virtuos0
Well-known member
- Messages
- 423
- Likes
- 117
I don't know what stage of learning you are at, but one of the most important stages is working out who to trust and what to listen to. If you take the wrong path at this stage then you could put yourself back by years, or never make it at all.
From your post it sounds like you are intelligent and certainly your cynicism will set you in good stead. There are some classics that are total garbage and will set you back, and others that may hold the key for you.
I could recommended you some books, but how do you know that you can trust me?
From your post it sounds like you are intelligent and certainly your cynicism will set you in good stead. There are some classics that are total garbage and will set you back, and others that may hold the key for you.
I could recommended you some books, but how do you know that you can trust me?
shadowninja
Legendary member
- Messages
- 5,524
- Likes
- 644
Are they any good at trading, then?
Try Jack Schwager on Futures "Technical Analysis". He's non-commital but covers most things, spelling out the faults afterwards. It's not a "How to" book, just shows how methods work. The fact is, nothing is perfect and he explains why.
If you can get it from the public library, first, all the better but my copy gets dragged off the shelf frequently, for reference.
If you can get it from the public library, first, all the better but my copy gets dragged off the shelf frequently, for reference.
shadowninja
Legendary member
- Messages
- 5,524
- Likes
- 644
The problem is that some may argue that you cannot make money from the markets and if anyone is currently profitable, it is just a lucky streak... like a marriage, it's only truly successful once one of the partners is dead.
B
Black Swan
OK here's a thing, why not build up a library of books and or other reference material, on line, off line...?
D'ya have a library of music going back years, some of it you now wonder how on earth and why on earth you bought? Some of it absolute garbage some of it that your kids now sample 'cos it's absolute gold? (Daughter now discovered; Velvet Underground/Joy Division/Public Image Limited/The Smiths...
Take what you need leave what you don't, opinions on trading books can be very subjective, reviews likewise, make up your own mind, but why not be open to the experience of lots of different opinions?
timsk
Legendary member
- Messages
- 8,727
- Likes
- 3,424
Hi secondary,
This made me smile as it's a similar principle to one that I apply to films. If the director and lead(s) are people I like - I'll watch it. Combine this with the star rating in the Radio Times (which, over the years, I've found to be pretty good) and I have myself a pretty effective filter. Like you, I tried to apply a similar approach to publishers of trading books, but it doesn't seem to work as well. Take Harriman House as an example. I bought 'The Definitive Guide to Point & Figure Charting' by Jeremy du Plessis which is absolutely top drawer, IMO. Also by HH I have 'Ichimoku Charts - An introduction to Ichimoku Kinko Clouds' by Nicole Elliot which is the second worst trading book in my collection. To this day I can't fathom how HH can be the publisher of both books. The accolade of the all time worst book ever goes to 'The Trading Rule That Can Make You Rich' by Edward D. Dobson, published by Traders Press. I'll certainly think twice before buying another one of their titles. Publishers who strike me as being pretty consistant in terms of quality of their output are McGraw Hill and Wiley.
Just my £0.02p worth of course.
Tim.
virtuos0
Well-known member
- Messages
- 423
- Likes
- 117
Now I'm curious, what was so bad about this book and what is the trading rule that can make you rich? I'm always on the lookout for really bad trading books, they're much more entertaining than the good ones.
Good point. Letting a guru lead you down the garden path can add years and years to your learning curve.
cuotes
Active member
- Messages
- 236
- Likes
- 29
Dear Timsk, and others:
In 'The Tipping Point: How Little things can make a big difference', Malcolm Gladwell defined the way people react to change by classifying them on a spectrum:
innovators: early adopters: early majority: late majority: laggards
It doesn't matter to be a laggard to watch films, but in the markets is important to identify and adapt to change before your competitors. Once the majority recognizes that change is occurring, all assymetric opportunity is lost.
Please, don't get the wrong idea, i'm not criticising.
Being an innovator is risky, but waiting for crowd to decide wether a book is worthy or not, probably will diminise the advantage of new techniques or innovative points of view because you'll learn it too late.
Just an example:
Would you recommend a novice to read "Reminiscences of an stock operator"? Probably yes.
Would you recommend him to follow that approach nowadays? Probably not.
In 'The Tipping Point: How Little things can make a big difference', Malcolm Gladwell defined the way people react to change by classifying them on a spectrum:
innovators: early adopters: early majority: late majority: laggards
It doesn't matter to be a laggard to watch films, but in the markets is important to identify and adapt to change before your competitors. Once the majority recognizes that change is occurring, all assymetric opportunity is lost.
Please, don't get the wrong idea, i'm not criticising.
Being an innovator is risky, but waiting for crowd to decide wether a book is worthy or not, probably will diminise the advantage of new techniques or innovative points of view because you'll learn it too late.
Just an example:
Would you recommend a novice to read "Reminiscences of an stock operator"? Probably yes.
Would you recommend him to follow that approach nowadays? Probably not.
timsk
Legendary member
- Messages
- 8,727
- Likes
- 3,424
Thanks for this cuotes, although I'm a tad unclear what the life cycle model of crowd behaviour has to do with picking a book or book publisher which, after all, is the topic of the thread?
Tim.
My experience:
1. Books by or about actual traders are indeed the best but don't look to them for a detailed methodology. Your method will change over time as either you or the markets change.
2. The best information that I have incorporated into my trading I found for free on the internet.
3. I've always backtested my systems thoroughly and this has stood me in good stead. In other words the only leap of faith you have to make is a belief that the future will be pretty much like the past.
1. Books by or about actual traders are indeed the best but don't look to them for a detailed methodology. Your method will change over time as either you or the markets change.
2. The best information that I have incorporated into my trading I found for free on the internet.
3. I've always backtested my systems thoroughly and this has stood me in good stead. In other words the only leap of faith you have to make is a belief that the future will be pretty much like the past.
cuotes
Active member
- Messages
- 236
- Likes
- 29
As virtuos0 says, that scale applies to the trader themselves.
My point is: that scale can be applied to many aspects of the life, e.g. think about using new technology devices. When everybody is using mp3, early adopters are already using mp4 (just an example).
With trading books can be similar. Imagine a book teaching something really useful. A technique, a trick, a system, an idea.... Probably early adopters will have an advantage over laggards, applying that idea before everybody come to use it.
Of course, it requires to decide wether the idea is good or not by yourself, instead of waiting for people's judgement.
To summarize:
Taking the risk of being an early adopter (using devices, watching films, reading books, visiting places...) could give you some kind of advantage (sometimes).
petersmitty
Junior member
- Messages
- 17
- Likes
- 12
Spinal tap's?
virtuos0
Well-known member
- Messages
- 423
- Likes
- 117
I agree that systems, tricks, patterns and edges don't move markets, but neither does volume.
What moves markets essentially is net liquidity demand, and this can be broken down further into liquidity effects, inventory effects and information effects in my opinion.
I'm going to PM you something.
Have a nice day!