Investing Literature To Optimize Your Trading

The following is a summary of investing literature that has been helpful to my development as a trader. The list reads somewhat like a library and is broken out by category and subject (so you can quickly locate literature that may be useful to you). As well, I have tried to get away from the generally listed investing literature and offer up some new alternatives. Note that most of featured publications can be easily found in book stores or via the internet.

Trading Psychology / Quality of Life – Investing Literature

The following books and articles target some of the core psychological issues that traders face every day and techniques to improve your trading performance. I would like to add that I believe an optimal way to improve your psychological disposition towards trading is to seek out a performance coach. Literature can help you identify your obstacles, while working with a professional helps you to overcome your obstacles.

“The Mental Edge: Maximize Your Sports Potential with the Mind-Body Connection” – Kenneth Baum

    • I’m a big believer in visualization techniques and the contribution it can make to trading success.  I first used visualization during my years playing hockey.

“Good To Great” – Jim Collins

    • The book is centered on how companies can go from a position of mediocre to greatness. Many of the concepts are readily applicable to the trading business and to building yourself into an elite trader. I have adopted the book as a cornerstone piece for my trading program and course.

All the books of Dr. Ari Kiev.

    • “Trading to Win: The Psychology of Mastering the Markets”
    • “Trading in the Zone: Maximizing Performance with Focus and Discipline”
    • “The Psychology of Risk: Mastering Market Uncertainty”
    • “The Mental Strategies of Top Traders: the Psychological Determinants of Trading Success”
    • “Hedge Fund Masters: How top Hedge Funds Set Goals, Overcome Barriers and Achieve Peak Performance”
    • “Mastering Trading Stress: Strategies for Maximizing Performance”

Prior to his passing, I had been organizing a conference with Dr. Kiev. He revolutionized the hedge fund industry in terms of trader performance.

“Psychology of the Stock Market” – G.C. Selden

    • The book was written in 1912, but offers great insight in stock market speculation.

“On Managing Yourself” – Dr. Mario F. Conforti

“As a Man Thinketh” – James Allen

    • A timeless classic in my opinion.

“Fighting Attachment in Trading” – Jon Ossoff (Active Trader, August 2011)

“Who Are You?” – Linda Bradford Raschke (SFO, Aug. / Sept. 2003)

    • Linda has made a number of contributions to trading and I have utilized several of her general market observations and concepts.

“Maintain Your Mindset: Using the Three R’s & Positive Thinking” – Linda Bradford Raschke (SFO, July 2004)

“Why Smart Traders Do Dumb Things: Understanding Prospect Theory” – David Silverman (SFO, July 2005)

Fundamental Analysis – Investing Literature

After the internet bubble I realized I needed to become well versed in the fundamental side in order detect a potential Trojan horse.  I have found these two books to be very helpful resources.

“Financial Shenanigans: How to Detect Accounting Gimmicks & Fraud in Financial Reports” – Howard Schilit

“Financial Warnings” – Charles W. Mulford & Eugene E. Comiskey

Risk / Risk Management – Investing Literature

Managing risk is central to achieving superior trading returns. Considerations that frame a risk management include position sizing, stop placement, security liquidity and performance metrics.

“Trading Risk”- Kenneth L. Grant

    • The author created the risk programs of Tudor Investments and SAC Capital.  I have implemented several of the risk management concepts into my trading program

“The Nature of Risk: Stock Market Survival & the Meaning of Life” – Justin Mamis

“The Poker Face of Wall Street”– Aaron Brown

    • Extrapolates his poker lessons into trading.

“Black Swan of Cairo” – Nassim Taleb and Mark Blyth (Foreign Affairs / May-June 2011)

“The Babe Ruth Effect: Frequency vs. Magnitude” – Credit Suisse

“Position-sizing Effects on Trader Performance: An Experimental Analysis” – Johan Ginyard

“Determining Optimal Risk” – Ed Seykota & Dave Druz (Stocks & Commodities V.11:3)

    • Whenever Ed Seykota speaks you should listen.

Historical Precedent Analysis / Leadership Stock Profiling / General Market Analysis – Investing Literature

I’m a big believer in the importance of historical precedent analysis whether it is the general market or stocks. It is an objective approach that puts as many probabilities on your side as possible. I have done a lot of proprietary work in this area ranging from IPO studies to industry group leadership.

“Finding the Next Super Stock” – Frank A. Cappiello

“Profile of a Growth Stock” – Kermit C. Zieg Jr. & Susannah H. Zieg

“Selecting Superior Securities” – Marc R. Reinganum

    • Comprehensive study of 222 stock market winners during 1970-1983.  The research was partially funded by the William O’Neil Company.

“The Research Driven Investor” – Timothy Hayes

    • Tim is the Chief Investment Strategist at Ned Davis Research.  I’m a big fan of their objective research.

“The Capitalism Distribution” – Blackstar Funds

“How to Make Money in Stocks” – William J. O’Neil

    • It was the second book I ever read on trading / investment.  The first book was “Beating the Street” written by Peter Lynch.  It is the foundation of my work.

“The Geometry of Art and Life” – Matila Gyka

“Winning on Wall Street” – Martin Zweig

“Top Stocks Yearly Editions” – MarketSmith

    • MarketSmith compilation of the top stocks for each calendar year along with charts. Great historical source of investing literature.

“Momentum Investing Can Achieve Market-Beating Returns” – Matthew Tuttle (Advisor Perspectives)

investors business daily, investing literature

“Investor’s / Trader’s Corner” – Investment Business Daily

  • I trade growth stocks in a timely position for purchase from technically superior patterns.  Investor’s Corner (the section was called Trader’s Corner back in the day) played a huge role in my development as a trader. In fact, prior to IBD going online (more than 10 years ago) I used to have the hard copy shipped to Chile just for the Investor’s Corner section. I have compiled 18 booklets covering about 13 years of Investor’s Corner publications.IBD investing research papers

 

 

Trading Strategies / Techniques – Investing Literature

A valuable set of literature that will give you an edge in your daily trading operations.

“Secrets for Profiting in Bull and Bear Markets” – Stan Weinstein

“How to Make Money Selling Stocks Short” – William J. O’Neil

    • I regard this book as the foundation of my shorting program.  It is a concise approach that removes much of the uncertainty regarding short selling.

“Trading with the Cup-With-Handle” – Greg Kuhn (Stocks & Commodities V.13)

    • Introduces the Cup-Completion-Cheat pattern.  A strategy for getting into the Cup-with-Handle pattern early.

“Low-Risk Trades Using Cup-With-Handle” – Dale Glaspie (Stocks & Commodities V. 27:6)

Compilations / Personal Trading Stories / Economics – Investing Literature

A list of books for your nightstand.

“The Professional Commodity Trader” – Stanley Kroll

“Market Wizards: Interviews with Top Traders” – Jack D. Schwager (This is the first book of the series.)

    • In my opinion this is the best collection of elite market operators every compiled. Enough said!

“Trading: The Best of the Best – Top Trading Tips for Our Times” – Brian C. Lund

    • I have the privilege of being included in this book of real life traders.

“Reminiscences of a Stock Operator – Illustrated Edition” – Edwin Lefévre

“Principles” – Ray Dalio

“Nonmonetary Effects of the Financial Crisis in the Propagation of the Great Depression” – Ben Bernanke (1983)

    • I do not get too much into economics, but I think it is important to understand the governing philosophy of the Fed Chairman as it relates to dealing with a financial crisis.

Hope you found this list of investing literature helpful. Thanks for reading.

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