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- - Let's Read (http://archives1.twoplustwo.com/showthread.php?t=73671)

No offense to the "make millions" B&N paperback "bestsellers," but there's little fluff in the textbooks. I have read many of the paperbacks, and some are good, but they can be too persuasive and less objective. I would hate someone, for example, to read Graham/Dodd and think "ahhh, now I understand finance;" especially since there is considerable empirical evidence showing that Graham's methods will not make you money. You know . . . stuff like that [img]/images/graemlins/smile.gif[/img]

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Ed, in case you hadn't noticed, his post was a reply to the OP... are you saying that none of those books are worthwhile reading for the forum?

In either case, I find the information on what's being read in colleges, to be interesting.

I also wouldn't mind seeing some posts by some of the college students taking courses, describing what they are learning in some of their courses.

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I wasn't so much saying that they aren't worthwhile reading, but pointing out that they are all very much academic textbooks, and likely are overly expensive, and contain lots of overlapping material. for individual investors, there are cheaper, better, and shorter ways of learning much of the information those books would present.

In response to your last question, I'll post reading lists for the various finance-related classes I have taken or will likely take next year. I can look up more complete syllabi if you'd like, but this gives most of the information, at a fraction of the effort:

ECO 362: Financial Investments
• Zvi Bodie, Alex Kane, and Alan J. Marcus (BKM), Investments, 6th edition, Irwin/McGraw-Hill, 2005.
• Packet of Readings (Packet) including, amongst various academic papers, articles by buffett and 2 chapters from security analysis
• Burton G. Malkiel (Malkiel), A Random Walk Down Wall Street, 8th edition paperback, W.W. Norton, 2003.
• David G. Luenberger (Luenberger), Investment Science, Oxford University Press, 1998. This book is recommended for purchase by students who anticipate fulfilling the requirements for the finance certificate. It presents a more mathematical treatment of the subjects covered in the BKM text.

ECO 363: Corporate Finance
Brealey, Myers, and Allen, Principles of Corporate Finance, 8th edition (New York, McGraw-Hill/Irwin, 2006).

FIN 503/ORF 515: Asset Pricing II: Stochastic Calculus and Advanced Derivatives
• Robert McDonald [M] (2006), Derivatives Markets, Addison Wesley, 2nd edition.
• John Hull [H] (2006), Options, Futures and other Derivatives, 6th Edition, Prentice Hall
• Baxter and Rennie [BR] (1996), Financial Calculus: An Introduction to Derivative Pricing, CUP
• Etheridge [E] (2002), A Course in Financial Calculus, CUP
• Grimmett and Stirzaker [GS] (2002), Probability and Random Processes, 3rd Edition, OUP.

ORF 534: Financial Engineering
Required Texts:
1. Investment Science, Luenberger, Oxford University Press, 1998
3. Worldwide Asset and Liability Modeling Systems, Ziemba and Mulvey (eds.), Cambridge University Press, 1998.
Supplemental Texts:
2. The Econometrics of Financial Markets, Cambell, Lo and MacKinlay, Princeton University Press, 1997.
I have deleted the books we didn't use. There were also papers handed out on various topics; insurance and pension plan management being the main ones not covered in the texts.

ORF 335: Introduction to Financial Engineering
``Capital Ideas'' by Peter L. Bernstein
``When Genius Failed'' by Roger Lowenstein
J. Hull, Options, Futures and other Derivative Securities

ORF 569: An Introduction to Credit Risk and Credit Derivatives
David Lando - Credit Risk Modeling: Theory and Applications
along with some academic papers

available courses I may take in the future:

ECO 462: Portfolio Theory and Asset Management
Bodie, Kane and Marcus , Investments
Fama and French , Multifactor Explanations of Asset Pricing Anomalies, Journal of Finance
Sharpe , Factor Models CAPMs, and the APT Journal of Portfolio Mgt
Fama and French , Multifactor Explanations of Asset Pricing Anomalies, Journal
Lakonishok, Shleifer, Vishny , Contrarian Investment, Extrapolation, and Risk, Journal of F

