Classics

Reminiscences of a Stock Operator - One of the great classics when it comes to understanding discretionary traders.

"I did precisely the wrong thing. The Cotton showed me a loss and I kept it. The wheat showed me a profit and I sold it out. Of all the speculative blunders there are few greater than trying to average a losing game. Always sell what shows you a loss and keep what shows you a profit." - Reminiscences of a Stock Operator.

Confusions and Delusions: Tulipmania, the South Sea Bubble and the Madness of Crowds (Wiley Investment Classics) - It is remarkable how well the two authors captures the mindset of investors in markets driven by pure psychology. Perhaps one of the first books written in behavioral finance.

"Peeling a most extraordinary onion", replied the philosopher. "Hundert tausend duyvel!" said the Dutchman; "It's an Admiral Van der Eyck"- Extraordinary Popular Delusions.

Futures Game: Who Wins, Who Loses, and Why - Possible one of the better books written on trading futures, the whys, the dos and don'ts for all possible types of traders. A book  that I am going to reread in a not too distant future.

"Why worry about realized losses? They are more than overcome by profits."- Futures Game.