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INVESTING & TRADING BOOKS
You can learn many of the most powerful ideas from these books quickly here:
Trading and Investing Strategies
Page 1 lists fifteen books which influenced Deepak the most.
See also Fifteen Books
Page 2 lists another fifteen books which are among the most recommended and popular titles on the subject.
Page 3 onward are several other informative books on markets, loosely ordered by subject and author.
Note: When you buy a book by clicking the links provided, we receive fees from Amazon which go towards site maintenance costs. Your buying price remains unaffected.
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Dual Momentum Investing
By Gary Antonacci
Markets, Investing, Trading
Gary Antonacci is an MBA from Harvard University, and well-known as a researcher on Momentum investing. In this book he has spelt out an investment strategy using absolute and relative momentum (the dual momentum in the title). The initial chapters also spell out several market and investment theories which are explained well. This book was published in 2012.
A highly informative book with a proven investment strategy.
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Dynamic Hedging: Managing Vanilla and Exotic Options
By Nassim Nicholas Taleb
Trading, Derivatives
A practical book for experienced options traders, given the years of experience Nassim Taleb has had on the floor. There is a considerable amount of mathematical content, but it is possible to gloss over the equations and yet understand the conclusions. Wizard notes are added to help in this process.
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A Non–Random Walk Down Wall Street
By Andrew Wen-Chuan Lo and Archie Craig MacKinlay
Markets
Andrew Lo is a professor of finance at the MIT Sloan School of Management, the director of MIT's Laboratory for Financial Engineering. He is among researchers whose studies revealed that market prices may contain components that can predict future movements sufficiently to get significant returns on investment. This book examines the evidence against the Random Walk Theory, and its title is an obvious take-off on Malkiel's A Random Walk Down Wall Street.
Wikipedia : Louis Bachelier
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The Quick Python Book
By Naomi R. Ceder
Software
An excellent book to learn the programming language python, as well as to use as a reference later. Python is very well suited for building financial markets applications, and has a large number of usable libraries which simplify most tasks.
Wikipedia : Python
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Mastering pandas for Finance
By Michael Heydt
Portfolio Analysis, Software
Pandas is a software library written for the Python programming language for data manipulation and analysis. In particular, it offers data structures and operations for manipulating numerical tables and time series. It is free software released under the three-clause BSD license. The name is derived from the term "panel data", an econometrics term for data sets that include observations over multiple time periods for the same individuals. Its name is a play on the phrase "Python data analysis" itself. Wes McKinney started building what would become pandas at AQR Capital while he was a researcher there from 2007 to 2010.
This book shows how to use pandas for financial markets applications.
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When Genius Failed: The Rise and Fall of Long-Term Capital Management
By Roger Lowenstein
Markets, Story
When Genius Failed: The Rise and Fall of Long-Term Capital Management is a book by Roger Lowenstein published in 2000. The book puts on an unauthorized account of the creation, early success, abrupt collapse, and rushed bailout of Long-Term Capital Management (LTCM). LTCM was a tightly-held American hedge fund founded in 1993 which commanded more than $100 billion in assets at its height, then collapsed abruptly in August/September 1998. Prompted by deep concerns about LTCM's thousands of derivative contracts, in order to avoid a panic by banks and investors worldwide, the Federal Reserve Bank of New York stepped in to organise a bailout with the various major banks at risk. The book received numerous accolades, including being chosen by BusinessWeek among the best business books of 2000. (Wikipedia)
Wikipedia : When Genius Failed
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Liar's Poker
By Michael Lewis
Markets, Story
Liar's Poker is a non-fiction, semi-autobiographical book by Michael Lewis describing the author's experiences as a bond salesman on Wall Street during the late 1980s. First published in 1989, it is considered one of the books that defined Wall Street during the 1980s, along with Bryan Burrough and John Helyar's Barbarians at the Gate: The Fall of RJR Nabisco, and the fictional The Bonfire of the Vanities by Tom Wolfe. The book captures an important period in the history of Wall Street. Two important figures in that history feature prominently in the text, the head of Salomon Brothers' mortgage department Lewis Ranieri and the firm's CEO John Gutfreund. The book's name is taken from liar's poker, a high-stakes gambling game popular with the bond traders in the book. (Wikipedia)
Wikipedia : Liar's Poker
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Flash Boys
By Michael Lewis
Markets, Story
Flash Boys: A Wall Street Revolt is a book by the American writer Michael Lewis published in 2014. The book is a non-fiction investigation into the phenomenon of high-frequency trading (HFT) in the US financial market, with the author interviewing and collecting the experiences of several individuals working on Wall Street. Lewis concludes that HFT is used as a method to front run orders placed by investors. He goes further to suggest that broad technological changes and unethical trading practices have transformed the U.S. stock market from "the world's most public, most democratic, financial market" into a "rigged" market. (Wikipedia)
Wikipedia : Flash Boys
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The Quants: The maths geniuses who brought down Wall Street
By Scott Patterson
Markets, Trading
The Quants is the debut New York Times best selling book by Wall Street journalist Scott Patterson. It was released on February 2, 2010 by Crown Business. The book describes the world of quantitative analysis and the various hedge funds that use the technique. Two years later, Patterson published a follow-up book, Dark Pools: High Speed Traders, AI Bandits and the Threat to the Global Financial System, an investigative journey into the history of high-frequency trading and the spread of artificial intelligence in today’s markets. (Wikipedia)
Wikipedia : The Quants
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Dark Pools: The rise of A.I. trading machines and the looming threat to Wall Street
By Scott Patterson
Markets, Trading
Dark Pools is a sequel to Scott Patterson's best-seller The Quants, published two years later in 2012. This book digs further into details of how HFT (high frequency trading) works, and how trading has been hijacked by robots.
