So have completed the following books for the year till date.Will keep updating the thread as and when I finish them.
1. Trading in the Zone
One of the best books on trading and trading psychology that I have read. The 5 truths of trading discussed have formed an integral part.
1. Trading in the Zone
One of the best books on trading and trading psychology that I have read. The 5 truths of trading discussed have formed an integral part.
2. The Greatest Trader Ever - Biography of Jeese Livermore
If there is one thing that I take away from this book is - No matter how great you are, if your personal life is not sorted, you will be screwed. Have peace in life.
If there is one thing that I take away from this book is - No matter how great you are, if your personal life is not sorted, you will be screwed. Have peace in life.
3. Technical Analysis - by Capital Market team
One of the best books on TA. My conviction to not use it increased after reading this, but good basics nonetheless.
One of the best books on TA. My conviction to not use it increased after reading this, but good basics nonetheless.
4. How to price and trade options - Al Sherbin
One of the best books on options. Drives home the point of being strategic without being directional, talks about probabilities and risks in an easy to understand way and discusses all the strategies one ever needs to make money.
One of the best books on options. Drives home the point of being strategic without being directional, talks about probabilities and risks in an easy to understand way and discusses all the strategies one ever needs to make money.
5. The Zurich Axioms
One of the interesting books read this year. It gives you 12 major axioms and 16 minor axioms of speculating - The author defines both investing and trading as speculating. Some of the more important learnings are:
1. Jump when a ship starts to sink
One of the interesting books read this year. It gives you 12 major axioms and 16 minor axioms of speculating - The author defines both investing and trading as speculating. Some of the more important learnings are:
1. Jump when a ship starts to sink
2. Always take your profits at pre-determined levels - While I don't fully agree, but yes, there are conditions where it does make sense - The key is - Don't overstay the party
3. Never believe any forecasts or anyone who thinks he/she can predict future. Completely agreed
3. Never believe any forecasts or anyone who thinks he/she can predict future. Completely agreed
4. There are no patterns in the market - What goes on as pattern and charts are as useless as predictions - Ignore them. React to how the market is behaving
While there are other learnings as well, these are the ones i took out. Happy to discuss the book.
While there are other learnings as well, these are the ones i took out. Happy to discuss the book.
Book 6. A Zebra in lion country
Good one for investments in small and mid caps and . Key takeaways:
i. Compound Interest
ii. Mean Reversion
iii. Buying stocks with option value
iv. Most financial offerings are nothing but ponzi schemes
v. Every bad idea starts from a good one
Good one for investments in small and mid caps and . Key takeaways:
i. Compound Interest
ii. Mean Reversion
iii. Buying stocks with option value
iv. Most financial offerings are nothing but ponzi schemes
v. Every bad idea starts from a good one
7. Thinking in bets
Probably the 2nd best book I have read this year and definitely 1 of the top 10. The book talks about decision making while having half information - Life is Poker, not Chess. Key idea is to get rid of self serving bias, learn from success and failures both.
Probably the 2nd best book I have read this year and definitely 1 of the top 10. The book talks about decision making while having half information - Life is Poker, not Chess. Key idea is to get rid of self serving bias, learn from success and failures both.
There is a framework for improving decisions here --> Stop blaming failures on luck and stop taking credit for success. There are skills/lack of skills in both and removing results from the process is the key to improve quality of decisions and as a result, the result itself.
8. Against the Gods
What a read on probability, risk and the history of the two.
Follows Cardano the Renaissance gambler, followed by Pascal the geometer and Fermat the lawyer, the monks of Port-Royal and the ministers of Newington, the notions man.
What a read on probability, risk and the history of the two.
Follows Cardano the Renaissance gambler, followed by Pascal the geometer and Fermat the lawyer, the monks of Port-Royal and the ministers of Newington, the notions man.
The man with the sprained brain, Daniel Bernoulli and his uncle Jacob, secretive Gauss and voluble Quetelet, von Neumann the playful and Morgenstern the ponderous, the religious de Moivre and the agnostic Knight, pithy Black and loquacious Scholes, Kenneth Arrow & Harry Markowitz
— all of them have transformed the perception of risk from chance of loss into opportunity for gain, from FATE and ORIGINAL DESIGN to sophisticated, probability-based forecasts of the future, and from helplessness to choice.
Key learning - The problem is not that men are unreasonable or even reasonable. It's that it looks just a little more mathematical and regular than it is; its exactitude is obvious, but its inexactitude is hidden; its wildness lies in wait.
How to live and prosper with this?
How to live and prosper with this?
9. Disrupt and Conquer: How TTK Prestige Became a Billion-Dollar Company
A must read for anyone who wants to understand the consumers business in India - Much better than reading research reports. How TTK founded the company and how his grandson, TTJ, turned it around.
A must read for anyone who wants to understand the consumers business in India - Much better than reading research reports. How TTK founded the company and how his grandson, TTJ, turned it around.
.. It's a lesson is building a business and more importantly, a brand. Key Learning:
1. Get down to the office every day.
2. Look at the details. Don’t see the big picture, look at the small picture. The big picture will look after itself.
1. Get down to the office every day.
2. Look at the details. Don’t see the big picture, look at the small picture. The big picture will look after itself.
3. Apply your common sense, and not just what you read in textbooks.
TTJ was always focused on profitability and he never chased size. This is one of the reasons the firm is valued so highly today.
They are high on innovation, not doing something new, but understanding pain
TTJ was always focused on profitability and he never chased size. This is one of the reasons the firm is valued so highly today.
They are high on innovation, not doing something new, but understanding pain
...points and solving it one by one.
TTJ himself is a passionate cook and a good engineer. The reason why they come up with new products which are successful.
