NexusFi: Find Your Edge


Home Menu

 





Some highly recommended books


Discussion in Traders Hideout

Updated
      Top Posters
    1. looks_one Fat Tails with 49 posts (98 thanks)
    2. looks_two Big Mike with 37 posts (82 thanks)
    3. looks_3 wh with 13 posts (15 thanks)
    4. looks_4 cunparis with 13 posts (31 thanks)
      Best Posters
    1. looks_one SMCJB with 2.7 thanks per post
    2. looks_two cunparis with 2.4 thanks per post
    3. looks_3 Big Mike with 2.2 thanks per post
    4. looks_4 Fat Tails with 2 thanks per post
    1. trending_up 342,082 views
    2. thumb_up 727 thanks given
    3. group 264 followers
    1. forum 527 posts
    2. attach_file 47 attachments




 
Search this Thread

Some highly recommended books

  #441 (permalink)
Ozquant
Brisbane Queensland Australia
 
Posts: 220 since Aug 2017
Thanks Given: 167
Thanks Received: 380


sands View Post
A lot of traders find the emotional/psychological part tough.
The best way to reduce that problem that I've seen many many professionals use is to focus on technique and to make trading a mechanical process and to stick to that process consistently. It is then largely free of psychology, well as much as it can be when you have your own money on the line :-)

This is 100% correct , Trading books full of anecdotes and subjective crap are no use at all and that describes 99% of trading books out there . If it cant be formulated and backtested there is no proof of anything . Ive read this entire thread and some of the books reccomended here are shockers . From one of my fave trading books





If you ever actually knew the probability of a fibonacci level doing what you expect it to you would never put another fib on a chart again , EW fails in the same class . All subjective junk with a severe Hindsite bias when one of the 7 or how ever may fib lines you put on a charts works . This is from Adam Grimes , hope he doesnt mind





Pick your books wisely and dont believe a word you read in any of them until you have applied critical thinking to the concepts . most trading books will poison your mind not help it . Evidence creates clarity , seek it . Use a scientific approach and seek tools to acheive this .... hint be a quant

Psychology another rort , if you have a systematic approach with a robust expectancy you might need a head doctor if you fail to execute but many green traders think psychology books will cure there woes when whats really broken is their method or a total lack of one . Get a method/system before you buy any psychology book . As ive stated before positive expectancy leads to a positive mindset , not the other way around .....





I have close to 500 trading books on drive and i doubt there is more than 20 worth reading . I like quant style books , i suggest everyone reads a couple ... H Bandy a good start . trade well guys

Reply With Quote
The following 9 users say Thank You to Ozquant for this post:

Can you help answer these questions
from other members on NexusFi?
NexusFi Journal Challenge - April 2024
Feedback and Announcements
Request for MACD with option to use different MAs for fa …
NinjaTrader
ZombieSqueeze
Platforms and Indicators
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Retail Trading As An Industry
61 thanks
NexusFi site changelog and issues/problem reporting
46 thanks
Battlestations: Show us your trading desks!
38 thanks
GFIs1 1 DAX trade per day journal
32 thanks
What percentage per day is possible? [Poll]
25 thanks

  #442 (permalink)
 
mattz's Avatar
 mattz   is a Vendor
 
Posts: 2,493 since Sep 2010
Thanks Given: 2,440
Thanks Received: 3,789

I would like to mention that sometimes books that are not related directly to trading have helped me understand trading better. For example, game theory/microeconomics helped understand how individuals interact with groups.

It led me to thoughts how individuals traders face the challenge of guessing the markets(group behaviour).
In my opinion, once you understand these concepts you will stop guessing tops and bottoms because the likelihood of being right on it is close to zero. Even when an analyst says he sees stock/futures/bond double in price, it is again a prediction to guess tops and bottom because he.she is gauging how a group will react to data.

I came across a book called "Nudge" by Richard Thaller and Cass Sunstein. The theme of the book is whether we as humans make truly objective and independent decision. The answer to that is not really. It shows how systematically we are manipulated due to our way of thinking.

We should strive to always be conscious of our decision because then we will rely less on impulses hopefully.
In trading, many of our mistakes are related to impulses.

I enjoyed this book, and I thought I will share.

Matt Z
Optimus Futures

There is a substantial risk of loss in Futures trading. Past performance is not indicative of future results.

Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
Reply With Quote
The following 6 users say Thank You to mattz for this post:
  #443 (permalink)
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,031 since Dec 2013
Thanks Given: 4,357
Thanks Received: 10,164


Well said @mattz. Behavioral economics shows nicely how so many irrational decisions are made for the wrong reasons.

One of the easiest examples is to assume I have $1 and I get to divide it up between you and I. If we both agree on how it is divided we both get to keep our share, while if we disagree we both get nothing. I should divide the $1, 99c to me and 1c to you. Since having 1c is better than nothing you should agree with this division and except it. Studies have shown though that divisions higher than 70:30 normally get rejected due to the perception of it not being fair. ie People make a bad economic decision because they perceive it to be unfair. Of course this heavily dependent upon your utility function. 1c isn't meaningful to most people and the results would probably be different if it was $100 Million rather than $1.

Reply With Quote
The following 6 users say Thank You to SMCJB for this post:
  #444 (permalink)
 
mattz's Avatar
 mattz   is a Vendor
 
Posts: 2,493 since Sep 2010
Thanks Given: 2,440
Thanks Received: 3,789

@SMCJB I relate to your example. I have seen this behavior in real life. It seems that many of our "programmed" reactions sure indicate that we need to quiet ourselves before we respond. Left brain type advice.

I remember that after reading some blogs/books about behavioral decision making, I changed my approach.
Rather than try and guess what will work out, I decided to approach with what will not work out.
Essentially you eliminate and say no to things. In my opinion, this approach has changed my decision making for the better.

