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You’re Always “The Student”
When it comes to the markets, you’re always the student.
The market itself is the teacher, and every day it offers lessons for those willing to observe and learn. Our goal is simple: to gain more insight today than we had yesterday into what the market is trying to teach us.
At 29, I often feel it’s presumptuous to call myself an “expert” in anything. Expertise, after all, is a journey, not a destination. My passion for the markets runs deep, and, if I’m honest, it borders on obsession. Over the past decade, I’ve invested thousands in market study materials (CMT/CPA), books, and data tools. And yet, every day, I’m humbled by the lessons the market continues to teach me.
Today’s post is for those who share this obsession—those driven to grow, learn, and develop their craft. None of us are masters; we’re all humble students of the markets, constantly striving to improve.
To help you on this journey, I’ve pulled some of the hard-copy books I’ve enjoyed over the years.
Dive in, stay curious, and embrace the endless lessons the market has to offer.
Ever forward.
"Technical Analysis of the Financial Markets" by John J. Murphy - This was the first book I read cover to cover on technical analysis. It’s a comprehensive guide that lays the foundation for understanding essential tools and concepts in the field.
"Technical Analysis of Stock Trends" by Robert D. Edwards and John Magee - A cornerstone of technical analysis literature, this book dives deep into chart patterns and trend identification. It’s a must-read for understanding the principles that underpin modern technical trading strategies.
"Being Right or Making Money" by Ned Davis - This book marked a turning point for me. It introduced the concept of using quantifiable models to validate technical indicators, bridging the gap between data and decision-making. Davis also emphasizes the psychological aspects of investing and the critical importance of adapting to ever-changing markets.
"Japanese Candlestick Charting Techniques" by Steve Nison - Explains candlestick charting patterns and their application to trading.
"Anchored VWAP" by Brian Shannon - Discusses using the Volume Weighted Average Price (VWAP) as a tool for analyzing price trends.
"Intermarket Analysis" by John J. Murphy - Examines relationships between markets (stocks, bonds, commodities, currencies).
"New Concepts in Technical Trading Systems" by J. Welles Wilder Jr. - This book introduces essential tools like the RSI, ATR, and ADX indicators. What I particularly appreciate is the step-by-step walkthrough of the formulas behind these indicators. It’s one thing to use an indicator; it’s another to truly understand how it’s computed and why it works.
"The Little Book of Stock Market Cycles" by Jeffrey A. Hirsch - Focuses on historical patterns and cycles in the stock market.
"The Research-Driven Investor" by Timothy Hayes - A Christmas gift to myself, I’m currently two chapters in and thoroughly enjoying it. The book dives into quantitative approaches to market forecasting and decision-making, emphasizing systematic models and a top-down analysis approach.
"Stock Market Logic" by Norman G. Fosback - The next book on my reading list.
"Quality of Earnings" by Thornton L. O’Glove - A practical guide to analyzing company financials and assessing the quality of earnings. As a CPA, I found this book particularly helpful in understanding that not all earnings are created equal. It's an eye-opener for identifying the nuances behind the numbers
"Common Stocks and Uncommon Profits" by Philip A. Fisher - A classic that delves into qualitative factors in stock selection, including management quality, competitive advantages, and growth potential. This book complements technical analysis by adding a deeper understanding of the fundamentals that drive long-term success.
"Market Sense and Nonsense" by Jack D. Schwager - Explores common misconceptions and myths in investing and risk management.
"Market Wizards" by Jack D. Schwager - A classic, that Features interviews with legendary traders and their strategies.
“Bulls, Bears, and Dr. Freud: Why You Win or Lose on the Stock Market” - An introduction to Freudian psychology and its relevance to financial decision-making with real-world examples to highlight how emotions, biases, and herd behavior impact market dynamics.
"Secrets for Profiting in Bull and Bear Markets" by Stan Weinstein - This classic introduces the concept of Stage Analysis, providing a framework for understanding market cycles. It focuses on identifying optimal entry and exit points within both bull and bear markets.
"How to Make Money in Stocks" by William J. O’Neil - A page-turner that details the CAN SLIM methodology for identifying growth stocks and analyzing market trends. O’Neil expertly demonstrates the harmony between fundamentals and technical analysis.
Cheers,
Larry Thompson, CMT CPA