Journeys of a Bumbling Investor
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Irrational Trade Actions and Psychological Pitfalls in Trading
I wanted to review the mistakes that I have been making in my intraday futures trading. The difficulty for me in intraday futures trading is not in reading the market action, but in not succumbing to taking irrational trade actions due to emotional impulses generated while watching every tick of the action. I think it … Continue reading
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This is the famous book on Jesse Livermore by Edwin Lefèvre, and it is a must-read book for all traders and investors alike. This is the only book I have read so far that wrote in detail how stock manipulation is done, which I think is necessary background knowledge for appreciating price-volume action. The book … Continue reading
The full title of this book is “The Successful Investor: What 80 Million People Need to know to invest Profitably and Avoid Big Losses” by William J. O’Neil (sometimes known as WON on the internet forums). This particular book, The Successful Investor, was published in 2004, after the stock market bottomed in the dot-com crash. … Continue reading
This is a terrific book on tape reading, a must-read for people wanting to learn tape reading. How I found out about this book is when I read somewhere that Nicolas Darvas re-reads this book every week (and also Gerald Loeb’s Battle for Investment Survival). It seems that most if not all successful discretionary traders … Continue reading
I first learnt about this book from David Ryan’s reading list quoted in Jack Schwager’s Market Wizards. This is a good book in many aspects: It presents simple concepts in an organized manner with lots of examples There are quiz questions at the end of each chapter to test your understanding It presents a complete … Continue reading
This is a book review of two books, both written by Nicolas Darvas. This happens to be the first book review which covers two books at once, and the reason simply is that both books need to be read together because one book makes reference to the other book, and if you don’t read both, … Continue reading
The full title of this book is “Unexpected Returns: Understanding Secular Stock Market Cycles” by Ed Easterling. How I came across this book in the first place was when I was looking into the relationship between stock market returns and a number of other factors, such as interest rates, inflation, earnings, dividend yield, unemployment, GDP, … Continue reading
This is a book written by Jesse Livermore which was published in 1940, with new material added by Richard Smitten. The full title of the book is “How to Trade in Stocks: The Classic Formula for Understanding Timing, Money Management, and Emotional Control”. This is a terrific book on trading. It totally changed my view … Continue reading
I had this book for a long time and it’s one of those books that I have been wanting to read because the concept sounds good just from the title. The full title of this book is “It’s Earnings That Count: Finding Stocks with Earnings Power for Long-Term Profits” by Hewitt Heiserman, Jr. The book … Continue reading
Following on from my earlier post about the dangers of owning put options without owning the stock, I would like to summarize some of the different arguments for using one vehicle over the other. General Advantages of Stocks over Options Stocks are easier to get right – For stocks you just need to get the … Continue reading
Some risks of owning put options while not owning the stock, are typically not well highlighted in mainstream options education materials. This is beyond the standard issues with options such as needing to be right in the direction (puts or calls), timing (before expiration), and magnitude (must cover the premium) of the stock movement. If … Continue reading
This book “Warren Buffet and The Art of Stock Arbitrage: Proven Strategies for Arbitrage and Other Special Investment Situations” is written by the Mary Buffett & David Clark combination. Their Buffettology book was not bad, though it did not reach the popularity of Rule #1 by Phil Town (which came later and was similar to … Continue reading
I’ve always wanted to read “You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market Profits” by Joel Greenblatt since I knew about the book some years back, yet have somehow never managed to do so. Well, I finally dug in and I’m glad that I did. This is an … Continue reading
I read this book “Invest Like a Dealmaker” by Christopher Mayer some time ago. It is a book on value investing, and goes through the standard value investing concepts Think about the whole business, not just the stock price. Think about cash flow, not earnings. Use EV/EBITDA to get a snapshot on value. Think about … Continue reading
William C. Nygren of Oakmark Funds shared his investment methodology in a chapter of a book “Investing under Fire: Winning Strategies from the Masters for Bulls, Bears, and the Bewildered” by Alan R. Ackerman. A stock needs to meet 3 criteria before Oakmark will consider buying it The stock must sell at less than 60% … Continue reading
Book: “A Concise Guide to Macroeconomics: What Managers, Executives, and Students Need to Know” by David A. Moss. Review: This is an excellent book! Can’t recommend it highly enough! This lays down clearly the basic relationships among economic variables without going into equations or formulas. It is what makes macroeconomics interesting. Key Points: Output The … Continue reading
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