Book Recommendations - Intermediate


Fundamental/Technical Analysis

Security Analysis
Security Analysis is the bible of fundamental analysis. Originally published in 1934, the tome systematically lays bare the science of security analysis. Written with the assistance of cowriter David Dodd, Benjamin Graham's intellectual tour de force has yet to be equaled in the annals of investing. Written only a few years after the devastating stock market crash of 1929, Graham had one objective--to make the investment process as safe as possible using knowledge of key factors about the business.

Beginning with bonds and moving quickly to stocks, Graham and Dodd go over all of the angles. Articulating a comprehensive theory of fixed-value and common stock investment, they examine in detail the various factors that one should consider when valuing securities. Dividends, extraordinary items, depreciation, amortization, capital structure and balance sheet analysis are all described and defined in lurid detail. It is impossible to read Security Analysis and not come away with a deeper understanding of corporate finance and how it relates to investing.

The Intelligent Investor
Since its first publication in 1949, Benjamin Graham's The Intelligent Investor has been one of the all-time most important and influential guides to investing. As a basic guide to establishing a rational investment framework, the book's insights are as sound and useful as ever. The new hardcover edition of this classic work includes an introduction and an appendix by one of Graham's best-known disciples, Warren Buffett

The lessons of The Intelligent Investor are founded on timeless principles of value investing. Graham shows the reader how to develop a rational investment policy and how to avoid costly errors. He takes into account the differing concerns and goals of "defensive" and "enterprising" investors, and he provides basic information on stock selection, portfolio policy, and the operation of the market. His advice is supported by decades of successful investment and a deep understanding of the market's history.

Technical Analysis of Stock Trends
The seventh edition explains every aspect of charting -- from basic principles to advanced trading techniques -- to help investors make money regardless of what the market is doing. Completely updated and revised, it features new charts and references, as well as chapters on derivatives options, and futures trading. Readers will discover: why they should buy back a stock-even at a higher price, a simple way to generate "extra" profits when closing out a profitable position, how to determine whether a certain formation is a signal to sell and the relatively rare pattern that almost always signals the end of a long bull or bear market

What to buy, when to buy it, and when to sell it are the three basic questions facing every investor. For everyone looking to technical analysis for the answers, you'll find no better reference than this legendary investor's guide.

The Compleat Day Trader
From the best-selling author of The Investor's Quotient, here is a sizzling guide to one of today's hottest investment activities. In his clear and direct style, Jake Bernstein reveals the ins and outs of day trading, the fast-action arena in which stock and futures trades are entered into and closed out in the same day. Drawing on two decades of experience as the leading authority on the futures markets, he shows readers how to master the systems and strategies of day trading. Individual investors and professional traders will learn how to get started, analyze moving averages, stochastics gaps, and other intricacies specific to day trading, and develop the specialized knowledge and hair-trigger timing that can reap huge profits at the close of every trading day. The Complete Day Trader is classic Jake Bernstein-and a must-read handbook for today's most sophisticated investors.
Trading Chaos
A practical guide for making sense of chaos theory and applying it to today's financial markets. Enables traders and analysts to uncover hidden determinism in seemingly random market events and make accurate investment decisions with high probabilities for profit. Supplies practical, real-world tools for applying chaos to global commodity, futures and options markets. Its unique organizational format introduces readers to the financial applications of chaos in five graduated stages, beginning with a clear nontechnical introduction all the way to chart analysis, fractals, Elliott Wave and advanced nonlinear dynamics
Maximizing Day Trading and Overnight Profits
Unlike other books that discuss one or two of the many aspects of trading, Computerized Trading covers all of the key topics related to the trader's survival and profitability. Beginning with a discussion of the basic skills a trader needs to design a trading system, this user-friendly guide moves from advice for the novice just getting started to advanced system development and data modeling for the experienced trader. Written so even the most inexperienced trader will understand every step, the chapters combine to deliver the whole picture, including: Designing, testing, and analyzing trading strategies Coping with the psychological pressures that accompany different trading methods Controlling risk by applying a few basic rules and formulas Negotiating the best data feed deal Getting the right data, books and software

