statistically backtested giving a clear appreciation to how they performed in the past with suggestions on how they could be improved upon. Nick Radge also takes a look at the emotional side of trading and how a systematic approach can alleviate this problem to a large extent. Drawdown is the nemesis of many within the markets at the moment which is a subject that is also discussed. Logical suggestions are provided in regard to overcoming the mental hurdles.

I am not a great advocate of interviews at the end of books though in this case the knowledge gained makes it well worthwhile. Several traders/investors discuss their strategies with much emphasis on the timeframe used which in itself is somewhat of an eye opener.

In summary, an excellent book that is an easy read making it suitable for both those starting out in the markets as well as the more seasoned trader.

Hiya Porper, hope you are well.....

I'm waiting for Nick's book on kindle......can't stand the paper anymore!

Systematic trading....seems as though all roads lead to here.

Cheers,


CanOz

 

[joea]

Initial books to read::: To trade in the conventional fashion.

Come in to My Trading Room plus the accompanying study guide.
How to Take Profits, cut losses, and Benefit from Price Declines.

Then graduate to ::
Secrets from Profiting in Bull and Bear Markets.

Then to :::Fibonacci Trading, "How to Master the Time and Price Advantage.
Backed up by High Probability Trading Strategies. These two go together.

For investing The Aggressive Investor or the latest book by Colin Nicholson.

If however you intend to trade utilizing just Price and Volume.

Master the Markets, free download.
Charting the Stock Market.. The Wyckoff Method.

1 Then utilize the "ReadTheTicker.com", site go to education for a number of books
etc. to support Price and Volume trading. This site utilizes indicators based on
Wyckoff.

2 Volume Spread Analysis (VSA) is a software package that is dedicated to price and
volume.

These last two books go hand in hand, however the applications 1 & 2 vary markedly.
joea

 

[Gringotts Bank]

Blink, by Malcolm Gladwell. For a book that's not about trading, it's a great book about trading.

 

[motorway]

A couple of Peter Steidlmayer's books


Markets and Markets Logic and 141 west Jackson

Motorway

 

[Boggo]

For those interested in pattern analysis, Elliott Wave and Fibonacci etc this freebie download is excellent imo.

http://www.elliottwave.com/club/ultimate-technical-analysis-handbook/default.aspx

 

[tech/a]

Un Holy Grails
Nick Radge
ISBN 978-0-9808712-1-0


Managed to complete my second read last night.

Its a book I feel could be easily over looked by a browse in the shop.
Particularly by those looking for the magic bullet.

Make no mistake its there but its highly likely the majority wont readily see it.

Its a book I feel the Masses will come back to after they have completed the first part of their journey.
Its a book those who have had enough of leaving their super in the hands of Fund Managers who lack innovation and even the most basic premise of sound investment,will seek out. Particularly when guidance in the hard times---let alone performance--allude them.

From 20-40-60 Retirement and funding of that retirement isn't that far away!
This is the book for you 20/40/or 60.

It gets directly to the crux of the matter.
Developing a Method/System if you like that you can evaluate.
Take control!
Nick demonstrates that they are often amazingly simple and the best "Can often be written on the back of an Envelope". Exploding the myth of complexity.
Anyone can do it even a Builder!

He goes further to make it clear that being in the market when the market is in your favour is just as important of being filtered out of danger when its not! The examples are fully disclosed and very easy to follow.
A great starting place for many.
Nick finishes this section presenting one of his methods as an example of what can and is being done for his clients.

I particularly like his interview with Steve who I have a sneaky suspicion is "Stevo" from "The Chartist". Steve began with Weekly Systems which were very successful but now is using MONTHLY systems.Something I had never considered ---Steve has a compelling story---one many like myself will relate to.

There will be many who should and will read this book who have substantial funds to see them through retirement or Semi retirement. Steve's story and the theme throughout this book is something these people need to know.

The Interview with the Financial Planner who uses a system he calls "Alpha"
is a nudge in the direction of pushing the reader into questioning how he is being looked after if he isn't willing to do so himself.
There ARE innovative professionals who are way ahead of the pack of mediocrity in the financial services industry.

Nick of course is one and offers his services (Certainly NOT directly in the book) but answers many of the questions through Steve's interview that need to be answered.

Finally the last few chapters I see as very simple but very timely.
We lose track in the hard times of what its all about.
In fact, I personally feel the way these times are handled not only practically but emotionally expose the trader and the Professional alike.

