Financial books you NEED to read!
Do you want to understand the financial markets better, or just learn something new? These are my favorite financial books that you must read!
I'm 31 years old, have a master's degree in finance and have read half a ton of finance books for the last 10 years, but one of the best financial books I have ever read is “The New Market Wizards” by Jack Schwager. This book deals with current traders. For example, Stan Druckenmiller, who worked with George Soros, and who many in finance today know, is included in this book. This makes the book easier to relate to. One of the things that the book brings out particularly well is that there are many paths you can take to achieve your goal.
One of the modern books I would recommend is *"Flash Crash" by Liam Vaughan. The book tells the spectacular story of Navinder Singh Sarao, who left the parents 'boys' room on the outskirts of London. He warned the The Financial Supervisory Authority about a special type of trade, and there was no response at all. Then he assumed it was legal. While none of the banks had any problems, suddenly the FBI from the United States came knocking on the door.
*“Billion Dollar Whale” by Bradley Hope, which is about how Jho Low cheated the Malaysian fund IMDB. If you are going to read something where you learn finance in an enjoyable way, then this is a great book!
*To those of you that are new to the stock market, I will recommend "The Hour Between Dog and Wolf" by John Coates. This is good for beginners and explains what goes on in the head and body when you trade, more specifically the psychological pressure you are under. For example, it is very common to trade paper before you start investing with real money. When trading with fictitious money, the results will almost always be better than if you had used real money. The psychological pressure is not there when you trade paper. Everything changes the moment you actually have a real risk. Very few people are aware of how psychological pressure goes beyond the ability to make good decisions, and this book explains it well.
One of the first books I read was "Liar's Poker" by Michael Lewis (I like Poker too), this gave me a good taste of the characters I would later meet in the financial industry. The book was perhaps one of the best preparations I could have for the interview as a stockbroker, even though I had a master's degree in finance. One of the reasons I like the book is because the main character does not come from a standard economy or have any financial background. Through the book you get to know different stereotypes in the financial environment, and which it was fun to recognize later. Although the characters I have encountered in finance industry are not as extreme as the book describes, it still hits quite well. It is a book everyone should read sooner or later. This is one of the previous books written by someone who has worked in the financial industry, and who explains a bit about the history of the market. Michael Lewis is also a very good communicator.
Another book is *"Monkey Business" by John Rolfe and Peter Troob. It tells various stories from the corporate finance world. There are a lot of things I recognize myself from when I worked as a stockbroker. Especially from the times I worked late nights.
One classic I always recommend to my “finance friends” is *"Reminiscences of a Stock Operator" by Edwin Lefévre. You can actually find the book for free online since the rights have expired! The main character is a trader named Jesse Livermore, although another name is used in the book. The book is about how the main character started working in what is called "bucket shops", where you traded what you would today call trading products. He worked his way up to earn what today would have been several billion dollars. What makes the book relevant is how it is about market psychology, and how you as a speculator have positions to make money on it. The way the book describes how the main character behaves and thinks is still very relevant today.
The Best of the Best!
*“The richest man in Babylon”. This book suits me best and it was perhaps one of the books that made me think more about money and what it can do for you long term. Written by George S. Clason, the book is a collection of stories that give you a basic understanding of how and why you should save, invest, and build wealth. This is a classic and written in 1920, which is just as relevant today. The stories are based in ancient Babylon and teach you to value money, save money and invest. Everything you need to become the boss of your own financial future. Whether the stories are true or not has little to say, as it is the message that counts, and it is solid matters.
Out of the half ton I have read these are my books guys, I hope you will read them if you’re into finance – it’s worth every penny!
What is your favorite (financial) book that I NEED to read?
Cheers -Olebulls
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