Option Trading

The New Options Advantage
Renowned options expert David Caplan shows investors how to analyze probabilities and create options positions that place the odds in their favor.  The book eschews theory in favor of providing readeers with strategies that really work.  Completely updated, this edition contains an expanded discussion of volatility, one of the most important (and least understood) factors in option trading.  Packed full of insights derived from years of successful trading, the book will appeal to a wide spectrum of traders.   Specific topics include - the "trading edge" philosophy, understanding and using option volatility, identifiying and exploiting undervalued and overvalued options, strategies for different market outlooks, and using a computer to trade options.
Demark on Day Trading Options: Using Options to Cash in on the Day Trading Phenomenon
This up-to-date guide provides an information-hungry marketplace with in-depth coverage of pricing strategies, volatility and risk control, hedging techniques and option philosophy, as well as key insights into the predictive power of options, the versatile option and buying and selling. Real-world examples provide hands-on applications and clear illustrations to turn theory into practice.
Buying and Selling Volatility
Buying and Selling Volatility explains, with the extensive use of diagrams, how one can profit from the volatility (or lack of it) of the price of an instrument, irrespective of the direction of the price. It provides a unique approach to the subject of options, seen purely from a volatility viewpoint. Clearly explains the connection between volatility and options without recourse to complex math. An accessible guide for students, it also offers experts a fresh look at instruments they have been trading for years. Contains risk management software (Microsoft excel) on disk similar to the high price commercial versions.
McMillan on Options
This up-to-date guide provides an information-hungry marketplace with in-depth coverage of pricing strategies, volatility and risk control, hedging techniques and option philosophy, as well as key insights into the predictive power of options, the versatile option and buying and selling. Real-world examples provide hands-on applications and clear illustrations to turn theory into practice.
Trading Index Options
Designed and written for active traders who are interested in practical information that can improve their results, Trading Index Options offers tried-and-true techniques without a lot of theory and math. Bittman provides traders with the know-how to evaluate practical situations and manage positions. Among the key features: the basics of index options, including various spreads; how to match strategies with forecasts; alternatives for losing positions; the importance of price behavior and volatility.
Buying Stocks without Money
The title of this book is a complete misnomer (but at $25 it's well worth the read).  It is not really the stock market equivalent of the late night "no money down" real estate course - it is about put selling (something you really can NOT do without money - or at least available equity to support the margin requirements).  Nevertheless, put selling (when done judiciously and thoughtfully) can be an excellent way of generating profits - especially when selling puts on solid growth, large cap stocks.

While over 2/3 of the book's 300+ pages is devoted to tables and mathematical rigor which isn't for everyone, the first 1/3 of the book presents useful information on the author's fundamental approach to put selling, how the positions are margined, repair tactics, how taxes are dealt with, and hedging the positions.  There are also discussions of historical and implied volatility, probability of options expiring in/out of the money, and option premium calculations (Note: these are important calculations which, of course, Trade Prospector does for you).


Discipline and Market Psychology

The Disciplined Trader
The Disciplined Trader helps Traders learn the critical behaviors necessary in responding to market conditions and opportunities. The Author examines and discusses how he found the market to be an environment where the individual trader "has the freedom to create his own results", unimpeded by many of the constraints existing in the modern social life. The book presents an overview of the psychological requirements of the trading environment, defines the problems and challenges of becoming a successful trader and gives a basic insights into what behavior may need to be changed to build a framework for successful trading.
The Inner Game of Trading
Putting money at risk in the markets exposes every trader to fear, greed and a host of other destructive emotions. For the first time ever in paperback, The Inner Game of Trading shows how to master the psychological skills that are essential to successful trading. It is an insightful, colorful book that reflects the collective wisdom of the best traders in the business. Topics include: Creating a winning system that fits individual personalities and analytical abilities; Models of success based on profiles of top traders; Demonstrated methods to recognize and overcome self-sabotage
The Inner Game of Investing
Unlike other investment books that dole out one brand of advice to a potentially diverse readership, this unique book guides you to your own best personal strategy by showing you what types of stocks fit your individual style. Written in a witty and engaging style by securities analyst and long-time financial columnist Derrick Niederman, The Inner Game of Investing reveals the Seven Stock Market Personalities: The Bargain Hunter, The Visionary, The Contrarian, The Sentimentalist, The Skeptic, The Trader, and The Adventurist. You will be amazed to see how your own psychological attributes and predispositions interact with the market and how they may be blinding you to both habitual mistakes and golden opportunities
The Psychology of Investing
The first comprehensive book to apply psychological theory to a broad range of investment topics, The Psychology of Investing explores the interface between human emotions and financial decision making. Drawing on the invaluable wisdom and cutting-edge research of top experts in what is an area of ever-increasing interest and importance, it describes how both group dynamics and an individual's personal psychology affect investor decisions
Investment Psychology Explained
One of today's best-selling investment authors shows investors how to beat the markets by thinking independently, controlling emotions, and knowing when to "go contrarian". Pring shows that investors need to be less impulsive and more analytical by using classic investment philosophy, psychology and strategy.
Trading for a Living
As a professional trader, technical analysis expert, and practicing psychiatrist, Dr. Elder helps aspiring traders step away from the crowd of amateurs. He presents a comprehensive system for trading stocks, futures, currencies, and options. This book provides a complete course in the three M's of successful trading: Mind, Method, and Money.

Dr. Alexander Elder is a professional trader, a world-class expert in technical analysis, and a practicing psychiatrist. He believes that successful trading is based on three M's: Mind, Method, and Money. First, you will see that the key to winning is inside your Mind. You will find out how to develop discipline and how to avoid the traps of emotional trading. Second, you will learn how to find good trades by using charts, computerized indicators, and other tools. You will discover how to combine several analytic Methods into a powerful trading system. Finally, you will learn how to manage Money in your trading account. The rules for limiting risks are as vital to a trader as a safety net is to a high-wire walker. With this book, you are on your way to mastering a new way of trading stocks, futures, currencies, and options. Dr. Alexander Elder helps you embark on an intense pursuit-trading for a living.

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