Essential Reading for Investors and Traders:
If you are an active stock market trader an investor or just have an interest in economics and the markets there are several books that you should read to help understand the markets or just for a enlightening read.
Here are a few of my favorite investment and trading books and some of the classics that are essential reference material from the likes of Warren Buffett, George Soros, Benjamin Graham and Nassim Nicholas Taleb etc.
A Random Walk Down Wall Street:
A revised version of the classic guide to Wall Street which explains why fund managers so often lag behind Wall Street.
This book, by Burton G. Malkiel is absolutely essential reading for anyone hoping to work in Wall Street, The City or the financial services industry in general, but it also makes great bed-time reading for the rest of us too (well maybe not everyone’s cup of tea, but if you are reading this, I would guess that you are interested in the workings of the finance industry) This book was originally written in 1973, but has been updated regularly to cover the many changes that have happened in the various markets since the first edition.
The emphasis of the book is summed up in the brilliant title: The market is random and a chimpanzee could beat a well paid fund-manager.
The Intelligent Investor (Benjamin Graham)
A Book of Practical Counsel.
Written by the famous economist, Bemjamin Graham, an essential reference for value investors.
A book detailing years of accumulated wisdom from one of the all-time investment greats. Loss minimization is more important than profit maximization.
Graham’s investment guide was first published in 1949 and described by Warren Buffett as “the best book on investing ever written”
The Hidden Role of Chance in the Markets and in Life.
This book by Nassim Nicholas Taleb looks at risk and reward in an interesting way and came before his highly successful book, “The Black Swan”
Nassim Nicholas Taleb was a professional trader and mathematics professor and, in this book, examines the effects of randomness on the markets, with many stories drawn from real life. An interesting alternative view of the mathematics of the money markets and life.
Black Swan: The Impact of the Highly Improbable
Another classic by Nassim Nicholas Taleb.
If you liked “Fooled by Randomness”, then you will also like this one. Here the influence of highly improbable and unpredictable events and the potentially massive impact on the world and the stock markets are examined. A continuation of the analysis started in “Fooled by Randomness”