You really do need this book in your library even if you dont know you do yet.

One day you'll be progressed enough to grab this with both Arms and Eyes.
Make sure its on a shelf close handy!

 

[CanOz]

Thanks for the review Tech....I'm waiting for the eBook that will be offered through Kindle and iBooks, in the next few months.

You know, Steveo had a profile here too. I must dust of my password to the forum and drop in there, many system traders there. I wonder if Nigel is still about?

CanOz

 

[gav]

A few others have reviewed this too, but I thought I'd put mine up to.

UNHOLY GRAILS: Because life’s too short to buy and hold…

Many investors relied on the advice of their financial planners and advisors using the “buy and hold” approach and were burnt badly by the GFC. For some, this meant losing half of their investment near retirement age. In Unholy Grails the reader is to introduced to a more ‘active’ approach to investing called momentum investing (also known as trend following); a simple strategy which Nick claims can offer significantly improved risk adjusted returns over the traditional “buy and hold” method.

Whilst trend following may not be well known by the vast majority of investors, writing about trend following isn’t new. In fact there are quite a few books on the subject. The philosophy of trend following has been covered before, and evidence is shown through the records of successful trend followers. The better books include risk management, as well as offer ideas for the reader to implement. But very rarely is a practical, well-defined system ever offered to the reader and statistically evaluated. This is the gap filled by Unholy Grails.

Nick takes eight momentum investing strategies (some well-known, others not) and puts them to the test. Each strategy is tested using past data, and the results are broken down into individual elements to evaluate the strategy’s strengths and weaknesses. Areas for improvement for each strategy are offered (such as how to protect capital during bear markets); while at the same time ensuring the strategy remains robust.

The greatest evidence comes from the Nick’s own momentum investing strategy, where proof of real time results are delivered from the strategy Nick and his clients have traded since 2006. Commendably, Nick does not use this as an opportunity to promote or sell his services to the reader. It is there to deliver evidence that momentum investing works. The statistics and analysis presented for each strategy not only provide proof of concept to the reader, but will also assist readers who currently trade their own systems to verify and improve their systems.

In the section called “Interviews with the Experts” Nick interviews four successful momentum investors about their strategies, their journey to momentum investing, and some of the challenges they’ve had along the way. The interview with Gary Scott really stands out. Gary he had an extremely long journey and many setbacks before finally discovering momentum investing. His perseverance is extremely inspiring. Admittedly, I doubt I would have persevered for as long as Gary; however it makes me extremely grateful for the position I now find myself in, and knowing what I can do with knowledge I've gained. The book concludes with a section called “Overcoming Yourself” which aims to help the reader stick to their strategy, and explains how emotions can hinder a momentum investor’s profits.

Unholy Grails has something to offer to both those new to momentum investing and those familiar with it. Those new to momentum investing will have a reasonably steep, yet very attainable, learning curve. There is nothing in this book that is difficult to learn, although some of the concepts may be difficult to accept at first if all you’ve known is “buy and hold” (although it may be a little easier to accept after losing half your capital during the GFC). Those with an understanding with momentum investing will be able to implement what they have learned to their own strategies, and benefit greatly from the interviews of those who have gone before them.

# Disclaimer: I am a subscriber to The Chartist and have been trading Nick Radge’s “Growth Portfolio” for almost 2 years. During that time, the XAOA is down 8% and my trading account is up 46%.

 

[Porper]

Hiya Porper, hope you are well.....

I'm waiting for Nick's book on kindle......can't stand the paper anymore!

Systematic trading....seems as though all roads lead to here.

Cheers,


CanOz

Yep, all good here Can.

I (like most) thought I could outperform a good "mechanical" system just by using traditional pattern analysis and the Wave Theory. In fact any method for that matter. Sometimes you can...often you can't. I think Unholy Grails tells you why you don't have to look elsewhere. Nick's Growth Portfolio performance speaks for itself in terms of positive expectancy. And how you can "outperform" the broader market by a significant margin.

That said there is no reason why (like me) you can't use a mechanical and a discretionary system. You just have to be disciplined.

 

[tech/a]

Sometimes you can...often you can't.

How true.

Ive been doing just that for 4 yrs.
I think the answer is to find longer term systems (as in systems youll use for a long time rather than longer term holding time) that give great return (Radge has one of around 98% a year over a long period--I dont) here you park your Super or Major Funds.

