Looking to make sense of markets and money? TD Ameritrade trading and investing professionals review their favorite financial books.
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Media Consumption in 2021: There is no such thing, and every platform has a goal. Social media allows you to stay in touch with your friends: share a laugh, post a meme, and, if you have to, chat politics. You can even learn how to bake a cake by watching one of these 30-second how-to videos.
But if you want to learn more about money and investing, consider going back to the old school and opening a book. The problem is, there are hundreds, if not thousands of investment books to choose from. With the help of some of the trading and investing professionals at TD Ameritrade, we’ve narrowed down the list.
We’ll start with JJ Kinahan, Chief Market Strategist. But before we begin, here is an options trading book by Kinahan himself: Essential option strategies. The first 120 pages contain general market information for anyone new to the market. From there, it’s all about starting with option strategies – from the grassroots through – in clear, easy-to-understand language.
Ready for more?
JJ Kinahan, Chief Market Strategist
The psychology of money -Morgan Housel
Through the 19 short stories in the book, Housel helps readers understand that financial decisions and personal money management are not so much about what you know as your behavior.
âI gave the book to my kids for Christmas,â Kinahan said.
Connie Hill and Barb Armstrong, education coaches
Hill and Armstrong each recommended two books, and they turned out to be the same two (brilliant minds?). Together, these two books form the foundation of technical analysis, the blend of art and science that seeks predictive power in prices and chart patterns.
Technical analysis of financial markets – John J. Murphy
Japanese candlestick mapping techniques – Steve nison
Murphy’s book is considered a one-stop-shop that includes everything a novice chartist might need to understand about technical analysis philosophy, Dow theory, chart patterns, indicators, volume, etc. .
And then there’s Nison’s book, which introduced Western audiences to the ancient art of candlestick mapping. Did you know that candlesticks were used in the 1600s and 1700s by Japanese rice traders?
For active investors who want to dig deeper into charting, the book offers a comprehensive overview of the unique information that candlestick charts can offer compared to bar and line charts. Nison exposes everything in great detail with a lot of images. Learn and see the impact of doji stars, bullish engulfing candles, hammerheads, shooting stars, and dozens of other patterns.
Viraj Desai, Senior Director, Portfolio Construction, TD Ameritrade Investment Management, LLC
Principles – Ray Dalio
This book offers a first-person testimony from one of the greatest investors and entrepreneurs of our time, Bridgewater Associates founder Ray Dalio. He sets out the principles of his investment philosophy which he has developed during his 40-year career.
âA great introduction to developing the right mindset to create, socialize and challenge your ideas, as an investor, manager and as an individual,â Desai explained.
Ken Rose, educational coach
Warren Buffett and the Interpretation of Financial Statements – David Clark and Mary Buffett
Buffett, the so-called âOracle of Omaha,â is considered one of the most successful investors of all time, and this easy-to-read book outlines the key metrics he uses to determine value.
âYou do NOT need a business background to understand the book. It’s short, sweet and simple, âsaid Rose.
John McNichol, educational coach
Against the gods: the remarkable story of risk – Peter L. Bernstein
This 1996 book came out in the midst of another long period of the bull market, which culminated with the dot-com bubble that burst a few years later. The overall message is timeless: the assessment of probability and risk is (or should be) inherent in all decision-making. Like a Washington post Review said in 1998, “This is a comprehensive story of man’s efforts to understand risk and probability, from ancient gamblers in Greece to modern chaos theory.”
Pat Mullaly, educational coach
The most important thing: common sense for the savvy investor – Howard Marks
For our last book suggestion, we picked one that, in Mullaly’s words, “is less often on the picklists, but worth reading.” It is written by President and Co-Founder of Oaktree Capital, Howard Marks. Like Buffett and Dalio, Marks came to prominence for his client notes, who frequently explored his investment philosophy and acumen.
The book delves deep into its clients’ notes and turns them into a series of essays on topics such as risk, opportunity, investing against the grain and so-called ‘second-level thinking’. .
The result on the trading and investment books
This list is far from being exhaustive. Again, there are thousands of books on investing. Honorable mentions and eternal favorites among all traders include Market assistants by Jack Schwager (a collection of stories about trade legends), Think, fast and slow by Daniel Kahneman (an overview of behavioral economics), and Memories of a stock market trader by Edwin LefÃ¨vre (largely inspired by the life of legendary speculator Jesse Livermore).
But books are only one component of a comprehensive financial education. Whatever your interests or investment goals, there is something for everyone: articles, videos, webcasts, immersive study programs, and more, available free to TD Ameritrade clients.