As you may have read in my “Me, Me, Me” page, I got started as an active trader by reading this book. And while it’s an amusing and interesting story, the ATA (Actual Trading Advice) is pretty slim. So it was something of a fluffy, puffy book for me.
Not satisfied, I went looking further. I was heading to Hawaii for a vacation – no, NOT earned with all my stock market winnings. I wanted some ebooks for the plane etc, and found a positive gem.
It’s called The Honest Guide to Stock Trading, by Llewelyn James. I got lucky with a really great book at the beginning of my journey, because there are some real dogs out there. Llewelyn does a really great job of explaining not just how to trade, but loss management, portfolio management, position-sizing etc. It’s like a shot of tequila…distilled down to its raw, unfiltered state.
I also like that he insists on testing everything. I’m a huge skeptic when I come across technical traders who read charts like tea leaves and horoscopes. “This one looks like a cup-and-saucer. This one looks like a double-bottom. This one looks like a girlfriend I had back in February of last year…” But not Llewelyn. He gets his robot-ninja chart-crunching software out and smacks the heck out of those charts, until money drips out.
But he’s very clear: the money drips and sometimes runs dry. It doesn’t pour out like some charlatans claim. In short, he speaks to my “prove it to me” nature.
Without hesitation I recommend his book. His other one is good too, but start here. Oh and he has a blog too (here).