Reading List

This is a list of the trading books I recommend. I have read every book listed below. I will eventually add short reviews of each book.

An American Hedge Fund by Timothy Sykes

Reminiscences of a Stock Operator by Edwin Lefevre

How I made $2,000,000 in the Stock Market by Nicholas Darvas
You cannot really learn much trading strategy from this but it is a good little story about one trader’s experiences.

How to Make Money in Stocks by William O’Neil
So many people follow O’Neil’s CANSLIM strategy that it is important for every trader to be familiar with it.

How to Trade in Stocks by Jesse Livermore
I have not yet read this but it is on my reading list.

The Intelligent Investor by Benjamin Graham
The best introduction to fundamental investment analysis. Updated edition.

Investment Intelligence from Insider Trading by Nejat Seyhun
Good information on what insider selling and buying really means and when it is and is not important.

Investment Performance Measurement by Bruce J. Feibel
Great book on the nitty-gritty of calculating performance.

Market Wizards: Interviews with Top Traders by Jack Schwager
This (and the two sequels) is useful for giving insight into the psychology of trading.

Security Analysis (6th Edition) by Benjamin Graham & David Dodd
An understanding of fundamentals is useful, even for day-traders.

The Tax Guide for Traders by Robert Green
A good primer on tax issues for stock day-traders and other frequent traders of financial instruments.

JK Lasser’s Your Income Tax 2012 (for 2011 taxes)
Everyone should understand taxes. This is the guide, with a new installment each year.

Trade Like a Hedge Fund
Great book on empirical trading system development with tons of examples

15 thoughts on “Reading List”

  1. Hello,

    Are you still trading penny stocks? All of your posts seem to have stopped in 2010. If you are still trading, I would be interested in communicating with you re your current strategies.

    Peter W. Senior

    1. Um, that question can be explained by looking at my most recent post. I continue to trade but I have no interest in being contacted by anyone, excepting maybe Ed McMahon.

  2. Due to the reason I was concerned of not being able to attend the majority of the weekly classes on the Tim Sykes trading challenge over the course of the year, yesterday I had to pass on the 2011 opportunity. While your two styles are different, I find by reviewing this site, both you and Tim have different benefiting perspectives, ones that play off each other well. Over the next couple of weeks, I’ll be reviewing your recommended Tax Guide for Traders in combination with signing up for Tim’s Penny Stocking Silver. Thanks for being affiliated with Tim, this site along with your disclosures was beneficial.

  3. You can scratch the “How to Trade In Stocks” book by Livermore. I read it, and it wasn’t very illuminating. I have since read: “Jesse Livermore, Speculator King”. Now THAT was an interesting read for any fan of “Remininsences of a Stock Operator.” It describes Livermore’s life, warts and all.

    It explains that the real reason Livermore gambled so aggressively after returning from Europe was he failed to declare his wife’s jewelry and it was seized by customs. That little lesson cost him his stake, and was no doubt where the story of the beaver coat came from in the Reminisences book. The book even discusses the “How to Trade In Stocks” book. The author believes it was a scam to make money by revealing a system so complicated that you would need Livermore’s services to decipher it. Unfortunately, the book bombed.

    It’s kind of a hit piece, but well worth the read.

  4. Hello Michael,

    Really good info, Can you please advise a good book which teaches you technical analysis? I really want to practise when to enter and exit out of trade.

    Vineet karir

    1. I’d like to add the book “Penny Stocks fo Dummies” by Peter Leeds to the reading list. Covers everything you need to know about the basics of trading and even shows the three (3) kinds of analysis when considering a stock: Fundamental, Technical and Abstract. 🙂

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