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Reminiscences of a Stock Operator
by Edwin Lefevre
 Here
is one of the most fascinating, readable and
instructive books ever written about the stock
market -- a true classic. First published in
1923, this is a fictionalized biography of the
Wall Street career of Jesse Livermore, one of the
greatest stock traders of all time. The book is
filled with anecdotes, lessons and wisdom that
make it astonishingly useful and timely today.
Livermore began his career at age 15, chalking up
prices in a boardroom, an experience that would
make him a master tape reader. He made and lost
fortunes several times in his life and was broke
when, in 1940, he blew his brains out with a .32
calibre automatic in a men’s room at the
Sherry-Netherland Hotel in New York City.
Nonetheless, this is one of those rare classics
whose fame has spread by word of mouth until now it
has become virtually impossible to find a first
edition. It is one of the single, best books on
trading tactics and market psychology, and is
cited most often by “market pros” as
the book to read and re-read. Highly recommended classic.
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Extraordinary Popular Delusions & the Madness of Crowds by Charles MacKay
First published in 1841, the book explores the
psychology of crowds and mass mania throughout history. Mackay included
accounts of classic scams, grand-scale madness, and deceptions. Some of
these include the Mississippi scheme that swept France in 1720, the
South Sea bubble that ruined thousands in England at the same time, and
the tulip mania in Holland when fortunes were made and lost on single
tulip bulbs. Other chapters deal with fads and delusions that often
sprang from valid ideas and causes -- many of which still have their
followers today: alchemy and the philosopher's stone, the prophecies of
Nostradamus, the coming of comets and judgment day, the Rosicrucians,
and astrology. This is an important historical treatise that modern
readers will find fascinating and engaging as they see how history
repeats itself, and that disastrous pitfalls can be avoided by
understanding the cycles and patterns that greed-based ignorance plays
in promoting and perpetuating group hysteria in business and finance,
politics and superstitions. |
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Security Analysis: The Classic 1940 Edition by Benjamin Graham and David Dodd
Benjamin Graham's revolutionary theories have influenced and inspired
investors for nearly 70 years. First published in 1934, his Security
Analysis is still considered to be the value investing bible
for investors of every ilk. Yet, it is the second edition of the book,
published in 1940 and long since out of print, that many
experts--including Graham protégé Warren Buffet -- consider to be the
definitive edition. This facsimile reproduction of that seminal work
makes available to investors, once again, the original thinking of this
century's (and perhaps history's) most important thinker on applied
portfolio investment. Much has changed on Wall Street since the 1930s,
but the concept of buying undervalued companies has not. |
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The
The Great Crash 1929 by John Kenneth
Galbraith
Rampant speculation. Record trading volumes. Assets bought not because
of their value but because the buyer believes he can sell them for more
in a day or two, or an hour or two. Welcome to the late 1920s. Of
course, Galbraith notes, every financial bubble since 1929 has been
compared to the Great Crash, which is why this book has never been out
of print since it became a bestseller in 1955. Reviewing Galbraith's
classic examination of the 1929 financial collapse, The Atlantic Monthly
said, "Economic writings are seldom notable for their entertainment
value, but this book is. Galbraith's prose has grace and wit, and he
distills a good deal of sardonic fun from the whopping errors of the
nation's oracles and the wondrous antics of the financial community."
For this edition, the celebrated economist has written a new
introduction with fresh insights on the legacy of our past and the
consequences of blind optimism and power plays within the financial
community. |
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The Robber Barons by Matthew Josephson
Rockefeller, Morgan, Vanderbilt, Carnegie, Harriman, Gould, Frick,
....this is the incredible story of the giant American capitalists who
boldly seized economic power after the Civil War and altered the shape
of American life forever. 'It is the best, the livliest and the most
illuminating of the works on this subject...the material it contains,
while not new, has never been so skillfully coordinated before, nor
assembled to throw light on such an important process.' --Robert
Cantwell, New Republic. 'Mr. Josephson has told his story...with great
verve and a fine sense of it's dramatic values...not a mere series of
biographies but a genuine history...he is particularly to be
congratulated upon the lucidity with which he sets forth the complex
financial transactions by which most of the barons built up their
fortunes.' --Henry Hazlitt New York Times. |
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The Intelligent Investor: The Classic Bestseller on Value Investing by Benjamin Graham
The Intelligent Investor by Benjamin Graham is a classic.
