Van Tharp's Trade Your Way to Financial Freedom

[desinaner]

Hey guys..

So I am ordering the book in the title. It seems to get a lot of good reviews and I see it recommended a lot in here as well. I have it in amazons shopping cart ready to go, I just wanted to know from those of you that have read it if it is good for a COMPLETE beginner? I have read that it is good for beginners, I am just trying to get an idea as to if I should have somewhat of an understanding of the market before reading this one.

This is going to be my first book on stocks. I have no problem buying a different book to read that may lead up to this one (if it would be more beneficial for me), one that teaches the basics and how the market works. Any recommendations? I appreciate any help in advance!

Mike

PS/Cliffs I am ordering this book regardless. Just looking for the 'go-to' book for a complete beginner interested in stocks. Thank you!

 

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[GlobalWealth]

The Intelligent Investor - Graham and Dodd
One up on Wall Street - Lynch
The Little Book that Still Beats the Market - Greenblatt
Market Wizards - Schwager
Reminiscences of a Stock Operator - Lefevre
Winning on Wall Street - Zweig

 

[EdwardWhite]

The trade you way to freedom is a excellent book. Dives deep into what it takes to trade mentally and developing systems.

I always liked How to make money in Stocks by William o'neal.

(Disadvantage is his money mangement doesn't make any sense to me, so you would have to develop that from another system. His system focuses on growth stocks and using Investors Business Daily.)

I will admit, I really never found my love to trade stocks, since I really love short term type stuff, and found my success in Forex instead of stocks.
But when I was trading stocks, I did very well using his book, turning 250 dollars into 600, and was pretty lazy about it, not following everything to a t,checking out things on a consistant basis. Looking back at it, I bought during a good uptrend.

All the books in the previous post, are great books too and you cannot go wrong reading them.
My biggest advice is don't get caught up in the magazines for stock tips, like Forbes or Money, etc. Only buy things, after you screen them yourself with your system.

Next, is, there isn't one system to rule them all mentality. Find something that matches your personality, and learn to do it well. Save the value investing vs. growth vs daytrade debates for slowlane people who don't want to do the work.

Don't get too caught up in education, and never end up trading live. When its time to put money where your mouth is, start trading, and watch everything you learned go to hell a bit. That becomes your real education. Its amazing how easy it is to pick things when money isn't at stake, and when it does, you begin to overanylize or under anylize your buys and sells. Thats when I really learned how to invest and trade.

sorry for the typos, for some reason I cannot right-click and clean this up on this computer...hmm...

 

[oddball]

The Intelligent Investor - Graham and Dodd
One up on Wall Street - Lynch
The Little Book that Still Beats the Market - Greenblatt
Market Wizards - Schwager
Reminiscences of a Stock Operator - Lefevre
Winning on Wall Street - Zweig

Just bought The Intelligent Investor. Looking forward to reading it once I finish The Millionaire Fastlane .

 

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[GlobalWealth]

Just bought The Intelligent Investor. Looking forward to reading it once I finish The Millionaire Fastlane .

Many consider this to be the investors bible. Its a tough read though, not very entertaining.

 

[Jonleehacker]

This is a surprisingly good (free) ebook on trading. I re-read it on a regular basis.

7 Habits of a Highly Successful Traders

 

[oddball]

Many consider this to be the investors bible. Its a tough read though, not very entertaining.

Yea, that is what I hear. I took a look at it quick when I got it and thats exactly what it looks like, a bible. haha. It is going to be a hard read but worth it I think.

 

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[Jonleehacker]

Some other must read trading books:

The Way of the Turtles
The Big Short
Trading in the Zone
The Market Wizards

 

[desinaner]

The Intelligent Investor - Graham and Dodd
One up on Wall Street - Lynch
The Little Book that Still Beats the Market - Greenblatt
Market Wizards - Schwager
Reminiscences of a Stock Operator - Lefevre
Winning on Wall Street - Zweig

Thanks a bunch man.. I definitely see some of those books being recommended a lot. I am going to order a couple of them with Tharp's (mainly the ones that are recommended for beginners in the reviews).

Some other must read trading books:

The Way of the Turtles
The Big Short
Trading in the Zone
The Market Wizards

Thank you! I will check these out and will definitely look into that ebook!

 

[Mark Ramsey]

I've been trading for close to 5 years now and have a library that must exceed 100 books. I'm still struggling so let me tell you if you aren't 100% committed to your trading education don't go anywhere near stocks.

You need to determine the trader you wish to be - short term, long, fundamental, technical, options trader, stocks, CFD's, Bonds etc. I'll list a few books for you that I consider the best but think hard and realistically about how you can trade. E.g. working a day job - no way in hell are you day trading except perhaps eminis!

