Any good books on share trading?

[Graemsay]

I might have been picking one part of Taleb's argument out, or misquoting it, namely that of survivability bias (at least according to the Wikipedia entry). His argument was that the number of market beating investors is what you'd expect by chance if you analysed the statistics, given the number of professionals in the game.

Hence my reading of his argument that they've been lucky rather than skilled.

The misperception of risk strikes me as the sort of thing that a philosopher such as Taleb would be interested in. In fact, he was involved in a fund for a while predicated on the odds of a Black Swan event being more likely than the market predicted. But because he didn't know what the event would be, it would buy up all sorts of cheap options, with the view that it'd generally lose money, but during a crisis (e.g. the GFC) it would pay out big.

 

[Sheryn]

An example is Stock X where I set my buy at $4, $2000 capital , $2000 margin loan, stop loss at 3.80 (5%) sell point at 4.40 (10%), its at 4.30 now so its looking good and im thinking I should raise my stoploss to break even.

But id like to learn more on fundamental analysis and hedging as there is still heaps I dont know.

Good onya for planning to learn about shares. It is a long lonely road if you don't work in the industry and it is mentally tough learning to take repeated losses of your capital.


Go for it..
Sheryn

 

[willair]

I might have been picking one part of Taleb's argument out, or misquoting it, namely that of survivability bias (at least according to the Wikipedia entry). His argument was that the number of market beating investors is what you'd expect by chance if you analysed the statistics, given the number of professionals in the game.

Hence my reading of his argument that they've been lucky rather than skilled.

The misperception of risk strikes me as the sort of thing that a philosopher such as Taleb would be interested in. In fact, he was involved in a fund for a while predicated on the odds of a Black Swan event being more likely than the market predicted. But because he didn't know what the event would be, it would buy up all sorts of cheap options, with the view that it'd generally lose money, but during a crisis (e.g. the GFC) it would pay out big.

I have read the "Black Swan" several times and it took a while to get my mindset around it,but my simple understanding of all the book can angle down too 15 pages,and a few that i read just before i make a simple low numbers trade,what the book taught me was ,study several low-mid-high range ASX
listed or any index in the world companies,and watch them each day,look at every announcement-media -internet-share trading chat rooms,everything
know the price high-low over several years ,then play the waiting game everyone you study will have a very low $% some over 10-17% at some stage
then strike hold and sell..imho..

 

[slammindan]

Have to add '50 Years in Wall Street' by Henry Clews if you enjoyed those two.

Thanks. I always seem to enjoy these types of books over the 'how to' ones.

 

[slammindan]

Hence my reading of his argument that they've been lucky rather than skilled.

This is especially true in secular bull markets where everyone can't help but ride some winners.

My view is those making money consistently in the markets over the long term aren't lucky, they have a plan and take from those who don't. Even if markets are unpredictable and random, which I think they are, trends can and do last for months and years. Where a trend exists you can make money.

 

[slammindan]

It is a long lonely road if you don't work in the industry and it is mentally tough learning to take repeated losses of your capital.

Wise words Sheryn. The price you pay for education is giving your money to the market..over and over..and over again