11 Trading Books
Download and review books that you have found helpful in your trading education and career.
Summary
A Practitioner’s Guide to Reading VIX by Tim Edwards, PhD, and Hamish Preston offers a detailed examination of the VIX index, known as Wall Street’s "fear gauge." It explains how VIX levels are calculated from S&P 500 options and provides rules for interpreting these levels to predict future market volatility.Our verdict
This book is a valuable resource for traders and financial professionals who utilise VIX in their market analysis. It excels in breaking down the complexities of VIX and providing clear, actionable insights into its predictive capabilities. However, it doesn't cover trading strategies that revolve around the VIX.Cryptocurrency Basics: Blockchain, Bitcoin, and Betting on the Future
Justin Tantalo, 22 , 2021
Summary
Cryptocurrency Basics: Blockchain, Bitcoin, and Betting on the Future by Justin Tantalo is an introductory guide to Bitcoin and blockchain technology. It explains the origins of Bitcoin, the mechanics of blockchain transactions, and the role of miners. The book also covers digital scarcity, Bitcoin's potential and limitations as a form of money, valuation models, and the inclusion of crypto assets in investment portfolios.Our verdict
This book is ideal for traders seeking to understand the foundational aspects of Bitcoin and blockchain. It excels in explaining blockchain mechanics and Bitcoin's role in the financial system, providing useful insights for those considering crypto investments. The discussion on valuation models and portfolio inclusion offers practical information for traders looking to diversify with digital assets.
Summary
An A-Z of Blockchain and Crypto Jargon by Baker McKenzie team is a comprehensive glossary of over 90 key terms and concepts in the blockchain and cryptocurrency space.Our verdict
This book's glossary format makes it well suited for anyone looking to get up to speed with crypto's often confusing terminology. Each entry is concise yet comprehensive. However, those seeking in-depth explanations or practical examples will need to consider other reads.
Summary
Blockchain For Dummies, 2nd IBM Limited Edition by Manav Gupta provides a comprehensive overview of blockchain technology, with a focus on business applications in financial services, supply chain management and healthcare. It places emphasis on Hyperledger Fabric, an open source blockchain framework.Our verdict
This book will appeal to business leaders looking to further their understanding of the blockchain. It explains how an enterprise blockchain could work, and provides actionable steps to building your own. However, it is non-technical and may disappoint developers or those seeking highly technical details.
Summary
The Diary of a CFD Trader by Catherine Davey is a personal account and guide to trading CFDs (Contracts for Difference). The book chronicles Davey's three-month journey of turning $13,000 into $30,000, providing insights into her trading strategies, emotional experiences, and the practicalities of trading CFDs. This free sample covers the basics of CFDs, and the first week of her trading log.Our verdict
In our opinion, The Diary of a CFD Trader by Catherine Davey particularly shines for those who are new to CFDs. The book's strength lies in its honest and detailed account of the author's trading experiences, providing readers with a realistic look at both the challenges and rewards of trading CFDs. Davey's transparent discussion of her mistakes and emotional journey makes the book relatable and instructive.
Summary
Bitcoin: A Peer-to-Peer Electronic Cash System by Satoshi Nakamoto introduces the concept of Bitcoin, a decentralised digital currency that allows online payments to be sent directly from one party to another without going through a financial institution. Interestingly, it also draws attention to one of the network's weaknesses, namely the reliance on the majority of CPU power being controlled by honest nodes to maintain security.Our verdict
Bitcoin: A Peer-to-Peer Electronic Cash System is a seminal work that is essential reading for anyone serious about understanding the underpinnings of cryptocurrency and blockchain technology. The proof-of-work mechanism and the approach to decentralised consensus introduced in this paper have inspired numerous other blockchain projects, including Ethereum, Dogecoin and Litecoin.
Summary
Thinking of Trading Contracts for Difference (CFDs)? by the Australian Securities and Investments Commission (ASIC) is a comprehensive guide about the complexities and risks associated with trading CFDs. The booklet explains the mechanics of CFDs, their differences from traditional shares, and highlights significant risks, including leverage, counterparty, and liquidity risks.Our verdict
In our opinion, ASIC's booklet is a must-read for beginners, and anyone considering CFD trading. Its clear, no-nonsense approach to explaining the intricacies of CFDs, and the robust risk management strategies it advocates provide a solid foundation for making informed trading decisions.
Summary
Intermarket Technical Analysis by John J. Murphy explores the interconnected nature of financial markets, across stocks, bonds, commodities, and currencies. He draws on historical events, like the 1987 stock market crash, to illustrate that no market operates in isolation.Our verdict
In our opinion, Intermarket Technical Analysis by John J. Murphy is an essential read for experienced traders who already have a foundational understanding of technical analysis and are looking to expand their market perspective.This book will also appeal to macro investors and anyone trading multiple asset classes, as it explains how shifts in one sector can ripple through others. While correlations between asset classes have changed over time, this book's principles remain broadly applicable to this day.
Summary
Gold as a Store of Value by Stephen Harmston, published by the World Gold Council, is a detailed study exploring the historical and economic significance of gold as a store of value across various countries and time periods, as far as the 18th century. The book examines the performance of gold compared to other financial assets like bonds and stocks, highlighting its role during periods of economic instability, inflation and war.Our verdict
Gold as a Store of Value by Stephen Harmston is a must-read for investors seeking wealth preservation and diversification, away from stocks and bonds. Its discussion of gold's ability to maintain its purchasing power in times of war and instability is particularly relevant to our times. While the focus is on gold, this book's findings will be interest to those trading other precious metals or considering gold-related financial instruments like ETFs.
Summary
Investor Bulletin: Foreign Currency Exchange (Forex) Trading For Individual Investors by the U.S. Securities and Exchange Commission (SEC) provides a detailed overview of the forex market, highlighting its complexities and inherent risks. The bulletin explains key concepts such as leverage, currency pairs, and the bid-ask spread, while also addressing the unique quoting conventions and the types of forex transactions available.Our verdict
This publication by the SEC is an essential read for anyone considering diving into forex trading, particularly novice traders. It stands out due to its clear and straightforward explanation of fundamental forex concepts, which are often glossed over in more advanced trading books.For more experienced traders, the bulletin might seem basic, but it serves as a useful refresher on the critical aspects of the market and regulatory environment. The emphasis on the lack of central clearing and the risks associated with dealing with market makers in the OTC market is crucial for all traders to understand.
While the bulletin is primarily focused on forex, the principles discussed regarding risk management and transaction costs are universally applicable across other asset classes, making it a relevant resource for a broader audience.
Summary
Lehman Brothers' internal Foreign Exchange Training Manual was written for its new joiners. The manual covers spot Forex transactions, forwards, swaps, and options, providing detailed explanations and practical examples for each. The book serves as both a theoretical and practical resource, as every chapter ends with a 'question and answer' section.Our verdict
This confidential manual, now fallen into the public domain, is a rare find. For novice traders, the book offers clear and structured explanations of basic concepts such as spot and forward transactions. Experienced traders will benefit from the detailed sections on swaps and options, and ways to manage interest rate differentials and hedging risks.While this manual is specifically tailored for those involved in the Forex market, its discussion of risk management and trading techniques could be of interest to those dealing in other asset classes, such as commodities or equities.