Skip to main content

Reading list: Books for new and veteran traders

There's a stack of books on a corner of my desk and it's piled 10 high. They are all, in some way, related to trading or professional money management and investing. 

These are books you may have heard me mention on Twitter. Some I've read and re-read. Some are newly acquired and I may have only had a chance to flip through or read to the halfway mark. We'll focus more on those I've read, but I want to give you the heads up on some of the newer (to me) titles as well. I think they all contain some useful insights that will help you to become a more focused and informed trader (or investor).

Quick disclosure note: all the books I write about on this site are either purchased by me or have been given to me, either as review copies (free) from authors and publishers or as gifts from friends. 

Now on to the reading list, which I hope will help you fill out your list of must-read trading books.

1. Inside the House of Money by Steven Drobny is a book I've mentioned several times in past posts and tweets. It is mainly composed of interviews with hedge fund managers operating in the "global macro" field - big picture macroeconomic analysis expressed through trades in multiple asset classes (currencies, bonds, derivatives, stocks) across the globe. The book begins with an introduction to the world of global macro investing and its historical progression to the present day. 

The interview chapters are laid out in the style of Jack Schwager's Market Wizards series, and in fact, Drobny's book arrived six years before Schwager's latest Wizards update, Hedge Fund Market Wizards

I'm currently in the process of re-reading both, dipping into randomly selected chapters as time allows. They are both full of interesting market insights and character studies. I'd recommend both to any avid investor or to more experienced traders. 

I'd only caution that newer traders may be overwhelmed by the variety of investing styles and markets represented here. The interviews may tempt some to venture outside their areas of competence or to spend time thinking about concepts that bear little relevance to their own trading styles. Having said that, Drobny's book and Schwager's are a great store of knowledge and quotes from some very experienced, top shelf money managers.

2. The Invisible Hands: Top Hedge Fund Traders on Bubbles, Crashes, and Real Money is a newer interview book by Steven Drobny, originally published in 2010. I have the new paperback edition but have not had a chance to read it yet. 

Drobny's preface to the 2013 edition centers on the need to focus on lessons from the 2008 crisis, especially now that we've returned to complacency mode 5 years into a post-crash bull market and recovery. I'll provide more insights from this book, here and on Twitter, when I've had a chance to read more.

3. The Successful Investor and How to Make Money in Stocks by William O'Neil. 


I first read The Successful Investor, O'Neil's slimmer stock trading guide, sometime in 2009 or 2010. It served as a great introduction to his CANSLIM method and his overall philosophy on risk management and market timing. 

If you are really willing to commit to trading stocks or guiding your own investments, his How to Make Money in Stocks (4th edition) is a must-read. You don't have to follow his methods to a T, but the review of chart patterns and common characteristics of winning stocks are lessons that should be learned and absorbed. I wish I had acquired copies of both books sooner

4. How I Made $2,000,000 in the Stock Market by Nicolos Darvas. 


Maybe it was the hokey, attention-grabbing title that put me off of reading this book for years. However, it kept coming up as a top recommendation of stock traders I respected. Finally, when a friend told me I had to read Darvas' book, I acquired a copy. 

It's a fun read based on Darvas' journey from stock-picking neophyte to a "man with a plan". Darvas found a bull market system that worked for him, picking growth stocks emerging from a breakout "box" pattern. I'm going to have to pick this one up and start reading it again.

That's it for now. I'll provide more updates and lessons distilled from these books when I have more time to write. Until then, here's to your own unique educational path and success! 

Subscribe to Finance Trends by email or get new posts via RSS. You can follow our real-time updates on Twitter. 

Popular posts from this blog

The Dot-Com Bubble in 1 Chart: InfoSpace

With all the recent talk of a new bubble in the making, thanks in part to the Yellen Fed's continued easy money stance, I thought it'd be instructive to revisit our previous stock market bubble - in one quick chart.

So here's what a real stock market bubble looks like. 

Here's what a bubble *really* looks like. InfoSpace in 1999-2001. $QQQ$BCORpic.twitter.com/xjsMk433H7
— David Shvartsman (@FinanceTrends) February 24, 2015
For those of you who are a little too young to recall it, this is a chart of InfoSpace at the height of the Nasdaq dot-com bubble in 1999-2001. This fallen angel soared to fantastic heights only to plummet back down to earth as the bubble, and InfoSpace's shady business plan, turned to rubble.

As detailed in our post, "Round trip stocks: Momentum booms and busts", InfoSpace rocketed from under $100 a share to over $1,300 a share in less than six months. 

In a pattern common to many parabolic shooting stars, the stock soon peaked and began a…

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL! 

Please bookmark our new web address at Financetrendsletter.com

Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner.  



Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead!

As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter. You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter). 

Stay up to date with our real-time insights and updates on Twitter.

Moneyball: How the Red Sox Win Championships

Welcome, readers. To get the first look at brand new posts (like the following piece) and to receive our exclusive email list updates, please subscribe to the Finance Trends Newsletter.

The Boston Red Sox won their fourth World Series titleof the 21st century this week.

Having won their first Series in 86 years back in 2004, the last decade-plus has marked a very strong return to form for one of baseball's oldest big league clubs. So how did they do it?

Quick background: in late 2002, team owner and hedge fund manager,John W. Henry(with his partners)bought the Boston Red Sox and its historic Fenway Park for a reported sum of $695 million.

Henry and Co. quickly set out to find their ideal General Manager (GM) to help turn around their newly acquired, ailing ship.

This brings us to one of my favorite scenes from the 2011 film, Moneyball, in which John W. Henry (played by Arliss Howard) attempts to woo Oakland A's GM Billy Beane (Brad Pitt) over to Boston with an excellent job off…