Are you Serious about Trading

Financial Software

A Must Read Book List for Serious Traders recommended by Kiran Sagarkar (M.D. Reliable Software Systems)



There’s nothing quite like Stock Market to get lost, be it trading or reading! There are so many trading books out there; how many are worthy of your time and money? Here is my list that will help you to shorten the invested time and lengthen your learning curves and achieve your trading goals, whichever market you trade in- futures, stocks, or currencies- and whichever trading style you use – trend, swing , or day.



* Reminiscences of a Stock Operator by Edwin Lefevre



There is no doubt that this book is on top. The reading is both entertaining and informative. Lefevre has captured the mind of a great trader – Jesse Livermore as well as the nuances of market with great talent. ‘Reminiscences…’ is recommended by most of the top traders in the world. It is also the most quoted trading book. My favorite is "There is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again."

* Market Wizards: Interviews with Top Traders by Jack D. Schwager



This fantastic book allows a peek into the mind of the world’s most successful traders. Interviews with Million and even Billion dollar traders in this book will equip you on what it takes to win. Some remarkable interviews are - Richard Dennis, the father of Turtle Traders- reportedly started with a shoestring and made $200 million in about ten years, Paul Tudor Jones- worth $2.8 billion and ranked by Forbes in 2009 as the 224th richest person in the world and Bruce Kovner- the 164th richest person in the world, worth $3.5 billion and ranked by Forbes in 2009). I learnt a lot from the interview of Ed Seykota.

* The New Market Wizards: Conversations with America's Top Traders by Jack D. Schwager Another market wizard book by Schwager

* Pit Bull: Lessons from Wall Street's Champion Day Trader by Martin Schwartz



Market Wizard Schwartz shared his journey from a dead-end financial analyst to Wall Street’s champion day trader. Schwartz won the U.S. Trading Championship in 1984. Schwartz is also a Champion Horse owner. Not much to derive- Schwartz has a champion heart! An useful tool I picked up from this book is 10-day EMA as barometer to gauge the daily market behavior. A must read for serious day trader.

* The Taylor Trading Technique by George D. Taylor



This book has been recommended by the only female market wizard Linda Bradford Raschke, who admitted that most of her short-term trading strategies were based on the technique introduced in the book. Though the reading is a tad bit challenging the reward is well worth the time. Taylor divided trading days into three categories – buying day, selling day, and short sale day. Taylor trading technique captures the essence of swing trading. A must read for serious swing trader.

* Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude by Mark Douglas



Most novice traders have spent lots of time and energy to search for the ‘Holy Grail’ in the trading. Having tried all kinds of indicators and trading systems, they have overlooked the most important factors of successful trading. So don’t overlook this book! It’s a perfect book for learning trading psychology.

* Trading Systems and Methods by Perry J. Kaufman



"Probably the most comprehensive guide to trading systems ever written from one of the foremost experts in the field. This is an invaluable reference work for anyone with an interest in trading systems." -- Jack D. Schwager, author, Market Wizards and The New Market Wizards This is also my personal favorite.

* My Life as a Quant: Reflections on Physics and Finance by Emanuel Derman



Derman relives his exciting journey as one of the first high-energy particle physicists to migrate to Wall Street. Page by page, Derman details his adventures in this field—analyzing the incompatible personas of traders and quants, and discussing the dissimilar nature of knowledge in physics and finance. Throughout this tale, he also reflects on the appropriate way to apply the refined methods of physics to the hurly-burly world of markets. A gripping one.

* Fooled by Randomness by Nassim Nicholas Taleb



This one is loaded with crackling little insights. Want a bite of it? Here- What looks like skill is often plain old luck, so beware of investment geniuses. They will get their comeuppance, just as Solon warned. The theme of the book is not developing stock-picking ability but cultivating a frame of mind that appreciates the role of luck and the propensity in making all of us confuse fortune with reason. Taleb, mind you, is a trader. He’s also a fellow at the Courant Institute of Mathematical Sciences at New York University, where he teaches a course on the failure of models. An MBA from Wharton and a PhD from the University of Paris, his expertise is in Skeptical Empiricism. He casts doubt on the things most people think they know for certain.