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I got on Fintwit to study data around my own trade ideas, but get so many requests about resources to learn how to trade, & don't have time to answer them.
I've assembled a crash course for novices. A thread
1/ First, culture and lingo. https://www.amazon.com/Liars-Poker-Norton-Paperback-Michael-ebook/dp/B003E20ZRY/ref=sr_1_1?crid=1MP07N3WELQFI&dchild=1&keywords=liars+poker+michael+lewis&qid=1616718800&sprefix=liars+poker%2Caps%2C256&sr=8-1
I've assembled a crash course for novices. A thread
1/ First, culture and lingo. https://www.amazon.com/Liars-Poker-Norton-Paperback-Michael-ebook/dp/B003E20ZRY/ref=sr_1_1?crid=1MP07N3WELQFI&dchild=1&keywords=liars+poker+michael+lewis&qid=1616718800&sprefix=liars+poker%2Caps%2C256&sr=8-1
2/ Second, industry history. What is a hedge fund? This is important to understand the economic model & intention of actors in the game. https://www.amazon.com/More-Money-Than-God-Making-ebook/dp/B003SNJZ3Y/ref=sr_1_1?dchild=1&keywords=more+money+than+god&qid=1616718826&sr=8-1
3/ Understanding M&A and corporate intrigue -- this is important to understand adversarial nature of markets
. https://www.amazon.com/Barbarians-Gate-Fall-RJR-Nabisco-ebook/dp/B000FC10QG/ref=sr_1_1?crid=109A6KA5IH5WN&dchild=1&keywords=barbarians+at+the+gate&qid=1616718893&sprefix=barbaria%2Caps%2C260&sr=8-1
. https://www.amazon.com/Barbarians-Gate-Fall-RJR-Nabisco-ebook/dp/B000FC10QG/ref=sr_1_1?crid=109A6KA5IH5WN&dchild=1&keywords=barbarians+at+the+gate&qid=1616718893&sprefix=barbaria%2Caps%2C260&sr=8-1
4/ Learn about what economic cycles are. This is important to understand much of the talk about govt intervention in markets. https://www.amazon.com/Big-Debt-Crises-Ray-Dalio/dp/057856565X/ref=sr_1_1?dchild=1&keywords=big+debt+crises&qid=1616718951&sr=8-1
5/ Learn about what things look like when it hits the fan part 1: https://www.amazon.com/Too-Big-Fail-Washington-System-ebook/dp/B003XQEVUI/ref=sr_1_5?dchild=1&keywords=2008+financial+crisis&qid=1616719059&sr=8-5
6/ Hitting the fan, part 2 -- focusing on the tech bubble (Lowenstein is fantastic) https://www.amazon.com/Origins-Crash-Great-Bubble-Undoing/dp/0143034677/ref=sr_1_1?crid=39I3Y5NVAIDMU&dchild=1&keywords=origins+of+the+crash+lowenstein&qid=1616719160&sprefix=origins+of+the+crash%2Caps%2C244&sr=8-1
7/ Hitting the fan, part 3: LTCM https://www.amazon.com/When-Genius-Failed-Long-Term-Management/dp/0375758259/ref=pd_sbs_4?pd_rd_w=Q5PJV&pf_rd_p=527ea27c-adf6-4b67-9c5f-265eb29e0622&pf_rd_r=FVCXR6K9K3MG4PSQVSB2&pd_rd_r=1429e6bb-3095-4993-885f-777b6ddb3798&pd_rd_wg=lptQJ&pd_rd_i=0375758259&psc=1
8/ Hitting the fan, part 4: How it goes down in Emerging Markets https://www.amazon.com/Chastening-Inside-Crisis-Financial-Humbled-ebook/dp/B004OA64P2/ref=sr_1_5?dchild=1&keywords=asian+financial+crisis&qid=1616719266&s=books&sr=1-5
9/ Hitting the fan, part 5: Black Monday -- understanding what happened in 1987: https://www.amazon.com/First-Class-Catastrophe-Monday-Street-History-ebook/dp/B06XBY5W2P/ref=sr_1_2?dchild=1&keywords=crash+of+1987&qid=1616719360&s=books&sr=1-2
10/ Hitting the fan, part 6: The Great Depression in the US https://www.amazon.com/Great-Crash-1929-Kenneth-Galbraith-ebook/dp/B003ZSIT1Q/ref=sr_1_5?dchild=1&keywords=great+depression&qid=1616719440&s=books&sr=1-5
11/ Hitting the fan, part 7: Understanding Japan's lost decade, and policy responses (this book is painful to read but is a must read) https://www.amazon.com/Holy-Grail-Macroeconomics-Lessons-Recession-ebook-dp-B006ES4UX0/dp/B006ES4UX0/ref=mt_other?_encoding=UTF8&me=&qid=1616719497
12/ Hitting the fan, part 8: Confusion de Confusiones: seeing how market dynamics played out in late 1600s Amsterdam https://babel.hathitrust.org/cgi/pt?id=uc1.32106019504239&view=1up&seq=19
