Anyone Know of Descriptive Stock Market Books?

[tedbradly]

I have 4 types of books I'm interested in finding:

1.
I want a book on how to keep a portfolio, how trading actually takes place, the different avenues to head down to complete a trade (their costs, advantages, and disadvantages), and so on. I sort of want a book on literally HOW to trade stocks -- not on how to pick (supposedly) profitable stocks [which is commonly phrased 'how to trade stocks'].

2.
I'm also looking for a solid book on how to backtest a stock trading strategy. One that details what assumptions tend to be valid during simulation and how to align best your simulated results with reality as well as a disposition on common pitfalls of coded market simulators.

3.
A book on measures of risk/performance for a stock strategy [that has been traded or simulated]. 2 & 3 could possibly be in a single book, I assume.

4.
Last and least important, a good book on common trading strategies and why they (used to) work.

 

[tedbradly]

I apologize for the double-post, but my browser isn't responding to the "save" when I clicked edit.

It would be awesome if #1 also detailed other real life considerations when trading stocks such as taxes etc.

 

[khemist]

There is the Intelligent Investor by Benjamin Graham and A Technical Analysis of the Financial Markets by John Murphy. Not quite sure if it is what you are looking for, but they have some great information.

 

[tedbradly]

There is the Intelligent Investor by Benjamin Graham and A Technical Analysis of the Financial Markets by John Murphy. Not quite sure if it is what you are looking for, but they have some great information.

Nice! These are the types of books I'm in search of, and it shows why a forum can often trump searching Google or Amazon.

From reading the descriptions, it seems your second fulfills my fourth (and possibly third) and your first at least a bit fulfills my first (and possibly my third and fourth).

Thanks!

 

[LudusRex]

1. "The Intelligent Investor" by Benjamin Graham - This classic book covers the fundamentals of portfolio management and the practical aspects of trading stocks, including costs and different avenues for trading.

2. "Quantitative Trading: How to Build Your Own Algorithmic Trading Business" by Ernie Chan - This book provides a comprehensive guide to backtesting strategies and includes discussions on assumptions and pitfalls to be aware of.

3. "The Handbook of Portfolio Mathematics: Formulas for Optimal Allocation & Leverage" by Ralph Vince - This book delves into the mathematical aspects of measuring risk and performance in stock strategies.

4. "Market Wizards: Interviews with Top Traders" by Jack D. Schwager - This book offers insights into the strategies used by successful traders and the reasons behind their success. It also discusses the importance of adapting to changing market conditions.