Last year, I put together a full run of Trading Rules & Aphorisms.
Here is the latest updated version:
• Livermores Seven Trading Lessons
• Bob Farrell’s 10 Rules for Investing
• James Montier’s Seven Immutable Laws of Investing
• Richard Rhodes’ 12 Trading Rules
• John Murphy’s Ten Laws of Technical Trading
• Six Rules of Michael Steinhardt
• Art Huprich’s Market Truisms and Axioms
• DENNIS GARTMAN’S NOT-SO-SIMPLE RULES OF TRADING
• In Defense of the “Old Always” (Montier)
My (Ritholtz) own rules
• 15 Inviolable Rules for Dealing with Wall Street
After this run, I plan on updating this list every quarter . . .
Books after the jump
Then go to these books — they cover trading and markets generally:
• Stock Market Wizards : Interviews with America’s Top Stock Traders by Jack D. Schwager
Schwager interviewed market legends at the height of their success. What makes the book so worthwhile are the consistent themes that evolve from currency traders, mutual fund managers, commodities traders, hedge fund managers. Regardless of what is being traded, there are related motifs that run throughout.
What results is not a “How to trade” book; instead, it is a book about “How to think about trading.”
Instead of interviewing famed investors, Ellis gathered their best writings into one collection. He ends up with a series of short chapters by luminaries of days gone by. There is something worthwhile on just about every page. This is another favorite worth rereading every few years.
The best book about the 1982-2000 market, bar none. There are a surprising number of lessons buried in these pages that will reward the careful reader. I found it both fascinating and informative.
• How I Trade and Invest in Stocks and Bonds by Richard Wycoff
Quite simply, this is one of my favorite books on the markets and investing. The fact that it is from 1923 is totally irrelevant.
Another good book is When to Sell by Justin Mamis. Published in 1970s, it is filled with good observations about developing a sell strategy.
If you want some book ideas for Technicals, have a go at these:
• Technical Analysis of the Financial Markets by John J. Murphy.
• Technical Analysis from A to Z by Steven B. Achelis;
• Encyclopedia of Chart Patterns by Thomas N. Bulkowski;
• Japanese Candlestick Charting Techniques by Steve Nison;
Don’t think you need a full reference library; any pair of these books should do.
Last, there are a full run of books here:
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