A lot that new age, arm chair entrepreneurs can learn from this guy.
TTJ himself is a passionate cook and a good engineer. The reason why they come up with new products which are successful.
A lot that new age, arm chair entrepreneurs can learn from this guy.
... And of course, the way they launched Skore condoms after losing their brands to P&G is a marketing lesson in itself.
DO yourself a favor, read the book. Much to learn from it about product development and launch, marketing and handling non-co-operative teams.
DO yourself a favor, read the book. Much to learn from it about product development and launch, marketing and handling non-co-operative teams.
10. The Universal Principles of successful trading by Brent Penfold
Combines both maths and psychology and maintains a balance between the two - much required for trading. While the book underplays psychology, which I don't agree with, it doesn't fail to recognize it.
Combines both maths and psychology and maintains a balance between the two - much required for trading. While the book underplays psychology, which I don't agree with, it doesn't fail to recognize it.
...The Book talks about six principles of trading - Preparation, Enlightenment, Trading Style, Markets, The Three Pillars and Trading, it's in Money Management where the book shines -One of the detailed treatment of managing trading positions.A worthwhile read just for this.
..The chapter is a must read for all traders, more so for option sellers. How much to risk each trade and how to reduce drawdowns are explained well.
Another key topic to learn in Risk of ruin and how to reduce it to ~0 and importance of +ve expectancy.
Time well spent here
Another key topic to learn in Risk of ruin and how to reduce it to ~0 and importance of +ve expectancy.
Time well spent here
11. Successful traders size their positions - Why and How
This one is on similar lines to Universal Principal of Successful Trading though very concise and well, not well researched.
The book talks about position sizing using three approaches - % of portfolio risk..
This one is on similar lines to Universal Principal of Successful Trading though very concise and well, not well researched.
The book talks about position sizing using three approaches - % of portfolio risk..
.. volatility using either ATR or IV using options and margin money as ways to size positions with one simple formula - Position Size = Value of Equity in the account X % measure of one of these risks measure/Value of risk/Vol Range/Margin.
..It further advocates using the least position size across all three methods to use . Also discusses portfolio risk and suggests keeping it ~12.5-15% (Value is not important, method is).
Active management is talked about as important after trade has been and he does discuss..
Active management is talked about as important after trade has been and he does discuss..
.. Scaling down and right sizing of trades very briefly as well.
Overall, if one can read van Thorp's book or Universal Principal as discussed in this thread, it can be be skipped. Not much depth. However, if you know the concepts already, can be a good refresher read at best.
Overall, if one can read van Thorp's book or Universal Principal as discussed in this thread, it can be be skipped. Not much depth. However, if you know the concepts already, can be a good refresher read at best.
12. Subscribed by Tien Tzuo
A good primer on Subscription economy and how it's changing the business all around the globe - From Adobe to Microsoft to Airlines to Electricity to Real Estate mapping and execution!
A good primer on Subscription economy and how it's changing the business all around the globe - From Adobe to Microsoft to Airlines to Electricity to Real Estate mapping and execution!
https://twitter.com/marginalideas/status/1148628367144603649
Book 13 - Titan: Inside India's Most Successful Consumer Brand.
A must read on how to go about creating consumer brand, the constant iterations and introducing newer products while having a successful portfolio.
A must read on how to go about creating consumer brand, the constant iterations and introducing newer products while having a successful portfolio.
https://twitter.com/marginalideas/status/1150660471684554752
Book 14 - Small Giants: Companies That Choose to Be Great Instead of Big
Overall, the message that pops out it – Put employees first, enable them to do what you expect them to do instead of micromanage and do selective business which reduces stress.
Overall, the message that pops out it – Put employees first, enable them to do what you expect them to do instead of micromanage and do selective business which reduces stress.
https://twitter.com/marginalideas/status/1169860257289342976?s=20
Book 15 - Why We Sleep: Unlocking the Power of Sleep and Dreams by Matthew Walker
One of the off-track books that I read recently. An amazing, in-depth look at sleep, the research behind it, and its huge array of benefits.
One of the off-track books that I read recently. An amazing, in-depth look at sleep, the research behind it, and its huge array of benefits.
https://twitter.com/marginalideas/status/1170253833814994944?s=20
Book 16 - Deep Work: Rules for Focused Success in a Distracted World by Cal Newport.
This one was read quite some time back and the current chaos in my personal schedule lead to re-reading of the same
This one was read quite some time back and the current chaos in my personal schedule lead to re-reading of the same
https://twitter.com/marginalideas/status/1170610798739116032?s=20
Book 17 - Leonardo da Vinci by Walter Isaacson
I think after APJ AK sir, Da Vinci is the one I have always been fascinated with.
Book does a good job at describing what LDV was great at, probably the best – making connections across disciplines.
I think after APJ AK sir, Da Vinci is the one I have always been fascinated with.
Book does a good job at describing what LDV was great at, probably the best – making connections across disciplines.
https://twitter.com/marginalideas/status/1171686949217693696?s=20
Book 18 – A bank for the Buck
The book is all about the history and philosophy of how the bank was formed and why a firm is all about its people.
Investors and founders will do themselves a favor by reading this.
The book is all about the history and philosophy of how the bank was formed and why a firm is all about its people.
Investors and founders will do themselves a favor by reading this.
https://twitter.com/marginalideas/status/1183329418703302656?s=20
Book 19 – Capital Returns by Marathon Asset Management
The book is a collection of client letters covering various capital cycle thoughts by the firm and their investment philosophy.
A must read for all investors.
The book is a collection of client letters covering various capital cycle thoughts by the firm and their investment philosophy.
A must read for all investors.
https://twitter.com/marginalideas/status/1183648881755574273?s=20
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