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5 Books to Read Before Getting Into Investing or Trading

| April 16, 2020
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For whatever reason, in the past 5 years, there has been a massive uptick in younger people getting scammed into trading bitcoin and forex. Charlatans have been offering advice on how price movements and witchcraft chart analysis can yield unreasonable profits which hopefully will raise an eye at the SEC. These investment vehicles have there own merit but offering get quick rich schemes to young hopeful individuals is highly irresponsible. Finance and investing is a very broad subject and for one to properly get into the subject the proper foundation and principles need to be set. These 5 books go through the many nuances of investing, emotional behaviors in finance, patience. basic strategies and modern-day analysis on investing and trading. After reading these books one should have a marginal grasp of investing and trading.

1.) Stocks for the Long Run

Jeremy Siegel

Warren Buffet, one of the greatest investors of all time, said that if you cant own a stock for 10 years you shouldn't own it for 10 minutes. Stocks for the long run goes into the statical reasoning on why that quote is true. 

2.) Dark Pools

Scott Patterson

High-frequency algorithmic trading is taking over Wallstreet as the software has become more and more prevalent. Investment banking utilizes dark trading networks that do not show up on publicly traded exchanges and shows the massive disadvantage for retail and day traders. Technical analysis is a trading strategy that many day traders utilize and this book will quickly make you realize the colossus disadvantage you are in. 

3.) American Sucker 

David Denby

2001 was peak internet and was the bursting of the tech bubble. American Sucker follows a journalist as he tries to capture and be a part of the investing world only to lose his entire savings in the bursting of the bubble. It is a great expose on how behavior with investing is hand in hand as goes to show why so many retail traders should stick to mutual funds altogether. 

4.) The Intelligent Investor

Benjamin Graham

This is the investing golden standard. There is some outdated knowledge when it comes to some particular investments but these principles and foundations that this book sets out are tried and true. This is the book that taught warrant buffer on how to invest (after he was a corporate raider on Wallstreet) and become what he is today. 

5.) JFK and the Reagan Revolution: A Secret History of American Prosperity

Larry Kudlow

Larry Kudlow is on the economic advisor for current president Donald Trump and before that, he wrote this terrific book that delves into the history of taxes on individuals and corporations and goes over some of the problems that cause rolling recessions and economic turmoil. This book also lays out in an example of the importance of a low tax system. 

Barrons is also a great news publication that gives great weekly journalism on current market events and long term trends. 

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Stephen Poll
Financial Advisor at Clay Financial
Stephen@ClayFinancial.com
(419)806-2986
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