December 17, 2013 at 10:22Top 10 books for understanding the structure of the stock market
The modern stock market is a large-scale and rather complex field of knowledge. For beginners, it’s not easy to understand all the intricacies of the relationships that arise between people when they find themselves on the exchange, and learn the basics of Internet trading. At the same time, many investors who are already active do not have a sufficient set of basic knowledge. Our today's topic contains a list of books that will help beginners to learn the basic concepts of the stock market (and indeed the financial field) and allow more experienced traders to broaden their horizons and deepen their knowledge.
Fooled by chance. The hidden role of chance in the markets and in life - Nassim Talleb The
main idea of the book is very unexpected for the vast majority of people - if some person was lucky in life, then it is likely that he is not such a genius who developed a successful strategy, but a simple lucky one. On the stock exchange, everything is the same as in real life - there are trading strategies using which someone breaks the bank, but no one knows about the many investors who, following them, did not succeed. The book is very useful for forming the right attitude to life and the stock market, in particular.
Reminiscences of a Stock Operator - Edwin Lefevre
classical work, which will be useful to read even to those who are not interested in the stock market. The story of the protagonist, the prototype of which was made by a real trader Jesse Livermore, fully reflects the life of anyone who decided to connect their destiny with exchange trading - ups, followed by falls, which are extremely difficult to survive. The book was first published in 1923 and still accurately reflects the nature of the market, describes the thinking patterns of stock traders and describes their typical mistakes.
Quantums: How math wizards earned billions and nearly brought down the stock market - Scott Patterson
Bookabout those who caused the 2007 crisis and are now pulling the world economy out of it, earning billions from it. The book has become a bestseller and, although it relates more to the genre of journalism than actually exchange literature, it needs to be read in order to understand what serious opponents you will have to deal with as soon as you find yourself in the market.
Stock Trading. The classic formula for timing, money management and emotions - Jesse Livermore A
logical continuation of the book of Lefebvre. Very useful book- it provides, as the name implies, the “Livermore formula” with an example of its application in the case of stock trading. Of course, in the modern market, where robots and high-frequency traders are playing an increasing role, you are unlikely to be able to use it, but it will be extremely useful for understanding the structure of the market.
Investor dancer. How I made $ 2,000,000 in the stock market - Nicholas Darvas
Nicholas Darvas is considered one of the best traders of the second half of the twentieth century. This personality is very interesting - a professional dancer who managed to develop a method of selecting stocks that was ideal for beginners, since he did not require special knowledge from them. The book was first published in 1961, reprinted many times, and from it you can still draw a lot of valuable knowledge.
Secrets of exchange trading - Vladimir Twardovsky, Sergey Parshikov
A very successful book about working in the Russian stock market. The authors, one of which is the chairman of ITinvest Vladimir Twardovsky, created a real textbook on Internet commerce, which contains not only theory, but also highlights many practical issues.
New magicians of the market. Conversations with America's Top Traders - Jack D. Schwager
Conversations with leading portfolio managers and traders who have achieved outstanding success in trading on the exchange. In the book, they talk about their trading methods, investment ideas and techniques - information that will be extremely useful for beginners and experienced investors to familiarize themselves with.
How to predict the collapse of financial markets. Critical Events in Complex Financial Systems - Didier Sornet
The main idea of the book is that if, with the help of new scientific concepts, one understands the financial failures that happened in the past, then their prediction in the future will become quite possible. The author set himself the goal of creating a scientific method for predicting both market failures and its individual elements like currencies or stocks.
Long-term secrets of short-term trading - Larry Williams
The author is a recognized master in the field of short-term speculation - once in a year during a competition he turned $ 10k into $ 1.1 million. In his bookhe describes his methods that lead to the best results, and also gives the basics of short-term trading. The whole trading system is not presented in the book, however, from the point of view of the psychology of trading, it is an unsurpassed thing.
Chaos and order in capital markets. A new analytical look at the cycles, prices and market volatility - Edgar Peters
A book devoted to the modern problems of nonlinear economic dynamics (economic synergetics), it describes in detail and analyzes the processes occurring in the market under the influence of various factors. A clear structure of presentation: a large amount of introductory material, coupled with a large amount of directly information on the topic, will make it useful and interesting for both beginners and experienced investors.
