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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Two Great Book Reviews And A DVD Review To Boot!

I absolutely love getting emails like this:

“Tim, I just wanted to thank you for An American Hedge Fund and PennyStocking. My boyfriend was the first to read your incredible book and now my boys, Charlie, 6, and Julian, 4, can’t get enough of it; they make me read it to them every night! And your DVD, oh my, it’s so taught us so much; so now we’re not afraid of any recession because as you say “you can profit from betting against companies managed by all the idiots on Wall Street!” And thanks to your strategies, we’ve already made a few thousand dollars in one month through short selling some of these surging microcaps! So, thank you, thank you, thank you, you’ve changed our lives and I’ll be forever grateful!”

Sincerely,

Michelle Casey

And check out the hilarious pics that were attached:

Not to be outdone, I got another great book review from a highly respected investment advisor, Ulli Niemann, aka The Wall Street Bully. Besides having a badass blogger nickname, Ulli advises his clients in ETF and mutual fund investing so I really had no idea how he’d take my wild journey. Guess it’s a good thing he’s a big believer in The American Dream! Here are some of my fav quotes from his review:

“Here’s a man who definitely learned from his shortcomings and is willing let the world know about it by sharing them in his book.”

“The knowledge he gained from several years in the trenches represents wisdom that I have found also applicable to the world of trend tracking.”

“Any trader or investor should adhere to Tim’s findings. This book is a fast and fun read, and I couldn’t put it down.”

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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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Reminiscences of a Stock Operator: Maria Bello And Me

Reminiscences of a Stock Operator is not only my all-time favorite book, nor is it simply the book to which countless reviews (including one from the Dow Jones Newswire) have compared my book, but the activity itself is actually quite helpful for trading because it’s only through careful reflection of the past that we are better prepared for the future.

After many weeks filled with too many 20-hour work days, I enjoy reminiscing about my favorite annual trip, the Sundance Film Festival. Over the past five years, my friends and I have had some wild and crazy times: partying our asses off, schmoozing with celebs, networking, gawking at the seemingly near-plastic LA models/wannabe actresses and seeing incredible movies many months before they’re fit for public consumption (get ready for The Wackness), but this year the trip went by far too quickly.

Perhaps it was because most of my friends now have serious girlfriends or that my newfound blogging business/TIMtv consumed most of my time or the fact that because I was working so much, I didn’t get to enjoy Sundance as much as I would’ve liked.

But the entire trip was made worthwhile by my brief encounter with the stunning Maria Bello. She may be a bit older than me, out of my league and in a committed relationship, but when we met, sparks flew.

Don’t take my word for it, see for yourself:

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Sykes’ Saturday Seven: March 22nd, 2008 Edition

Great free tool for technical screens, I use it every day, graphs in bulk baby, graphs in beautiful bulk

A phenomenal new finance book, I give it two thumbs up

Solid post debating investing vs. trading

My latest AOL article, me hating on CROX

Gotta love the prizes at Wall Street Survivor  

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People Love Starbucks, Just Not Starbucks Stock, A Good Lesson

Why am I not surprised to see yet another book about Starbucks? The New York Times just reviewed it here. Woo hoo. It’s amazing how many of these books there are now—see for yourself—these have all come out in the past year:

November 2007
1348X/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1197958947&sr=1-1″>Starbucked

September 2007 How Starbucks Saved My Life

April 2007 Grande Expectations

January 2007 The Gospel According to Starbucks

December 2006 Finding the Next Starbucks

And during the same time, how has Starbucks (Nasdaq: SBUX) done?

What does this prove? Two things. 1. The publishing industry is incredibly slow (SBUX did perform well years ago) and 2. People are sentimental and the stock market doesn’t care

Disclaimer: No positions, just proud that I ripped on SBUX hardcore on CNBC back in March.

PS If you still haven’t checked out my first product giveaway , check it out now and leave a comment on the post to enter to win!

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