Considered by many to be the father of value investing and modern
security analysis, Benjamin Graham started working on Wall Street in
1914, a time when portfolio management was based more on unsupportable
impressions and inside information. Benjamin Graham brought a
disciplined and intelligent approach to the profession. After reading
The Intelligent Investor in his senior year at the University of
Nebraska, Warren Buffett was so impressed that he traveled to New York
to study with Benjamin Graham at Columbia University. Warren Buffett
once said that he was "15 percent (Philip) Fisher and 85 percent
Benjamin Graham." The training that Warren Buffett received from
Benjamin Graham was critical to his success. If you read this book,
you'll know why. The Intelligent Investor's emphasis is on investment
principles and investors' attitudes. Several comparisons of specific
securities are included to demonstrate important elements in security
selection. The book provides a guide to avoiding the loss of investment
capital as well as identifying securities which are likely to provide
superior returns with a margin of safety. |
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A Random Walk Down Wall Street, Completely Revised and Updated Edition by Burton G. Malkiel
A Random Walk presents the point of view of an
academic, rather than that of a trader. Malkiel's premise is that
neither the the average investor nor the professional trader can expect
to perform better than the market over any significant period of time.
He considers market events to be random, and thus unpredictable, and
offers piles of data to support his contentions, and his arguments are
compelling. Malkiel points to the fact that most investment managers
fail to perform better than index funds so he recommends that investors
buy broadly-based index funds. This classic has been around for 30 years
and this revised edition is worth your time, especially if you have
never read an earlier edition. Just be aware that many technical traders
consider this to be a work of fiction. |
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The Money Game by Adam Smith
This book is just as relevant today as it was in the late the
sixties. The high flyers Smith writes about are so similar to those of
the recent bubble, it is literally as if nothing but the symbols have
changed. Almost every major investment paradox or problem we face today
is foreshadowed in this book. As a work of literature, it combines an
engaging text with profound underlying meaning. The chapter "What Do the
Numbers Mean?" on aggressive accounting was eerily prescient. The author
(George J. W. Goodman, writing under the pen name "Adam Smith") never
misses a beat in deftly applying insights to the world of finance. The
book has a strong undercurrent of behavioral finance, but it's about
much more than that. There's a lot of humor, but there is also tragedy,
as when he recounts the tale of one burnt-out and broke
ex-millionaire. |
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Against the Gods: The Remarkable Story of Risk by Peter L Bernstein
Bernstein has probably written the quintessential historical study
on Risk and Probability. In this unique exploration of the role of risk
in our society, Bernstein argues that the notion of bringing risk under
control is one of the central ideas that distinguishes modern times from
the more distant past. Against the Gods, a narrative that reads
like a novel, chronicles the remarkable intellectual adventure that
liberated humanity from the oracles and soothsayers by means of the
powerful tools of risk management that are available to us today. When
investors buy stocks, surgeons perform operations, engineers design
bridges, entrepreneurs launch new businesses, astronauts explore the
heavens, and politicians run for office, risk is their inescapable
partner. Yet their actions reveal that risk today need not be feared:
managing risk has become synonymous with challenge and opportunity. With
his engaging literary style, he clarifies the concepts of probability,
sampling, regression to the mean, game theory, and rational versus
irrational decision making. The final sections of the book raise
important questions about the role of the computer, the relationship
between facts and subjective beliefs, the impact of chaos theory, the
role of the burgeoning markets for derivatives, and the looming
dominance of numbers. This is that rare book that turns the most
profound issues of our time into pure reading pleasure. |
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How I Made 2,000,000 in the Stock Market
by Nicholas Darvas
How did a world-famous dancer with no knowledge of the stock market,
or of finance in general, make $2 million in the market in 18 months
starting with only $10,000? Darvas's system catches stocks that are --
in most cases inexplicably and with no accompanying news -- suddenly
experiencing heavy buying, driving them up powerfully to challenge and
break through previous highs. This book reads like a highly entertaining
novel; it's absolutely hysterical when news of his success leaks out and
TIME magazine sends three editors to interview him and
study his system before they finally decide he is for real and end up
printing his story and putting him on the front cover. Which is what
eventually lead to the demand for this must-have, must-read classic.
Darvas is legendary, and with good reason. Find out why. |
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Technical Analysis of Stock Trends, 8th Edition
by Robert D. Edwards & John Magee
For 50 years, this universally acclaimed classic has remained the
bible of technical analysis. This was the first effort to produce a
methodology for interpreting and profiting from the predictable behavior
of investors and markets. This new edition explains every aspect of
charting -- from basic principles to advanced trading techniques -- to
help investors make money regardless of what the market is doing.
