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The reading list is gradually growing. As you might have noticed I don’t recommend book just for the sake of recommending and earning peanuts from Amazon. Hopefully, I have been able to provide value for your bucks and have added to your ever growing knowledge bank.
Firstly I introduced “The Little Book that beats the Market“. I also gave several examples of real trade on how one can find plays for “option trading” and in fact OPN subscribers know how MRO (one of the results from MFI screens) delivered 33.8% and later 3.1% returns subsequently. This book continues to deliver good results and has over delivered many times and will continue to do so. If you haven’t not used yet, check out the website that delivers fabulous screen, for free. If you haven’t yet signed for guest access, check out Value Investors Club (Open only for 250 permanent members, free, but one needs to work hard to get the membership). The author, Mr. Joel Greenblatt, has brilliant track record, second only to Mr Warren Buffet.
Then I recommended “Option Trading: The Hidden Reality“. This was the only book that was above $20. As I mentioned, this is not meant for beginners. One needs to have a good understanding of what options are? Once understood, then purchase this book which takes you to new heights in the options trading world. It’s not an easy book. Charles Cottle, the author, also offered 10% discount to those who buy under “OptionPundit” code. I am wholeheartedly recommending to buy from Risk Doctor so he is rewarded for great efforts. For those who don’t know Charles, read his impressive profile.
A Guide to Economic Indicators by Economist was another addition to this library. I don’t think I could have interpreted weekly economic data published by several institutions worldwide without help of this amazing book. This is like dictionary that is alongside with me all the trading time.
Mohnish Pabrai, who runs over US$400million funds based on inspiration from Warren Buffet and Charlie Munger recently published, The Dhandho Investor, that outlines a framework. He doesn’t necessarily talk about how to evaluate a business (which many think that this book is about), rather he lays out a framework for “Character of Value Play”. A resourceful book to find good play.
I also recommended a book for speculative trading by being ahead of the market. Of course the book is not intended for option trading, but there is one particular event that happens 4 times in a year i.e. earning announcements where this book can be used. No one can predict exactly how earnings are going to be, but this does provide a good hint and one needs to prepare well for either direction. It does help to increase chances of success.
Do let me know how did you like reviews or if you would like me to review from some different point of view,
Profitable Trading, OP