Recommended Reading

This book is an outstanding resource for traders of all levels.  The author discusses many very important concepts and topics related to the big picture Trading Plan development, as well as to the mores specific trading system design process.  The main thrust of the book is in the area of trade position size and its impact on long-term performance.  It is an excellent discussion which covers not just the math and mechanics of trading and money management, but also the mental side of market participation. The author is a respected trainer, and is one of the interviews in the first Market Wizards book

This book could be used as a text book for most Security Analysis courses, and do better teaching the subject matter than most existing texts.  The author takes a survey approach in discussing the various ways and methods used in forecasting and/or valuing stocks.  It presents a very objective, and often lighted-hearted, review of both modern and classical financial theory, explaining them in a sufficiently technical way as to meet the needs of the topic, but without making it boring.

A favorite mantra of traders is that one must be disciplined to have a chance at success in the markets. This is all well and good, but it's oftentimes easier said than done. The Psychology of Trading takes the reader beneath the surface to explore reasons why discipline breaks down - why traders who know exactly what they are supposed to be doing, still fail to do it.

A major strength of this book is the fact that the author does not just pour out a list of all the things that traders can do wrong, and the various mental issues which come in to play.  He actually takes a proactive approach, one which helps the reader see that there are things which can be done to overcome one's difficulties.  The reader is not left to feel like their emotions are a bad thing, but rather helped to see that they can be put to good use.