^^^ The Tetlock & Gardner book discussed just above also had a very favourable review a few days ago in the Culture supplement of The Sunday Times (UK). (Can't be seen online, unfortunately, other than by paid subscribers to the website.)
This Review on Amazon doesn't agree that this book is worth spending time and money on.
Here is the review: 1.0 out of 5 stars If 0 of 5 stars were an option..., August 4, 2012
This review is from: Option Trading in Your Spare Time: A Guide to Financial Independence for Women (Paperback)
Would you buy a cookbook from someone who claims to be a chef, who clearly understands the ingredients and components of a good meal, but just couldn't make a delicious dish?
Here's my story. It was late 2010. I had about $10k to invest, but always thought I could do it on my own, without the need for a financial advisor. After all, if they understood markets, shouldn't they all be rich? I read books, articles, anything I could find to learn about how the markets worked and different approaches to investing. I discovered there are many "markets," but an even greater number of alleged strategies to extract money from those markets. I needed to find a niche. I came across this book and decided that the leverage afforded by buying calls and puts would provide the % return I was looking for on my small account.
After reading this book, I then came across one of Wendy's websites, which had a spreadsheet-type of document alleging that Wendy made over $100,000 in 2010 trading options.
At the time, I didn't question those results. It seemed trustworthy because Wendy seemed trustworthy. I then noticed she was trying out a new service where she would "auto-trade" accounts for 12 months using her "P3 squeeze" pattern, for a fee of $5,000. She would decide which trades to make and those trades would be executed in my account via auto-trade. If she couldn't turn a profit after 12 months, I would receive my $5,000 back. However, if my account grew 100% over that time period (i.e., turning my $10,000 account into at least $20,000 by year's end), she would get to keep the fee. It seemed like a sound investment. After all, Wendy literally wrote a book on options trading. I believed at the time that she could make thousands of dollars per month trading options. As a naive investor/trader, I decided to give it a shot. But I didn't want to sit back as a passive observer during those 12 months either. I was planning on tracking her trades to try and learn the "how and why" behind her trading decisions. I thought that I too could learn to be a successful trader and take over my account after those 12 months.
Much to my dismay, I never learned how to trade profitably over those 12 months from Wendy, because she rarely had a profitable trade. By year's end, Wendy's trading decisions resulted in a loss of almost 50%, nearly $5,000 on a $10,000 account. Lesson learned. Don't trust a "trader" without a proven track record of profitability from actual real-time trading, not hypothetical trading. Ask for copies of their brokerage statements. Ask questions. And always read disclaimers. If it seems too good to be true, it probably is. Common sense advice, of course, but greed is a very funny thing. It has the ability to make the most irrational decisions seem rational.
Despite the loss, I consider it to be a blessing in disguise. I've become a self-taught trader over the past two years, and I have traded my own account ever since. In my opinion, this book is a waste of money. There are many others written by traders with proven track records of consistent profits through even turbulent markets.
"how to develop a millionaire mind" by T. Harv Eker. Talks about how subconscious conditioning literally caps our ability to create wealth, no matter what sort of strategy or know-how we understand on a conscious level. If you have not examined the importance of subconscious beliefs, I think they are absolutely crucial to trading success. The book can be found for free in pdf format if you google it, its 24 pages and very concise. I also made a post about subconscious beliefs under psychology and money management (you can view it here).
Understanding yourself is just as important as understanding markets.
First 8 chapters are some excellent background/history on "how we got here". He has an easy to read style. His 9th chapter is basically his thesis of how to fix the markets.
- this site in book form (more or less)
- he has a contrarian bias, while skirting the negatives of that approach.
Now just tackling "Investors Manifesto" by Bernstein. He has a more analytical/math based approach while still having some semblance of easy reading. This is his third book, his earlier efforts had more math in them. No idea on his latest efforts. Just about to read the psychology chapter ....
At the moment, I'm thankful blind luck dumped these into my reading lap. Both seem aimed squarely at helping the investing newbie get some overview of what the heck the 'markets are about.
About half way finished with this book. I really found his earlier books useful but this one is more like "The coffee house guide to trading strategies". It is a good read but should be about half the cost. I'll update after I read the last half.
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