You keep a capital base free for opportunistic trades which come up from time to time.
I do this and find super tight stops and raising the stop to B/E gets me on some rippers .
While my win rate isnt brilliant my Reward to Risk is more than acceptable.

What I have learnt from testing and trading systems has been in valuable in this discretionary trading.

 

[Porper]

I think the answer is to find longer term systems (as in systems youll use for a long time rather than longer term holding time) that give great return (Radge has one of around 98% a year over a long period--I dont) here you park your Super or Major Funds.

Agree completely John. Finding a system with a positive expectancy gives you the peace of mind to keep trading it during the bad times...as in when it goes into drawdown.

There has been plenty of comment recently in regard to the "Trading Guru's" performances over the past few years. As in most have performed dismally. However, they will continue to use their respective systems as they fully understand that over the longer term they will be successful. This is one trait that beginners have to learn.

We have all been through the beginners cycle where we drop a system just because it isn't instantly profitable. Again it comes down to emotion which is the Achilles' heel of most traders and investors.

 

[Chasero]

Initial books to read::: To trade in the conventional fashion.

Come in to My Trading Room plus the accompanying study guide.
How to Take Profits, cut losses, and Benefit from Price Declines.

Then graduate to ::
Secrets from Profiting in Bull and Bear Markets.

Then to :::Fibonacci Trading, "How to Master the Time and Price Advantage.
Backed up by High Probability Trading Strategies. These two go together.

For investing The Aggressive Investor or the latest book by Colin Nicholson.

If however you intend to trade utilizing just Price and Volume.

Master the Markets, free download.
Charting the Stock Market.. The Wyckoff Method.

1 Then utilize the "ReadTheTicker.com", site go to education for a number of books
etc. to support Price and Volume trading. This site utilizes indicators based on
Wyckoff.

2 Volume Spread Analysis (VSA) is a software package that is dedicated to price and
volume.

These last two books go hand in hand, however the applications 1 & 2 vary markedly.
joea

I am ordering come into my trading room today and Unholy Grail (rec. by T/A)

Any other recommendations? Cheers!

 

[ACEz]

I am ordering come into my trading room today and Unholy Grail (rec. by T/A)

Any other recommendations? Cheers!

Come into my trading room is a good one ! Most of Alexander Elders are always pretty informative, Good choice

 

[CanOz]

Book Review - Unholy Grails – A New Road to Wealth– by Nick Radge

In his third book “Unholy Grails – A New Road to Wealth” Nick Radge presents the straight forward yet frequently misunderstood concept of systematic momentum investing. In his own words, “It’s about taking some of the commonly referred to strategies and putting them to the test so we can better understand what they can and, perhaps more importantly, what they can't do.”

The book aims to “limit the cost of implementation in both time and money spent. You do not need a financial planner or stockbroker to beat the market”.

The book is based on his considerable experience, with Nick having over 25 years of first hand in-market experience.

Designed in order to “offer a sensible basis upon which to make sound investment decisions, reduce exposure and protect against risk”, the book is a fast and thoroughly enjoyable read, considering it is after all, a finance book.

The concepts are presented so the reader can easily digest them methodically, step by step. Even a novice investor with some basic knowledge of the markets should be able to come away with a good understanding of how well some momentum strategies work, and what strategies do not work.

This is a day and age of seemingly range bound markets where everyone is searching, without success in many cases, for returns better than bank interest. Nick presents the concept that is so obvious; one wonders why more is not publicised about it.

Packed with easy to understand statistics and charts, the reader is frequently able to review results of real systems tested over mountains of historical data that enable the discovery of facts about their overall profitability and trade-ability. For it it’s one thing to have a profitable system, but another to confidently trade it.

The second half of the book offers “Interviews with the Experts” and is actually a series of interviews with real life momentum system traders. Their systems are discussed and also their personal transition through the various stages as traders. One gains a true sense that indeed great things are possible, if you have a good plan and stick with it.

Considering that to be a successful trader one must:

Find a strategy
Validate
Do it

Nick aims to deliver the first two and then “guide you to gain confidence in doing the third”.

I would have no hesitation in saying that he will accomplish his goal in this succinct, methodical approach that is also a thoroughly enjoyable read.

I should disclose that being a former client of Nick's and still a frequent visitor to his forum, i have no interest nor have i or will i receive a monetary reward for posting this.

CanOz