If you are a trader looking at multiple markets, multiple screens, and multitude of methods, and trying to decide which is the "best" set up, maybe you eliminate those that have poor setups? then focus on the remaning markets.
This is not a unique approach. Some venture capitalists use this approach in deciding which companies they should go after and invest in. They clearly don't have expertise in every area, however, they know with certainty what they don't want to be in or involved with.

Thanks,
Matt Z
Optimus Futures

There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.

Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
Reply With Quote
The following 4 users say Thank You to mattz for this post:
  #445 (permalink)
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,031 since Dec 2013
Thanks Given: 4,357
Thanks Received: 10,164


mattz View Post
I remember that after reading some blogs/books about behavioral decision making, I changed my approach. Rather than try and guess what will work out, I decided to approach with what will not work out.
Essentially you eliminate and say no to things. In my opinion, this approach has changed my decision making for the better.

I agree. In statistics the probability of something happening is one minus the probability of it not happening. In many cases it is a lot easier to calculate in the probability of it not happening that it happening.

Hate to sound like I'm preaching but there's a great example of this. You've probably heard that you only need to have 23 people in a room before it is more likely that two or more people share a Birthday than not. Calculating the probability of people sharing a Birthday is very difficult. What happens if three people or four people share a Birthday rather than just two? Calculating the probability of NOT sharing a Birthday though is easy.
  • If you have one person, the probability of him not sharing it with somebody else is obviously 1
  • If you have two, the probability is 1 * 364/365 (ie that it is different) = 0.997
  • If you have three it's 1 * 364/365 *363/365 (ie the 3rd is different than the previous two) = 0.992
  • ...
  • If you have 23 it's 1 * 364/365 *363/365 * ... * 344/365 = 0.494
Well if the probability of not sharing a Birthday is 0.494, then the probability of sharing a Birthday is (1-0.494) = 0.506!

Reply With Quote
The following 4 users say Thank You to SMCJB for this post:
  #446 (permalink)
 
xplorer's Avatar
 xplorer 
London UK
Site Moderator
 
Experience: Beginner
Platform: CQG
Broker: S5
Trading: Futures
Frequency: Never
Duration: Never
Posts: 5,924 since Sep 2015
Thanks Given: 15,419
Thanks Received: 15,234


SMCJB View Post
I agree. In statistics the probability of something happening is one minus the probability of it not happening. In many cases it is a lot easier to calculate in the probability of it not happening that it happening.

Hate to sound like I'm preaching but there's a great example of this. You've probably heard that you only need to have 23 people in a room before it is more likely that two or more people share a Birthday than not. Calculating the probability of people sharing a Birthday is very difficult. What happens if three people or four people share a Birthday rather than just two? Calculating the probability of NOT sharing a Birthday though is easy.
  • If you have one person, the probability of him not sharing it with somebody else is obviously 1
  • If you have two, the probability is 1 * 364/365 (ie that it is different) = 0.997
  • If you have three it's 1 * 364/365 *363/365 (ie the 3rd is different than the previous two) = 0.992
  • ...
  • If you have 23 it's 1 * 364/365 *363/365 * ... * 344/365 = 0.494
Well if the probability of not sharing a Birthday is 0.494, then the probability of sharing a Birthday is (1-0.494) = 0.506!

Nice one S. - I'm sure I studied this at school but I hardly remember anything from school

How is this calculation called? (appreciate it may be off-topic, in which case feel free to PM me)

Thanks

Reply With Quote
The following user says Thank You to xplorer for this post:
  #447 (permalink)
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,031 since Dec 2013
Thanks Given: 4,357
Thanks Received: 10,164

Sum of a Geometric Series

Reply With Quote
The following 4 users say Thank You to SMCJB for this post:
  #448 (permalink)
 webradio 
Hamburg, Germany
 
Experience: None
Platform: MetaTrader, Multicharts
Trading: FX
Posts: 44 since Sep 2016
Thanks Given: 21
Thanks Received: 34

Has anybody read https://www.amazon.com/101-Trading-Ideas-Magical-Fast-Paced/dp/0997724706 ?

His presentations sound a bit like if he was giving new names to old things: mean reversal, correlation, co-integration, pair trading. I'm okay with it as long as I read something new for me.




Reply With Quote
  #449 (permalink)
 
Blash's Avatar
 Blash 
Chicago, IL
Legendary Market Chamois
 
Experience: None
Platform: NT8,NT7,TWS
Broker: InteractiveBrokers, S5T, IQFeed
Trading: The one I'm creating in the present....Index Futures mini/micro, ZF
Posts: 2,311 since Nov 2011
Thanks Given: 7,341
Thanks Received: 4,518

I'm listening to this book and I find it fascinating. Buying the kindle version later today too. This is groundbreaking work that I find extremely relevant to trading.

How Emotions Are Made: The Secret Life of the Brain
by Prof. Lisa Feldman Barrett Ph.D



The classical view of emotions holds that there is a "finger print" for emotion common in all people and this research shatters that hypothesis.

Ron

...My calamity is My providence, outwardly it is fire and vengeance, but inwardly it is light and mercy...
The steed of this Valley is pain; and if there be no pain this journey will never end.
Buy Low And Sell High (read left to right or right to left....lol)
Follow me on Twitter Visit my NexusFi Trade Journal Reply With Quote
The following 2 users say Thank You to Blash for this post:
  #450 (permalink)
Ozquant
Brisbane Queensland Australia
 
Posts: 220 since Aug 2017
Thanks Given: 167
Thanks Received: 380


For the option side this is a great book , not really newbie material

https://www.amazon.com/Option-Traders-Hedge-Fund-Framework/dp/0132823403



Reply With Quote





Last Updated on October 12, 2023


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts