Book Recommendations - Introductory


Stock Market Concepts

Bookcover Greed is Good: The Capitalist Pig Guide to Investing
MTV meets Wall Street - a straight talking investment guide from a financial wunderkind and the host and producer of the national radio show "Capitalist Pig".   Hoenig constructs the "pig pyramid" - a model for structuring a diversified investment portfolio.  Taking into account current resources, on-going risks (and risk tolerance), and future rewards, he clarifiies the advantages and disadvantages of each level of investment -- from cash and cash equivalents like money market funds that form the base of the pyramid representing no risk and low return, to the slightly riskier bonds, to the justly popular stocks, which hold the distinction of having the highest return of any asset class over time.  Placing his own addiction (futures and options) in the "nosebleed section of our Mount McKinley of money", Hoenig warns that "these supercharged speculations offer the opportunity for either outsized gains or a "financial ass-whooping that you'll never forget".  (Note: there are some gramatic and typographical errors throughout the book, but it is nevertheless a very readable, informative, interesting, and entertaining book).
The Day Trader's Manual
An excellent introduction to short term investing, it becomes clear that daytrading in it's usual form is not about doing hundreds of trades a day for fractions (that's scalping).  Daytrading is about cutting your losses, capitalizing on short term movements, insuring that your day trades remain on the books for the longest possible time to maximize your winners, and going home flat at the end of the day (usually).  The book offers numerous examples and case studies and illustrations of a variety of effective daytrading strategies and tactics.
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Bookcover The Stock Market
This Book classic is nothing short of essential for anyone involved in the world of finance. From the globalization of the securities business to electronic trading techniques to new regulatory changes and how they will affect individuals, no other single work brings this much practical information into such sharp focus.
The Electronic Day Trader
Provides the reader with actual trading philosophies and strategies necessary to become an effective and profitable trader in the exciting market of electronic day trading. Electronic day trading puts the trader in the arena on an equal footing with the "big boys," where the trader is actually participating in making the market. The Electronic Day Trader is based upon the author's primer, Electronic Day Trading, used as a tutorial in their seminars. Day trading is a very hot topic; this angle should be emphasized, along with the fact that the traders are actually participating in making the market through the electronic ordering system discusses in the book.
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Bookcover How to Make Money in Stocks
The previous edition of this best-selling classic has sold more than 400,000 copies. Now market guru and Investor's Business Daily publisher William O'Neil has thoroughly updated this virtual rule book for becoming an investment pro. How to Make Money in Stocks offers rational, well-documented guidance for all who want to make smart investments-even people who have never owned stock before. O'Neil explains how to make money reading the daily financial news pages. . .pick the best industry groups in the market. . .read charts like an expert and improve stock selection and timing. . .substantially reduce losses and mistakes. . .and turn a profit from reading and analyzing the news.

Fundamental Analysis

The Warren Buffett Way
The warren Buffet way offers Investors their first in-depth look at the innovative investment and business strategies behind the speculator success of living legend Warren E. Buffet. Tracing Warren Buffet's career from the beginning Robert G. Hagstrom, Jr., tells us exactly how, starting with an initial investment of only $100.00, Buffet built a business empire worth 19.4 billion.
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Bookcover The Warren Buffet Portfolio
The Warren Buffett Way provided readers with their first look into the strategies that the master uses to pick stocks. The follow-up to that book, The Warren Buffett Way Portfolio is the next logical step. It will help readers through the process of building a superior portfolio and managing the stocks going forward.

Building and balancing a portfolio is arguably more important than selecting any single stock. In The Warren Buffett Portfolio, Robert Hagstrom introduces the next wave of investment strategy, called focus investing. A comprehensive investment strategy used with spectacular results by Buffett, focus investing directs investors to select a concentrated group of businesses by examining their management and financial positions as compared to their stock prices. Focus investing is based on the principle that a shareholder's return from owning a stock is ultimately determined by the economics of the underlying business

One Up on Wall Street
As manager of the $9 billion Fidelity Magellan Fund, Lynch, in easy-to-follow terminology, offers directions for sorting out the long shots from the no shots by spending just a few minutes with a company's financial statements. His advice for producing "tenbaggers" can turn a stock portfolio into a star performer!
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Bookcover Fundamental Analysis
A time-tested approach to selecting quality stocks. Fundamental Analysis provides investors with the tools and methods essential to successful investing. In a logical, step-by-step manner, author John Ritchie shows readers how to interpret company performance to determine whether a particular company's stock is undervalued or overvalued. Time-tested and supported by meticulous research, the methods outlined in this book will enable readers to build a stock portfolio that provides superior growth over a long period of time. For any investor who wants a logical and proven approach to investing, Fundamental Analysis will provide enduring value. Specific topics include: Principles of investing; Security analysis: the cornerstone of fundamental analysis; Understanding and evaluation financial statements; Earnings per share and cash flow analysis; Stock valuation