ECO 467: Institutional Finance
Markus K. Brunnermeier , Asset Pricing under Asymmetric Information
Maureen O'Hara , Market Microstructure Theory
Glyn A. Holton , Value-at-Risk: Theory and Practice
Markus K. Brunnermeier and Lasse H. Pedersen , Predatory Trading, Journal of Finance 2005

ORF 435: Financial Risk Management
Alexander, C. (Editor) (1998) , Risk Management and Analysis
Föllmer, H., Schied, A. (2002) , Stochastic Finance.
Hull, J.C. (2003). , Options, Futures and Other Derivatives.
Luenberger, D.G. (1998). , Investment Science.
Mason, S., Merton, R., Perold, A., Tufano, P. (1995). , Cases in Financial Engineering: Applied Studies of Financial

ECO 466: Fixed Income: Models and Applications
Cairns , Interest Rate Models

ECO 461: Trading and Securities Markets
Harris, 2002 , Trading &Exchanges: Market Microstructure for Practitioners
Grossman & Stiglitz, 1980 , On the Impossibility of Informationally Efficient Markets.
SEC release no.34-50870, Jan. 2005 , Proposed Rule: Regulation NMS
Rock, 1986 , Why the New Issues Are Underpriced. JFE 15, 187-212.
Levitt, 2002 , Take on the Street.
Zitzewitz, 2003 , Who Cares About Stockholders?Arbitrage-Proofing Mutual Funds

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wow... I figured some of those were so obscure you hadn't seen them yet...

How about these?...

New Trading Systems and Methods by Perry Kaufman
The Encyclopedia of Trading Strategies by Katz & McCormick
Professional Stock Trading: System Design and Automation by Conway & Behle

Are you using Tradestation?

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I am familiar with none of those. Thanks for the tips.

I do use Tradestation, although I really think it is a giant POS, I'm not aware of anything better.

I have had relatively serious thoughts about forming a company to compete with TS. It's only a matter of time before they get their asses handed to them by a company competent in software development. My problem would be finding a business partner who has inroads with a brokerage to partner with.

eastbay

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wow... I figured some of those were so obscure you hadn't seen them yet...

How about these?...

New Trading Systems and Methods by Perry Kaufman
The Encyclopedia of Trading Strategies by Katz & McCormick
Professional Stock Trading: System Design and Automation by Conway & Behle

Are you using Tradestation?

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I am familiar with none of those. Thanks for the tips.

I do use Tradestation, although I really think it is a giant POS, I'm not aware of anything better.

I have had relatively serious thoughts about forming a company to compete with TS. It's only a matter of time before they get their asses handed to them by a company competent in software development. My problem would be finding a business partner who has inroads with a brokerage to partner with.

eastbay

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Have you taken a look at Metastock?

btw, before TS became a brokerage, they were a standalone software app. There's also quite a bit of free TS code available, that you might want to take a look at.

As for developing your own software, for starters, you can just look into hooks to the various brokers, for order entry.

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In response to your last question, I'll post reading lists for the various finance-related classes I have taken or will likely take next year. I can look up more complete syllabi if you'd like, but this gives most of the information, at a fraction of the effort:

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Ed, care to share what you have learned from the courses you have taken?

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[ QUOTE ]
In response to your last question, I'll post reading lists for the various finance-related classes I have taken or will likely take next year. I can look up more complete syllabi if you'd like, but this gives most of the information, at a fraction of the effort:

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Ed, care to share what you have learned from the courses you have taken?

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Many of them are very detail-oriented towards specific pricing models, portfolio management techniques, or risk management theories. I will try to write up something comprehensive in the next couple of days, trying to keep out things I've learned outside the classroom.

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Give me something I can use, that is quantifiable, verifiable, and actionable. The real problem is that anyone who has good ideas about system development and evaluation isn't going to write a book about them.

eastbay

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While no one is going to write a book detailing specific system strategies that are currently working, you will find some people kind enough to share old and no longer money making systems(i.e. read the posts on EliteTrader by Acrary). You should also be able to find some interesting academic papers on the web.