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The Signal and the Noise: Why So Many Predictions Fail - but Some Don't
By Nate Silver
Markets, Story
The Signal and the Noise: Why Most Predictions Fail – but Some Don't is a 2012 book by Nate Silver detailing the art of using probability and statistics as applied to real-world circumstances. The book includes case studies from baseball, elections, climate change, the 2008 financial crash, poker, and weather forecasting.
Wikipedia : The Signal and the Noise
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Against the Gods: The Remarkable Story of Risk
By Peter L. Bernstein
Markets
Peter L. Bernstein was an American financial historian, economist and educator whose development and refinement of the efficient-market hypothesis made him one of the country's best known authorities in popularising and presenting investment economics to the general public.
Against The Gods won the Edwin G. Booz Prize for the most insightful, innovative management book published in 1996. In 1998, it was awarded the Clarence Arthur Kulp/Elizur Wright Memorial Book Award from The American Risk and Insurance Association (ARIA) as an outstanding original contribution to the literature of risk and insurance. The book has sold over 500,000 copies worldwide. (Wikipedia)
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The Man Who Solved the Market
By Gregory Zuckerman
Story, Trading
The Man Who Solved the Market is a book about Jim Simons and his investing methods. The book is written by Gregory Zuckerman, a special writer at The Wall Street Journal and a non-fiction author.
Jim Simons is an American mathematician, billionaire hedge fund manager, and philanthropist. He is the founder of Renaissance Technologies, a hedge fund based in Setauket-East Setauket, New York. He and his fund are known to be quantitative investors, using mathematical models and algorithms to make investment gains from market inefficiencies. Due to the long-term aggregate investment returns of Renaissance and its Medallion Fund, Simons is described as the "greatest investor on Wall Street". As reported by Forbes, his net worth is estimated to be $23.5 billion, making him the 24th-richest person in the United States.
For more than two decades, Simons' Renaissance Technologies' hedge funds, which trade in markets around the world, have employed mathematical models to analyze and execute trades, many automated. Renaissance uses computer-based models to predict price changes in financial instruments. These models are based on analyzing as much data as can be gathered, then looking for non-random movements to make predictions.
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Louis Bachelier's Theory of Speculation – The Origins of Modern Finance
By Louis Bachelier, Mark Davis, Alison Etheridge, Paul A. Samuelson
Derivatives, Investing, Markets
Louis Bachelier was a French mathematician at the turn of the 20th century. He is credited with being the first person to model the stochastic process now called Brownian motion, as part of his PhD thesis The Theory of Speculation (Théorie de la spéculation, published 1900).
Bachelier's Doctoral thesis, which introduced the first mathematical model of Brownian motion and its use for valuing stock options, was the first paper to use advanced mathematics in the study of finance. Thus, Bachelier is considered as the forefather of mathematical finance and a pioneer in the study of stochastic processes. (Wikipedia)
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David and Goliath: Underdogs, Misfits, and the Art of Battling Giants
By Malcolm Gladwell
Story
David and Goliath: Underdogs, Misfits, and the Art of Battling Giants is a non-fiction book written by Malcolm Gladwell. The book focuses on the probability of improbable events occurring in situations where one outcome is greatly favoured over the other. The book contains many different stories of these underdogs who wind up beating the odds, the most famous being the story of David and Goliath. Despite generally negative reviews, the book was a bestseller, rising to #4 on The New York Times Hardcover Non-fiction chart, and #5 on USA Today's Best-Selling Books.
Though David and Goliath is not about stocks - it has only a couple of passing references to the market - it has been cited as an inspiration by traders as the concepts it introduces could be used anywhere, including the markets. Motley Fool's co-founder David Gardner has written about how the book's philosophy was exactly the sort of thinking that went into their picking stocks like Netflix and Tesla years ahead of time in this article : What Stock Market Investors Can Learn From David and Goliath