Technical Analysis

Getting Started in Technical Analysis
Technical analysis is the art and science of deciphering chart patterns in order to better analyze and predict prices of a given security. Jack Schwager demystifies technical analysis for investors, introducing them to oscillators, price-and-time charts, on-line charting applications, and much more.
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Bookcover Martin Pring's Introduction to Technical Analysis
Martin Pring's Introduction to Technical Analysis: A CD-ROM Seminar and Workbook, produced by leading technical analyst and author Martin Pring, explains and demonstrates tools used by the world's foremost technical analysts to evaluate emerging trends. Using the effective CD-ROM/workbook format, you'll learn how to: Research and construct instantly valuable charts of stock and market activity; Interpret the basic concepts of momentum, and apply the theory to actual trades through a common sense set of trading strategies; Use price and volume pattern to identify breakouts; Analyze and act on peaks and troughs that can signal a change in the prevailing trend; Calculate moving averages and gauge their impact. Pricing also includes savvy advice on when to buy, when to take profits, and how to identify and handle false breakouts. More than three hours of CD tutorial, including video, animated diagrams, realistic movies, and audio clips let you develop and hone your technical analysis skills, with an interactive quiz at the end of each chapter.
Technical Analysis Explained
The No. 1 guide on technical analysis has now been completely updated, revised, and reworked to integrate new developments in the financial markets over the last five years. It details the most current and sophisticated investment tools and techniques that help private investors and experienced professionals understand, interpret, and predict major market moves. What's more, the third edition focuses on new and emerging opportunities beyond the stock market by applying technical analysis techniques to international stock markets, gold, currencies, and commodities. Technical Analysis Explained arms readers with an arsenal of technical analysis tools to identify and interpret market cycles and select the best-performing investments
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Option Market Concepts

Bookcover The Options Course: A Winning Program for Investors & Traders
This books is probably one of the best introductory books on options.  It tries to simplify a complex subject rather than further complicating it like a lot of other books.   It clearly discusses the various option strategies, clarifies the critical issues of price, time, and volatility, and even discusses synthetic positions, delta neutral trades, rebalancing of positions, and conversions and reversals.
Getting Started in Options
The completely updated guide to trading and investing in options for the beginner. Time values? Puts and calls? Striking prices? For many, investing in options can sound so risky that they fail to capitalize on a potentially lucrative opportunity. This straightforward guide thoroughly demystifies the options markets, enabling you to not only effectively maneuver within them, but to gain healthy returns from them. In nontechnical, easy-to-follow terms, Getting Started in Options, Third Edition arms you with the facts you need to make informed decisions about choosing stocks, tracking options, selling calls, and much more.
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Essential Concepts and Trading Strategies
This easy-to-understand guide explains what options are, how they are priced, and how they are traded. Most importantly, it shows how options can enhance a portfolio's performance and help readers meet their investment objective. Covering Everything from the history of the options industry to the latest index options and products (including LEAPS, CAPS, and FLEX) this revised edition shows how to: Use options to protect profits, positions and portfolios; Make more informed, strategic decisions when buying or selling equity and index options- and avoid the most common pitfalls; Understand options pricing and forecasting theories without getting bogged down in the math
Leaps (Long-Term Equity Anticipation Securities)
LEAPS: What They Are and How to Use Them for Profit and Protection is the first-ever guide to understanding and using the most successful new product in the listed options market. Straightforward and easy to read, LEAPS clearly explains the concepts behind the creation of LEAPS as well as basic strategies, from bullish to bearish to neutral. This unique guide also provides: A thorough historical perspective on LEAPS, emphasizing why they are different from conventional options, so investors can determine how LEAPS fit into their personal goals; Incisive analysis of investment strategies built around LEAPS, with shrewd advice on how to contain and even drastically reduce risk; Hundreds of practical examples that show readers how to implement basic LEAPS strategies.
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Bookcover The Options Course
The Options Course offers, for the first time in book form, a complete options trading course based on George Fontanills's seminar series, Optionetics: The Science of High Profit and Low Stress Trading. Using a systematic, step-by-step approach, this text equips you with all the tools - from basic concepts to sophisticated techniques - necessary for successful trading in the world of options. In addition, The Options Course is fully supported by a wealth of supplementary materials that speed and enhance the learning process. Included are fifteen appendices that serve as valuable resources, such as lists of trading media sources, options value and margin requirement charts, an option strategy quick-reference guide, strike price and expiration month codes, and much more. Designed for investors at all levels of experience, The Options Course opens the door to the numerous opportunities offered by this form of investing.
The Option Advisor
While we don't recommend his advisory service, this book does provide the trader new to options with a good starting point from which to then advance their knowledge of option trading.  The emphasis on contrarian theory should be taken lightly since this single minded view can result in too many wrong calls (especially in a strong bull market or market mania) - but there are a lot of clear explanations of basic options strategies which makes the book a worthwhile read.
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Other Valuable Reading

