What’s up traders! My name is Matthew Owens, most of you know me as Triforce trader or Tri. The question that I get asked the most is “What are your favorite trading books?” To be honest, I hate reading but if it is about trading I will read it. However, I prefer Audiobooks to reading.
It is important to note that most books about trading will teach you what not to do, and not what to do. For me I am very carful about what I read because I think that reading can stifle ones creativity.
Here I share with you my favorite books, which contain a mixture of quantitative books for trading and books that I consider “The Trash Novels” of Trading. =) Enjoy.
- Python for Finance – I thumb in this book all the time. Best for coding, a handbook that goes to a lot topic: options and machine learning. If you are interested in coding and finance, this is the best book for you. Even if you do not like or understand Python, you will still be able to learn a lot from this book. Great starter guide.
- A man for all markets – my favorite book, I also have this on audiobook. The author is not only brilliant but his life story is cool. Some people know him from Blackjack, gambling. He goes to a lot of detail, not only on his personal philosophies in life but also how he beat the market. The insights into how he came up with stuff, very intuitive. Having an own idea on how to solve a problem instead of copying the step by step instruction from someone, is great. A great book for traders and gamblers. Just remember trading is not like poker, it is a game of odds but more of a game of bridge.
- How to beat wall street – a really good book and to the point. A great handbook, a beginner’s guide that touches on everything – from the fed, stocks, currencies, Dow theory. It also has 20 trading system ideas.
- The Pit Bull – is the man, a life journey of the author too. The author is one of the best traders in the world. This is an older book, not everything in it applies today but I really like his take on trading, and how he built his trading system which is based around what he thinks about the market. He does a lot of work and research and still trades even up to this day. The book has a back section where he talks about strategy which today is good especially for the SMP500. He also has a diagram of how he analyses the market.
- Hedge Fund Market Wizards – my favorite book from Jack Schwager, though all his books are good. This is a big book with over 600 pages, has an audiobook. A lot of different traders, a lot of different perspectives. My favorite parts are the one with Ed Thorpe, Jaime Mai, Jaffray Woodriff. J Woodriff is probably the best traders outside the Renaissance, that came in the game for the last 15 years. I took a lot from him in this section of the book, he made things came together without giving everything. The cool part of this book, with all the great successful traders with their own way of viewing and thinking about markets, the best part is you will find a trader that will resonate with you. These are real traders with real money, this is the most current book of J. Schwager. Ed Thorpe’s section was the longest, it takes 2 hours. You should also read Ed Seykota, Paul Tudor Jones. For Jaime Mai, which is part of the whole, 2008 was when they made their big money with asymmetrical returns. He goes over options.
- Long-Term Secrets To Short-Term Trading – the best trader with an actual track record. He really has good and simplistic ideas. It has a lot of stuff to think about and test. He influenced my taring a lot and how I think about markets. If you go over and test the ideas that he has, you will be shocked. This was revised for current market conditions. He has his own stuff and indicators.
- Trading System and methods – the bible of quantitative analysis. A big book, not your typical Sunday read. If you are not familiar with quantitative analysis and want to learn a lot of ideas, trading methods, and style, want to do hardcore statistics and math, how to detrend the market, some other different methodologies, and how to write a code. The books have a lot of math in it, the probabilities which are important in the market.
In conclusion, do not just based everything on what you read. You will need to put it into practice as well. My advice is to find yourself who’s a successful trader, work for a quant fund, find a mentor, read and watch the reading come to life to that person trading. Do not stifle your creative side, test everything, this is a game of probabilities. Check out the link of these books below, email me for questions.