General Information covering all topics:
- Reminiscences of a Stock Operator - Based on Jesse Livermore world's greatest Trader. Knowledge is priceless.
- Come into my Trading Room - Alexander Elder (Read the money management chapters before you invest $1)
- How To Trade Stocks - William O'Neil (CANSLIM methodolgy described in detail is priceless for mid-long term strategies and general technique - both fundamentals and technicals)
- One Good Trade - Mike Bellafiore (day trading prop firm but awesome knowledge not seen elsewhere)
- Trade The Trader - Quint Tatro (easy to follow, great strategies)
- Techniques of Tape Reading - Vadym Graifer (excellent run down on Volume and strategies).

I just read a great brief ebook bought through Amazon by "How to become a Market Timing Guru" by Kiev Nadir which again focuses on volume and is really well written.

Van Tharp's books are good but waffle on. I think you can absorb the same information in "Come into my trading Room" wrapped around technique as well as mind-set.

Mike Bellafiore's professional prop firm runs a website also which is moderated by professional traders. The information hosted and questions answered are priceless:

SMB Capital Trading Blog

This site is good also:

StockTwits U

As MJ says in his book the industry is swarming with Sharks and stocks is a losing game (except for Brokers) unless you can find an edge (the holy grail) All the best on your journey

 

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[Jonleehacker]

stocks is a losing game (except for Brokers) unless you can find an edge (the holy grail)

This is true. However 99.99% of traders have a false belief that a certain trading system or methodology is "the holy grail" and when they'll find that, then they will be consistently profitable. The approach is completely wrong.

Finding a trading edge, or a system that produces winning trades > 60% of the time is EASY. They are available everywhere. Here's one on this forum in fact.

The real holy grail is the trader, and his/her money management. Of course this is really unexciting and doesn't sound like fun at all, which is why most traders consistently lose money.

In short finding a profitable system is easy, trading it like a professional trader (always following the rules of the system) is extremely hard. The holy grail is being able to align your actions as a trader with the rules of your system, but most traders will change the rules or the system as soon as things get uncomfortable rather than look in the mirror and see the mistakes they are making.

Jon

 

[GlobalWealth]

Mike
I too have read an enormous amount about investing/trading and sometimes feel like I am on 'info overload'. I have had to filter out some stuff to help me focus on what works for me.

Like Jon alluded to, the real holy grail is risk management. This is where most traders/investors fail miserably. They are unable to eliminate emotion from their trading and tend to ride losses while cutting winners early.

This is of course the complete wrong course of action, but nearly every trader I know makes this mistake (myself included) at some point.

I was in Chicago a few weeks ago visiting a friend who trades at the CME and we also spent one day working with his trading coach, Bob.

Bob told us that you could actually throw a dart at the WSJ stock page to pick stocks as long as you had a good risk management plan in place and make money. While I am sure he was somewhat joking, it does make sense.

 

[desinaner]

Thank you guys, I really appreciate your input. While I am sure I am going to make many mistakes along the way which I will learn from, I know I have really good discipline and can control my emotions once I have a deeper understanding of stocks and the method I pick to trade with.

I know this because growing up, I loved poker.. I read books and made sure I developed a system. Although it took a lot of fun out of the game at times (like not chasing or going against what I learned to try and connect), I was profitable by sticking to certain rules that I set forth. It worked! Anyway,

I just received my books. I am so excited to read them! I ordered:

How Stocks Work by David L. Scott
Van Tharp's Trade Your Way to Financial Freedom
Reminiscences of a Stock Operator
The Intelligent Investor
Market Wizards

and luckily... my friend said I could borrow one of his stock books. Turns out it was How to Make Money in Stocks by O'Neil that someone suggested. Hell yea!

I am going to read How Stocks Work first. This wasn't a classic or must-have, and 'How mutual funds can be part of your portfolio' on the front makes me a little wary, but I wanted a book that would lay out the basics and how everything works for me. I will let ya guys know what I think of it. I just hope I don't get contaminated with bad advice aha!

Thanks again for your guys help.

 

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[GlobalWealth]

Reminiscences of a Stock Operator
The Intelligent Investor
Market Wizards

These are must have's. I have never talked to a trader who hasn't read "Reminiscenses...".

I have never talked to an investor who hasn't read "Intelligent..."

I also consider Market Wizards to be a must read. You won't learn any real technical skills, but you will learn the emotional detachment that excellent traders portray. You will also learn that every trader is different and you must follow your own path.

 

[SpeedRacer]

Pit Bull by Marty Schwartz, Trader Vic I and II by Victor Sperandeo, and How I Made $2,000,000 in the Stock Market by Nicholas Darvas are good reads as well.

Staying in the game by keeping your risks small (losing no more than say 1% of your risk capital on any single trade) is arguably the #1 rule.

 

[zr1]

Has anyone read this book? It's a very interesting read.

Reminiscences of a Stock Operator

 

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[GlobalWealth]

Has anyone read this book? It's a very interesting read.

read through the thread first