PS If you think that some excellent book undeservedly did not get on our list - share the link in the comments, we will make another topic.
Note : resources and analytical materials on the current situation in the Russian and foreign stock and financial markets are presented here: www.iticapital.ru/analytics
Trading philosophy
Fooled by chance. The hidden role of chance in the markets and in life - Nassim Talleb The
main idea of the book is very unexpected for the vast majority of people - if some person was lucky in life, then it is likely that he is not such a genius who developed a successful strategy, but a simple lucky one. On the stock exchange, everything is the same as in real life - there are trading strategies using which someone breaks the bank, but no one knows about the many investors who, following them, did not succeed. The book is very useful for forming the right attitude to life and the stock market, in particular.
Reminiscences of a Stock Operator - Edwin Lefevre
classical work, which will be useful to read even to those who are not interested in the stock market. The story of the protagonist, the prototype of which was made by a real trader Jesse Livermore, fully reflects the life of anyone who decided to connect their destiny with exchange trading - ups, followed by falls, which are extremely difficult to survive. The book was first published in 1923 and still accurately reflects the nature of the market, describes the thinking patterns of stock traders and describes their typical mistakes.
Quantums: How math wizards earned billions and nearly brought down the stock market - Scott Patterson
Bookabout those who caused the 2007 crisis and are now pulling the world economy out of it, earning billions from it. The book has become a bestseller and, although it relates more to the genre of journalism than actually exchange literature, it needs to be read in order to understand what serious opponents you will have to deal with as soon as you find yourself in the market.
Stock Trading. The classic formula for timing, money management and emotions - Jesse Livermore A
logical continuation of the book of Lefebvre. Very useful book- it provides, as the name implies, the “Livermore formula” with an example of its application in the case of stock trading. Of course, in the modern market, where robots and high-frequency traders are playing an increasing role, you are unlikely to be able to use it, but it will be extremely useful for understanding the structure of the market.
Investor dancer. How I made $ 2,000,000 in the stock market - Nicholas Darvas
Nicholas Darvas is considered one of the best traders of the second half of the twentieth century. This personality is very interesting - a professional dancer who managed to develop a method of selecting stocks that was ideal for beginners, since he did not require special knowledge from them. The book was first published in 1961, reprinted many times, and from it you can still draw a lot of valuable knowledge.
Theory and practice of trading
Secrets of exchange trading - Vladimir Twardovsky, Sergey Parshikov
A very successful book about working in the Russian stock market. The authors, one of which is the chairman of ITinvest Vladimir Twardovsky, created a real textbook on Internet commerce, which contains not only theory, but also highlights many practical issues.
New magicians of the market. Conversations with America's Top Traders - Jack D. Schwager
Conversations with leading portfolio managers and traders who have achieved outstanding success in trading on the exchange. In the book, they talk about their trading methods, investment ideas and techniques - information that will be extremely useful for beginners and experienced investors to familiarize themselves with.
How to predict the collapse of financial markets. Critical Events in Complex Financial Systems - Didier Sornet
The main idea of the book is that if, with the help of new scientific concepts, one understands the financial failures that happened in the past, then their prediction in the future will become quite possible. The author set himself the goal of creating a scientific method for predicting both market failures and its individual elements like currencies or stocks.
Long-term secrets of short-term trading - Larry Williams
The author is a recognized master in the field of short-term speculation - once in a year during a competition he turned $ 10k into $ 1.1 million. In his bookhe describes his methods that lead to the best results, and also gives the basics of short-term trading. The whole trading system is not presented in the book, however, from the point of view of the psychology of trading, it is an unsurpassed thing.
Chaos and order in capital markets. A new analytical look at the cycles, prices and market volatility - Edgar Peters
A book devoted to the modern problems of nonlinear economic dynamics (economic synergetics), it describes in detail and analyzes the processes occurring in the market under the influence of various factors. A clear structure of presentation: a large amount of introductory material, coupled with a large amount of directly information on the topic, will make it useful and interesting for both beginners and experienced investors.
PS If you think that some excellent book undeservedly did not get on our list - share the link in the comments, we will make another topic.
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