My 20 All-Time Favorite Finance Books (Part 2)

As promised, here is the follow up to part 1…read these or risk losing big money in the arkets cuz you didn’t learn the important lessons they teach us.

Education of a Speculator - Forge the fact that Victor has blown up twice now, he’s still worth a few million and he’s had some great runs. Perhaps he should just stop using leverage! Yah right, like that’ll ever happen—the best thing this book will do is to teach you to think differently.

The Disciplined Trader - Wish I’d read this earlier in my career, but alas, somehow it didn’t make the cut for far too long. Don’t make that same mistake, read this and learn from the grand daddy of trading psychology books.

Bernard M Baruch - God, I love stories of truly successful financial speculators—Baruch was one of the best. And even though this book doesn’t go into specific details of his strategies, it’s a great overview of the lifestyle and thinking of a successful trader.

Pit Bull - Another hugely successful trader, this book is much more in your face than Baruch’s and is one of the few recent financial releases worth spending time on.  

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My 20 All-Time Favorite Finance Books (Part 1)

These are my favs, ranked in order of how much of a fav they are–whether enjoyment or education-wise. You can see my whole 300 business library HERE (or at least what we’ve put up so far)

Notice there are few “How To” books—I believe success is more about understanding the variables and players behind the scenes so you can adapt to the inevitable changes. So, I prefer autobiographies—experiences full of lessons told through the eyes of the experienced who’ve learned those lessons the hard way so you don’t have. Throw in a few financial history classics and some trading psychology gems and you’ve got yourself one hell of a financial education. Just order the whole lot of ‘em, the cost of these books are a small price to pay for the money they’re gonna save you in the markets.

Reminiscences of a Stock Operator - My all-time favorite book, not just because it’s quick, entertaining, meaningful, practical, inspirational and timeless…okay well, yeah because of all that. Before you ever trade another stock, read this book!

An American Hedge Fund - C’mon, you knew I had to mention this if only because I’ve never read any other book so many times. Granted, some of that was for editing purposes, but I really think I nailed what the life of a stock trader is like—the passion, the nervousness, the anxiety, the restlessness—it’s not just about the money, it’s a great profession for those willing to challenge themselves and see what they’re made of. And, considering 90% of traders lose money, I wish there were a lot more brutally honest books like this.

How To Make Money In Stocks - My top pick for beginners, this sucker has sold 1+ million copies…besides CANSLIM investing being a successful strategy, it’s now just all one big self-fulfilling prophecy—don’t be the only one on the block who hasn’t read this…lots of angles to profit from its popularity.

Japanese Candlestick Charts - by Nison. If you’re gonna trade based on chart patterns, you need to know how to read candlesticks. This is a semi-expensive book so all you homeless people are gonna have to go to your local library to read it.  

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Trial By Economic Jury: Are You Innocent Or Guilty?

I sincerely hope you’re like me. Innocent. And that you’ve been waiting for this for a long time. For all these shortsighted, un-learned, debt-loving, over-leveraged individuals and companies to fall flat on their ignorant faces. Because now is the time to celebrate. The party is in full swing. It’s on. You have done your homework and now it’s vacation time. You have learned the lessons from classic books such as Extraordinary Popular Delusions and the Madness of Crowds and The Great Crash. You know that history repeats itself. You know excess leverage causes catastrophes. You cannot wait for the the jury to return their verdict because you know you’re off the hook.

You have what it takes to make it through these “tough times” because you understand the consequences of too much dumb money. Like me, you have been looking forward to this Noah’s Ark-style cleansing for what seems like forever, and you know—or maybe just hope—it won’t be over quickly so you can extract every last ounce of enjoyment. Not because you enjoy seeing others suffer. No. But because your hard work has helped you sidestep the pain and you are proud. Like me, you tried to warn others. To no avail. Like me, you’ve switched your assets into gold, euros and Swiss Francs. Like me, you’ve invested in the most incredible mutual fund for right now, Permanent Portfolio (PRPFX).

To those who are hurting, I feel no compassion. You deserve all your pain. You deserve all your losses. And more.  

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A TIMer’s Dozen: Recent And Current PennyStocking Plays

TIM $16,075 Down $105, Dumb trade wastes $40 monthly gift from Thinkorswim

I’ve written about these stocks before, but every day brings new data (of course, the data rules most plays out, aka ideal trades happen rarely). Remember, you’re not trading based on business performance, you’re trading based on stock performance (two very diff. things, the biz is usually just a front to raise capital/issue more stock anyway!), as if you betting on horses. (one very applicable old/hard-to-find book is Secrets of Professional Turf Betting) Like horses, each stock has specific characteristics—some are fast spikers (DARA, SHZ, IDMI, SOIGF), some breakout gradually (SWC, CTUM, GEOI, GENC, damn you COIN!) and most just suck/can’t hold their gains (over time, all of the above).

Let’s start with those from which you can still profit:

SOIGF—Sir Spamalot, an oil play that loves sending out spam claiming to be the next Exxon. As I posted HERE, spam stocks are scary to buy into, so I hesitated and missed a big runup. Nows its off its high, but maybe they’ll start the spam up again…

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Why Fictional Memoirs Exemplify The BullShip World All Around Us And Must Be Taught A Lesson

If you’ve been reading this blog, you know how much BS there is in finance—and how detrimental it can be—but now it turns out there’s even more BS in publishing. Publishing memoirs that is. (Since my entire life has been based on discovering and profiting from BS—and now profiting by cutting through that BS—is it any wonder I’ve switched jobs to the publishing industry?)

Oprah find James Frey was the most high profile writer to admit his memoir was a lie and there’s been plenty more since. Like those copycat student gunmen who, annoyed by their mundane lives, crave attention and fame through murder these authors feel they must ignore morality to get to the top. Too harsh a comparison? I think not.

In the last week alone, two critically acclaimed memoirs—I won’t even mention their book titles or link to them on Amazon because they don’t deserve any sales—one about growing up in a gangland and another more lighthearted subject—the Holocaust—were exposed as total frauds (read the articles HERE and HERE). Here these criminals are–Margaret Seltzer and Misha Defonseca–and these are what should be their mugshots:

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