Sunday, November 8, 2009

Private Trader Reading List

Good morning good morning!! Another trading week begins.

A friend once asked what books I like for novice traders. Here's a selection:

Fundamental analysis as practiced by Warren Buffett: "Buffetology", by Mary Buffett. My style of days-trading differs wildly from his buy-and-hold, but he has a useful perspective on what it is that underlies the symbols that we trade.

"Short-Term Trading in the New Stock Market", by Toni Turner. Good for perspective on trading the way I do it -- open a position, close it and don't hang around for sad farewells. Some nice introductory material on technical analysis, as well.

When you feel more comfortable getting deeper into technical analysis, this book is a good survey of the many methods used: "Technical Analysis Explained", by Martin Pring.

All the basics of stock options, and more: "Options as a Strategic Investment", by Lawrence G. McMillan. It's a huge door-stopper, but what a pool of great information.

For day-to-day reference, to keep you focused on the difference between an iron condor and a bull put spread, "The Bible of Option Strategies: The Definitive Guide to Practical Trading Strategies", by Guy Cohen.

And for a deep look at options, their nature and their theology (How many options will fit on the head of a pin?), "Option Volatility and Pricing: Advanced Strategies and Techniques", by Sheldon Natenberg.

All of those are books that I've read and used in my study.


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