Completely revised and updated with new charts and references, this is
an essential classic for investors, especially in today's tumultuous
markets. |
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The Battle for Investment Survival by
Gerald M. Loeb
While much has changed on Wall Street since 1935, the fundamental
skills and knowledge needed to consistently make a profit remain as
unchanged as the firmly anchored realities of capitalism's driving
market forces. Organized in concise, easy-to-read chapters, the author
offers everything an investor needs to know about sound investment
principles. In The Battle for Investment Survival, the victor is
the one who wields knowledge as a weapon. Distilled from over forty
years of Wall Street experience as a stockbroker, Gerald M. Loeb's
realistic approach offers readers neither short-cuts nor get-rich-quick
formulas. Instead, it gives investors -- whether novice or expert,
individual or institutional -- a sensible, uncompromising and deftly
written firsthand account of how to realize significant financial
returns in today's market. |
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How to Trade in Stocks
by Jesse Livermore
Jesse Livermore is widely considered the greatest stock trader who ever
lived. He broke new ground in nearly every area of trading markets. He
was first to regularly buy stocks breaking out to new highs, and he
developed pivot point trading to an art form. He also had a
revolutionary way of managing money. But all this technical innovation
was aimed at only one thing: emotional control. He exhibits no
awkwardness when describing a blunder, nor is he bashful when making a
point: "Never average losses. Let that thought be written indelibly on
your mind," he says. The ideas and practices are as valid today as they
were when he was implementing them (to the tune of millions). He felt
strongly that treating his speculating as a business would lead him to
success. Strictly committed to diligent record-keeping, he began to see
price patterns and through continued vigor and the maintenance of
his records, Livermore combined a time element to his price patterns --
and The Livermore Formula was born. Although his methods may seem
archaic or crude by today's standards, many traders will learn much at
the feet of this master. |
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Manias, Panics, and Crashes: A History of Financial Crises
by Charles P. Kindleberger
Kindleberger is one of the few remaining literary economists, those
who make their points in essays rather than through long equations that
depend on questionable assumptions. This makes his work very accessible,
even though it is as rigorous as it can possibly be while still
remaining a popular work. Originally written in 1978, this celebrated
classic is still the best known and most highly regarded book on
financial crises. This updated version takes readers through virtually
every major crash and financial panic on record. It's an engaging,
lively, and exhaustively researched account offering a wealth of
fascinating insights into why they happened. One never picks up a work
by Charles Kindleberger without anticipating a feast of entertainment.
But underneath the hilarious anecdotes, the elegant epigrams, and the
graceful turns of phrase, Kindleberger is deadly serious. |
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Devil Take the Hindmost: A History of Financial Speculation by Edward Chancellor
This is an original and challenging history of stock-market speculation from
the seventeenth century to the present day. Through vivid accounts of
the speculative activities (wise and unwise) of investors ranging from
Daniel Defoe and Benjamin Disraeli to Ivan Boesky and Hillary Rodham
Clinton, Chancellor shows that speculation is not driven solely by the
desire to make money -- by fear and greed -- but springs from a wider
range of human compulsions and aspirations. Chancellor takes an
entertaining, albeit sobering, look at the history of speculative manias
and the mass delusion that surrounds them. He traces the origins of the
speculative spirit back to ancient Rome and chronicles its revival in
the modern world: from the Tulip Mania in Holland in the 1630s and the
stock-jobbers in London's Exchange Alley at the end of the seventeenth
century to the on-line "day-traders" of the information age. |
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The Crowd by Gustave Le Bon
One of the greatest and most influential books on social psychology ever
written, brilliantly instructive on the general characteristics and
mental unity of a crowd, its sentiments and morality, ideas, reasoning
power, imagination, opinions and much more. LeBon outlines the way
crowds tend to think (in vivid images illogically connected), how they
reason (they don't for all practical purposes), how they express
exaggerated emotion, how they are very quick to take action without
coherent thought. The individual who becomes part of a crowd tends to
lose himself, and feel invincible as he is aware of the similarity of
mind and purpose of all those around him. LeBon notes how individuals
become unthinking entities of the herd, and can be unconsciously made to
do acts, which can either be of great criminality or heroism. The
reasoning of the solitary individual is superior to that of a crowd
which has no individuality. All are "equal" in a crowd and intelligence
differences fall to the lowest common denominator. One conclusion: for
bettor or worse, never underestimate the power of stupid people in large
groups. |
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A Fool and His Money: The Odyssey of an Average Investor by John Rothchild
A Fool and His Money has become a treasured investment
classic. It's the comic, firsthand account of a first-time investor who
sets out to make his wildest money dreams come true. In a surge of
optimism and enterprise, financial writer John Rothchild drops
everything to devote an entire year to learning how to invest a modest
sum of money. Motivated by a sincere desire to get rich, he undertakes
his mission by systematically studying as much as he can about the
markets and how they really operate. He fearlessly asks the most basic
questions, observes the professionals at work, studies the newsletters,
makes investments, and reports back on everything — including his own
highly personal and often hilarious reactions. Clever, funny, and
informative, A Fool and His Money will reward investors at
all levels of experience with a revelation on every page. |
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