Best books on the market?

[ZackyBoy]

Originally Posted by Jbreen1

I think you should read up on micro and macroeconomics. I'm a business student and economics is the foundation for understanding how the market works. It's like a medical school student taking biology classes. With that said, check out Investing In Liquid Assets. It talks about investing in wine which has proven to be a consistent performer over the years whether in times of recession or not. It does not follow market trends and can make you 15% annually pretty easily.

I have finished micro/macro 1 and am in Theory I of both.

 

[vinouspleasure]

a random walk down wall street
predictably irrational
drunkard's walk

put your money into low cost index funds that mirror the broad market.

 

[Jbreen1]

Originally Posted by ZackyBoy

I have finished micro/macro 1 and am in Theory I of both.

O ok. Are you majoring in econ?

 

[ZackyBoy]

Originally Posted by Jbreen1

O ok. Are you majoring in econ?

It used to be my major. It's my minor now.

 

[DNW]

Originally Posted by cchen

Am i thinking of the wrong book? i thought it had a bit of stochastic calculus in it, which, you won't really learn in undergrad unless you're a hardcore math major. pretty sophisticated to the avg person

That was in the intro material of Wiener processes, before the Black-Scholes chapter. Just some basic stuff, nothing mind blowing at all. I'm looking at the book right now, but all these greek letters are giving me a ******* headache. I remember it being much easier then--we worked everything out by hand.

****, I feel stupid now. Law school has ruined me.

 

[djs488]

Fooled by Randomness, Black Swan - Nassim Nicholas Taleb

Especially if you're "collecting rent".

 

[vinouspleasure]

What are your goals? Do you hope to study some advanced books about trading, invest your $40K and make some money trading?

I'm sure you'r esmart, but I'm equally sure that there are 1000s of smart people that have already read those books, developed trading strategies, have lots of experience and are losing money every single day. IMO, on a risk-adjusted basis, you are not going to make money in the US equity market.

 

[Pennglock]

Agree with Dark that Hull is pretty rudimentary stuff. With the Derivatives class I took in college, reading Hull wouldn't get you to square-one on the exam... it was basically recommended as a high-level overview.

I've found Talib's Dynamic Hedging to be the best of the quantatative "layman's" books. Some very practical stuff in there (tho beware- there are some algebra errors that make working through the examples infuriating) and more importantly this man's approach to risk and hedging with options may be the best Ive seen.

 

[ZackyBoy]

Just an update... I read a bunch of books and they did nothing. I learned more researching TA in two hours (although I have spent much more time than that now).... Don't do what I did!



But for reference, I am doing well and I don't feel blind at all in my buys.

 

[phreak]

first off, how do you get 40k while going to school? I have been really fortunate to get a nice job while in school, dont have near that much saved up. y dont you just have fun with it?

 

[untilted]

i've got john griffin's recommended book list. he's a very solid long/short equity hedgie. trained by julian robertson, tiger-cub, on the level of david einhorn, whitney tilson, bill ackman, etc. just a couple more popular books on the list:

milton friedman: capitalism and freedom
charles ellis: winning the loser's game, timeless strategies for successful investing
philip fisher: common stocks and uncommon profits
foster and kaplan: creative destruction: why built to last underperforms th emarket
graham: security analysis
peter lynch: one up on wall st
howard schilit: financial shenanigans: how to detect accounting gimmicks
jeremy siegel: stocks for the long run
kathryn staley: art of short selling
john williams: theory of investment value

he also has a a shitload of behavioral finance/psychology books, some biographical books like buffet's and soros' stuff, the two market wizards book, a steinhardt book, and stuff like atlas shrugged, fooled by randomness, and how to win friends and influence ppl.

 

[ZackyBoy]

Originally Posted by phreak

first off, how do you get 40k while going to school? I have been really fortunate to get a nice job while in school, dont have near that much saved up. y dont you just have fun with it?
I worked part-time since I was 15 and full-time in the summers, and took a year off school and worked full time. Parents gave me $10000 when I graduated high school/got into university. What fun would I have with it? Buy 40k worth of beer and coke? A car?

 

[theguy]

there is some good info on this forum
http://www.hotstockmarket.com/forums...splay.php?f=47
what ever you do stay away from penny stocks btw.

 

[cadillac37]

Read everything by Ben Graham. Seriously.

 

[phreak]

I worked part-time since I was 15 and full-time in the summers, and took a year off school and worked full time. Parents gave me $10000 when I graduated high school/got into university. What fun would I have with it? Buy 40k worth of beer and coke? A car?

Im assuming you have absolutely zero expenses and parents pay for everything. start with Mega-cop, i recommend

how about help parents pay for **** first before you start investing as to the OP, well **** the OP. play poker instead, anyone with half a brain can beat online for 50k/year if you work at it...with 40k roll it could be much more than that