Anyone read any good books?

Relax and chat about anything not covered elsewhere.
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Hermes
Posts: 9
Joined: Tue Aug 06, 2013 9:32 am

Just ordered Seth Godin's "Small is the new big" - I just love that guy's views. Though it's quite old , I have discovered it just recently.
teamlefty
Posts: 93
Joined: Tue May 28, 2013 6:25 am

Hermes wrote:Just ordered Seth Godin's "Small is the new big" - I just love that guy's views. Though it's quite old , I have discovered it just recently.
Seth Godin's books are really good.

I've read Tribes, Linchpin and Purple Cow. I got The Dip next in line.
Hermes
Posts: 9
Joined: Tue Aug 06, 2013 9:32 am

I have only read Lichpin so far, and loved it. Eventually I am going to read everything he has written.
redtra
Posts: 189
Joined: Fri Feb 08, 2013 6:27 pm

Just started to read the excellent "Trading In The Zone" by Mark Douglas as I've seen it mentioned a few times here. Only a few chapters in, but I am puzzled by the reference to risk taking. He says it is very important and a key to becoming a good trader. By risk, is he referring to the possible loss if a trade goes wrong or a risk of something else?...still reading it but it is so good I was wondering if anyone else had a view?
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superfrank
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Joined: Fri Aug 14, 2009 8:28 pm

if i remember correctly he's talking about the acceptance of risk, i.e. mentally accepting (and being comfortable with) the risk (of loss) associated with placing any trade. good advice. many think they are comfortable with risk but their reactions to losing trades suggests they are not.
andyfuller
Posts: 4619
Joined: Wed Mar 25, 2009 12:23 pm

superfrank wrote:many think they are comfortable with risk but their reactions to losing trades suggests they are not.
A bit of an off the wall suggestion but try setting up a video camera or similar and record your day trading. Do it for a few days so you get used to recording and not altering your reactions because a camera is present.

Then after a while of recording get your P&L and look back at the videos and see how you really react to changes in your P&L. Do you just sit there like nothing happened? Do you get up mad with yourself? Do you start telling yourself off? Do you bang the table in frustration? etc.

It is a simple if not slightly odd way of seeing how you react and handle losses AND profits.

Another option that you want be able to 'cheat' would be to wear a Heart Rate monitor whilst trading - then use some of the free software that is available to cross compare your P&L to how your heart rate reacts. When your heart rate picks up, what is happening? Are you placing trades in the market? Are you exposed more than you should? Do you have a big profit building, etc.

Ideally, imo, you should not see any change in your reactions or heart rate when you have losses and profits. You should be passive to it all but still aware of the risk.
LinusP
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Joined: Mon Jul 02, 2012 10:45 pm

I think Peter mentioned in his blog about wearing a heart-rate monitor but I don't remember seeing any results from it...?
PeterLe
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Joined: Wed Apr 15, 2009 3:19 pm

Only half way through it..but Fortunes Formula by William Pounstone.
Anyone into trading would enjoy this book I would have thought.
The Kelly criteria is featured together with some of the most famous names to have used it; ed Thorpe,Claude Shannon and others..
Great insight and easy to read
Last edited by PeterLe on Thu Nov 07, 2013 1:21 pm, edited 1 time in total.
switesh
Posts: 527
Joined: Mon Jul 11, 2011 8:43 am

I picked up Ben Graham's Intelligent Investor this Jan and am still half-way through (long book to get through & digest the material), but just finished reading Mohnish Pabrai's The Dhandho Investor: The Low-Risk Value Method to High Returns

Lot of ideas & investing philosophies from great investors and businessmen. I feel thoroughly enlightened!
If there's one phrase that's stuck on my mind forever from this book it's this:
Heads I win, Tails I don't lose much!

How much Risk? & what're the odds of total failure? - that'll be the first thing on my mind when I look at any potential investment or business in the future!

One other phrase that captivated me was this:
Low Risk & High Uncertainty = Opportunity! Brilliant!!!
Michal
Posts: 41
Joined: Fri Feb 01, 2013 3:18 pm

Ben Graham is great I also like Buffett's annual letter to shareholders. I still wonder how much of wisdom is there - free of charge!

Older letters are compiled in his book "Lessons For Corporate America" , individual letters are available here: http://www.berkshirehathaway.com/letters/letters.html
steven1976
Posts: 1744
Joined: Tue Jan 19, 2010 6:28 am

"How much Risk? & what're the odds of total failure?"

I put the risk on my customers. Let them pay for everything. Works great! Obviously, depends upon the business but always worth asking for money to fund any business cashflow up front.
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gazuty
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Joined: Sun Jun 26, 2011 11:03 am
Location: Green land :)

PeterLe wrote:Just read : The Drunkard's Walk: How Randomness Rules Our Lives
Kept my interest, and worth a read
Reading it now.
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JollyGreen
Posts: 2046
Joined: Sat Mar 21, 2009 10:06 am

My wife struggles with certain tasks especially if it means public speaking. She often does presentations as she's very experienced in the education field and she gets so worried it keeps her awake and almost makes her nauseous. I have been helping her and she's imprived so much compared to where she was.

I am forever getting books for her, often books I read many years ago, but the latest one was totally new. She was going to a seminar and the speaker has a book called 101 Days to make a change so I bought it from Amazon. She loves it and if it is helping her then it can help others too!

It's worth investigating.
PeterLe
Posts: 3715
Joined: Wed Apr 15, 2009 3:19 pm

I bought Flashboys a couple of days ago with the intention of reading it on holiday next week.
I thought I would read the first chapter last night and read nearly 20% of the book.
The first 10% or so was a bit boring, but it has got more interesting.
This is a small extract of the text :-

"The market on his screen was no longer the market. His friend would hit a button to buy or sell a stock and the market would move away from him.."

Sounds familiar? ;)

The book is about how dark pools are formed by linking exchanges and how various people use to technology to intercept orders BEFORE they hit the market. Often just milliseconds ahead, but plenty enough time to readjust the market.
I'm only just into the book, but already its making me think that we would all be very naive if we though that this isn't happening (by betfair themselves or whoever)

On a positive; It has given me a idea that I intend starting to test on the exchange today.. :D

If the rest of the book is as good, then worth a read
regards
Peter
LinusP
Posts: 1871
Joined: Mon Jul 02, 2012 10:45 pm

Hi Peter,

I plan on reading that book, seems to be in the news a lot. I wonder how long HFT will be allowed to continue.

I think they are looking to turn it into a film as well.
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