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Old 07-24-2005, 10:02 PM
Mr. Now Mr. Now is offline
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Join Date: Jun 2004
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Default Re: Beginner...

These are for trader-oriented players, not investors per se:

THE CROWD
Gustav LeBon
The semi-ancient foundational classic on the Mass Mind.

HOW I MADE 2 MILLION IN THE STOCK MARKET
Nicolas Darvas
Classic lessons on trend-trading breakouts, plus many other valuable insights. He's lucky he did not get caught putting it all on "red".

SUPERPERFORMANCE STOCKS
Richard Love (out of Print)
The classic mentioned by Mark Minervini in his STOCK MARKET WIZARDS interview

MARKET WIZARDS
NEW MARKET WIZARDS
STOCK MARKET WIZARDS
Jack Schwager
Absolute "must" reading.

HOW TO TRADE IN STOCKS
Richard Smitten (Jesse Livermore)
Offers a specific set of methods for trend followers. Obvious mistakes in several places but a classic nonetheless.

REMINISCENCES OF A STOCK OPERATOR
Edwin LeFevre (Livermore)
The trend following classic

TRADING IN THE ZONE
THE DISCIPLINED TRADER
Mark Douglas
Psychology for traders from an individual who went completely bankrupt and came all the way back. These are classics that belong in every trader library.

INTERMARKET ANALYSIS
John Murphy
A recent book with many useful insights about intermarket correlation.

TECHNICAL ANALYSIS OF THE FINANCIAL MARKETS
John Murphy
Classic reference work on TA. Up to date.

INATTENTIONAL BLINDNESS
Arien Mack
There is no perception without attention. Learn it cheap here, or learn it the hard way. Either way you need to get this concept. Highly applicable to poker also.

LINKS
Get a grip on Behavioral Finance before you get in too deep with trading.

The markets are made efficient by traders. Trading requires an "unnatural" set of responses to price events. Learn the common emotion-driven mistakes, and avoid them like the plague. Then learn to take advantage of these repeating patterns of the crowd.

Disposition Effect
http://disposition-effect.behaviouralfinance.net/
Sell your winners and keep your losers. Way to go !!

Illusion of Control
http://illusion-of-control.behaviouralfinance.net/
"The illusion of control is the tendency for human beings to believe they can control or at least influence outcomes which they clearly cannot."
Go ahead-- tell the market what to do.

Prospect Theory
http://prospect-theory.behaviouralfinance.net/
You have profits. Why gamble??

Herding and Lead-Following Crowd Behavior.
http://herding-crowd.behaviouralfinance.net/
Everyone wants validation. Especially when making a financial decision. Stand apart. This one is tricky to execute on.

Contagion
http://contagions.behaviouralfinance.net/
Buy the fear, sell the greed. Easy to explain. Harder to do.
Let's rewind to 1987 and buy stocks after the crash. And hold them.

Robert Shiller
The DEAN of Behavioral Finance. The shaman of financial psychology. The link below is typical of his work. See also IRRATIONAL EXUBERANCE, by Robert Shiller.

Human Behavior and the Efficiency of the Financial System
http://mental-compartments.behaviour...et/Shill98.pdf
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