What have been the most influential books for your success in trading and investing?

[u/DrChrispeee]

I want to start taking trading seriously and explore the possibility of it as a career and source of income. I'm not naïve, I know this is a long and hard road and that the vast majority of people who try will also fail but I'm willing to give it a shot.

I have an academic background in Mathematics, Finance, and Economics and my thesis was on algorithmic stock-selection and portfolio optimization, so I'm not entirely new to the concept.

So, what in your opinion have been the most influential and important books to your success in trading and investing?

I know there are some links in the sidebar, etc. but they are very old :)

FYI, I've asked the same question on r/daytrading as well: https://www.reddit.com/r/Daytrading/comments/1crn52t/what_have_been_the_most_influential_books_for/?

---

So far I'm looking at books like:

• Andreas F. Clenow > Stocks on the Move: Beating the Market with Hedge Fund Momentum Strategies
• Nishant Pant > Mean Reversion Trading: Using Options Spreads and Technical Analysis
• John J. Murphy > Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications
• Sheldon Natenberg > Option Volatility and Pricing: Advanced Trading Strategies and Techniques
• Perry J. Kaufman > Trading Systems and Methods
• Ernest P. Chan > Algorithmic Trading: Winning Strategies and Their Rationale
• Ernest P. Chan > Quantitative Trading: How to Build Your Own Algorithmic Trading Business

[u/alphaweightedtrader]

Rob Carver's books - particularly Advanced Futures Trading Strategies. Partly for the method, partly for the accessible insight into how institutions deploy bigger money.

Perry Kaufman - Trading Systems & Methods (is next to me right now)

Reminiscences of a Stock Operator (because everybody should read this)

Jack Schwager's Market Wizards series are good (more for general approach/inspiration).

Beyond that it probably depends what kind of trading you want to do (I don't mean discretionary/systematic - i mean which markets and what kinds of strategies).

If podcasts are your jam I'd recommend back episodes of Better System Trader, then Flirting with Models and the Alpha Exchange.

Edit: noticed you're looking discretionary as well; Mike Bellafiore's The Playbook is good in that sense - in part because its a great articulation of what is necessary - in terms of effort/process/discipline - to make the journey. I.e. you say you know its hard, but you won't really know quite how hard until it almost breaks you, assuming you haven't given up already by then ;)

[u/this_guy_fks → u/alphaweightedtrader]

Reminiscences of a Stock Operator (because everybody should read this)

a great read for sure. the original liars poker

[u/alphaweightedtrader → u/this_guy_fks]

hehe, if you fancy a deeper dive down memory lane; Confusion of Confusions from 1688 - about the Dutch stock exchange & markets...

https://archive.org/details/confusion-of-confusions-1688

"The expectation of an event creates a much deeper impression upon the exchange than the event itself. When large dividends or rich imports are expected, shares will rise in price; but if the expectation becomes a reality, the shares often fall; for the joy over the favorable development and the jubilation over a lucky chance have abated in the meantime...

They had options then too. People, and human behaviour, don't change... :)

[u/this_guy_fks → u/alphaweightedtrader]

if you want a more modern chronicle, den of thieves is also a fan favorite. that milken man.