I mentioned earlier that I had read every book on the shelf about investing…not completely true, but I have read A LOT and want to share my all-time favorites.
In my opinion this book explains the ups and downs of being a stock market operator better than any other book out there. Larry Livingston becomes intrigued with the market from an early age and experiences massive gains and losses throughout his life as a trader. His struggles mirror that of many traders out there I am sure. You won’t learn technical details of trading, but you will better understand the emotional aspects to investing…for the experienced investors out there you may even be able to relate. If you haven’t already read this book…you must buy it right now and begin.
This is the most recent book I have read. It was written by Gatis N. Roze and his son Grayson D. Roze. The book details how a full time trader (Gatis) works his way through interpreting the market, narrowing down his investments to a few that are most appealing, and finally buying and monitoring it. I am a fan of the logic behind his trading technique, and apparently he is a successful trader. I bought the “chartpack” on stockcharts.com and have found it unbelievably helpful with researching the market. Before I read this book or purchased the chartpack I do not believe I was truly on the right path to intelligently investing. A chartpack is really just an assortment of prearranged charts with different technical overlays depending on the data within the charts. I use this on a daily basis for interpreting the market. I will go into more detail on this in a later discussion. As for the book, it has been helpful because I now have a better plan for myself for arranging daily priorities and assembling a checklist prior to any investment decision. The book taught me not to rush… take your time… XYZ will most likely not shoot up 20% before you have the chance to properly research and purchase the investment…and if it does shoot up 20% then it is time to reconsider the investment.
No other book has made me more skeptical about the inner-workings of the market. This book goes into detail about how being within close proximity to servers has given high frequency traders an advantage over one another. It also helped to confirm my theory that the average individual day trader out there is doomed from the beginning. Beating extremely fast algorithmic trading machines is not easy. The book also talks about things like “dark pools” where big banks and market makers (MMs) trade without the public being able to see through level II trading. Some very interesting details about how the market really works are included in this book. It’s been about a year since I last read this book and just writing about it is bringing back a lot of memories…might pick this one back up for a re-read soon.