13/ Ferguson - the Ascent of Money -- gives broader context to the origin of the financial instruments we trade: https://www.amazon.com/Ascent-Money-Financial-History-World/dp/0143116177/ref=asc_df_0143116177/?tag=hyprod-20&linkCode=df0&hvadid=312111907622&hvpos=&hvnetw=g&hvrand=11584852269341271305&hvpone=&hvptwo=&hvqmt=&hvdev=c&hvdvcmdl=&hvlocint=&hvlocphy=9033356&hvtargid=pla-451425775823&psc=1
14/ the first part of the crash course was literally about crashes. This was deliberate. New traders are focused on making money when really they should be focused on not losing everything. This is the #1 thing I want to impart. #2 is I think it pays to focus on 1 great trader
15/ Rather than studying many traders, I *mostly* study George Soros bc he's the most clear about his process and made the most money for the longest period, employing both quant traders and qualitative traders. First - read the first half of this book: https://www.amazon.com/Soros-Staying-Ahead-Curve-ebook/dp/B000W0YFHW/ref=sr_1_1?dchild=1&keywords=soros+on+soros&qid=1616719854&s=books&sr=1-1
16/ Next read his work on the 2008 Financial Crisis where he keeps a live trade journal (it's his last work where he's fully the old Soros -- he had a stroke afterwards) https://www.amazon.com/Crash-2008-What-Means-Financial-ebook/dp/B004ROT3NA/ref=sr_1_1?dchild=1&keywords=soros+2008+crash+and+what+it+means&qid=1616719895&s=books&sr=1-1
17/ Next -- his work on Globalization. https://www.amazon.com/George-Soros-Globalization-ebook/dp/B004PYDBIU/ref=sr_1_1?dchild=1&keywords=globalization+soros&qid=1616719956&s=books&sr=1-1
18/ Having read these now go to his website, and read all his essays. Then go on to youtube and watch every interview Stan Druckenmiller has ever given. This one to start, then literally everything he's said (he was Soros' star trader)
19/ After that, read the book by Soros' quant - Victor Niederhoffer. Understand he lost all his money. Go back and read Soros predicting how and why Vic would lose, in his earlier books. This is very important. https://www.amazon.com/Education-Speculator-Victor-Niederhoffer/dp/0471249483/ref=sr_1_1?dchild=1&keywords=niederhoffer&qid=1616720069&s=books&sr=1-1
20/ Soros tried to fund Michael Platt, who turned him down and is arguably the largest money maker in macro for the past few years. Watch all his youtube interviews and read his Market Wizards chapter 10 times. https://www.amazon.com/Hedge-Fund-Market-Wizards-Winning-ebook/dp/B007YGGOVM/ref=sr_1_4?dchild=1&keywords=market+wizards&qid=1616720194&s=books&sr=1-4
21/ Finally -- to start dipping into context around trading technology -- really enjoyed the book on the Flash Crash. https://www.amazon.com/Flash-Crash-Trading-Manhunt-Mysterious-ebook/dp/B07WH9YDM8/ref=sr_1_2?dchild=1&keywords=flash+crash+trader&qid=1616720246&s=digital-text&sr=1-2
22/ Cool. Quick break, now back to Soros. It's worth studying how his first business partner thinks - read every book written by Jim Rogers. They're not very good, and frankly his tone annoys me, but the point I'm trying to get across is osmosis. https://www.amazon.com/Hot-Commodities-Anyone-Invest-Profitably-ebook/dp/B000FC2OO8/ref=sr_1_2?dchild=1&keywords=jim+rogers&qid=1616720437&s=digital-text&sr=1-2
23/ If you've got this far, you should treat yourself to the legendary Paul Tudor Jones trading documentary. Go back to Platt's and Soros recollection of the events in this video afterwards.
24/ So in conclusion, 3 key points: 1] study crashes and market/industry history before making a single trade or writing a line of code 2]: Study George Soros and his acolytes as they're quite prolific and helpful. 3] Please don't message me, I am not a teacher-- best of luck