Bookcover The New Market Wizards: Conversations with America's Top Traders
In this sequel to the bestselling Market Wizards, Schwager taps into the minds of today's top financial wizards and reveals the secrets of their astonishing success.  The book delivers lively interviews with today's most prosperous and fascinating supertraders such as Stan Druckenmiller who runs Soros Quantum Fund, Bill Lipschutz - Salomon Brother's most successful currency trader, and William  Eckhardt, once an obscure mathematician who collaborated with the reclusive Richard Dennis to design trading systems for the now legendary cicrle of traders known as the Turtles.
Rich Dad, Poor Dad
This book is subtitled "What the Rich Teach Their Kids About Money - That the Poor and Middle Class Do Not!" and it is very appropriate.  The difference in perspective of the wealthy and the average working stiff is significant and accounts in large measure for their economic differences.  This books challenges the myth that you need to earn a high income to become rich.  It challenges the belief that your house, your car, your jewelry, your expense electronics, etc. are "assets".   It shows parents why they can't rely on the school system to teach their kids about money.  It defines once and for all an asset and a liability in terms that make it clear why the rich are wealthy and why the poor and middle class are not.  And finally, it teaches you what to teach your kids about money so they will benefit in ways you did not - of course, you still have time to benefit from the ideas in this book yourself. We believe this book is essential for everyone who wants to be wealthy and/or who wants to teach their children how to be wealthy.  The change of perspective this book offers is profound.
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Bookcover The Trader's Tax Survival Guide
This book covers all the bases, including how to avoid the 2% itemized deduction limit, transferring wealth to future generations, what to do in case of an audit, how taxes affect retirement plans, and the impact of the Tax Reform Acts of 1986, 1990, and 1993 on traders.  It also supplies you with all necessary tax forms, a concise listing of allowable expense deductions, and much more.  Just as importantly, the Trader's Tax Survival Guide introduces you to Total Return Investment Planning (TRIP).  A major component of Ted Tesser's extremely popular seminars on how to create and manage a successful trading business.  TRIP is a simple but very effective methodology for evaluating your investments from a "total return" perspective that integrates good tax planning with good investment planning.  Another feature that will be of particular interest to many traders is the chapter on the preferred tax status of "trader".  Most investors (and their tax preparers) don't realize that you need not be a professional market maker working the exchange floor to claim "trader" status.  Nor are they aware of the many substantial advantages that status entails. We believe this book is a requirement for every trader.
The Education of a Speculator
The Education of a Speculator is a sojourn inside the one-of-a-kind mind of Victor Niederhoffer, a trader in commodities and a keen observer of life. He has trained himself to look at the world in a singular fashion: where the guy on the street sees opportunity, Niederhoffer has scoped out all the downsides and done the contrarian thinking necessary to turn a profit. Niederhoffer draws material from disciplines as varied as biology, music, cards, and sports. His book, written with humor and verve, offers readers a chance to see the world through his lenses. The result is a genuinely new perspective on life (unless you too happened to grow up a speculator).
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Bookcover Soros on Soros
George Soros, who is unquestionably the most powerful and profitable trader in the world today, reveals his views on investing and global finance as well as his take on today's complex world order. Written in an engaging question-and-answer, interview format, the book examines Soros's personal opinions and explores his investing philosophy.
Buffett: The Making of an American Capitalist
This illuminating biography reveals a man whose conscientiousness, integrity, and good humor exist alongside an odd emotional isolation. Buffett also masterfully traces his life: his enormously successful partnership; his early, inspired investments in American Express and Geico; his companionship and investment with Katharine Graham of the Washington Post; his role in the Capital Cities purchase of ABC; his unique relationship with his wife and mistress; and his rescue of the scandal-ridden Salomon Brothers.
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