But for learning how to be a good systems developer in general, I'm not sure a book could tell you much more than what you'll find browsing the net and using your own common sense. (for prop strategies, not execution engines)

p.s. chart reading, even though non-quant, often uses the same underlying logic as many quant-based models(...trend following or mean reversion).

So, anyone care to comment on why it seems that there is a lack of participation in the TII reading threads?

well, being insulted certainly did not encourage further participation.

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well, being insulted certainly did not encourage further participation.

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Who insulted you?... link to post?

nevermind, it is just drama I do not wish to engage in, even though I initiated it. Sorry.

What should be the next book, after Cat finishes with TII?

well my TII came yesterday and i have been tryin to get the first chapter read so that i can start askin questions on it. hope to finish it up at work today and have some questions on chapter 1 ready for yall

Is this still continuing? What book is being read atm?

Read Jim Cramer's " Real Money: Sane investing in an insane world".

It is interesing to read his mind, save the unwanted marketing products.

ed,

if you don't mind telling, what University do you attend?

ski,

I'm a senior at Princeton, studying Operations Research and Financial Engineering.

Gonna bump this. Anyone read any good new ones?

I haven't erad any of this thread, but I plan to. Is Ugly Americans discussed? It seemed highly romanticized obviously, but I'm curious as to how much is actually true.

I just read the 4-Hour Workweek by Timothy Ferriss and thought it was incredible. I would highly highly recommend it. I read it (~300 pages) in one sitting.

Wait so is this happening? You should start a separate thread for each book. I personally think it's a great idea.

While not a financial book per se, I nominate "Atlas Shrugged" by Ayn Rand simply because it's a hugely inspirational book that should be read by everyone imo.

Kirk

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I just read the 4-Hour Workweek by Timothy Ferriss and thought it was incredible. I would highly highly recommend it. I read it (~300 pages) in one sitting.

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has anyone else read this?

i was looking at it in the shop the other day but was wary of the fact that the only review on the cover was from the chicken soup for the soul guy,also the "if it sounds too good to be true" maxim sprung to mind,what are this guys credentials? is he well respected?

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I just read the 4-Hour Workweek by Timothy Ferriss and thought it was incredible. I would highly highly recommend it. I read it (~300 pages) in one sitting.

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Yes it is a very good book. I am already starting to use people from India to work for me.

I don't really need or want to work 4 hours a week but he has very good ways to improve your business.

Actually its probably one of the best outsource / delegate your life books.

The other would be E-Myth with Michael Gerber.

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I just read the 4-Hour Workweek by Timothy Ferriss and thought it was incredible. I would highly highly recommend it. I read it (~300 pages) in one sitting.

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has anyone else read this?

i was looking at it in the shop the other day but was wary of the fact that the only review on the cover was from the chicken soup for the soul guy,also the "if it sounds too good to be true" maxim sprung to mind,what are this guys credentials? is he well respected?

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It doesn't matter.

Go to amazon.com, 440 reviews, 90-95% good. The people that don't like him are 100% people that wouldn't survive in business.

bump

I looked through the thread and there were a lot of suggestions but its hard to know if the book is for a beginner or expert. Any suggestions for beginners/intermediate books? Im a finance major and just started taking my finance classes this semester so Im not a total noob but would like some suggestions on where to start. Ive read Rich Dad Poor Dad and have Graham's Intelligent Investor but want to hold off on reading that until I have a little more knowledge.

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While not a financial book per se, I nominate "Atlas Shrugged" by Ayn Rand simply because it's a hugely inspirational book that should be read by everyone imo.

Kirk

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Bumping this post because... omg... I want the last 4 years of my life back. So many of my thoughts/feelings through college were put into words in this book and I wish I had read it sooner. I've read 650/1150 pages and I can't stop reading. fwiw I've only voluntarily read 1 other book in my life because I typically find them boring. I can't think of any book I read through all of school that could possibly be higher on the priority list for developing minds than this one.

I am almost finished reading "Bubble Man" by Peter Hartcher, about Alan Greenspan and the stock market bubble. I recommend it for anyone.